Solar rebate for panels: STCs explained
The household “solar rebate” on panels is not a cheque from a single government form — it is usually a point-of-sale discount funded by Small-scale Technology Certificates (STCs). Your installer creates certificates based on system size, your climate zone, and the remaining deeming period to 2030, then assigns their value against the invoice. It is a different instrument from the Cheaper Home Batteries Program, which currently works out to about $252 per usable kWh in tier 1 for batteries.
How panel STCs work
In plain terms: eligible small-scale solar creates a number of STCs. Those certificates trade in a market. Installers typically bundle the expected certificate value into your quote as a discount. Headline certificate prices and what you actually receive can differ after brokerage and admin — the same reason we use a net STC assumption of $37 on battery maths.
Zone ratings
Australia is split into STC zones. Higher zones (stronger solar resource) create more certificates per kilowatt. A 6.6 kW system in a high zone is worth more in STCs than the same array in a lower zone. Always check which zone the quote uses; it should match the CER map for your postcode.
Deeming period decline to 2030
STCs for panels are “deemed” for the years of generation expected to 2030. Each year that passes, a new install has fewer deeming years left, so certificate counts fall even if panel prices and zone ratings stay put. That gradual decline is built into the scheme design — not a surprise fee.
Worked example: 6.6 kW in zone 3
| Input | Value |
|---|---|
| System size | 6.6 kW |
| Illustrative zone rating | 1.382 |
| Deeming years used here | 4 |
| STCs (floored) | 36 |
| Assumed net $/STC | $37 |
| Illustrative discount | $1,332 |
Rough formula used here: floor(kW × zone rating × deeming years) × net STC price. Replace zone rating and deeming with the live CER figures on your quote. For typical installed cost bands, see 6.6 kW solar system cost.
Relationship to the battery program
Panel STCs and the battery rebate are separate but combinable on a solar-plus-battery job when each technology meets its own rules. Do not let a quote mash them into one unexplained “government discount” line. Ask for panel STC value and battery Cheaper Home Batteries value as distinct rows — then check the battery line with our calculator.
Sources
- Clean Energy Regulator — small-scale scheme
- Cheaper Home Batteries Program (batteries — separate)
Frequently asked questions
Is the solar panel rebate the same as the battery rebate?
No. Panels create STCs under the Small-scale Renewable Energy Scheme with zone ratings and a deeming period. Batteries under the Cheaper Home Batteries Program use a different STC factor and, since May 2026, capacity tiers. They are separate instruments that can both appear on a combined quote.
Why does my installer quote fewer STCs than last year?
The deeming period shrinks as we approach 2030, so a system installed later creates fewer certificates even at the same kilowatt size and zone. Certificate spot prices also move.
Which zone am I in?
The Clean Energy Regulator publishes the zone map used for STC calculations. Coastal WA, much of NSW and QLD, and other high-insolation areas sit in higher zones than southern Tasmania. Your installer should state the zone on the quote.