Federal Solar Rebate (STC Rebate)
The Federal Solar Rebate is an Australian Government incentive designed to make installing solar more affordable for homes and businesses. It is provided through the Small-scale Renewable Energy Scheme (SRES) and can reduce the upfront cost of an eligible solar system by thousands of dollars.
Despite commonly being called a “rebate”, it is not usually a cash payment received after installation. When an eligible solar system is installed, it creates Small-scale Technology Certificates, commonly known as STCs. These certificates represent the renewable electricity your system is expected to generate over the remaining years of the government scheme.
Each STC has a financial value that is applied as an upfront discount, reducing the amount payable for your solar system.
The scheme is available Australia-wide and is not income tested, meaning eligible homeowners, landlords and businesses can benefit.
Federal Solar Rebate: Your Questions Answered
How is the STC discount calculated?
The number of STCs your solar system can create depends on:
- The size of the solar panel system
- The location of the property
- The year the system is installed
- The amount of renewable electricity the system is expected to generate
The larger the eligible solar system, the more STCs it creates and the greater the upfront discount. As STC market values can change, your exact discount will be calculated at the time of quotation and clearly shown in your system pricing.
Is my solar system eligible?
To qualify for the STC incentive, the solar installation must:
- Be a new and complete solar PV system installed in Australia
- Have a total capacity of no more than 100 kW
- Use solar panels and an inverter included on the relevant Clean Energy Council approved product lists
- Be designed and installed by appropriately licensed and SAA-accredited professionals
- Meet all applicable Australian Standards and STC scheme requirements
Do I need to apply?
No. We will apply for and manage the STC incentive on your behalf, including the required calculations and supporting paperwork. The applicable STC discount will be deducted from the cost of your solar system and clearly shown on your quotation.
How much could I save?
The STC discount is not a fixed amount. It is calculated based on your system size, location, installation year and the current STC market value.
Your quotation will outline:
- The number of STCs your system is eligible to create
- The total STC discount applied
- The final amount payable after the discount
The final STC discount is subject to your solar system meeting all eligibility and scheme requirements.
Does the solar rebate reduce each year?
Yes. The number of STCs available for new solar installations reduces at the beginning of each calendar year as the scheme is gradually phased out.
Under the current scheme, solar STCs are calculated based on the renewable electricity the system is expected to generate until the end of 2030. Installing the same system in a later year will generally result in a lower STC entitlement. You can learn more about the scheme through the Clean Energy Regulator.
Is the STC incentive the same as a feed-in tariff?
No. They provide two different types of savings:
- STC incentive: reduces the upfront purchase price of an eligible solar system.
- Feed-in tariff: a credit from your electricity retailer for surplus solar energy exported to the grid after installation.
Feed-in tariff rates vary between electricity retailers and energy plans.
Federal Battery Rebate
The Australian Government's Cheaper Home Batteries Program helps reduce the upfront cost of installing an eligible solar battery system. The program is available to households, businesses and community organisations across Australia and may provide a discount of around 30% on the cost of eligible battery systems.
Although commonly called the “Federal Battery Rebate”, it is not usually a cash payment received after installation. The discount is provided through Small-scale Technology Certificates, known as STCs, which are created based on the battery's usable storage capacity and the applicable STC factor at the time of installation.
Each STC has a financial value that is applied as an upfront discount, reducing the amount payable for your battery system.
The battery program operates under the Australian Government's Small-scale Renewable Energy Scheme and is administered by the Clean Energy Regulator.
Federal Battery Rebate: Your Questions Answered
How is the battery discount calculated?
The number of STCs an eligible battery can create depends on:
- The battery's usable storage capacity
- The date the battery is installed and certified
- The applicable government STC factor
- The market value applied to the certificates
From 1 May 2026, the STC factor is applied at different rates across three usable-capacity bands:
- Up to 14 kWh: 100% of the applicable STC factor
- Above 14 kWh and up to 28 kWh: 60% of the applicable STC factor
- Above 28 kWh and up to 50 kWh: 15% of the applicable STC factor
This means larger eligible batteries can receive a greater overall discount, but the additional discount reduces as the battery moves into the higher capacity bands.
The exact discount will be calculated at the time of quotation and clearly shown in your battery system pricing.
Is my battery system eligible?
To qualify for the Federal Battery Rebate, your battery system must generally:
- Have a nominal capacity between 5 kWh and 100 kWh
- Be connected to a new or existing eligible solar PV system
- Use a battery and inverter included on the relevant Clean Energy Council approved product lists
- Be installed by appropriately licensed and SAA-accredited professionals
- Be permanently installed at the property
- Meet all applicable Australian Standards, electrical safety requirements and program rules
The program supports battery systems with up to 100 kWh of nominal capacity. However, STCs are only available for the first 50 kWh of usable battery capacity.
Portable batteries, electric vehicles and batteries installed without a solar PV system are not eligible.
Do I need to join a Virtual Power Plant?
No. You are not required to join a Virtual Power Plant, commonly known as a VPP, to receive the battery discount.
However, an on-grid battery system must have the technical capability to participate in a VPP. This means the battery and inverter must be capable of connecting and responding to external signals if you choose to join a VPP in the future.
Off-grid battery systems do not need to be VPP capable.
Can I receive the rebate for an existing battery?
Additional capacity may qualify when added to an existing battery system, provided:
- The existing battery system has not previously received support through the program
- At least 5 kWh of new nominal capacity is added
- The total upgraded system does not exceed 100 kWh of nominal capacity
- The complete battery system meets the current product, installation and eligibility requirements
Support is generally available for one battery system at each premises and only the first time an eligible battery is installed, added to or replaced.
Envision Energised can assess your existing solar and battery system to determine whether an upgrade may qualify.
Do I need to apply?
No. Envision Energised will complete the battery STC calculations and manage the required documentation on your behalf. The discount will be deducted from your battery system price and clearly shown on your quotation.
How much could I save?
There is no single fixed rebate amount. The battery discount depends on the battery's usable capacity, its installation date, the applicable STC factor and the value applied to the certificates.
Your quotation will outline:
- The number of battery STCs the system is eligible to create
- The total battery discount applied
- The final amount payable after the discount
The final discount is subject to the battery system meeting all eligibility and scheme requirements.
Does the battery rebate reduce over time?
Yes. From 1 May 2026, the applicable STC factor reduces every six months as the program is gradually phased down towards the end of 2030.
The discount available is determined by the STC factor that applies on the date the battery is installed and certified. Installing the same battery at a later date will result in a lower STC entitlement.
Current program details are available from the Australian Government's Cheaper Home Batteries Program.
Commercial Rebate Expansion Announced
New support announced for commercial solar systems up to 1 MW.
The Australian Government has announced a major expansion of the Small-scale Renewable Energy Scheme (SRES), designed to make larger commercial solar installations more affordable for Australian businesses, farms and community organisations.
Currently, the upfront Small-scale Technology Certificate (STC) incentive is limited to eligible solar systems with a capacity of no more than 100 kW. Systems above 100 kW generally participate in the Large-scale Renewable Energy Target and earn Large-scale Generation Certificates based on the electricity they generate over time.
Under the announced changes, eligible solar systems between 100 kW and 1 megawatt (MW) will be able to access STCs, providing a much larger upfront discount on the cost of commercial solar.
The Australian Government intends for the changes to apply to eligible systems installed from 1 October 2026, subject to the required regulations being in place. Final eligibility, design, installation and compliance requirements are still being developed by the government and the Clean Energy Regulator.
What Is Changing
| Current arrangements | Announced expanded arrangements |
|---|---|
| STCs are available for eligible solar systems up to 100 kW | STC eligibility will expand to qualifying systems up to 1 MW |
| Systems over 100 kW generally access LGCs over time | Eligible systems between 100 kW and 1 MW will receive an upfront STC benefit |
| Larger projects require ongoing generation measurement and LGC administration | The expanded STC process is intended to provide a simpler upfront incentive |
| The financial benefit is received progressively through LGCs | The estimated STC value can be applied upfront, reducing the initial project cost |
Potential Commercial Solar Savings
Government estimates indicate that the expanded incentive could provide significant upfront savings for eligible projects. These figures are indicative only. The actual discount will depend on the final program regulations, system capacity, installation location and date, STC entitlement and certificate value. Existing arrangements for systems of 100 kW or less will not be affected by the expansion.
Almost $70,000
Indicative upfront saving on a 250 kW system
More than $230,000
Indicative upfront saving on an 850 kW system
Commercial Expansion: Your Questions Answered
What does this mean for businesses?
The expanded scheme is expected to reduce the upfront cost of eligible medium-scale commercial solar systems by approximately 20%.
This could make larger solar projects more accessible for businesses with substantial roof space, high daytime electricity consumption or plans for future growth. A lower upfront investment may help businesses:
- Reduce the capital required to install commercial solar
- Improve the project's return on investment
- Shorten the estimated payback period
- Reduce ongoing electricity expenses
- Protect against future electricity price increases
- Improve sustainability and emissions performance
- Prepare for future battery storage and EV charging requirements
Who could benefit?
The expanded scheme may benefit a wide range of commercial and community properties, including:
- Warehouses and distribution centres
- Manufacturing facilities and factories
- Offices and commercial buildings
- Shopping centres and retail premises
- Hotels and accommodation providers
- Schools, universities and childcare centres
- Sporting clubs and community organisations
- Farms and agricultural businesses
- Cold-storage and food-processing facilities
Businesses with high daytime electricity consumption may receive the greatest benefit because more solar energy can be used directly on-site instead of being exported to the grid.
How will the expanded commercial rebate work?
Eligible commercial solar installations will create STCs based on factors including:
- The capacity of the solar system
- The location of the installation
- The installation and certification date
- The applicable STC calculation period
- The value applied to each certificate
The estimated value of the STCs can then be applied as an upfront discount, reducing the amount the business needs to pay for the commercial solar installation.
Final calculation methods and compliance requirements for systems above 100 kW will be confirmed by the Australian Government and Clean Energy Regulator before the expanded scheme begins.
When will the changes commence?
The government intends for the expansion to apply to eligible commercial solar systems installed from 1 October 2026. However, this commencement date remains subject to the necessary regulations being finalised and put in place.
Businesses considering a system above 100 kW can begin planning now, but should not rely on receiving the expanded STC incentive until the final regulations, commencement date and eligibility requirements have been confirmed.
The Clean Energy Regulator will publish further information before the changes take effect.
Start Planning Your Commercial Solar Project
Larger commercial solar projects require careful planning, including electricity usage analysis, system design, structural assessments, network applications, export limitations and financial modelling.
Envision Energised can begin assessing your energy usage, available roof space and future requirements now, helping your business prepare while the final program regulations are confirmed.
A Note on Rebate Information
The information on this page is general in nature and was current as at September 2026. Rebate schemes, eligibility rules, STC factors and certificate values change over time and are set by the Australian Government and the Clean Energy Regulator, not by Envision Energised. The incentive that applies to your system will be confirmed in your written quotation.
Find Out Which Incentive Applies to You
Not sure which rebate may apply to your home, rental property or business? Envision Energised can assess your requirements, explain the available incentives and provide a tailored solar or battery quotation.