The Australian solar rebate is one of the main reasons rooftop solar is so affordable, yet it is widely misunderstood. The “rebate” most people refer to is actually the value of Small-scale Technology Certificates (STCs) under the federal Small-scale Renewable Energy Scheme (SRES). It is not a cash grant or a cheque in the mail. This guide explains how the solar rebate works in 2026, how its value is calculated, who is eligible, and how it is applied to lower your upfront cost.
What the “Solar Rebate” Actually Is
Despite the name, the government solar rebate is not money handed to you directly. It is a financial incentive created through tradable certificates called STCs.
When you install an eligible solar system, it is entitled to a number of STCs based on how much clean electricity it is expected to generate over its lifetime. These certificates have a market value and can be sold. In practice, you assign your STCs to your installer or a certificate trader, and in return they reduce the price you pay upfront.
So while it functions like a rebate, it is more accurate to think of it as a subsidy paid through a certificate market. The end result for you is the same: a lower price on day one.
How the STC Value Is Calculated
The number of STCs your system generates, and therefore the size of your discount, depends on three main factors.
System size
The larger your system in kilowatts, the more electricity it is expected to generate, and the more STCs it earns. A 10 kW system generates more certificates than a 6.6 kW system.
Your STC zone
Australia is divided into STC zones based on how much sunshine each region receives. Sunnier zones produce more electricity per kilowatt, so systems there earn more certificates. A system in far north Queensland earns more STCs than an identical system in cooler southern regions.
Deeming years to 2030
STCs are calculated using “deeming,” which estimates electricity generation up to the scheme’s legislated end date of 2030. Each year that passes leaves fewer years left to deem, so the number of certificates a given system earns shrinks over time. This is the mechanism behind the annual step-down.
The dollar value of each certificate also moves with the STC market price, so the exact rebate amount varies. Your installer will calculate the current figure for your specific system and location.
How the Rebate Is Applied
In almost all cases, the solar rebate is delivered as an upfront, point-of-sale discount. Here is how it typically works:
- You receive a quote that already factors in the STC discount.
- You assign the rights to your STCs to the installer.
- The installer or a trader sells the certificates on the open market.
- You simply pay the reduced price, with no paperwork to chase.
This is why advertised prices often say “after STC rebate.” It is convenient, but it also means you should always check whether a quoted price is before or after the rebate so you are comparing like with like.
To see indicative pricing after the rebate is applied, the table below gives a general guide in AUD. These are ranges that vary by location, components, and installation complexity.
| System size | Indicative price after STC rebate |
|---|---|
| 6.6 kW | $5,000 to $9,000 |
| 10 kW | $9,000 to $14,000 |
Eligibility Requirements
To qualify for the STC rebate, your installation must meet several conditions:
- The system must be installed by an accredited professional, accredited through Solar Accreditation Australia (formerly administered under the Clean Energy Council).
- The panels and inverter must be on the approved product lists.
- The system must be a genuine new installation that meets Australian standards.
- You must comply with the relevant documentation and grid-connection requirements.
This is a big reason to choose a CEC-Approved Retailer and an accredited installer. Without accreditation and approved components, your system simply will not qualify, and you will lose the rebate. You can compare solar companies on SolarCobber to find accredited installers who handle the rebate paperwork for you.
The Annual Step-Down
A crucial point for anyone considering solar in 2026 is that the rebate is gradually shrinking. Because STCs are deemed only until the scheme ends in 2030, the number of certificates a system earns falls a little each year on a set date.
In practical terms, this means:
- Waiting another year generally results in a smaller rebate for the same system.
- The scheme is legislated to end entirely in 2030, after which this federal incentive disappears.
- Acting sooner rather than later usually captures more value.
This is not a reason to rush into a bad deal, but it does mean the financial support for rooftop solar is more generous today than it will be next year.
State-Based Extras
On top of the federal STC rebate, some states and territories offer their own incentives. These change frequently and vary widely, but can include:
- Interest-free or low-interest loans for solar or batteries.
- Targeted rebates for eligible households, such as low-income or regional homes.
- Battery-specific incentives in addition to federal support.
- Feed-in tariff arrangements, which are set by retailers and states and are now modest, typically around 3 to 10 cents per kWh.
Because state programs come and go and have specific eligibility rules, it is worth checking what currently applies where you live. Browsing solar companies by state is a good way to find local installers who know the incentives available in your region.
A Note on the Separate Battery Rebate
The STC rebate covers solar panels, but batteries have their own separate federal support. The Cheaper Home Batteries Program, which began on 1 July 2025, offers around 30 percent off the installed cost of an eligible home battery.
This is distinct from the STC scheme, so if you are adding storage, you may benefit from both incentives: STCs on the solar system and the battery program on the battery. As with all of these schemes, the exact amounts vary and step down over time, so confirm current figures with an accredited installer.
Frequently Asked Questions
Is the solar rebate a cash payment?
No. The solar rebate is the value of Small-scale Technology Certificates (STCs) under the federal SRES. It is almost always applied as an upfront discount on your system price rather than paid to you as cash.
How much is the solar rebate worth in 2026?
It depends on your system size, your STC zone, the current certificate market price, and the number of deeming years remaining. Because all of these vary, there is no single fixed figure. An accredited installer will calculate the exact discount for your system and location.
Why does the rebate get smaller each year?
STCs are deemed until the scheme’s legislated end date of 2030. As each year passes, there are fewer years left to deem, so a given system earns fewer certificates. This built-in step-down reduces the rebate annually.
Do I have to apply for the STC rebate myself?
Usually not. Most accredited installers handle the STC process for you and apply the discount directly to your quote, so you simply pay the reduced price. Always confirm this is included before signing.
Is the battery rebate the same as the solar rebate?
No, they are separate. The STC rebate applies to solar panels, while the Cheaper Home Batteries Program, running from July 2025, offers around 30 percent off an eligible battery’s installed cost. You may be able to access both when installing solar with storage.
Make the Most of the Rebate While It Lasts
The Australian solar rebate remains a powerful way to cut the cost of going solar in 2026, but it shrinks every year and ends in 2030. To capture the most value, use an accredited installer with approved components and get the paperwork done correctly. When you are ready, compare solar companies on SolarCobber to request quotes from CEC-accredited installers who will apply the rebate for you.