Once small-scale technology certificates (STCs) have been successfully created, validated and registered through the REC Registry, they may be bought and sold through the open STC market or the
STC clearing house.
While most small-scale technology certificates are sold by registered agents and purchased by Renewable Energy Target liable entities to fulfil their surrender obligations, anyone with an appropriate REC Registry account can trade in small-scale technology certificates.
Before buying and selling small-scale technology certificates please note:
There are two markets for small-scale technology certificates (STCs): the open market, and the
STC clearing house where certificate prices are set at $40 (GST exclusive). Participants should be aware that STCs are a commodity and prices will fluctuate in the open market based on the balance of supply and demand along with other factors.
supply side of the market, participants create STCs for each megawatt hour of renewable source electricity deemed to be generated or displaced (no longer required from the grid). The number of small-scale systems installed each year changes, and is influenced by consumer behaviour and a number of often unpredictable factors (such as electricity prices, feed-in tariffs, lower system costs and new technologies) which can result in an over or undersupply of small-scale technology certificates in the market at any given time.
demand side, electricity retailers source these STCs to meet their renewable energy obligations. The number of STCs each electricity retailer needs to source and then surrender each year is in proportion to the amount of electricity they acquire to use or sell and the
small technology percentage for that year.
The Clean Energy Regulator does not regulate the STC open market.
The price of small-scale technology certificates is driven by supply and demand of the renewable energy certificate market and fluctuates daily.
To determine an
approximate price for small-scale technology certificates, conduct an internet search for small-scale technology certificate traders. Individual trader websites advertise their price for certificates, though this price fluctuates daily.
If you choose to sell your certificates through the
STC clearing house there is a fixed price of $40 per certificate, however the Clean Energy Regulator cannot provide an estimate of how long it will take them to sell—certificates listed for sale through the clearing house will only sell when a buyer is available.
Participants should put in place appropriate commercial measures to manage exposure to price fluctuation.
Depending on your circumstances, the below comparison table may assist you to choose whether to use the open STC market, or
STC clearing house to buy and sell small-scale technology certificates.
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