solar hot water

How to create STCs for solar water heater and heat pump systems

This guide explains how to create small-scale technology certificates (STCs), so that you can sell and trade them yourself via the online REC Registry.

Use this information if you wish to create STCs for eligible installations of the following:

  • Solar water heaters
  • Air-source heat pumps
Before you start:
  • Small-scale Technology Certificates (STCs) are not a rebate, and completing this creation process is not an application for a Government rebate. You will not qualify for any Government-based financial recompense at the completion of this process.
  • Creating STCs for sale can be complex and has significant administrative requirements, legal implications, and may involve fees.
  • If you require rapid financial recompense for your certificates, or a simpler process, please contact an Agent who can organise the creation and sale of your certificates.
  • If you decide to follow the process below, be aware you will be required to:
    • Pay full price for your system;
    • Organise the installation of your system, ensuring it is compliant with the Renewable Energy Electricity Act 2000 and associated Regulations;
    • Create the STCs in the REC Registry;
    • Find a buyer for your STCs (including using the STC Clearing House)
    • Manage payment for the STCs.
  • The Clean Energy Regulator cannot manage any of these processes for you, and cannot intervene in any process outside of STC creation.  It can provide advice only.

Are you looking for:

When can you create Small-scale Technology Certificates (STCs)?

In summary:

Your system must comply with all the requirements listed below in order to be eligible for STCs.

When you have installed an eligible system

Systems must be listed in the Clean Energy Regulator Register of solar water heaters in order to be eligible for STCs.

When you are the owner of the installed system.

  • You must be the owner of the system at the time it is installed to be entitled to assign or create STCs.
  • In some circumstances where the system is installed in a new building, the owner can be the builder or property developer of the building, rather than the eventual householder.
  • Check ownership of the system before you create STCs.

Within 12 months of the installation of the system.

  • STCs must be created and registered within 12 months of the installation date.
  • If the system was installed on or before 31 December 2010 it will generate large-scale generation certificates (LGCs) when registered in the REC Registry.  LGCs must be traded on the open market and you may wish to consider assigning your certificates to an Agent instead.

If you have not already assigned your STCs to a Registered Agent/Retailer

  • You cannot create STCs if you have already assigned them to an Agent. Most retailers and some installers of systems are registered to act as Agents.
  • If you have signed an STC Assignment Form and supplied it to a retailer, installer, or someone else connected with your system, you may already have assigned your STCs. Contact them to check before using this process.
  • Most advertised discounts on the price of purchase and/or installation of water systems will be based around STC assignment.   
  • You may need to inform your supplier/s that they will not be assigned the STCs against the system when you make your purchase.

When it is a system under 700 litres

If the system has a capacity of greater than 700 litres, and was installed on or after 9 September 2009, you will need to provide the following in order to create STCs:

  • A Statutory Declaration that the unit will remain in its current configuration and location for the life of the system; and
  • A second Statutory Declaration stating unit model, storage, location, usage, and appropriateness, and the expertise of the installer.

See the Larger Hot Water Systems section for more information.

When it is an air-source heat pump under 425 litres

If your system is an air source heat pump with a volumetric capacity over 425 litres that is entitled to create STCs, you must have written evidence of:

  • purchase and/or installation contracts; and
  • the date the purchase and/or installation contracts were entered into. 

See the Larger Hot Water Systems section for more information.

When the system has been completely and correctly installed.

Completely installed means:

  • all parts of the system are installed and demonstrated to be capable of supplying hot water to the property.  This includes panels, pumps, tanks, wiring, electrical connection, etc.

Correctly installed means:

  • Any required compliance documentation has been complied with and signed.

For each deemed period of your system.

STCs can only be created once for a solar water heater or heat pump and are calculated for the life of the system, which is deemed to be 10 years.

When you have registered in the REC Registry

You must have a REC Registry account in order to create STCs.  This account must be a Registered Persons account as a minimum. 

With a Registered Person account you can:

  • create LGCs and STCs for an installation that you own.
  • transfer LGCs and STCs in the REC Registry.
  • voluntarily surrender LGCs and STCs in the REC Registry.
  • proceed to register as an Agent or Power Station if desired/required.

This account requires you to:

  • complete the Proof of Identity verification process.
  • fit the criteria of being a Legal Person.
  • register in the REC Registry.
  • be aware of the eligibility requirements for creating STCs for Solar Water Heaters and Small Generation Units prior to registration. 
  • be aware of penalties involved in breaching the Renewable Energy (Electricity) Act 2000. See the Compliance page for further information.
  • be aware of your right to be able to assign LGCs/STCs to an Agent if you wish.
  • pay a non-refundable registration fee of $20.  This fee is GST exempt.

If you are an Agent, please see "How to register as an Agent" for additional registration requirements.

If you need to register, please go to the Registration Wizard.

Before you register, please be aware of the following:

  • Small-scale technology certificates (STCs) are not a rebate, and completing this registration process is not an application for a Government rebate. You will not qualify for any financial recompense at the completion of this process.
  • The Clean Energy Regulator cannot provide an estimate of how long it will take for your STCs to sell in the Clearing House. STCs will only sell when a buyer is available and you should plan your system purchase with this in mind.
  • If you require rapid financial recompense for your certificates, please contact an Agent who can organise the creation and sale of your certificates.
  • Registration is the first of a 6-step process that has significant administrative requirements, legal implications, and may involve fees, as outline in this document.
  • The process covers:
    1. Determination of your required account type (online) and acknowledgement of your legal requirements under the Act as a registered user of the REC Registry.
    2. Proof of Identity verification (online).
    3. Initial creation of REC Registry account (online).
    4. Payment of REC Registry fees (if required) and granting of additional required access (manually vetted by the Clean Energy Regulator staff - this may take up to 8 weeks. The Clean Energy Regulator will contact you if more information is required. Do not submit multiple applications.).
    5. Registration of installation/s and creation of STCs (online but all administrative requirements must be complied with).
    6. Sale of your STCs either through the open market or the STC Clearing House, and receipt of their sale price.

How many STCs will I get?

STCs are calculated for the life of the system, which is deemed to be 10 years.

The quick way is to use the Solar Hot Water Calculator.

You can also use the following process:

  1. Determine your postcode zone by viewing the Postcode Zones for SWHs document: http://ret.cleanenergyregulator.gov.au/swh/register.html
  2. Locate the entry/entries for your SWH model on the Register of Solar Water Heaters.
  3. Check that the installation date is in an eligible installation period. 
    • STCs can only be created within 12 months of the installation date.  
    • Note that certificates created for installations prior to 1 January 2011 will be created as LGCs in the REC Registry.
  4. Match the postcode zone to your model. The number of STCs you are entitled to will be listed in the column underneath your postcode zone.

What is the value of my STCs?

  1. To determine the approximate worth of your STCs, search for STC traders on the Web to find the going price of an STC (this fluctuates daily).  
  2. You can also use the fixed STC price of $40/STC used by the STC Clearing House but there are no guarantees on when STCs sold through the Clearing House will actually clear.
  3. Multiply the number of STCs by the going price.  
  4. Remember this price is approximate only, and will depend on where, how and when you sell your STCs.

How to install an eligible system

  1. Determine the system that meets your power and financial needs.
  2.  Check compliance, eligibility, and deeming periods against “When can you create STCs?”.
  3. Purchase and install the system. 
    • Ensure suppliers and installers are aware you will be retaining the STCs.
    • Ensure quotes for supply and installation do not include discounts against assignment of STCs.
    • Do not sign an “STC Assignment Form” or any forms stating that you will assign STCs after the system is installed.
  4. Complete any required documentation.
  5. Calculate the number of STCs to be created, using the SWH STC Calculator.

You are now ready to register in the REC Registry and create your STCs.

How to create STCs in the REC Registry

Before you start, you must:

  • Have a current REC Registry login with the correct access to create STCs (a Registered Person account as a minimum).
  • Have the following required information on-hand:
    • exact brand and model of water heater system
    • tank serial number
    • number of panels
    • installation date
    • installation address
    • installer’s details
    • owner’s details

Process

  1. Open the REC Registry at https://www.rec-registry.gov.au/

  2. Enter your username and password and press “Login”.   Your REC Registry page Account Summary will display.

  3. From the menu, select “My Solar Water Heaters”  --> “Register SWH Installation”.

  4. The first page of the registration process will open:

  5. Fill out all the fields.  Ensure fields marked with a red asterisk (*) are completed.
  6. Click “Continue” to move to the next screen, or “Save draft” if you need to save the registration for later completion.
  7. Complete address details.  Ensure:
    • The town is correctly spelt, and that it matches the supplied postcode and state.
    • The REC Registry cross-checks this information and will reject Town/Postcode/State information that doesn’t match.
    • All fields marked with a red asterisk (*) are completed.

  8. Click “Continue” to move to the next screen, or “Save draft” if you need to save the registration for later completion.
  9. At "Register SWH Confirmation", review the information and make sure it is correct.  If you make an error in registering the installation and submitting the STCs at this stage, they will have to be invalidated and the forms re-submitted.

  10. Click the checkbox next to “I have read the above terms and conditions and am aware it is a crime to provide false or misleading information”.
  11. Click “Create STCs”.  This submits the request to create the number of STCs listed under “STC Creation Details”.
  12. You will see an information box confirming submission of your registration.

  13. Your STCs are now listed under “Pending Audit” on your Account Summary page:

  14. The STCs will first be validated by the Clean Energy Regulator.  This process can take up to four weeks.
  15. Once they are validated:
    1. If you have not created more than 250 STCs, they will go straight into your STC holdings.
    2. If you have created more than 250 STCs, you need to pay the 8c/STC processing fee before they can be placed in your holding.  See below.
  16. If certificates are failed, you will be informed via email.
  17. You can re-create the STCs as long as your system is eligible for STCs, as follows:
    1. Follow steps 1-6 above.
    2. At step 7, complete all fields.
    3. In the “Special address” field, add the failed accreditation code and a note informing the Auditors why the STCs were originally failed.
    4. Continue to submit STCs.
    5. The Clean Energy Regulator will validate the certificates within four weeks.
    6. The Clean Energy Regulato may request additional documents to provide eligibility, such as:
      • location details
      • photographs
      • maps
      • Australian Business Number (ABN)
      • Ownership
      •  occupancy
      • statutory declarations
      • rates notices
      • letters
      •  any other information that could prove your system is eligible.
    7. Please see Failed Certificates for more information.

How to complete STC validation in the REC Registry

  1. STCs must be audited and registered before they are available for sale/transfer.  While they are waiting, they are listed as “Pending registration” in the REC Registry.

  2. The first 250 certificates you create are free.  These will automatically be listed in your account summary after the Clean Energy Regulator validation.
  3. Any certificates after the first 250 require the payment of an 8c fee before the validation is complete.  These will be listed under "Pending Payment” in your account summary.
  4. Select “My Fees and Invoices" --> "View outstanding fee items”.
  5. Select the appropriate outstanding fee items by clicking in its checkbox.
  6. Click “Create Invoice”.
  7. Go to “My Fees and Invoices” --> “View outstanding invoices”.
  8. View or print out the invoice to be paid.
  9. Go to “My Fees and Invoices” --> “Pay invoice by credit card”.
  10. Complete the credit card payment information and select “Submit”.
  11. The payment is processed and will appear under “My Fees and Invoices” --> “Payment history”.
  12. The STCs will be validated and appear in your account summary under “REC Holdings”.

Date last updated: 28 Mar 2012