STC clawback

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

STC clawback is a trade term, not a legal one. It describes what happens when a trader has paid for certificates, and those certificates are later found to be invalid, so the trader asks for the money back or deducts it from a later payment.

Whether it applies and how it works depends on the agreement. Some traders offer a clean settlement at a quoted rate with the risk of invalid claims on their side, within limits. Others pay now and reserve the right to recover later. Read the clause before you sign. See choosing a certificate trader checklist.

What triggers it

The usual causes are on the claim side.

• Missing or non-compliant photos and serial numbers.
• Wrong installation type, such as claiming a replacement as a new system. See installation type.
• Unapproved panels, inverters or batteries, or an installer without current accreditation.
• A finding in an audit by the Clean Energy Regulator. See how STC audits work.

A worked figure

If a job created 60 STCs and the trader paid, say, $2,300 for them, the clawback exposure is that $2,300 if the certificates are invalidated, not the lower amount you might assume from a single failed photo. Where the agreement allows, a trader could net the amount off the next settlement.

In practice

The best defence is a clean claim. A compliance check before lodgement catches most problems while they can still be fixed, and records kept for the retention period let you answer questions months later. A trader that pre-checks claims shortens the window in which clawback can arise. Ask the trader for its policy in writing and what it will do if a claim is queried after payment.

Common confusion

Clawback is not the same as a rejected claim. A rejection happens before payment, and you fix and resubmit. Clawback happens after. It is also not a fee. The money was paid for certificates that did not stand up.

See /pricing/, STC trading and the glossary.