The 'solar rebate' is the most common reason Australians hear about when considering solar, but most people don't understand how it actually works. It's not a government cheque — it's a certificate trading scheme that reduces your upfront cost. Here's the plain-English explanation.
What Are STCs?
Small-scale Technology Certificates (STCs) are created when you install a solar system. Each certificate represents 1 MWh of renewable energy your system is deemed to produce over its remaining lifetime (until 2030). These certificates have value because large electricity retailers are legally required to buy a certain number of them each year. Your installer typically handles the whole process — they claim the STCs on your behalf and give you an upfront discount on your installation cost.
How Much Are They Worth?
The value depends on three factors: your system size (bigger = more STCs), your STC zone (Zone 1 in QLD/WA/NT gets the most), and the years remaining until 2030 (fewer years = fewer STCs). At the current STC trading price of approximately $37 per certificate, a 6.6kW system generates roughly $2,500–$4,200 in STCs depending on your zone. This discount is applied directly to your invoice — you never have to handle the certificates yourself.
The Scheme Is Phasing Down
The STC scheme reduces the deemed period by one year annually. In 2026, your system is credited for 4 years of production (2026–2030). In 2027, it'll only be 3 years. This means the discount gets smaller every year you wait. By 2030, the scheme ends entirely. This built-in phase-down creates a genuine 'sooner is better' incentive — every year you delay costs you roughly $500–$800 in lost STC value for a typical 6.6kW system.