How Australia’s upfront renewable-energy discounts work for solar panels and batteries
Understanding Small-scale Technology Certificates (STCs) is important when considering a solar PV system or battery installation in Australia.
Often referred to as the solar rebate, STCs can help reduce the upfront cost of eligible renewable energy systems. However, STCs are not a direct government payment to customers. Instead, they are electronic certificates created under Australia’s renewable energy scheme and their value is typically applied as an upfront discount on a solar or battery system.
Solar Link Australia provides transparent quotations that identify the applicable certificate discount and explain how system capacity, installation location and timing affect the estimated STC value.
STC Overview
| Status | Open – declining to 2030 |
| Location | Australia-wide |
| Last Reviewed | 26 July 2026 |
What Are Small-scale Technology Certificates (STCs)?
Small-scale Technology Certificates are electronic certificates created under the Australian Government’s Small-scale Renewable Energy Scheme (SRES).
Eligible renewable energy systems, including:
- Solar photovoltaic (PV) systems
- Solar water heaters
- Heat-pump water heaters
- Eligible battery installations
may create certificates under prescribed rules.
In most residential solar transactions, the customer assigns the right to create the certificates to a registered agent. Their value is then shown as an upfront discount on the system price.
STCs are not a separate government cheque paid directly to the customer.
How Are Solar STCs Calculated?
For rooftop solar systems, the number of certificates generated depends on several factors, including:
- The system’s eligible generating capacity
- The property’s postcode-based solar zone
- The number of years remaining in the scheme’s deeming period
The deeming period reduces by one year annually and reaches one year in 2030. As a result, the available STC discount generally declines over time.
This means the estimated solar rebate available today may differ from the value available for future installations.
How Are Battery STCs Calculated?
Eligible batteries installed from 1 July 2025 can create STCs based on their usable battery capacity.
From 1 May 2026, the STC factor is tiered as follows:
| Usable Battery Capacity | STC Factor |
| First 14 kWh | 100% |
| Above 14 kWh to 28 kWh | 60% |
| Above 28 kWh to 50 kWh | 15% |
| Above 50 kWh | No battery STCs available |
No battery STCs are available above the first 50 kWh of usable capacity.
The battery certificate value depends on the eligible usable capacity of the battery system and the applicable scheme rules at the time of installation.
STCs Are Market-Based
The dollar value of an STC can change because STCs are market-based certificates.
A solar or battery quotation should clearly state:
- The assumed certificate value
- The number of certificates being assigned
- Whether the customer is assigning the certificates to the retailer or registered agent
Because the STC market value can fluctuate, the discount shown on a quotation is generally based on the current certificate value at the time of quoting.
Key STC Compliance Requirements
To create STCs, renewable energy installations must meet specific eligibility and compliance requirements.
These include:
- Eligible products must appear on the relevant approved product lists.
- Installation must be completed by appropriately licensed and accredited personnel.
- The system must comply with applicable Australian Standards, network rules and scheme requirements.
- Accurate documentation, serial numbers, photographs and customer declarations may be required.
Meeting these requirements ensures the system remains eligible under the Small-scale Renewable Energy Scheme.
Why Solar Quote Values Can Differ
When comparing solar or battery quotations, customers may notice differences in the STC discount shown by different installers.
This can occur due to factors such as:
- Different solar system capacities
- Different installation locations
- Different installation dates and deeming factors
- Different assumed STC market prices
- Battery usable-capacity calculations and tiering
- Whether the quotation clearly displays the gross system price and STC assignment
Understanding how STCs are calculated can help customers compare quotations more accurately.
Frequently Asked Questions About STCs
Are STCs the Same as a State Government Solar Rebate?
No.
STCs are created under a federal renewable energy certificate scheme through the Australian Government’s Small-scale Renewable Energy Scheme.
State government rebates, loans or retailer offers may sometimes be available separately, but they operate under their own eligibility requirements.
Can I Keep and Sell the STCs Myself?
It may be possible, but most customers assign their STCs to a registered agent.
This is because creating and selling certificates involves administration, registration requirements and market considerations.
Assigning the certificates allows the value to be applied immediately as an upfront discount on the solar or battery system.
Why Does the STC Discount Reduce Over Time?
The STC scheme is designed to gradually phase down towards 2030.
As the deeming period reduces each year, fewer certificates are available for new installations. This generally results in a lower upfront discount over time.
How Solar Link Australia Can Help
Choosing a solar or battery system is a significant investment, and understanding available incentives can help you make an informed decision.
Solar Link Australia provides quotations that identify the applicable certificate discount and explain how:
- System capacity
- Installation location
- Installation timing
can affect the estimated STC value.
Our team can help you understand your solar and battery options and provide a personalised recommendation based on your energy requirements.
Request a Solar Quote Today
Speak with Solar Link Australia about your solar or battery installation and understand how available certificate discounts may apply to your system.
Request a quote or contact our team for more information.
Important Information
Government programs, retailer offers, electricity tariffs and eligibility rules can change.
Customers should confirm current scheme requirements and eligibility before signing a contract or making an investment decision.
Authoritative Sources
- Clean Energy Regulator – Calculate STC entitlements
https://cer.gov.au/schemes/renewable-energy-target/small-scale-renewable-energy-scheme/small-scale-technology-certificates/calculate-small-scale-technology-certificate-entitlements - Clean Energy Regulator – Solar batteries
https://cer.gov.au/schemes/renewable-energy-target/small-scale-renewable-energy-scheme/small-scale-renewable-energy-systems/solar-batteries
