When people say “the solar rebate”, they usually mean STCs. The government does not hand you a cheque. It creates a market for certificates, and the market pays for part of your system.
How an STC is created
When an accredited installer fits a compliant system, an STC is created for each megawatt hour of renewable energy the system is expected to produce over its deeming period. The count depends on three things: system size in kilowatts, the climate zone of your postcode, and the deeming period, which is five years for 2026 installs.
A 6.6 kW system in zone 3 earns about 45 STCs in 2026. See how many STCs a 6.6 kW system makes.
What happens to them
You assign the STCs to your installer. They register them, sell them to a trader, and use the money to cover the discount on your quote. Electricity retailers eventually buy them to meet the Renewable Energy Target.
What to know
- The STC count falls each year until the scheme ends on 31 December 2030, because the deeming period shortens.
- The certificates are tied to the system and the install date.
- The installer and products must be accredited and approved.
- The market price moves, though it is capped by the $40 clearing house ceiling.
Not the same as an LGC
STCs are for small systems, up to 100 kW (and up to 1 MW for commercial solar installed from 1 October 2026), paid upfront on expected output. LGCs are for larger power stations and paid on actual generation. See STC vs LGC.
A short history
STCs came with the Renewable Energy Target, which began in 2001 and was expanded in 2009 and 2011 into small-scale and large-scale parts. Since then, millions of Australian homes have installed solar partly because of STCs. The scheme is set to taper off, with the deeming period shortening each year and ending at the close of 2030. If you are thinking about solar, the discount is largest now, and gets smaller each January.
What this means for you
Ask for the STC discount to appear on your quote. Read more about whether it is paid upfront and whether it is taxable. The STC trading page explains how installers sell them, and the resources hub has more.