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Having the right to create small-scale technology certificates assigned to you

14 February 2022
RET

As a registered agent under the Small-scale Renewable Energy Scheme (SRES), you have the option to provide individuals and businesses with an upfront financial benefit, such as a discount off their systems' invoice, in exchange for the right to create and sell the systems' certificates.

Before small-scale technology certificates (STCs) can be assigned to you as a registered agent, you must ensure the system:

It is also important to check that the installation documents provided to you accurately reflect the installation that has taken place, and that the small-scale technology certificate assignment form has been signed and dated by the owner of the system.

The Clean Energy Regulator reserves the right to impose penalties on individuals who provide false or misleading information which results in the improper creation of small-scale technology certificates.

Assigning the right to create STCs

The Clean Energy Regulator has developed a range of question and answers relating to the assignment of STCs to help with the process of assigning the right to create certificates.

Who can assign the right to create STCs?

The owner of the system has the right to create STCs or may assign that right at the time the system is first capable of producing electricity or delivering hot water.

Who can STCs be assigned to?

The right to create STCs may be assigned to a registered agent by the owner of the system at the time it is first capable of producing electricity or delivering hot water. Registered agents pay a fee under the Renewable Energy (Electricity) Regulations 2001 to have the right to create STCs assigned to them.

How many times can the right to create STCs be assigned?

The right to create STCs may only be assigned once by the owner of the system to a registered agent. The right to create STCs cannot be re-assigned to a third party.

I haven’t received payment for STCs from the registered agent - how do I cancel the assignment?

Payment for STCs is a contractual matter between the system owner and the registered agent. SRES offers a financial incentive to install small-scale renewable energy systems: this incentive is not a rebate and funds are not paid by the Clean Energy Regulator to system owners or registered agents.

Installers and retailers may have a contractual arrangement with a registered agent to be reimbursed for the STC discount provided to the system owner; however, this contractual arrangement does not give installers or retailers assignment rights. The Clean Energy Regulator does not get involved in contractual disputes.

Installers or retailers cannot cancel the assignment of rights with a registered agent and have the system owner re-assign the right to create small-scale technology certificates to another agent. If the right to create STCs has been assigned to a registered agent, then the entitlement to create the certificates remains with the registered agent and may only be cancelled or nullified with their consent.

Can the installer or solar retailer ask the Clean Energy Regulator to fail STCs?

Installers or retailers cannot request the Clean Energy Regulator to fail STCs if they are not the registered agent that created the certificates. Only the creator of the certificates can request the Clean Energy Regulator to fail certificates on request. The failure of certificates does not signify a cancellation of assignment.

Similarly, the installer or retailer cannot request information on the progress of, or the information contained in, a STC application if they are not the registered agent that created the certificates.

What do I do if the registered agent that I use to create STCs enters into administration?

If a registered agent enters into external administration and amounts are owed relating to STCs then the appointed administrators would need to be contacted and a claim registered against the company.

The Clean Energy Regulator does not get involved in the claiming process for creditors of companies that have entered into administration.

Can you advise whether a company is in administration?

If the Clean Energy Regulator is aware that a company has entered into external administration and if the appointed administrators are known, then the status of that company may be provided.

The status of a company can be found on the Australian Securities and Investments Commission website.

Improper assignment of certificates

Small scale-technology certificates which are created before the completion of an installation are considered improperly created by the Clean Energy Regulator. An improper assignment of certificates can also happen when the STC assignment form is signed before the installation has occurred or the legal owner of the system has not assigned the right to create certificates.

To avoid an improper assignment of STCs, please ensure:

  • the STCs are created by the registered agent named on the STC assignment form, and the right to create assigned by the owner of the system. Note:
    • the right to create certificates can only be assigned once. Once the right to create has been assigned to an agent, it cannot be re-assigned to another agent, and
    • only the legal owner of the system at the time the system is completely installed can assign the right to create the certificates for the system to an agent.
Under the Renewable Energy (Electricity) Act 2000, the Clean Energy Regulator has the power to impose penalties on individuals who provide false or misleading information which results in the improper creation of small-scale technology certificates

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