Every trader that buys your certificates has to earn a living from them. It does that on the spread: the gap between the rate it pays you and the price it realises when it sells. Understanding that gap is the quickest way to judge whether a rate is fair.
Where the spread comes from
A trader’s costs sit in four places.
- Registry and compliance work. Checking photos, forms and serials, lodging in the REC Registry, handling rejections and audits.
- Funding. If a trader pays you in 24 hours but is paid by its own buyers later, it is carrying the cash in between.
- Risk. Some claims fail validation or are later reviewed. The trader wears that risk unless its contract pushes it back to you.
- Price exposure. Spot moves daily. A trader that locks your rate and sells later is taking a view on the market.
What the ceiling does
At the time of writing, STC spot has been roughly $38 to $40, and the Clearing House ceiling is $40. The ceiling means the top of the range is known, so a trader’s margin is largely the distance between what it pays you and a number everyone can see. That is why a rate several dollars below spot should prompt questions. See STC spot price versus the Clearing House price for the mechanics.
Margin versus fees
Two traders can look identical on rate and differ completely on cost. One pays a headline rate and then deducts per-certificate admin, registry or “processing” charges. Another pays a slightly lower rate with nothing deducted. The only fair comparison is net dollars per certificate, after every deduction, on a real claim. Our own page on STC trader fees lists the deductions to look for.
| Line | What to ask |
|---|---|
| Headline rate | Is it locked, and when? |
| Deductions | Any per-claim, per-certificate or monthly charge? |
| Settlement time | Days to cash, and from which event? |
| Clawback | Can the trader recover payment later? |
What this means for installers
You are not trying to eliminate the trader’s margin. You are trying to make sure it is modest, visible and paid for something real, such as a compliance desk that catches problems before lodgement. Energy Merchants publishes its buy rate daily on the pricing page, charges zero fees, and locks the rate when a complete claim is lodged, so the number you quote from is the number you are paid. For a wider comparison method read how to pick an STC trader and the choosing a certificate trader checklist.
Margins also compress when volume rises, which is why many traders offer better rates to larger partners. If you lodge steadily, ask for it. The Partner Program is how we do that at Energy Merchants, and the STC trading overview explains the full flow from install to payment.