What is STC clawback and when does it happen?

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026 · For installers

Clawback is the downside of fast payment. A trader pays you for certificates that look valid, and then something shows they were not. Who carries the cost is a matter of contract.

How clawback arises

1. The claim is paid and the STCs are transferred.
2. A later audit, or the registry, finds a problem: no accredited installer present, a non-approved product, a falsified photo, or a duplicated claim.
3. The STCs are invalidated or flagged.
4. The buyer, who needs valid certificates, goes back to the seller for a replacement or a refund.

What may be recovered depends on the agreement and on whether the fault sits with you, the customer or the trader.

What the contract should say

• Whether the trader can recover from you, and in what circumstances.
• A time limit on the right to claw back.
• Whether recovery is by invoice, deduction from later payments or replacement STCs.
• What evidence you must keep, and for how long.

See the list in STC trader contract terms to check.

How to limit your exposure

• Pre-check claims. A compliance desk reviewing photos and forms stops most issues.
• Keep the evidence. Photos, forms and statements for the audit period.
• Know the attendance rules. See installer attendance requirements.
• Pay attention to patterns. Repeat issues in your work will show up in audits.

Documents that defend a claim

If a clawback is raised, you will need to show what happened on the day. The dated photos, the signed forms, the installer statement, the product serials, your accreditation records and any communication with the customer are the core set. Store them in a consistent, searchable folder with the job number, and keep them for at least as long as your contract and the scheme require. A well-organised file can end a dispute in a day, while a patchy one can drag on for months.

What this means for installers

You cannot remove the risk entirely, but you can reduce and price it. Learn the process in how STC audits work and top claim rejection reasons. The switching guide and STC trading page cover how traders differ.