How the solar rebate works in 2026
The federal STC rebate is the single biggest discount on solar — here's exactly how it's worked out.
When people say "the solar rebate," they mean the Small-scale Renewable Energy Scheme (SRES). It's a federal program, it applies right across NSW, and it's the reason solar costs far less than the sticker price.
You don't claim it — your installer does
Your eligible system earns Small-scale Technology Certificates (STCs). Rather than chase paperwork, you assign those certificates to your installer, who deducts their value straight off your invoice. The rebate is already baked into the price we quote.
How the amount is calculated
Three things decide how many STCs your system earns:
- System size (kW) — bigger systems earn more.
- Zone rating — based on how much sun your area gets. Most of NSW (including Sydney) is Zone 3, rated 1.382.
- Deeming years — the years left until the scheme ends on 31 December 2030. In 2026 that's 5 years.
Multiply them together, then multiply by the STC market price (roughly $35–$40 each).
Why waiting costs you money
The deeming period drops by one year every 1 January — it was 6 years in 2025, it's 5 in 2026, and it falls to 4 in 2027. Each step quietly reduces the rebate, and the scheme closes entirely at the end of 2030. In short: the same system is worth more this year than next.
The battery rebate stacks on top
If you add a battery, the federal Cheaper Home Batteries program takes roughly 30% off it (about $252 per usable kWh from 1 May 2026). It's separate from the solar STC rebate, so you can claim both on the same install.