The demand for STCs comes from a legal obligation. Electricity retailers and other liable entities must surrender a set number of STCs each year under the Small-scale Renewable Energy Scheme. They either buy them from the market or from the clearing house. As an installer, you sit upstream of that, with three realistic choices.
1. A certificate trader
Most installers sell to a trader. The trader buys your registered STCs, pays you on agreed terms, and sells the certificates on to liable entities. At the time of writing the spot market has been roughly $38 to $40. Traders differ on rate, settlement speed, fees and whether they check your claim before lodgement. Our choosing a certificate trader checklist is a useful framework.
2. The clearing house
The Clean Energy Regulator operates a clearing house where you can sell at the fixed ceiling price of $40 each. It is a backstop, and the queue means the cash can arrive later than a trader would pay it. See what an STC is worth.
3. Direct to a liable entity
In principle you can sell straight to a retailer, but few installers do. The volumes are small, and the retailer will want a standing arrangement and legal paperwork.
How to choose
| Factor | Why it matters |
|---|---|
| Rate | The price per STC, ex GST |
| Locking | When the rate is fixed |
| Settlement | Days until cash arrives |
| Fees | Any deductions |
| Compliance | Whether claims are pre-checked |
What traders do for you
They absorb market risk, aggregate volumes, and manage the registry transfer. Good ones also catch evidence problems early.
From the desk: a trader quoting $39.50 and paying in ten business days can be worse than one quoting $39 and paying tomorrow. Price the waiting.
How the end demand is set
The annual STC obligation for retailers is calculated from a percentage set by the Clean Energy Regulator, applied to the electricity they acquire. Because it is a legal requirement, demand is steady, and the clearing house gives sellers a floor. That is why STCs are a more predictable product than many commodities.
What this means for installers
Energy Merchants buys STCs and publishes its rate on pricing, locks it when you lodge a complete claim, and settles in 24 hours for established partners. Read how it works, or go straight to STC trading, and see the resources hub for guides.