An STC trader that stops paying is one of the worst things that can happen to a small installer, because the unpaid money is your own working capital: the wages, stock and subcontractor costs you spent before the certificates were sold. A late payment is annoying. A trader that has stopped paying altogether is an emergency, and the first week decides how much you recover.
This is a practical response plan. It assumes you have already checked that the delay is not a registry or claim problem, because those are common and fixable. If you have, and the money still has not arrived, work through these steps in order. For the legal-style detail on formal demands, see our answer on what to do when a trader owes you money.
Rule out the innocent explanations first
Before you assume the worst, spend an hour on the usual causes of a late payment:
- The claim failed validation. The certificates were never accepted into the registry. See why a claim fails validation.
- A bank detail or ABN query is holding the payment. Traders hold payments when details do not match.
- The trader pays on set weekly runs and you missed the cut-off.
- Your own paperwork is incomplete, such as a missing RCTI arrangement or a GST status mismatch.
The why has my STC payment not arrived answer walks through each. If the trader confirms in writing that the claim is valid and the money is due, move on.
Week one: contain the damage
Stop sending new certificates
This is the one step that costs you nothing and saves the most. Do not transfer another certificate to a trader that is overdue. Stop assignment forms naming them on new jobs. Switch new work to another trader straight away, using a trial batch as in the switching guide.
Build the file
For every unpaid claim, collect:
- The registry transfer record showing the certificates moved and were accepted.
- The rate confirmation, whether an email, text or portal screenshot.
- The agreed payment terms from your agreement.
- The RCTI or invoice, if one was issued.
- All messages about payment since the due date.
Put these in one folder with a one-page schedule: claim reference, transfer date, certificate count, rate, amount, due date. That schedule is the spine of everything that follows.
A worked example
Say you have unpaid claims from three weeks:
| Claim | Certificates | Rate | Amount (ex GST) | Due |
|---|---|---|---|---|
| Job 1 | 45 | $38.00 | $1,710.00 | 3 Sep |
| Job 2 | 52 | $38.00 | $1,976.00 | 5 Sep |
| Job 3 | 38 | $38.00 | $1,444.00 | 9 Sep |
| Total | 135 | $5,130.00 |
Plain numbers like these make a demand easy to act on. A letter that says “you owe $5,130.00 ex GST across three claims, details attached” is hard to dispute.
Week two: a written demand
Send an email, and a letter if you have a postal address, that states the amount owed, the claims, the agreed terms and a deadline. Five business days is typical. Keep the tone flat. Say what you will do if the money does not arrive, such as referring the matter to a debt recovery process.
Do not threaten things you will not do, and do not mix in complaints about service. The demand is about the money.
From the desk: keep one running log of every call and message: date, who, what was said. If the dispute goes anywhere formal, a clean timeline is worth more than your memory. And if someone at the trader asks you to “re-lodge” or “resend” claims to speed up payment, ask why in writing before you do anything. Re-lodging certificates that were already transferred can create a bigger tangle.
If the demand fails
Your options depend on the amount and on the agreement. In rough order of escalation:
- A formal letter of demand from a solicitor. Often enough to get a response when the debt is clear.
- Your state’s small-claims or civil tribunal, for debts under the tribunal’s limit. These are designed for people who are not lawyers.
- A statutory demand or court action for larger sums, where legal advice is essential.
- A complaint to the Clean Energy Regulator, if you believe the trader is breaching its obligations as a registered agent. The regulator does not recover your money, but it takes conduct seriously.
- Insolvency processes. If the trader has appointed an administrator or liquidator, you become an unsecured creditor and need to lodge a proof of debt. Get advice quickly, because deadlines apply.
This is general information and not legal advice. A short consult with a solicitor early costs far less than a long dispute.
The context: why this is rarer than it feels
Most traders pay. The scheme has been a mature, structured market for years, and the problems tend to cluster around a small number of operators. Still, installers who have lived through one rarely forget it, which is why traders that collapsed or stopped paying shape how crews choose now. The former Greenbot platform, permanently suspended as a registered agent in 2024, left clients moving mainly to Formbay and One Stop Warehouse. The lesson that stuck was about concentration: do not put your entire book through one counterparty on long payment terms.
Reduce your exposure for next time
- Shorten the payment cycle. A trader that pays in 24 hours holds your money for one day, not ten. The smaller the unpaid balance at any time, the smaller the damage.
- Cap the unpaid balance. Decide the maximum you will let any trader owe you, for example three days of certificate income, and stop sending work when you hit it.
- Check the terms before the first claim. The trader contract terms check lists the clauses to read.
- Look for a stable counterparty. The choosing a certificate trader checklist covers questions about balance sheet and history.
On the last point: Energy Merchants is backed by REC Traders, trading since 2004 and a Smart Energy Council member, and settles established partners within 24 hours, so unpaid exposure at any moment is about a day. That is a design feature, not a guarantee, so read our terms like any other.
What to do next
- Stop transferring certificates to the overdue trader today.
- Build the claim-by-claim schedule and collect the proof.
- Send a written demand with a five-business-day deadline.
- Move new jobs to a trader you have checked, using the switch guide.
- If the amount is significant, speak to a solicitor before the deadline passes.
If you want to see how a faster cycle changes your exposure, check how it works and today’s rate on /pricing/.