Check your rebate eligibility
Every solar quote you've ever seen in Australia has a hidden discount baked into the price. That $6,000 system? It would actually cost closer to $8,000 without it. The $12,000 solar and battery package? Add another $2,500 to $3,000.
That discount comes from the Small-scale Renewable Energy Scheme, or SRES. It's a federal government program that creates tradeable certificates called Small-scale Technology Certificates (STCs) every time someone installs solar, a battery, a heat pump, or solar hot water. Your installer trades those certificates, and the value comes off your quote as an upfront discount.
Most people call it “the solar rebate,” which is close enough. But understanding the mechanics matters, because the SRES is a countdown. The scheme loses value every single year and ends entirely after December 2030. If you're thinking about solar, the clock is ticking.
How small-scale technology certificates work
The concept is straightforward, even if the name sounds bureaucratic. When you install an eligible system, the government calculates how much renewable energy it's expected to generate over its remaining lifetime within the scheme. For every megawatt-hour of expected generation, you get one STC.
In practice, you never handle the certificates yourself. Almost everyone assigns their STCs to their installer at the point of sale. The installer then sells them, either on the open market or through the Clean Energy Regulator's Clearing House at a fixed price of $40 per certificate. You get the value as a discount on your system price.
The demand side is guaranteed by law. Electricity retailers and other “liable entities” must buy and surrender a set number of STCs each year under the Renewable Energy Target. They can't opt out. That's what keeps the market functioning and gives your certificates real value.
Check Your Rebate Eligibility
Enter your postcode to check rebate eligibility in your area.
Over 3.6 million homes already claiming rebates
How many STCs does your system earn?
Three factors determine your STC count:
STCs = System size (kW) × Zone rating × Deeming period (years)
1. System size
The rated capacity of your solar system in kilowatts. A standard residential system is 6.6kW. Systems up to 100kW are eligible under the SRES.
2. Zone rating (where you live)
Australia is divided into four zones based on how much sun you get. Sunnier areas earn more STCs per kilowatt. The zone rating reflects average solar output per kW of installed capacity per year.
| Zone | Rating | Coverage |
|---|---|---|
| Zone 1 | 1.622 | NT, Far North QLD, northern WA |
| Zone 2 | 1.536 | Most of QLD, inland SA and WA |
| Zone 3 | 1.382 | Sydney, Brisbane, Perth, Adelaide |
| Zone 4 | 1.185 | Melbourne, Hobart, Canberra |
3. Deeming period (when you install)
This is the countdown. Your system gets credited upfront for all the energy it's expected to generate between now and December 2030. Every year that passes, the deeming period drops by one.
| Install year | Deeming period | 6.6kW rebate (Zone 3) |
|---|---|---|
| 2024 | 7 years | ~$2,550 |
| 2025 | 6 years | ~$2,185 |
| 2026 | 5 years | ~$1,820 |
| 2027 | 4 years | ~$1,455 |
| 2028 | 3 years | ~$1,090 |
| 2029 | 2 years | ~$730 |
| 2030 | 1 year | ~$365 |
Rebate values assume STC spot price of ~$40. Use our STC calculator for your exact postcode.
Let's run through a real example. You're in Sydney (Zone 3) and install a 6.6kW system in 2026. That's 6.6 × 1.382 × 5 = 45.6 STCs, rounded down to 45. At $40 each, that's $1,800 off your system price. Wait until 2027 and the same system only generates 36 STCs, worth $1,440. That's $360 less, just for waiting twelve months.
And that's just the rebate loss. You also miss a year of electricity savings, which for a 6.6kW system is typically $1,200 to $1,500. Add it up and delaying one year costs roughly $1,500 to $1,860 in combined value.
What systems are eligible under the SRES?
Solar panels get all the attention, but the SRES actually covers six types of small-scale renewable energy systems:
All components must be on the Clean Energy Council approved products list and installed by an accredited professional. STCs must be created within 12 months of installation. If you're considering adding a battery, the program has been a huge success. By November 2025, over 124,000 batteries had been installed with a combined capacity of 2.7 GWh.
See How Much You'd Save
Enter your postcode to see your estimated rebate amount.
Over 3.6 million homes already claiming rebates
The bigger picture: where SRES fits
The SRES is one half of the Renewable Energy Target (RET). The other half is the Large-scale Renewable Energy Target (LRET), which covers wind farms, solar farms and other large power stations. Both were created in 2011 when the original RET was split into two schemes under the Renewable Energy (Electricity) Act 2000.
The SRES has been enormously successful by any measure. As of December 2024, more than 4 million small-scale systems have been validated with STCs across Australia. About one in three suitable homes now has rooftop solar, generating over 12% of grid electricity. The average system size has been climbing too, hitting 10.4kW in the September quarter of 2025, up from 10.0kW a year earlier.
But the scheme is deliberately designed to phase itself out. Every year the rebate shrinks. By 2030, a single deeming year will make the discount barely noticeable. And from 1 January 2031, no new STCs can be created. There's no replacement scheme on the table.
If you're weighing up whether to go solar, the SRES deeming countdown is one of the clearer signals in the market. The rebate isn't disappearing overnight, but it is getting smaller. Combined with rising electricity prices and falling panel costs, 2026 remains a strong year to move. Our STC calculator can give you an exact rebate figure for your postcode.
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The next step
If you have any questions about the information in this guide, feel free to get in touch:
Email: hello@whysolar.com.au
Tel: +61 433 405 530
If you're considering solar panels or batteries for your home, Jos and the team can help you get quotes from trusted, pre-vetted local installers:
Written by
Jos AguiarSolar Evangelist
Passionate about making solar simple and accessible for every Australian household. Jos breaks down complex energy topics into practical advice so homeowners can make confident decisions about solar, batteries, and energy independence.
Learn more about Jos Aguiar