Interested in claiming a solar rebate in 2024? The Australian government continues to provide significant solar panel savings through the Renewable Energy Target (RET). Homeowners and businesses can benefit from both solar panel rebates and solar power incentives under two key programs: the Small-Scale Renewable Energy Scheme (SRES), designed for residential and small business installations, and the Large-Scale Renewable Energy Target (LRET), which supports commercial solar projects.
For Australian homeowners and businesses, federal government solar rebates can drastically reduce installation costs by thousands of dollars. When combined with additional state solar rebates—such as those in NSW, Victoria, Queensland, South Australia, and Western Australia—these savings become even more substantial.
In this guide, we will explain how you can take advantage of federal government solar rebates, including how Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs) work to reduce your upfront costs.
Federal Governments Solar Rebate Program: What You Need to Know
The federal solar rebate operates through the Renewable Energy Target (RET), which includes two key components:
- Small-Scale Renewable Energy Scheme (SRES) commonly used for homes and small businesses. Through this program, participants can earn Small-scale Technology Certificates (STCs), which act as a rebate to reduce upfront costs.
- Large-Scale Renewable Energy Target (LRET)for commercial systems over 100kW, where businesses generate Large-scale Generation Certificates (LGCs) that create an ongoing revenue stream as their solar systems produce power.
To benefit from these programs:
- Eligibility: Only systems installed by Clean Energy Council (CEC)-accredited installers are eligible for rebates through Small-scale Technology Certificates (STCs). This ensures high-quality, safe installations. (You can find one via SolarChoice comparison form)
- STC Phase-Out: STC values gradually decrease until the program ends in 2030, so installing sooner maximizes rebates.
- Environmental Benefits: These programs help Australia meet renewable energy targets, reducing carbon emissions and promoting sustainability.
- Commercial Advantages: Businesses generating Large-scale Generation Certificates (LGCs) can enjoy ongoing revenue from solar production, making solar energy both an environmental and financial asset.
By acting now, both residential and commercial users can capitalize on these federal incentives before they phase out.
Compare quotes from up to 7 installers in your area now.
Small-Scale Renewable Energy Scheme (SRES): How the SRES Solar Rebate Works
The SRES was developed to assist households, small businesses and community groups by reducing the cost of installing a solar PV system. The SRES works by issuing Small-scale Technology Certificates (STCs) to homes & businesses that install systems under 100 kilowatts (kW) of the DC Solar Panel capacity. The STCs are officially created once an accredited Solar Installer has commissioned the system.
How STCs Are Calculated
The number of STCs you receive depends on:
- Your system’s size
- Installation location
- Years remaining until the program ends (2030)
- Expected energy generation
STCs are based on the expected output of the solar system until 2030 when the STC rebate will cease. One STC is the equivalent of 1 megawatt-hour (MWh) of renewable energy. So to calculate your STCs you will need to calculate how many MWh is produced by your system each year until 2030. Important the number of years in the calculation changes on the 1st of January each year. Without fail many in the solar industry will use this date to create a false sense of urgency as the change of one year will only impact the purchase price by around 4-5%.
To check the current STC price and calculate the number of STCs currently available for your project you can use this online STC calculator.
Current STC Values (March 2024):
- Current market price: $38 per STC
- Trading range: $35-$40
- Point of sale discount: Applied directly to system cost
The key thing for solar system shoppers to know is that installers assume responsibility for STCs, applying the incentive in the form of a ‘discount’ directly to the price of your system.
The STCs are sold by agents or by solar installers themselves on a live market where the price is constantly fluctuating, although we don’t see regular price shifts like the currency or stock markets. The main thing for end-consumers to focus on and compare is the final price that the installer is asking you to pay.
Example and Typical System Sizes
The most common residential system size is a 6.6kW Solar Panel system with a 5kW inverter – as this is the maximum allowable for single-phase connections in many of Australia’s electrical networks.
A 6.6kW Solar Panel System in Sydney would generate approximately 9.1 MWh per year. As 1MWh = 1 STC then the system would generate 9.1 STCs per year. As there are 10 years left between 2021 and 2030 (inclusive) then a system installed this year would generate 9.1 x 10 = 91 STCs. At today’s price of $38 per STC, the rebate for a 6.6kW system in Sydney would be worth $3,458.
As a 6.6kW system would generate a different amount of power depending on where in Australia it is installed (based on the different amounts of sunlight), the clean energy regulator has split Australia into four zones.
The remaining factors that would influence the output of a system like shading, panel orientation, and efficiency losses are ignored for the purposes of the STC solar rebate.
STC Rebate for 6.6kW Solar Systems Around Australia | ||||
| Location | STC Zone | Annual Generation | STCs Created | Total Rebate @ $38 per STC |
| North West & Central Australia | 1 | 10.7 MWh | 107 | $4,066 |
| Darwin, Central Australia | 2 | 10.1 MWh | 101 | $3,838 |
| Brisbane, Sydney, Adelaide & Perth | 3 | 9.1 MWh | 91 | $3,458 |
| Melbourne & Tasmania | 4 | 7.8 MWh | 78 | $2,964 |
See the full postcode list on the Clean Energy Regular website
Note: These calculations are based on current STC prices and may vary. The number of years included in calculations reduces each January 1st, typically affecting the total rebate by 4-5%.
Important Updates for 2024
- STC price has stabilized around $38 (up from $35 in previous years)
- System costs have decreased, making net costs lower despite fewer remaining years
- Most installations now optimize at 6.6kW with a 5kW inverter
- Clean Energy Regulator maintains four zones for rebate calculations
STC Zone Classifications
- Zone 1 (Highest Rebate): North-West & Central Australia
- Zone 2: Darwin, Central Australia
- Zone 3: Brisbane, Sydney, Adelaide & Perth
- Zone 4 (Lowest Rebate): Melbourne & Tasmania
Compare quotes from up to 7 installers in your area now.
Commercial Solar Rebates: How the LRET Works
For larger installations, the LRET provides ongoing benefits through Large-scale Generation Certificates (LGCs):
- Generated monthly based on actual power production
- Current LGC market price: Approximately $46.25
- Provides ongoing revenue stream unlike one-time STC rebate
- Requirements include system accreditation and regular reporting
Under the RET, in addition to STCs, power utilities are also required to surrender a set number of Large-scale Generation Certificates (LGCs). LGCs can only be generated by commercial and utility-scale renewable energy generation systems (such as solar power systems) over 100kW in capacity that have undergone an accreditation process to produce them.
An important difference between STCs and LGCs is that LGCs are produced on an ongoing basis after the system is accredited, installed, and producing power. Large-scale generators therefore provide an ongoing revenue stream for their operators.
As with STCs an LGC is a tradable unit that acts as a currency for renewable energy, and prices therefore fluctuate with supply and demand. In recent years the market price for LGCs has crashed in line many Solar Farm projects being commissioned. Currently, commercial and utility-scale projects are designed off the underlying cost of solar power rather than relying on LGCs to support the business case.
You can check the future outlook for LGC prices here.
Read more about the creation of LGCs.
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