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Financial Guide

Understanding stcs and solar rebates in Australia

The federal and WA incentives that bring down what solar and a battery actually cost you, and how they stack

Updated January 202615 min read
Fairgo, WattMate's finance and rebate guide — a WattForce brand character
Explained by Fairgo, WattMate's finance and rebate guide
About WattForce expertsAn illustrated WattMate expert persona — a brand character voicing our team's real WA solar experience, not a real person.
Quick summary: solar incentives in 2026

Small-scale Technology Certificates (STCs)

Federal incentive reducing upfront cost by roughly $1,700-$3,400 for typical residential systems (2026 deeming)

WA State Battery Rebate

Up to $1,300 for battery storage systems ($130 per kWh, capped at 10kWh) for eligible Synergy customers

Federal Battery Rebate

~$2,713 off a 10kWh battery via the Cheaper Home Batteries Program (STC-based, capacity-tapered)

Small-scale Technology Certificates (STCs)

What are STCs?

STCs are a federal government incentive designed to encourage the installation of small-scale renewable energy systems. When you install a solar system, you create STCs based on the amount of renewable energy your system is deemed to generate over the remaining years of the scheme — a deeming period that steps down by one year each year until the scheme closes in 2030 (a solar system installed in 2026 is deemed over 5 years).

How STCs work

The number of STCs you receive depends on three key factors:

  • •System size: Larger systems generate more STCs (a 6.6kW system installed in 2026 creates around 45 STCs)
  • •Location (zone rating): Australia is divided into zones based on solar irradiance. Perth is in Zone 3 (the same band as Sydney and Brisbane); Australia's far north rates higher and the cool south lower
  • •Installation date: The deeming period reduces each year until the scheme ends in 2030

STC calculation example

6.6kW system in Perth (Zone 3):

• System size: 6.6kW × 1.382 (Zone 3 rating) = 9.12 kW adjusted

• Deeming period: 5 years (2026 installation)

• STCs created: 9.12 × 5 = 45 STCs (rounded down)

• STC value: 45 × $38 = $1,710 discount

This $1,710 is typically deducted from your upfront cost by the installer

State and territory rebates

Western Australia battery rebate
Active

The WA Government provides a rebate of $130 per kWh of battery capacity, up to a maximum of $1,300 (10kWh cap). Synergy SWIS customers only.

Eligibility:

  • • Must participate in Synergy's Battery Rewards Program for minimum 2 years
  • • Battery must be CEC approved
  • • Installation by licensed electrician
  • • Property must be in Western Power network area
Federal Battery Rebate (Cheaper Home Batteries Program)
Active

The Australian Government's Cheaper Home Batteries Program discounts battery storage through Small-scale Technology Certificates — roughly $271 per kWh of usable capacity (e.g. ~$2,713 off a 10kWh battery). It is not income tested.

Eligibility:

  • • The STC value is capacity-tapered and steps down each year until 2030
  • • Battery capacity minimum 5kWh
  • • Must be installed with or added to an existing solar system
  • • CEC-approved battery and SAA-accredited installer

Important considerations

STC value decreases over time

The deeming period reduces by one year annually until the scheme ends in 2030. Installing sooner means more STCs and a larger discount. A solar system installed in 2026 is deemed over 5 years, while the same system in 2029 would only receive 2 years.

Assigning your STCs

Most installers offer an "upfront discount" by purchasing your STCs at the point of sale. This means you assign your STCs to the installer in exchange for an immediate price reduction. The alternative is to create and sell the STCs yourself, which takes more time and effort.

Rebate stacking

In Western Australia, you can potentially combine multiple incentives:

  • STCs for solar panels (federal)
  • WA State Battery Rebate (up to $1,300)
  • Federal battery rebate via the Cheaper Home Batteries Program (~$2,713 on a 10kWh battery)

Combined, that's around $5,723 off a typical solar-plus-battery install.

Ready to calculate your savings?

Use our quote builder to see exactly how much you can save with STCs and rebates

Understanding STCs and solar rebates in Australia | WattMate Learning Hub