Choose an STC trader by running the same job through each one and comparing three outputs: net dollars in your account, the number of days it takes, and what is likely to go wrong. Rate alone is the weakest of the three. A rate that looks 20 cents higher can lose to a lower one that pays ten days faster, rejects fewer claims and carries no deductions.
This is a method rather than a checklist, because the order you ask the questions in matters. For a shorter list of what to ask a trader, see what to look for in an STC trader. For the list of items to check in a contract, the existing certificate trader checklist covers the ground.
Step 1: define your job
Pick a typical job and write it down. For example, a 6.6 kW system in a 1.382 zone with a 5-year deeming period creates 6.6 x 1.382 x 5 = 45.6, rounded down to 45 STCs. Or a 10 kWh battery at a factor of 6.8, which creates 68 STCs. Use your real mix, and use the same job for every trader. Our STC worth explainer has the market context.
Step 2: get the net number
Ask each trader what you receive for that job, after everything. Convert to a table.
| Trader A | Trader B | Trader C | |
|---|---|---|---|
| Published rate per STC | |||
| Is the rate locked, and when? | |||
| Fees or deductions | |||
| Net per STC | |||
| Total for the 45-STC job |
At the time of writing the STC spot market has been roughly $38 to $40, with the clearing house ceiling at $40. No trader can pay above what they can sell for, so a rate that is well above the market needs an explanation. A claim that offers “$40 plus” should prompt questions about conditions or volume tiers.
Step 3: put a price on time
Time to cash matters because you carry the discount you gave the customer. On a $1,700 solar certificate value, ten days of waiting is a small cost. On a $2,600 battery discount multiplied across several jobs, it is a real working-capital load.
A rough cost: multiply the outstanding amount by your cost of funds for the days waited. If you run an overdraft at 12 per cent, $20,000 outstanding for ten extra days costs about $65. That is small next to a 20 cent difference per STC on 400 certificates ($80), which shows why neither number should be looked at alone. Whatever your own numbers are, put them next to each other. See how long STC payment should take.
Step 4: test the claim process
Ask each trader how a claim is checked. Look for:
- Whether someone reviews photos, forms and serials before lodgement
- How errors are communicated and how fast
- Whether you get one person to talk to, or a ticket queue
- What happens to the rate if a claim is delayed or corrected
A pre-check does not remove rejections but it catches the mechanical ones early. The most common are in top STC claim rejection reasons.
Step 5: read the contract
Read the terms, not the summary.
- Rate lock: is the rate fixed on lodgement of a complete claim, or can it move before payment?
- Payment trigger: sign-off, lodgement, or validation?
- Fees: any processing, admin, registry or subscription charges?
- Exclusivity and minimum volume: are you locked in?
- Clawback: what happens if a certificate is later found invalid, and who bears the cost?
- Exit: notice period and what happens to claims in progress.
Red flags
- A rate that cannot be matched to the market, with unexplained conditions
- No published rate, or a rate only revealed after you commit
- Payment terms that say “up to” a number of days
- Fees described in different words in different documents
- No named person to call
- Pressure to sign an exclusive agreement before you have run a job
Scoring it
Give each trader a mark out of five on each step, weighting cash and certainty most heavily. Pilot the leader with a couple of real jobs before moving your whole book.
| Criterion | Suggested weight |
|---|---|
| Net rate | 25% |
| Time to cash | 25% |
| Claim support and pre-check | 20% |
| Contract terms | 20% |
| People and responsiveness | 10% |
Example: comparing two offers
Trader A publishes $38.00 per STC, pays in 24 hours, charges no fees, locks the rate on lodgement. Trader B advertises $38.50, pays in 10 business days, deducts $0.25 per certificate for processing, and sets the rate at settlement.
On a month of 400 STCs:
- Trader A: 400 x $38.00 = $15,200 in about a day.
- Trader B: 400 x ($38.50 - $0.25) = $15,300 in about two weeks, with the rate open to movement.
The $100 gap in B’s favour is smaller than the cost of carrying $15,000 for a fortnight at most business borrowing rates, and it does not account for the rate risk. This is the arithmetic to do with your own numbers. It will not always favour the faster trader, but it should be done every time.
Switching without drama
If you are already trading with someone, you can usually run a few jobs with a new trader alongside the old one. Check the exit terms first, keep claims in progress with the trader who holds them, and move new jobs once the pilot goes well. The switching page sets out how it works with us.
What to do next
- Pick your test job and send it to two or three traders.
- Fill in the table and read the contracts.
- Run a pilot of five jobs with the leader.
- If you are already with a trader and want to move, the switching page explains the process, and you can see our published rates and how settlement works.
Energy Merchants publishes its rate daily, locks it on lodgement of a complete claim, charges zero fees and settles within 24 hours for established partners. If you want to put us in your comparison, start trading.