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Glossary

Failed STC

A failed STC is a creation that did not pass the Clean Energy Regulator's validation or audit and therefore does not become a valid certificate. Installers lose the expected revenue unless the fault can be corrected and the claim resubmitted within the rules.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026

A failed STC is a certificate that never became valid, or that was found to be invalid after the fact. It means the claim did not satisfy the rules.

What causes it

The common reasons are ordinary ones: photos that do not show the required items, a signed form that is missing or inconsistent, an installation date outside the allowed window, an ineligible product or installer details that do not match. Our summary of top STC claim rejection reasons covers the typical list.

In practice

Who bears the loss depends on the stage and the contract. If the creation failed before settlement, the installer has no certificates to sell. If a settled certificate is later found invalid, the trader may look to the seller for a replacement or a refund. Read the terms for how this is handled, because it varies.

In some cases the fault can be fixed. A missing document can be supplied and a wrong date can be corrected, depending on what the regulator allows. In others the claim cannot be saved.

Worked example

An installer lodges 60 STCs for a system. The audit finds the installation photos do not show the inverter serial plate. The installer cannot supply an acceptable substitute, and the creation fails. At roughly $38 to $40 per STC at the time of writing, that is about $2,300 to $2,400 of revenue, and the work has already been paid for in labour and materials.

Common confusion

Failed is not the same as pending. A pending audit can still pass. Failed is not the same as surrendered either, which is the normal end of a valid certificate. See surrender.

From the desk. The cheapest fix is before lodgement. A pre-check on photos and forms costs minutes. A failure costs the full value of the claim.

Our compliance pre-checks and the photo requirements are built for this. Browse more in the glossary.

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