The STC discount changed how solar is sold. Customers see a gross price, a certificate line and a net price, and the net price is what they compare. Installers carry the gap between what they promised and what the certificates later fetch. Pricing well means being clear about that gap.
Start with cost, not the certificate
Build the price bottom-up: product, labour, travel, permits, overhead and the margin you need. Then add the STC discount as a line subtracted from the gross price. If your margin only works at a high STC value, the job is a bet on the market. At the time of writing STCs have been roughly $38 to $40, with the clearing house ceiling at $40, so the upside is limited and the downside is not. See what an STC is worth in 2026.
Who carries the risk
The customer’s discount is set when they sign. The installer then creates and sells the certificates later. If the price moves in between, or a claim is rejected, the installer takes the difference. There are three ways to manage it.
- Lock the rate. Use a trader that locks its published rate on lodgement of a complete claim. Our rate is on pricing.
- Build a buffer. Assume a certificate value slightly below the market on quotes.
- Shorten the time. The less time between install and sale, the smaller the exposure.
See what STC price installers use on quotes and whether installers keep part of the STC discount.
Margin in 2026
Three pressures squeeze solar margins: shrinking deeming periods (five years for 2026 installs, four for 2027), competitive quoting and, for larger systems, the new mid-scale rules. Systems above 100 kW and up to 1 MW installed from 1 October 2026 can create STCs with a fixed five-year deeming period. See mid-scale solar STCs. On residential work, the certificate value per kW falls each year while stock costs do not necessarily follow. Use the STC calculator to check the discount per system.
A quote that holds up
- Gross price, STC count, value per STC, discount, net price
- A statement of what happens if a certificate is refused
- Validity dates tied to a rate you can actually lock
From the desk: do not hide the STC in “government rebate”. Customers who understand the line are less likely to dispute it, and installers who show it are easier to compare.
What this means for installers
Know your cost floor, price above it, lock the certificate rate where you can and settle fast. A zero-fee trader with a published daily rate makes the maths simpler. See how it works, start trading, how to improve cash flow and solar installer business tips.