STC trading, from the installer’s side, is a service you hand a finished job to and get a payment from. Behind that one-line description sit six steps that every trader performs in some form: onboard you, receive and check the claim, set a rate, lodge the certificates, sell them and pay you. What differs between traders is how each step is done and how long it takes, and that is the reason one trader’s offer can be worth far more than another’s with the same headline rate.
This article follows a single claim through a trader, with a realistic timeline and the places where delay usually hides. For the market structure behind it, see STC trading explained. For the installer’s side of the same journey, from install to registry, read the STC process step by step.
Step 0: onboarding
Before the first claim, the trader verifies who you are: ABN, GST status, bank details, installer accreditation and the entity that will be named as the supplier of certificates. For a first-time partner this is why the first claim takes longer, 48 to 72 hours in our case, while the details are verified. After that, claims run on the partner’s normal timetable. Check what the trader needs from you in advance, because a missing ABN or bank detail can hold up the very first payment.
You will also sign an agreement. Read the clauses on rate lock, settlement, fees and cancelled certificates. These four determine the real economics.
Step 1: you send a complete claim
A complete claim means the system details, serial numbers, the signed assignment form, the photo set, the certificate and approvals and any statement the regulator requires. “Complete” is the word that matters, because a trader’s rate lock and settlement clock typically start from it. Sending half a claim to start the clock does nothing, and can be counted against you.
Step 2: pre-check
A good trader reviews the claim before it goes to the regulator: photos against the serials, forms against the owner details, dates against each other, products against the approved lists, the STC count against the formula. If something is wrong, you hear about it now, while the crew is reachable. If nothing is wrong, the claim moves forward. This is the stage where most rejections are prevented. Ask any trader what their pre-check actually covers and who does it.
Step 3: rate lock
The rate is the price per certificate the trader will pay you. The question is when it becomes fixed. Options include:
| Lock point | What it means for you |
|---|---|
| At quote or agreement | Longest protection, usually a lower rate |
| On lodgement of a complete claim | Price risk limited to the days before lodgement |
| On registration by the regulator | You carry price risk through validation |
| On sale to a buyer | You carry the whole market risk |
Ours is on lodgement of a complete claim, with the rate published daily. Whatever the trader’s rule is, get it in writing, because a 50-cent move on 45 STCs is about $22 a job, and a $2 move is $90.
Step 4: lodgement and validation
The trader creates or lodges the certificates in the REC Registry. The regulator validates the claim against product lists, accreditation and its own checks. Guidance has cited validation times of several weeks for some claims, especially where documents are incomplete. During this stage the certificates are not yet registered and cannot be sold on the open market the usual way.
This is the step where traders differ most in how they treat you. Some pay you only when the regulator has registered the certificates. Others pay on sign-off and carry the validation risk themselves. Ask which one applies, in plain terms: “If the regulator takes four weeks, when am I paid?”
Step 5: sale
Once registered, the trader sells the certificates to a liable entity, usually an electricity retailer, or to the clearing house at $40 ex GST. At the time of writing open-market spot has been roughly $38 to $40. The trader’s margin is the gap between what it receives and what it pays you, which is why a zero-fee trader still needs a rate below the clearing house price.
Step 6: settlement
You receive payment, and the trader issues a recipient-created tax invoice on your behalf, with GST treated according to your registration. See RCTI, GST and ABN for STC payments. Keep the invoice and the settlement statement with the job file.
A timeline for one claim
Take a 6.6 kW zone 3 job, 45 STCs, rate $38, so $1,710.
| Day | Event |
|---|---|
| 0 | Install complete, assignment signed |
| 1 | Complete claim sent to trader |
| 1 to 2 | Pre-check; one photo retaken |
| 2 | Claim lodged, rate locked at $38 |
| 3 | Settlement within 24 hours of sign-off for an established partner |
Compare that with a trader who locks the rate on sale and pays when the buyer pays: the same claim might not be paid for two to four weeks, with price risk throughout.
Where delays hide
- Incomplete claims that restart the clock.
- Regulator validation that waits on a trader’s own processing.
- A buyer that pays slowly and passes the delay down.
- Bank cut-off times and weekends.
- Disputes about cancelled certificates.
A quick self-audit of your current trader
Take your last ten paid jobs and for each one write down the install date, the claim date, the pay date and the amount received per STC after any fees. Then compute the average days from claim to cash and the average net rate. Compare both with the published terms. If the gap between promise and practice is more than a day or two, or the net rate is meaningfully below the headline, you have found something to raise with your account manager or a reason to look elsewhere. Most installers have never run this test, and many are surprised by the result.
What to do next
Compare your current terms with the pricing page, read the how it works page for our version of these steps and check the STC trading pillar for the whole picture. The answer on fast STC payment shows what to ask for, and you can start trading when you are ready.
Related answers: STC payment within 24 hours and why an STC payment has not arrived.