STC Market Update – 27th July 2020

The STC market has been softening as we reach the end of the second quarter surrender period. After trading as high as $39.50 a few weeks ago the spot price has traded down to $38.40 and further downward pressure is likely. The large energy retailers have fulfilled their surrender requirements and supply currently outweighs demand. Forwards for late 2020 & early 2021 have been trading just above $38.

Somewhat surprising is the sustained level of high certificate creations. Despite everything that is going on at the moment installations have been powering along. Massive numbers of STCs are being recorded over the past few weeks with over 900k created just last week. It is estimated that between 700-750k are required to fulfill 2020 weekly surrender requirements. This extra supply volume is a key factor in the recent downward movement in price.

The number of STC’s listed on the clearing house currently sits at 496,988. Unless things change the clearing house is unlikely to come into effect until at least next year. A link to the STC clearing house transfer list can be found here.

Our latest pricing for both registered and non-registered STC’s can be found here.