Australia Renewable Energy Act: Sections 23C & 24 STC Assignment Guide
Updated 6 September 2026 · By SolarNevs Research Desk, Dealer surveys + verified sources · 1 source · Method ↗
Key Takeaways
- Section 23C of the Renewable Energy (Electricity) Act 2000 vests initial STC creation rights in the system owner at installation.
- Enables owners to assign creation rights to registered agents via written notice in exchange for point-of-sale discounts.
- Extinguishes the original owner's right to create certificates once validly assigned, preventing duplicate creation.
- Subdivision C Section 24 makes improper certificate creation a strict liability criminal offence under the Criminal Code.
- Imposes cumulative criminal and civil penalties assessed separately for each certificate improperly created.
Statutory Framework for STC Assignment
Under Section 23C (Who may create a certificate), the law establishes that while the property owner possesses default entitlement, the commercial solar industry operates through point-of-sale assignments.
By executing a compliant written assignment form, the homeowner or business assigns STC rights to a registered agent (the solar retailer or trader), who then provides an upfront discount on the solar power installation.
Assignment Mechanics and Strict Liability Enforcement Matrix
The Act establishes rigorous compliance guardrails to protect market integrity:
Legal Mechanism | Statutory Provision | Practical Governance Standard |
|---|---|---|
Owner Entitlement | Owner entitled to create certificates at the time the right arises | Property host or asset owner possesses initial creation right |
Written Assignment | Assign right by written notice in accordance with regulations | Point-of-sale assignment form signed and dated by consumer |
Assignee Exclusivity | Owner is not entitled; assignee is exclusively entitled | Prevents dual registration by both installer and homeowner |
Strict Liability Offence | Offence of strict liability under Section 24(2) | Prosecution does not require proof of fault or fraudulent intent |
Cumulative Penalty | Penalty imposed in respect of each improperly created certificate | Violations across a commercial array compound on a per-certificate basis |
Civil Penalty Regime | Section 24A civil action by Clean Energy Regulator | Enables federal court injunctions, asset freezing, and civil fines |
Best Practices for Registered Agents and Solar Retailers
To prevent regulatory penalties under Subdivision C:
- Obtain Valid Written Assignments: Ensure all STC assignment forms contain the consumer's signature, installation date, and full system serial numbers.
- Implement Double-Claiming Safeguards: Reconcile REC Registry submissions against national inverter serial ledgers before finalizing creations.
- Strict Audit Trail Retention: Maintain signed assignment forms, statutory declarations, and electrical compliance certificates for at least 5 years.
Frequently asked questions
Who holds the initial statutory right to create STCs under Section 23C?
Under Section 23C(1), the owner of the small generation unit at the time the right arises is entitled to create the certificate or certificates (August 2026).
How are STC creation rights assigned to solar retailers or aggregators?
The owner may, by written notice and in accordance with the regulations, assign the creation rights to another person, vesting exclusive creation entitlement in the assignee (August 2026).
What offence is committed if a person creates certificates without entitlement under Section 24?
Under Section 24(1)-(2), a person commits an offence of strict liability under Chapter 2 of the Criminal Code if they create certificates without entitlement (August 2026).
How are penalties calculated for improper certificate creation?
Under Section 24(4), penalties may be imposed in respect of each individual certificate in respect of which an offence was committed (August 2026).
References
- Federal Register of Legislation: Renewable Energy (Electricity) Act 2000 — accessed 31 August 2026
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