Wholesalers and distributors compete on stock, price and service. Some add a certificate offer, so the plumber buys the heat pump at a lower net cost and the supplier recovers the value by claiming the STCs. It looks like a discount on the unit. It is really a trade.
How the offer works
- You buy the unit at a price that assumes the supplier gets the STCs.
- The customer’s assignment form names the supplier or its agent as the recipient.
- You still install and gather the evidence, usually to the supplier’s checklist.
- The supplier creates or sells the certificates.
Alternatively, you pay the full price and sell the certificates yourself. The difference between the two is the supplier’s margin on the certificates and the time value of when you get paid.
What to compare
| Question | Why it matters |
|---|---|
| What STC value does the discount assume? | A low assumed rate costs you money |
| Who is named on the assignment form? | Defines who owns the certificates |
| Who carries a rejection? | You may be asked to refund the discount |
| Exclusivity | Locks you out of better settlement |
| Payment timing | Affects cash flow |
At the time of writing the market has been roughly $38 to $40 per STC. Compare the supplier’s assumption with the live rate on pricing.
Where supplier deals make sense
A new business with little working capital may value a lower upfront cost more than the extra certificate value. A high volume business, on the other hand, usually does better by selling certificates itself to a trader on a published rate with fast settlement.
From the desk: run one job both ways on paper. Net unit cost under the supplier deal against full price less the certificate sale, including the days you wait. The answer is rarely obvious.
Compliance
If someone else lodges the claim, your evidence still has to be right. The installer’s photos, licences and records are what the regulator will see. See heat pump STC paperwork and clawbacks and audits.
What this means for installers
Read the terms, name the owner of the certificates and keep the right to choose your trader if you can. If you sell your own certificates, a trader with published rates, a locked rate on lodgement and no fees gives you a clear comparison. See how it works, start trading and the hot water STC pillar, or compare options in choosing a certificate trader.
Documents to keep
If you take a supplier offer, keep a copy of the supply agreement, the assignment form template they provided, and any emails confirming the assumed certificate value. If the deal changes mid-year, you will want evidence of what was agreed on the day you bought.