Assigning STCs

1. A renewable energy system is entitled to a set number of STCs.
2. Assuming the criteria is met, the owner of the system is entitled to the set number of STCs. 
3. This means the owner has the right to create STCs in the REC Registry, and dispose of them as they will.
4. However, the owner can sell the creation rights to a third party, such as a retailer, supplier, or installer of a renewable energy/hot water system.
5. These third parties are known as “Agents”, and they must be registered with the Clean Energy Regulator to manage STCs.
6. The sale gives the third party the right to create the STCs in the REC Registry, and to dispose of those STCs as they will.
7. The sale price of the STCs, and the form of the sale, depends entirely on the Agent.

• Solar water heaters use solar panels or tubes to heat water for domestic usage. 
• Air-source heat pumps use heat from the air to heat water. 

Both are included in the Small-scale Renewable Energy Scheme as they displace the use of electricity to heat the water.

See Choosing your solar water heater/heat pump for advice on selecting an appropriate system for your needs.

To be eligible:

• You must be the owner of the system at the time it is installed.
• In some circumstances where the SWHs are installed in new buildings, the owner can be the builder or property developer.
• Systems must be new and listed in the ORER-maintained Register of Solar Water Heaters.
• STCs must be assigned within 12 months of the system being installed.
• Systems with a capacity of greater than 700 litres, installed on or after 9 September 2009, will need signed Statutory Declarations in order to be eligible.
• Air source heat pumps with a volumetric capacity over 425 litres installed on or after 29 June 2010 are not eligible unless contracts for sale or installation were entered into prior to that date.

• Solar Panel systems use sunlight to generate electricity. They must have a capacity of no more than 100 kW and a total annual electricity output of less than 250 MWh.
• Small-scale wind systems use the wind to power a turbine. They must have a capacity of no more than 10kW and a total annual electricity output of less than 25 MWh.
• Small-scale hydro systems use moving water to power a turbine. They must have a capacity of no more than 6.4 kW and a total annual electricity output of less than 25 MWh.

See Choosing your solar panels for advice on selecting an appropriate system for your needs.

To be eligible:

• 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 SGUs are installed in new buildings, the owner can be the builder or property developer.
• All components of the installed system must be new.
• STCs must be assigned within 12 months of the system being installed.
• Solar panel systems components must be listed in the Clean Energy Council list of accredited components.
• Solar panel systems must be installed correctly by a Clean Energy Council accredited installer.

• Systems must meet these capacity, output, and installation period requirements:

  Unit type	Unit capacity and annual electricity output	Installation period
  Solar panels	No more than 100 kW and a total annual electricity output less than 250 MWh	On or after 14 November 2005
  Solar panels	No more than 10 kW  and a total annual electricity output less than 25 MWh	Between 1 April 2001 and 13 November 2005
  Small wind turbines	No more than 10 kW and a total annual electricity output less than 25 MWh	On or after 1 April 2001
  Hydroelectric systems	No more than 6.4 kW and a total annual electricity output less than 25 MWh	On or after 1 April 2001

• Systems rated higher than these options are classified as “Power Stations”. 
• Power Stations create LGCs, not STCs.
• LGCs cannot be assigned to an Agent.
• Visit the Large-scale generation certificates page for more information about LGCs.

Agents make the whole process more simple and, generally, cheaper.

Registered Retailers/Agents will:

• Ensure the system, its installation, and its installers, are all eligible under the Small-scale Renewable Energy Scheme (SRES);
• Determine how many STCs your system is eligible for;
• Offer you a financial benefit for your STCs (such as a discount off the invoiced cost of supply and installation of the system, or a cash benefit, or some other appropriate benefit);
• Ensure that your installer has the correct accreditation; and
• Manage all the required compliance paperwork.

After buying the STCs from you the agent will register your installation in the REC Registry, and then bundle the STCs from that installation with other STCs, for bulk sale and transfer in the STC market or the STC Clearing House. 

• Many retailers and some installers of systems are registered to act as Agents.
• Most advertisements that offer discounts or rebates are referring to STC assignment; the businesses should therefore be registered as Agents with the Clean Energy Regulator.  (They may also be referring to State-based rebates, tariffs, or other schemes; ask the supplier about how they provide the discount).
• Contact a range of renewable system retailers and suppliers to find the one that best meets your needs and requirements.
• Some Agents list themselves in the List of Registered Agents. Note that this listing is voluntary and not all Agents are listed here.

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

1. Go to the Solar Hot Water STC Calculator.
2. Select your system from the drop-down menus.
3. The number of STCs for which your system is eligible will display.
4. Search for STC traders on the Web to find the going price of an STC.  You can also use the fixed STC price of $40/STC used by the STC Clearing House but note you are unlikely to be offered this price by Agents.
5. Multiply the number of STCs in 3 by the price in 4.

You may not get this precise amount from your Agent, depending on their trader, whether they plan to use the STC Clearing House or not, and what other bundling may be included in their contract with you.

STCs are calculated by determining the amount of electricity the system produces over a determined period (the deeming period).  Systems are usually deemed for the maximum period of 15 years to receive the maximum amount of STCs up-front.

• Systems installed before 30 June 2013 may also be eligible for Solar Credits.  This multiplies the number of STCs by a set amount, which increases the financial benefit available to you. 
• Additional capacity added to an existing system may be eligible for STCs, as long as the additional capacity does not qualify it as a “power station”. 
• For additional capacity, STCs must only be calculated on the rated power output of the new part of the system, not for the whole.  Do not use the Solar Credits multiplier for the new part of the system.

1. Go to the SGU STC Calculator.
2. Select your system from the drop-down menus.   (You must use the rated output of your solar panels, and not the inverter, unless the inverter is rated lower than the panels).
3. The number of STCs for which your system is eligible will display.  Note that Solar Credits will automatically be calculated if you have selected that option.
4. Search for STC traders on the Web to find the going price of an STC.  You can also use the fixed STC price of $40/STC used by the STC Clearing House but note you are unlikely to be offered this price by Agents. 
5. Multiply the number of STCs in 3 by the price in 4.

You may not get this precise amount from your agent, depending on their trader, whether they plan to use the STC Clearing House or not, and what other bundling may be included in their contract with you.

You may use different businesses for the supply, installation and/or connection of the system, but you can’t accept STC-based discounts from all the different businesses. STCs can only be assigned once, to one Agent.  After accepting one discount, you will need to pay full price for any other separate business services relating to the supply, installation, and/or connection of your system.

Your agent should provide you with copies of all documentation associated with your installation. This particularly includes any documents that you sign.

Hot water system

• A copy of the STC Assignment Form, signed by you after installation is completed.
• Any additional documentation required by your State to certify installation (for eg: Certificate of Compliance, Installation Report)
• If the unit has a capacity of greater than 700 litres and was installed on or after 9 September 2009, you will also need:
  • A Statutory Declaration that the unit will remain in its current configuration and location for the life of the system
  • A second Statutory Declaration from the agent stating unit model, storage, location, usage, and appropriateness, and the expertise of the installer.
  • See the Larger Hot Water Systems section for more information.
• If the unit 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.

Small-scale solar panel, wind, or hydro system

• A copy of the STC Assignment Form, signed by you after installation is completed
• A copy of the Written Compliance Statement.
• A copy of the installer’s certification issued by the Clean Energy Council
• Any additional documentation required by your State regulatory authority to certify installation (for eg: Certificate of Compliance, Installation Report)
• If you are installing a solar photovoltaic panel on or after 20 August 2010 or installing a small-scale wind or hydro unit on or after 20 December 2010 your installer:
  • May ask you to sign a statement that all required Local (Council) and State/Territory Government requirements for installation of a power-generating structure have been met.
  • Is required to provide you with a copy of any documentation certifying that the electrical installation of the unit complies with laws relating to safety and technical standards.  This could be in the form of a Certificate of Compliance, Installation Report and/or Electrician’s Licence.
• If you are installing a solar photovoltaic panel on or after 1 November 2010 or installing a small-scale wind or hydro unit on or after 20 December 2010 your installation:
  • Must comply with a range of specific Australian and New Zealand Standards
  • Must have documentation from your installer to certify compliance with these standards once the installation is complete.

For copies of the above mentioned paperwork, visit the STC assignment and compliance documentation page.

1. Determine the system that meets your power and financial needs.
2. Find an Agent.
3. Sign contracts for purchase and installation. 
   • Do NOT sign over your STCs at this stage. 
   • However, you may be asked to sign a form agreeing that you will provide your STCs to a particular supplier once installation is complete.
   • If your supplier and installer are sourced separately, ensure you are not asked to assign STCs to both. 
   • You can only assign the STCs as a single bundle, and only to one Agent.
4. Have your system completely installed.  This means:
   • For solar panel systems: all parts of the system are installed and demonstrated to be capable of generating power.  This includes panels/turbines, inverter, batteries for off-grid systems, etc.  (It does not necessarily include the installation, or turning-on, of the metering system for the electricity company, for on-grid systems).
   • For water heaters: all parts of the water heater are installed and demonstrated to be capable of supplying hot water to the property.  This includes panels, pumps, tanks, wiring, electrical connection, etc.
5. Read any supplied paperwork carefully to ensure:
   • you are making an accurate declaration about who installed your system;
   • you are making an accurate declaration about when it was installed;
   • that you are only signing one version of any form.
6. Sign any other required documentation.
7. Complete the STC Assignment Form and supply it to your Agent.
8. Request and retain a copy of all documentation for your own records.
9. Be satisfied that you have received, or are going to receive, the specified discount or payment for the STCs.
10. The STCs have now been assigned.  They cannot be re-assigned.

• The Agent creates the STCs in an online system called the REC Registry.
• They are then able to be listed for sale through the open STC market, or the Clean Energy Regulator-managed STC Clearing  House.
• The price of STCs fluctuates depending on demand in the market but tends to stay under $40/STC.
• There is a Government-guaranteed price of $40/STC (excluding GST) if the seller uses the STC Clearing House. However, there is no guarentee on how long it will take for certificates to clear.
• The demand for STCs is created by liable entities (commonly electricity retailers) who are required by law to buy and surrender a set number of STCs per year. Surrendered STCs are invalidated by the Clean Energy Regulator and cannot be bought or sold again.

• If you believe an Agent or Installer has created STCs for an ineligible system – for example, if you have signed an STC Assignment Form but your system is not fully installed – please contact the Clean Energy Regulator on retcompliance@cleanenergyregulator.gov.au .
• If you need to discuss your STC payment – including any delays in payment - contact your Agent.
• Payment for STCs or the rights to create STCs is a contractual matter between owner and Agent.
• The Clean Energy Regulator does not set the price of STCs traded outside of the STC Clearing House.
• The Clean Energy Regulator cannot mediate in price or payment-based disputes between owners and Agents.
• If you believe the terms of your contract are unfair, please contact the Department of Fair Trading in your State or Territory.