The Australian Government provides financial incentives to encourage the adoption of solar energy through the both the Small-scale Renewable Energy Scheme (SRES) and the Large Scale Renewable Energy Target (LRET). Both schemes are part of the Renewable Energy Target.
For home and small business owners wondering about the solar rebate, the SRES is the scheme that applies to new solar systems under 100kW.
What is the Small-scale Renewable Energy Scheme (SRES)?
The SRES reduces the upfront costs of installing solar panels. The way this works is that every time a new solar system is installed, the SRES allows a number of renewable energy certificates to be created based on how much energy the system is expected to produce.
These certificates are known as Small-scale Technology Certificates (or STCs). One STC is created for every megawatt hour (MWh) of energy the solar system is expected to produce until the phase out of the SRES in 2030.
The energy production estimated and hence the number of STCs created is based on:
- The size of the solar system (in kW capacity)
- The location of the solar installation. There are four defined STC Zones which determine a location multiplier to account for the amount of solar energy the system is expected to receive. See map below.
- The remaining years until the scheme’s phase-out in 2030
Are STCs worth money?
Yes, STCs are worth money. This is because energy companies are forced to buy and surrender a certain number each year according to a percentage of the the amount of energy that they sell in MWh. In this way a market is created for STCs.
Each STC has a market value, which fluctuates based on supply and demand but typically ranges between $35 and $40 per certificate. Pricing is dependent on trading within the open market or through the STC clearing house facilitated by the Clean Energy Regulator.
How Much is the Solar Rebate Worth?
The solar rebate varies depending on the number of STCs that can be created. So varies depending on system size, STC Zone for the installation, and installation year. The number of STCs created when a system is installed is based on the following formula:
STC Zone Multiplier x Solar Panel Capacity (kW) x Years left until the end of 2030.
Example STC Calculation
For example, the STC calculation for a 6.6kW system installed in Newcastle (which has an STC Zone multiplier of 1.382) in 2025 would be:
1.382 x 6.6 (kW) x 6 (years) = 54.69
Rounding down, the system would be eligible for 54 STCs upon installation.
The upfront rebate for this system would be worth $1,900 – $2,100 depending on the STC price.
The Clean Energy Regulator has an online STC calculator that you can use here.
What STC Zone am I in?
You will be in one of four STC Zones across the country, depending on your postcode. The Zone you are in will determine the STC Zone Multiplier for your STC calculation and so affect your solar rebate. A map of the STC Zones is shown below.
As postcodes in Zone 1 receive the most solar energy, the STC multiplier is highest in Zone 1. The multiplier then progressively deceases for Zone 2, Zone 3, and Zone 4 as solar systems in the postcodes that make up these Zones receive less solar energy. The STC Zone multipliers for each zone are as follows:
- Zone 1: 1.622
- Zone 2: 1.536
- Zone 3: 1.382
- Zone 4: 1.185
The full list of postcodes their Zone classification, and Zone multipliers is published by the clean energy regulator here.
You can see how the STC Zones general map well against solar energy availability across the country by comparing to SolarGIS’s solar resource maps of Australia here. Although they are not an exact match, as the STCs Zone is based on a postcode boundary and some of these are quite large in remote areas.
How to Claim the Solar Rebate
The process of creating STCs involves recording the details of the solar installation, including the address, and each of the serial numbers of the solar panels and inverters, and registering these with the Clean Energy Regulator or through an accredited Renewable Energy Certificates (RECs) agent.
STCs then need to be sold. This can be through an open market or via the STC Clearing House which is managed by the Clean Energy Regulator and where prices are set at $40 per STC.
Given the amount of paperwork involved in this process, this will almost always be done by your solar installer with an agreed value of the STCs applied as an upfront discount to the full cost of the installation. Note that the rebate is applied to the full cost of the system including GST.
In order to be able to calculate this discount, you will need to agree a price for the STCs with your solar installer before the system is installed. After the installation, you’ll then be asked to assign the right to create and sell the STCs to your solar installer in return for the discount received.
Given the potential for the price of STCs to fluctuate (along with solar panels) this is one of the reasons that pricing for solar systems can change slightly month to month.
Can you create and sell STCs yourself?
Yes. There is nothing stopping you creating and selling the STCs yourself. Although you will need to register with the Clean Energy Regulator and then record each of the serial numbers on the panels and inverters (make sure to do this before installation!). This is to ensure that the only one set of STCs is created for the system.
You will then need to sell the STCs through the open market or the STC Clearing House accessible via the REC Registry. Going through this process is a lot of hassle for home owners, and it can take time for the STCs to sell through the clearing house. So while you can create and sell STCs yourself, its almost always usually best left to your solar installation company.
Summary
The Australian Government’s “solar rebate” works through the value of the Small-Scale Technology Certificates (STCs) that can be created under the by Small- Scale Renewable Energy Target.
STC creation provides a mechanism for an upfront point of sale discount for households and businesses installing solar systems under 100kW.
The rebate amount varies based on installation year, system size, location, and market conditions. It remains a crucial driver of Australia’s renewable energy transition and increases affordability of solar systems for Australian homes and businesses.
Bonus- State-Based Solar and Battery Incentives
In addition to the federal STC rebate, several state and territory governments offer additional incentives, including:
