People often describe STCs as a government rebate. The money does not work that way, and understanding the trail makes it clear why timing and rates differ between buyers.
The money trail in five steps
- Quote. The installer quotes the system price with the STC discount already taken off. The customer pays the lower amount.
- Assignment. The customer signs over their right to the STCs, using an assignment form. From that point the certificates belong to the installer, or to whoever the installer nominates.
- Creation. The STCs are created in the REC Registry after the Clean Energy Regulator validates the claim.
- Sale. The installer sells the STCs to a buyer: a registered agent, a trader, or directly into the STC Clearing House at the $40 ceiling price.
- Payment. The buyer pays the installer by bank transfer, usually against a recipient created tax invoice. See RCTI, GST and ABN.
Where the money really comes from
Retailers and other liable entities under the Renewable Energy Target have to surrender STCs to the CER every quarter. That legal obligation is the demand. The market price floats under the clearing house ceiling of $40; at the time of writing spot has been roughly $38 to $40. A buyer who pays you $39 is making a thin margin selling on to a retailer, and the spread is what you compare when you shop traders.
How the payment arrives
Almost always a direct bank deposit, once per claim or in a batch. The buyer typically issues an RCTI (a recipient created tax invoice) on your behalf so you do not need to raise your own, which is why your ABN and GST registration details need to be right at sign-up. Payment timing depends on the buyer’s terms, which we cover in how long it takes to get paid for STCs.
What this means for installers
You are not waiting on the government, you are selling a commodity on a price and a payment term. The two numbers to compare are the rate and the days to cash. Energy Merchants publishes its rate daily on pricing, locks it when a complete claim is lodged, and charges no fees. Read what an STC is worth in 2026 for the broader price picture.
New to selling certificates? Start trading walks through the account setup. The FAQ has more answers like this.