Solar system incentives: Quantifying the actual financial benefits
The Australian government's Small-scale Renewable Energy Scheme (SRES) is a significant initiative that offers financial incentives for households and businesses looking to install eligible renewable energy systems, such as solar PV systems, solar batteries, and more[1][5].
Under the SRES, when a certified system is installed by an accredited installer using approved components, Small-scale Technology Certificates (STCs) are generated. These STCs represent the expected amount of renewable electricity the system will produce over a set period and can be sold or used to offset the upfront cost of the installation[4][5].
By earning STCs, the SRES effectively reduces the upfront price of installing a solar power system, often by up to around 30%, making solar energy more affordable across Australia[3][4]. The exact discount depends on factors such as the system size and your location since STC values vary regionally.
From 1 July 2025, solar batteries became eligible under the SRES through the Cheaper Home Batteries Program, which offers about a 30% discount on the upfront cost of small-scale battery installations by purchasing STCs on behalf of households[2][5].
Systems must be installed by accredited installers to qualify for STCs and the rebate. A reputable installer should be accredited by the Clean Energy Council (CEC)[6]. The financial incentive for installing an accredited solar system is not technically a rebate, but a subsidy payment under the federal government's Small-scale Renewable Energy Scheme (SRES)[7].
The value of the incentive depends on factors such as the size of the system, location, and the current market price of Small-scale Technology Certificates (STCs)[8]. It is important to do thorough research and get multiple quotes before committing to an installer[9]. A government STC calculator is available to work out the rebate savings yourself[10].
In addition to the SRES, some states offer additional state-based rebates for solar systems. For instance, New South Wales offers a free 3kW solar system to low-income homeowners who receive the Low Income Household Rebate and have a Pensioner Concession Card or Department of Veterans' Affairs Gold Card[3]. South Australia offers rebates for solar power systems for concession card holders and landlords with properties in the City of Adelaide, as well as rebates for shared solar systems for tenants of multi-storey buildings[4]. Victoria offers a rebate of up to $1400 for solar panel system installation, and an interest-free loan up to $1400 with eligibility rules[3].
The ACT provides a subsidy of up to 50% of the total cost of a solar rooftop system (with a maximum of $2500) to ACT pensioners through the Home Energy Support program[11]. ACT residents can also apply for a zero-interest loan from $2000 to $15,000 through the Sustainable Household Scheme[11].
As the STC scheme is scheduled to phase out in 2031 with gradual decreases in rebates before that time, it is advisable to be wary of door-to-door salespeople offering solar systems and to obtain multiple quotes from legitimate installers before committing[2]. Each STC is currently worth around $35-40[8].
The details of national and state-based rebates can be confusing, and it pays to be wary of pushy salespeople promising unrealistic savings or claiming the rebate is running out[2]. It is important to remember that the decreases in the STC scheme rebates will not make a significant difference to installation costs between one year and the next[12].
For more information on selling STCs, visit the government's Clean Energy Regulator website[13]. For information on the Northern Territory's grant for batteries and inverters, visit the NT Government Business and Industry website[4]. For more details on the state-specific rebates mentioned, visit energy.nsw.gov.au, the City of Adelaide website, the Solar Victoria website, and the ACT Government's Energy and Utilities website[3][4][11].
- To make their sports activities more sustainable, households in Australia can opt for a solar power system with a battery, now eligible under Australia's Small-scale Renewable Energy Scheme (SRES), which provides a financial incentive, lowering the upfront cost by up to 30%.
- By researching and selecting the right installer, Australians can not only contribute to the growth of renewable energy in sports and daily life, but also take advantage of state-based rebates, such as the one offering a free 3kW solar system to eligible low-income homeowners in New South Wales.
