STC Market Volatile Following VIC Rebate Announcement

Last week the Victorian Government announced an expansion to the number of rebates for the Solar Homes Program from September onward. This initially caused the STC price to drop to $36.80 as the market anticipated the effects of the extra supply. This was short lived however as the price quickly rebounded back above $37.00 mid week and ultimately closed at $37.20. The week had opened at the same level so even after the announcement the price closed back at where it had started.

Approx 740,000 STC’s were created last week which is the highest we have seen for quite a few months. This was expected however after recent issues with the REC registry slowed creations.

The forward market was extremely busy last week and continued to trade in large volumes. There were multiple large trades at $37.50 executed for late 2019 and across 2020. As previously mentioned the spot price historically strengthens in the first quarter as we approach the announcement of the next years renewable energy percentage. Shorter term forwards were similar or slightly higher than the spot.

The number of STC’s listed on the clearing house currently sits at 439,047. This is 10k lower than the prior week and continues the trend of the listings dropping. Likely due to both the stronger price and an acknowledgement from sellers that the clearing house facility is unlikely to be used until at least mid next year. A link to the STC clearing house can be found here.

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