The Clean Energy Regulator administers the Small-scale Renewable Energy Scheme, and it has powers to review and act on claims after the fact.
How it works
The Regulator audits a sample of claims, and also follows up red flags. If it concludes that STCs were created in error, it can invalidate them. The registered person holding them is then expected to deal with the consequence, in practice by providing replacement STCs or other agreed action.
Because the certificates have moved on by then, that person usually looks back up the chain. That is the mechanism behind STC clawback.
What typically triggers it
- The accredited installer did not attend, or was not accredited.
- Products were not eligible on the install date.
- The system size or installation type was misstated.
- Photos or forms were falsified or reused.
- The same system was claimed twice.
Genuine mistakes can be corrected, but deliberate misstatements may lead to more serious action.
What it means in money terms
Your exposure is the value of the STCs, any replacement cost at current market prices, and possibly costs of the process. Since market prices move, a replacement purchased later can cost more than you were paid.
How to reduce the risk
- Have a compliance check before lodgement.
- Keep dated photos, forms and statements for every job.
- Follow attendance requirements.
- Choose a trader whose contract is clear on invalid certificates.
Responding to a notice
If you receive a notice about a claim, read it carefully, note the deadline and respond in writing. Do not alter documents or recreate photos. Collect the original evidence, and speak to your trader who may have dealt with similar notices. If the amounts are large, take advice from someone who knows the scheme. A calm and complete response is usually better received than a late and defensive one, and early engagement can limit the outcome.
What this means for installers
Think of the Regulator as a counterparty with long memory. A trader that pre-checks claims shifts risk away from you. Read how audits work, who is responsible for a failed audit and the resources hub. See how our desk handles it at how it works and the STC trading page.