Three searches ask when STC payment happens: on registration versus settlement, before registration and on submission. They share an answer, because they are three points on the same timeline.
The timeline of a claim
- Submission. You lodge the claim in the REC Registry and give it to the trader.
- Trader review. The trader checks the documents.
- CER validation and registration. The Clean Energy Regulator checks the record. If it passes, the certificates are registered.
- Settlement. Certificates are transferred to the trader, who becomes the owner.
Payment can be tied to any of these steps. For the glossary terms, see registered STC, settled STC and unregistered STC.
Pay on submission
The trader pays shortly after you lodge a complete claim, before the CER has registered anything. This is the fastest cash for you. The trader carries the validation risk, which is the chance the claim fails.
To manage that risk, it will generally:
- limit this to established partners with a clean record
- pre-check documents before lodgement
- recall payment, or net it off later, if the claim fails
Pay on registration
Payment follows the CER registering the certificates. The wait is longer, but the claim has passed the regulator’s check. The trader’s risk is lower and the terms are usually simpler.
Pay on settlement
Payment follows the transfer of certificates to the trader. It is the safest point for the trader and the slowest for you. The difference between registration and settlement is usually a matter of days, but it adds up.
How it affects price
Paying earlier means carrying more risk, so some traders price the difference, either by paying a lower rate for unregistered certificates or by applying conditions. Others absorb it for good partners. See how unregistered STCs are priced for the detail.
What this means for installers
Match the payment point to your cash cycle and your claim quality. If your claims are clean, paying on submission or lodgement can be a real advantage. If your documentation is patchy, a slower settlement may cost you less in recalls.
At Energy Merchants the rate is locked on lodgement of a complete claim and established partners are settled in 24 hours, with the compliance desk reviewing the claim before it goes in. Check pricing, how it works and our guide on payment timing when you compare. See also STC payment terms.