How solar and battery rebates work in Australia
Updated 29 October 2026
Most of the money off a solar or battery system comes from one federal scheme, the Small-scale Renewable Energy Scheme. It doesn't pay you cash. Your system creates certificates, called STCs, and your installer buys them from you by taking their value off the price.
How many certificates a solar system creates
Three things set the number: the size of the system, how sunny your area is, and how many years are left in the scheme.
- Size. More kilowatts, more certificates.
- Zone. Australia is split into four STC zones. Zone 1 (Alice Springs, the Pilbara) earns the most per kW. Zone 4 (Victoria, Tasmania) earns the least.
- Deeming years. A system installed in 2026 is credited with 5 years of output. That drops by one year every 1 January until the scheme ends in 2030.
A 6.6 kW system in zone 3, installed in 2026, works out at 6.6 × 1.382 × 5 = 45 certificates, worth about $1,665 at $37 each.
The battery rebate
The Cheaper Home Batteries Program uses the same certificates. Until 31 December 2026 a battery earns 6.8 certificates per kWh of usable capacity on the first 14 kWh, 60% of that from 14 to 28 kWh, and 15% from 28 to 50 kWh. It needs to be at least 5 kWh. The rate steps down every six months until 2030. Our guide to the January change has the numbers.
State rebates on top
Victoria's Solar Homes program pays up to $1,400 towards panels for eligible households. WA pays up to $1,300 on a battery for Synergy customers and up to $3,800 for Horizon Power customers, if the battery joins a virtual power plant. Other states currently rely on the federal programs, with some VPP incentives. See rebates by state.
What to look for on the quote
The quote should show the system price, the STC discount and any state rebate as separate lines, plus the number of certificates. If it only shows one total, ask for the breakdown.