Kilowatt Kit
🇦🇺 Federal — All States Published 2026-05-04 · 9 min read

Solar Rebate Australia 2025: How the STC Scheme Works

Australia's federal Small-scale Technology Certificate (STC) scheme cuts the upfront cost of solar by $1,500–$4,000+ depending on your location and system size — and it's automatically applied as a discount when you buy. Here's exactly how to maximise it before the 2030 deadline.

MUK
Written by

Muhammad founded KilowattKit after spending hours trying to decode confusing electricity bills — and realising there were no simple, jargon-free tools to help ordinary homeowners understand their energy costs. He researches electricity rates, EV charging, solar payback, and heat pump economics across the US, UK, Canada, and Australia.

STC Scheme at a Glance

$35–$40
STC spot price (each)
2030
Scheme ends (deeming)
4 zones
Location ratings
Upfront
Applied as discount

How the STC Scheme Works

When you install a solar system, it creates a number of Small-scale Technology Certificates. Each certificate represents 1 MWh of renewable energy the system is expected to generate over its deeming period. Your installer typically claims these certificates on your behalf and applies the value as an immediate discount on your invoice.

The STC formula

STCs = System size (kW) × Zone rating (MWh/kW/yr) × Deeming years

Then: Rebate value = STCs × current STC price (~$35–$40)

STC Zone Ratings by Location

Zone Locations Rating Rebate (6.6kW, 2026)
Zone 1 Darwin, NT, inland QLD 1.536 MWh/kW/yr ~$1,620–$1,620
Zone 2 Perth, Brisbane, coastal QLD, northern SA 1.382 MWh/kW/yr ~$1,460–$1,460
Zone 3 Sydney, Adelaide, Canberra, coastal NSW 1.185 MWh/kW/yr ~$1,250–$1,250
Zone 4 Melbourne, Hobart, southern VIC, TAS 0.913 MWh/kW/yr ~$960–$960

Example values calculated as: 6.6kW × zone rating × 4 deeming years (2026–2030) × $38/STC. Actual values depend on STC spot price at the time of installation. Check your exact postcode zone at cer.gov.au.

⏰ The deeming period is shrinking every year

The deeming period runs from your installation year to 31 December 2030. Each year you wait, you lose one year of deeming — reducing your STC count and your rebate:

2026
4 years
2027
3 years
2028
2 years
2030
0 years

How to Claim Your STC Rebate

1
Get quotes from Clean Energy Council (CEC) approved installers

Only CEC-accredited installers can legally create STCs. Every quote should show the STC discount separately from the gross system cost.

2
Sign an STC assignment form

Your installer will ask you to sign a Small-scale Technology Certificate Assignment Form, transferring ownership of the STCs to them in exchange for the upfront discount.

3
Pay the net (post-rebate) amount

You pay the discounted price on your invoice. The installer handles CEC registration and STC claiming — you don't need to do anything else. There's no paperwork to submit to the government.

Who Is Eligible

✅ Eligible

  • Australian homeowners
  • Renters (with landlord permission)
  • Businesses (systems under 100kW)
  • Systems using CEC-approved products
  • Installed by a CEC-accredited installer

❌ Not eligible

  • Systems over 100kW (use Large-scale RECs)
  • Non-CEC-accredited installers
  • Systems already installed (retrospective claims)
  • Battery-only installations
  • Installations after 31 December 2030
Stack the STC rebate with state programs

Victorian homeowners can combine the federal STC discount with up to $1,400 in state solar rebate and $8,800 in interest-free battery loans — potentially making solar near-free upfront.

VIC Solar Homes →

Frequently Asked Questions

What is the STC solar rebate and how much is it worth?
The Small-scale Technology Certificate (STC) scheme is Australia's federal solar rebate. When you install a solar system under 100kW, your system creates a number of STCs based on its size, your location (zone), and the deeming period remaining until the scheme ends in 2030. Your installer typically claims the STCs on your behalf and passes the value on as an upfront discount off the system price. For a 6.6kW system, the discount ranges from roughly $1,500 in Tasmania to $3,500+ in Queensland, depending on the STC spot price.
How is the number of STCs calculated?
The formula is: STCs = (system size in kW) × (zone rating in MWh/kW/year) × (deeming years remaining). Zone ratings range from about 1.536 for Darwin (Zone 1) down to 0.913 for Tasmania (Zone 4). The deeming period is the number of complete years from installation until 31 December 2030 — so in 2026 it's 4 years, in 2027 it's 3 years, and so on. Your installer will calculate the exact number using the Clean Energy Regulator's online calculator.
What is the current STC price?
STC prices fluctuate daily on the open market, similar to shares. As of early 2026, STCs are trading at approximately $35–$40 each. The maximum price is capped at $40 by the government. Your installer may offer you the STC value based on their own purchase rate, which is typically close to but not always at spot price. You can check current prices at the STC clearing house or via brokers like Greenbank Environmental.
Do I get the rebate as cash or a discount?
In most cases, you assign your STCs to the installer, who then applies the value as an upfront discount on your installation invoice. You never receive cash — the installer handles the STC claim and registration with the Clean Energy Regulator. Some smaller installers ask you to sign over the STCs at a slightly lower value; compare quotes to make sure you're getting a fair deal.
Is the STC rebate taxable income?
Generally, the STC discount is not considered taxable income for residential homeowners, because it reduces the cost of a private asset rather than generating income. However, for businesses or investment properties, the treatment may differ. Always consult your accountant for advice specific to your situation.
What happens after 2030 when the deeming period ends?
The STC scheme is legislated to end on 31 December 2030. From 2031, no new STCs will be created for solar installations, effectively removing the federal rebate. The deeming period already steps down by one year annually — so each year you wait, your rebate decreases. Installing earlier means more deeming years and a larger discount. The government has not yet announced a replacement scheme for the post-2030 period.
Does the STC scheme apply to battery storage?
No — battery storage systems alone are not eligible for STCs. The STC scheme applies to small-scale solar PV, solar water heaters, and heat pump water heaters only. Battery storage is supported through state-level programs instead, most notably Victoria's interest-free battery loan (up to $8,800) and South Australia's Home Battery Scheme.
Sources: Clean Energy Regulator (cer.gov.au) — STC calculator and zone ratings (2025); Renewable Energy (Electricity) Act 2000; STC clearing house data (2026). STC prices are indicative and change daily — check current prices before installation. Always use a CEC-accredited installer.