Forward price (STC)

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

A forward price is a price fixed today for certificates delivered later. Where the spot price is what an STC trades for now, a forward price is what a buyer and seller agree to pay for STCs that will be created next month, next quarter or later.

Why anyone agrees one

For the buyer, a forward price locks in supply and a known cost. For the seller, it locks in revenue against a market that can move. Both give up the chance of a better price in exchange for certainty.

Worked example

An installer expects to lodge 2,000 STCs a month. A trader offers a fixed price for the next three months of volume. If spot then rises, the installer is below market. If spot falls, the installer is ahead. Either way the margin on the jobs sold at the start of the quarter is no longer a guess.

In practice

For most small-scale solar installers, the STC market has been steady. At the time of writing spot has been roughly $38 to $40 and the clearing house ceiling is $40, which caps the upside and keeps forward pricing relatively tight. The risk is more in volume and timing than in price.

Forward arrangements matter more for larger operators and for markets that move more, such as VEECs, where spot has been roughly $85 to $95 in 2026. See VEEC.

Common confusion

A forward price is not a forecast. It is a contract. It is also not the same as a published daily rate that a trader locks on lodgement of a complete claim, which is a short-dated, spot-linked price rather than a long-dated forward. See STC spot price for the daily mechanics.

Rates move, so check pricing for the current published position, and read how it works for the settlement steps. More terms are in the glossary.