No April fool joke – the STC price is on the move

31 Mar 2011

After a positive and consistent start to the year the STC price is now falling, there are a few factors triggering this, one of these being that more than 1 million certificates per week have been created by the solar industry over the last five weeks. This means that the first quarter STC target should be readily reached.  At the end of March 2011 more than 10.1 million STCs had been submitted to the Regulator for registration – this is more than the 9.8 million target for the first quarter of 2011.

A significant surplus of STCs is expected for 2011 due to the popularity of PV systems, meaning the 28 million STC target for 2011 will be well exceeded.

The wholesale STC price has reduced across the board with the price for delivery beyond the end of April falling considerably ending the week at around $32.

There was an expectation that the first quarters target would not be met and that all certificates submitted to the clearing house would receive $40 by 28 April 2011. With the large number of STCs created to date we do not believe that all the STCs lodged in the clearing house will be settled. A considerable surplus of certificates is now developing which means that the clearing house will not be effectively used for quite some time.