Installers meet two pricing styles. Spot-linked means your rate follows the market, usually less a margin. Locked means the rate is fixed at a defined point. Neither is better in the abstract; the right one depends on how you quote and how the market is behaving.
How they differ
| Spot-linked | Locked | |
|---|---|---|
| Price known when | At payment | At the lock trigger |
| Upside if market rises | Yes | No |
| Protection if market falls | No | Yes |
| Best for | Installers who can absorb swings | Fixed-price quoting and tight cash flow |
Why the gap is narrow
At the time of writing, STC spot has been roughly $38 to $40, and the Clearing House sells at $40. A buyer will never pay more than $40 on the open market because it can always buy there. That caps your upside, so what you give up by locking is small. The downside is not capped in the same way: if oversupply pushes prices lower, a lock protects you. Read why STC prices sit below $40 for the reasons.
The real risks of a lock
- A vague trigger. If the price locks at payment, not lodgement, you have no lock at all.
- A discount for certainty. Some traders pay noticeably less on a locked rate than on spot. Compare net dollars.
- Clawback terms. A fixed price means little if the trader can recover payment months later. Check clawback terms.
- Volume or exclusivity conditions. A lock tied to all your volume can limit your options, see using two STC traders.
When spot-linked can win
If you are large, well capitalised and watching the market, spot-linked pricing lets you capture rises. It can also suit installers who sell certificates in bulk on their own terms. For most small and mid-sized crews, the certainty of a lock is worth more than a few cents of upside.
What this means for installers
Decide by how you quote. If your discount to the customer is fixed, lock. If you can adjust your quote daily, either works. Whichever you choose, get the trigger and settlement time in writing. Energy Merchants publishes the rate daily on the pricing page and locks it on lodgement of a complete claim; the how it works page shows the steps, and how an STC rate lock works goes deeper on triggers.