Nobody gets paid for a certificate that does not exist. When a claim is rejected or fails validation, the Clean Energy Regulator (CER) has not created the STCs, so the trader has nothing to sell. Who absorbs the cost then comes down to timing and the contract.
Rejected before payment
If you have not been paid, the cost is time. The claim sits in limbo while you fix the cause and the trader resubmits. Most failures are mundane: a missing or unreadable photo, a serial number that does not match the form, a signature gap on the assignment form, or an install that does not meet the stated installation type. Our guide to the top STC claim rejection reasons lists them in order of frequency.
Rejected after payment
This is where traders differ. Some pay on lodgement and carry the risk themselves. Others pay on lodgement but write in a right to recover the money, offset it against your next payment or invoice you if a claim is later invalidated. A few only pay once the CER has processed the claim. None of these is wrong, but they are not the same product. See trader terms on rejection after payment for the clauses to look for.
The failed-process, step by step
- The trader tells you the claim failed, ideally with the reason.
- You or the trader correct the evidence. If a photo cannot be retaken, say so early.
- The claim is resubmitted. Ask how long that takes and whether your rate is held.
- If it cannot be fixed, you agree what happens to any advance already paid.
Reducing the odds
A trader that checks photos, forms and serials before lodging catches most problems while the crew can still fix them. That is the point of pre-validation. It is also why a small rate difference between traders can be worth less than a lower rejection rate.
What this means for installers
Treat the recourse clause as part of the price. A trader paying slightly more but able to claw money back from a later rejection is not necessarily better than one paying slightly less with no recourse. Compare traders on the switch page, read the photo requirements guide, and look at how we price and how it works if you want to see our approach to checking claims first.