Solar STCs explained: how the “solar rebate” works

What are STCs?

Under the federal Small-scale Renewable Energy Scheme, an eligible solar system creates small-scale technology certificates (STCs). Each certificate represents an amount of renewable electricity the system is expected to generate. Energy retailers must buy these certificates, which gives them a market value.

Most installers claim the certificates for you and take their value off your price, so you see it as an upfront discount.

How many certificates will my system get?

It depends on three things:

• System size — more kW, more certificates.
• Location — Australia is divided into zones; sunnier zones get more certificates per kW.
• Installation year — certificates are calculated up to the end of the scheme in 2030, so each year the number falls.

Why the discount shrinks every year

The scheme ends in 2030. A system installed this year is credited for fewer remaining years than one installed last year, so it creates fewer certificates. This step-down happens each January. It’s one reason prices rise slightly at the start of the year — but it’s rarely a reason to rush a poor decision.

Checking the STCs on your quote

• The number of STCs and their dollar value, shown separately.
• Who is claiming the certificates (usually the installer).
• Panels and inverter on the approved product lists.
• A Solar Accreditation Australia (SAA) accredited designer and installer.

Panel capacity can generally be up to 133% of inverter capacity for STC eligibility — ask your installer how your design meets the rules.

Other incentives

Some states add their own programs — for example Victoria’s Solar Homes rebate. See our solar quotes page for state-by-state information.

Sources

• Clean Energy Regulator — Small-scale Renewable Energy Scheme
• energy.gov.au — Rebates and assistance finder

Frequently asked questions