The small-scale technology percentage, or STP, is the number that creates demand for STCs. Without it, certificates would be a rebate with no buyer.
The definition
Each year the Clean Energy Regulator sets a percentage. Liable entities, mainly electricity retailers, multiply that percentage by the electricity they acquire for retail customers. The result is the number of STCs they must surrender, one certificate per megawatt hour. In 2026 the percentage is 11.67 per cent.
So a retailer that acquires 10 million MWh of liable electricity must surrender roughly 1.167 million STCs for the year. The retailer can buy them from the Clearing House at $40 ex GST, or from traders, usually at a small discount.
What it means for a retailer
For a retailer the STP is a cost of doing business, passed on to customers through electricity prices. Missing the target brings a shortfall charge for every certificate they fail to surrender, which we cover in the shortfall charge page. That penalty is why retailers are reliable buyers. Who the liable entities are is explained in who are liable entities under the RET.
What it means for STC prices
The STP is set so that demand roughly equals the regulator’s forecast of how many STCs will be created. The 2026 figure is based on 24.1 million estimated certificates. If installers create more than forecast, there is a surplus of certificates, queues form and prices drift below $40. If they create fewer, buyers compete. The percentage itself does not move the price, but the accuracy of the forecast behind it does. See what drives STC prices.
A falling STP is not bad news in itself. Non-binding estimates published by the regulator suggest 10.75 per cent for 2027 and 7.77 per cent for 2028, which reflect fewer certificates being created as deeming periods shorten. For the method and the dates, see how the STP is calculated and binding and non-binding STPs.
What the STP does not cover
It does not apply to the battery certificates created under the Cheaper Home Batteries Program. The regulator describes those as bought by the government rather than by liable entities. It also does not affect the number of STCs a solar system creates. That comes from the capacity, zone and deeming period, as explained in the deeming period and zone ratings guide.
What this means for you
If you install, the STP is background. If you invest or negotiate volume deals, it shapes the demand curve. Either way, the practical numbers are on the pricing page, and the full scheme walkthrough is in how STC trading works.