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Financial Guide

Understanding STCs and Solar Rebates in Australia

Navigate the financial incentives that make solar more affordable for Australian households and businesses

Updated January 202515 min read
Quick Summary: Solar Incentives in 2025

Small-scale Technology Certificates (STCs)

Federal incentive reducing upfront cost by $2,000-$4,000 for typical residential systems

WA State Battery Rebate

Up to $3,900 for battery storage systems ($1,300 per 10kWh of capacity)

Federal Battery Rebate

Up to $18,000 for eligible battery installations (income tested)

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 expected to generate over its lifetime (deemed to be 15 years for solar panels).

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 typically creates 80-90 STCs)
  • •Location (zone rating): Australia is divided into zones based on solar irradiance. Perth is in Zone 3, most of eastern Australia is Zone 4
  • •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: 15 years (2025 installation)

• STCs created: 9.12 × 15 = 137 STCs (rounded down)

• STC value: 137 × $38 = $5,206 discount

This $5,206 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 $1,300 per 10kWh of battery capacity, up to a maximum of $3,900 (30kWh).

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 (Household Battery Program)
Active

The Australian Government provides up to $18,000 for eligible battery installations through the Household Battery Program.

Eligibility (Income Tested):

  • • Combined household income under $180,000
  • • Battery capacity minimum 3kWh
  • • Must be installed with or added to existing solar system
  • • CEC approved battery and 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 system installed in 2025 receives 15 years of STCs, while the same system in 2029 would only receive 11 years.

Assignment of 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 $3,900)
  • Federal Battery Rebate (up to $18,000, income tested)

Total potential savings: Over $25,000 for eligible households!

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