What is the solar rebate in Australia in 2026?

The solar rebate in Australia comes from Small-scale Technology Certificates (STCs). A 6.6 kW system in Zone 3 (Sydney/Melbourne) earns approximately 45 STCs in 2026. At around $38/STC, that's about A$1,700 off your installation cost. The rebate decreases each year as fewer deeming years remain before the scheme ends in 2030.

Is the solar rebate tax-free in Australia?

For residential homeowners, the STC rebate received as a point-of-sale discount is generally not taxable income. However, for businesses and investors who may need to declare the rebate as income and adjust their capital cost base, it's worth checking with an accountant. The ATO has guidance on this — the treatment differs for business versus personal use installations.

Australian Solar Rebate Calculator

How much is your solar STC rebate worth? Enter your system size and zone — instantly see your STCs and rebate amount in AUD.

System details

System size?

STC zone?

STC spot price?

Total system cost (before rebate)?

STC rebate estimate

A$1,710 rebate

STCs earned45 STCs

Zone deeming factor1.382

Deeming years5 years (to 2030)

Net cost after rebateA$6,290

Rebate as % of system21.4%

How it works: STCs = 6.6 kW × 1.382 (zone factor) × 5 years = 45 STCs × A$38/STC = A$1,710. Most installers apply the rebate as an instant point-of-sale discount — you never handle the STCs yourself.

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How to Use This Calculator

Enter your system size

Enter your system size in kilowatts (kW). Residential systems eligible for STCs range from 1 kW to 100 kW. Most Australian homes install 5–13.3 kW. A 6.6 kW system is the most common size — it's the point where inverter and panel sizing align well for typical electricity bills.

Select your STC zone

Australia has four STC zones based on solar irradiance. Zone 1 (Darwin, Broome) has the highest solar resource and earns the most STCs. Zone 2 includes Brisbane, Townsville, and central Australia. Zone 3 covers Sydney, Melbourne, Adelaide, and Perth — where most Australians live. Zone 4 covers Hobart and parts of southern Tasmania with the least sun.

Check the current STC price

The STC spot price fluctuates based on supply and demand in the STC market. Check the Clean Energy Regulator REC Registry or ask your installer for the current price. The STC price has ranged from $30–$42 in recent years. Most installers apply the rebate as an upfront point-of-sale discount — you sign over your STCs and pay less for the system.

The STC Rebate Formula

STCs = System kW × Zone deeming factor × Deeming years remaining Rebate (AUD) = STCs × STC spot price ($/STC) Net cost = Total system cost − Rebate Zone factors (approximate): Zone 1 (Darwin): 1.622 Zone 2 (Brisbane): 1.536 Zone 3 (Sydney/Melbourne): 1.382 Zone 4 (Hobart): 1.185 Deeming years = Years remaining until scheme ends (2030) 2026: 5 deeming years | 2027: 4 years | 2028: 3 years

The deeming period runs from installation until 2030 when the STC scheme ends. As 2030 approaches, fewer deeming years remain, so the rebate decreases. A system installed in 2026 earns 5 years of STCs; the same system installed in 2029 would earn only 2 years, cutting the rebate roughly in half. Install sooner to maximize the rebate.

Example: 6.6 kW System in Sydney

6.6 kW rooftop solar in Sydney, NSW (Zone 3), installed 2026

System size6.6 kW

ZoneZone 3 (Sydney)

Zone deeming factor1.382

Deeming years (2026-2030)5 years

STC priceA$38/STC

Result

STCs earned6.6 × 1.382 × 5 = 45 STCs

Rebate value45 × $38 = A$1,710

System cost before rebateA$8,500

Net cost after rebateA$6,790

The STC rebate reduces the effective system cost by about 20% for a mid-2026 installation. The actual rebate shown on your quote may differ slightly — installers calculate STCs based on exact Clean Energy Regulator tables which account for annual production curves, not a simple multiplier.

FAQ

How do I actually receive the STC rebate? ▼

In most cases, you assign your STCs to the installer, who applies them as an instant discount on your invoice. You never sell STCs on the open market yourself — the installer handles that. Your quote should show the gross system cost and the STC discount separately. Make sure the discount shown matches what this calculator estimates (within 10–15%, given STC price fluctuation).

Does adding a battery affect the STC rebate? ▼

Batteries are not eligible for STCs — only the solar panels and inverter qualify. However, batteries may be eligible for state government rebates. Victoria's Solar Homes Program offers battery rebates. South Australia, Western Australia, and Queensland have had battery incentive programs — check your state government's energy rebate page for current offers.

When does the STC scheme end? ▼

The Small-scale Renewable Energy Scheme (SRES) that generates STCs ends on 31 December 2030. After that, there will be no STC rebate for new installations. The rebate decreases each year as fewer deeming years remain. A system installed in 2026 earns 5 years of STCs; one installed in 2029 earns only 2 years. Install before 2028 to capture a meaningful rebate.

Are there any state government solar rebates in addition to STCs? ▼

Yes — several states offer additional rebates: Victoria's Solar Homes Program provides rebates for panels and batteries for eligible homeowners. Queensland has had the Solar for Rentals and community housing programs. Check your state energy department website as programs change frequently. Some states also offer low-interest loans for solar installations through green loan schemes.