The STC Clearing House is the reason an STC has a ceiling. Everything in the small-scale market, from quote discounts to the rate your trader publishes, sits underneath a fixed $40 price that the regulator promises to pay when a buyer is available. Understanding how that backstop works helps you quote better, judge a trader’s rate and avoid one expensive misunderstanding: that the Clearing House is a fast way to get $40.
At the time of writing the STC spot market has been roughly $38 to $40.
What the Clearing House is
The Clearing House is a facility inside the Clean Energy Regulator’s REC Registry. It lets system owners and registered agents list STCs for sale at a fixed price of $40 per certificate, excluding GST, and lets liable entities buy them at that same price. It works as a listing and matching service: a seller lists certificates, and a buyer purchases from the list when it chooses to.
Three features define it:
- A fixed price. $40 ex GST, set in legislation, not by the market.
- A queue. Certificates are sold in the order they were listed, first in, first served.
- No timing guarantee. A listing sells only when buyers purchase from the list. If buyers can find cheaper certificates elsewhere, the list waits.
That third point is the one people miss.
Why spot sits below $40
If you could always sell at $40 instantly, nobody would take less. Because the Clearing House sells only when buyers choose to buy from it, certificates elsewhere trade at a discount to reflect speed and certainty. A liable entity will buy from the market at $39 if it can, rather than wait in line to pay $40. A seller will take $39 today rather than wait for $40 that may arrive in weeks.
So the market price is $40 minus the value of time. When the market is tight and buyers are short of certificates, they turn to the Clearing House queue and the discount narrows. When supply is heavy, the discount widens. Our guide to price signals explains how to read this gap.
Worked numbers: Clearing House versus a trader
Take a 6.6 kW system in a zone 3 postcode with five-year deeming. That is 6.6 x 1.382 x 5 = 45 STCs.
| Route | Rate | Value of 45 STCs | When you are paid |
|---|---|---|---|
| Clearing House | $40 ex GST | $1,800 | When buyers purchase from the list; no guaranteed date |
| Trader | $39 ex GST | $1,755 | Often within days; our desk settles in 24 hours for established partners |
The trader’s discount is $45. If you are carrying 30 such jobs a month, the Clearing House route would leave 30 x $1,800 = $54,000 waiting in the queue. At a modest 12% cost of money, three weeks of waiting costs about $370 on that balance. On this arithmetic the trader’s discount is paid for by the money you did not have to borrow.
That reasoning changes if you are a household owner with one system and no cash pressure. For a single claim, waiting for $40 is a legitimate choice, and some homeowners take it.
GST and the Clearing House price
The $40 figure is stated excluding GST. If you are registered for GST, a sale of certificates is a taxable supply, so GST applies on top of the price, and the buyer pays it. Individuals who are not registered usually do not charge it. The mechanics differ between the registry and a private sale, and your accountant should confirm your position. For the paperwork around invoicing, see RCTI, GST and ABN for STC payments and the answer on GST on STC sales.
Who uses the Clearing House
- Homeowners who keep their own certificates. A household that did not assign its STCs to an installer can list them and wait.
- Small agents with no trading relationship. Someone who creates a few certificates a year can use the queue instead of finding a buyer.
- Traders as a floor. A trader knows that if the market fell, certificates could go to the queue at $40. That is why the market rarely falls far below $40 in a balanced year.
Liable entities, mainly electricity retailers, are the buyers. They must surrender certificates against their liability, and they will pay $40 if they cannot find cheaper ones.
What the Clearing House does not do
- It does not guarantee payment on a date.
- It does not check your claim. Certificates must already be validated and registered in the registry before they can be listed.
- It does not remove the need for compliance. Photos, assignment forms and installer accreditation still apply, and a failed audit still matters. See how STC audits work.
From the desk: the trap is assuming the Clearing House is the safest route because it is the government one. It is safe in price and slow in time. If a trader offers $39 and pays tomorrow, the real question is not “$39 or $40” but “what does a month of waiting cost me?”. Do that sum before you list.
How to decide
- Work out how many certificates you hold and the dollar value at $40.
- Ask what your cost of money is for the likely waiting period.
- Compare with a trader’s published rate and settlement time. Check the pricing page for ours, and read choosing a certificate trader.
- Check the contract for fees, lock terms and what happens if the claim is queried.
Common misunderstandings
“The Clearing House pays instantly.” It does not. A listing sells only when a buyer purchases from the list, and the list is served in order. If you need cash this week, the queue is the wrong tool.
“A trader that pays less than $40 is taking advantage.” A trader’s rate reflects the speed and certainty it provides. Compare the discount with your own cost of waiting. The real test is whether the rate is published, locked on lodgement and free of fees. Our answer on STC trader fees shows what to look for, and the best STC price explains why the highest headline is not always the best deal.
“Clearing House certificates skip compliance.” Certificates must already be created and validated before they can be listed. A claim that fails an audit still has consequences, whichever route you sold through.
When the queue is the right choice
If you are a homeowner who kept your own certificates, have no urgency and only a few to sell, the queue can capture the full $40. If you are a business with volume, wages and supplier invoices, speed usually wins. Some installers do both: they keep a small reserve of certificates in the queue when cash is comfortable and use a trader when it is not.
What to do next
- Read the glossary definition of the clearing house for a short version.
- If you want the pillar background, see STC trading.
- Compare how traders price in what an STC is worth in 2026.
- When you are ready to sell, start trading and let the desk pre-check your claim.
For definitions of any term used here, see the glossary.