Heat pump STCs are the same federal certificates as solar STCs, and the buyers are the same. Once the Clean Energy Regulator (CER) registers a certificate, it can be transferred to whoever buys it.
Who buys
Three groups handle heat pump STCs.
- Liable entities, mainly electricity retailers, who must surrender STCs to the CER each year to meet their obligation. They are the demand behind the market.
- Traders and aggregators, who buy from installers and sell on. This is where most installers deal.
- The clearing house, a CER-run mechanism that buys at a fixed price. At the time of writing the ceiling is $40, and the spot market has been roughly $38 to $40.
Our heat pump STC trader answer covers what to look for in a counterparty.
How a trader pays
After the claim is registered, the installer transfers the certificates and is paid at the agreed rate. Terms to compare:
- Rate. Fixed on lodgement, or floating until settlement.
- Days to pay. Same day, 24 hours, a week, or 20 days or longer. See 20 days vs 1 day.
- What starts the clock. Registration, or a trader’s own review.
- Fees. Some traders deduct admin or processing fees.
- Rejection risk. Who carries it if a claim fails.
What drives payment time
Quality is the biggest factor. A claim with matching serials, a signed form and a clear photo set goes through once. A claim with a gap goes back and forth, and every round restarts the clock. The second factor is the trader’s process. Some need to wait for the regulator, others pre-check and settle on a schedule. The third is paperwork on your side, particularly the recipient created tax invoice. See RCTI, GST and ABN.
From the desk: do not compare traders on headline rate alone. A rate that pays three weeks later costs you the interest on the working capital you have funded in the meantime.
What this means for installers
Ask for the rate and the payment time in writing, and what happens if a claim is questioned. Energy Merchants publishes a daily rate on pricing, locks it on lodgement of a complete claim, charges zero fees and settles within 24 hours for established partners, with the first claim taking 48 to 72 hours. Settlement is backed by REC Traders, trading since 2004. See how it works, how long payment should take and the hot water STC pillar. To set up, go to start trading.
Questions to ask before you sign
Ask what happens to your rate if you lodge on a Friday and the claim clears on a Tuesday. Ask whether there is a minimum volume, a contract term or an exit fee. Ask who you ring when a payment is late, and whether that is a named person or a ticket queue. The answers tell you more about the trader than the headline rate does.