The STC market has more labels than it has business models. Broker is the one most likely to be used loosely, so here is the strict meaning and how it shows up in practice.
What a broker does
In commodity markets a broker is an intermediary. It finds a buyer for what you hold and takes a commission for the introduction. It does not take title to the goods and does not carry the price risk. In the STC world, a broker might connect an installer or a large agent to a retailer that needs certificates.
In practice, Australian installers rarely deal with a pure broker. Most small installers assign their right to create STCs to a registered agent, who lodges, owns and sells them. Those agents sometimes call themselves brokers because the word sounds like a service. If it creates certificates under its own registration and pays you for them, it is a registered agent whatever it calls itself.
Broker vs trader vs aggregator
| Takes title to STCs? | Creates STCs? | How it earns | |
|---|---|---|---|
| Broker | Usually no | No | Commission |
| Trader | Yes | Often, as agent | Margin on resale |
| Aggregator | Yes | Usually, as agent | Volume margin, fees |
See also broker vs aggregator and aggregator vs trader.
Broker fees in Australia
Since a broker’s commission is rarely a published line, you may not see it. It is built into the rate, so your effective price is what counts. Compare net rate per certificate, the day the rate is locked, and any admin or per-claim fees. See aggregator fees and why traders charge per STC.
What this means for installers
Fewer layers usually means more of the spot price reaches you and money moves sooner. A broker adds value when you hold a large book of certificates and want a buyer for volume. For ordinary job-by-job claims, a direct relationship with a registered agent is simpler and cheaper to check.
Energy Merchants is a direct desk backed by REC Traders, trading since 2004. We publish our daily rate on pricing, lock it when a complete claim is lodged, and charge no fees. See how it works and the STC trading pillar for the full picture, or the switching guide if you are leaving a current provider.
Questions worth asking a broker
How long have you traded, who actually pays me, and is the rate you quote net of your commission? A broker confident in its model will answer in one email and put the figures in writing.