With more and more people and businesses in Australia wanting to go green, solar power is a popular choice. But it can be expensive up front. That’s where the solar tax credit comes in. It’s a financial incentive to make solar energy more affordable.
In 2025, the government is still backing solar power with federal tax rebates for solar and state-based incentive programmes, helping people and businesses to save money and contribute to a greener future. But how exactly does the federal solar tax credit work, and what do you need to know to get the most out of it?Let’s break it down.
What is the solar tax credit?
Solar tax credit, as known as solar power incentives tax breaks or solar rebate, is a financial incentive. The Australian government has introduced this scheme to promote solar energy. They’re offering tax credits to encourage people to buy solar panels. These incentives are available at the federal and state levels, and they’re applied directly to your purchase in the form of tradable certificates or credits. The scheme has already prompted nearly 4 million Australian households to install solar panels on their roofs. It’s a great way to make solar energy more affordable and popular.
How does the federal tax rebate for solar work in 2025?
Small-scale Renewable Energy Scheme (SRES)
The SRES is a sweet deal from the Australian government to get people to install renewable energy solutions, like solar systems of 100kw. Instead of handing out cash rebates, they give out upfront installation assistance through STCs.
After you’ve installed a solar system, you can sell STCs to offset some of the costs, and the value depends on the market price. So, basically, STCs are a kind of ‘currency’ that can be sold or exchanged and used to pay for part of the cost of installing a solar system.
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STCs are based on the total amount of renewable energy your system is expected to generate over a set period of time, and the number you receive depends on the size of the system, where it’s installed and how many years it has left before the 2030 scheme ends. Each certificate is equivalent to 1 megawatt hour (MWh) of renewable electricity.
Because of the different levels of sunshine in Australia, the country is divided into four rebate zones, with areas where it shines longer getting more STCs. For example, Queensland usually gets more STCs than Victoria.
You can apply for STCs in two ways: either apply yourself or get your installer to do it for you. If you apply yourself, you’ll need to fill out the relevant paperwork and find a buyer, which can take time but gives you more control and saves you money. If you ask your installer to do it for you, it’s more convenient as it can be offset against the cost of the system and the process is simple.
You can sell your STCs on behalf of the customer by Clean Energy Council (CEC)-accredited installers or on the market or at the ‘STC Clearing House’. Prices usually fluctuate between 35 and 40 US dollars.
Usually, the PV installer will buy your STCs directly at the time of installation and credit them to your bill, which makes it a kind of instant rebate that reduces upfront costs. If you choose to sell your STCs yourself, you might be able to negotiate a better price, but you’ll need to pay the full installation cost first.
Large-Scale Renewable Energy Targets (LRET)
The Large-Scale Renewable Energy Target, or LRET, is all about helping big commercial systems over 100kW with something called Large-Scale Generation Certificates, or LGGs for short. These certificates give businesses regular income instead of one-off subsidies. Basically, for every megawatt-hour (MWh) of renewable energy produced, we’re talking about one LGG being created. These certificates can be sold or traded, which gives businesses financial benefits and helps them to reduce their carbon footprint. The scheme encourages businesses to go for solar energy to promote the use of renewable energy.
The LGC market is driven by obligated entities (e.g. electricity retailers), who have to purchase a certain number of LGCs to fulfil their renewable energy obligations. Renewable energy power stations (e.g. wind or solar) can therefore generate extra revenue by selling LGCs. As well as being sold to electricity retailers, LGC can also be traded on the secondary market, attracting private buyers.
What are the factors that affect your STC?
There are a few key things that’ll affect how much Small-Scale Technical Certificate (STC) your solar installation will be able to generate.
Size of the system
Bigger solar PV systems can make more energy, so they’ll get more STC. The size of your system will directly impact how many certificates you’ll get.
Geographical location
Australia is split into four regions based on how much sunlight they get. Each region has its own classification that describes the amount of sunlight or solar radiation received in that area. Areas with more sunshine are assigned to higher regional classifications, which results in more STC being awarded for installations in these areas. For example, installations in northern and central Australia (region 1) receive more STC than installations in Melbourne and Tasmania (region 4).
Installation time
The SRES scheme will be phased out by the end of 2030, and the number of STCs you can get is linked to how many years are left until the scheme ends. This period gets shorter every year, so the number of STCs you can get for new systems goes down. For example, a system installed in 2024 will be eligible for 7 years (2024 to 2030), while the same system installed in 2025 will be eligible for 6 years. This means that the later you install, the fewer STCs you will receive, but the government may upgrade the STC program over time.
Federal Government Solar Rebate Programs & Incentives in Australia
New South Wales
- Empowering Homes Program: You can borrow up to $14,000 for a solar system interest-free if you’re eligible and your income is under $180,000.
- Battery incentive：From 1 November 2024, NSW will give households and businesses with solar systems an incentive of between $1,600 and $2,400 for the upfront installation costs of a domestic battery. They’ll also get an extra $250 to $400 if the battery is connected to a virtual power plant (VPP). But the subsidy is limited to existing photovoltaic systems, and the new battery will have to be installed by someone with an accredited certificate.
- Solar project grants and subsidies for apartments: This is a community incentive that covers up to 50% of the installation costs for apartments and low-income households, with a maximum subsidy of $600 per year. So, if you’re an apartment resident or low-income household, you’re eligible for the program.
Victoria
- Solar Panel (PV) Rebate: You could get up to $1,400 back if you put solar panels on your roof. You can also get an interest-free loan to cover the cost, so your upfront will reduce.
- Solar for Rentals Program: It gives landlords a $1,400 rebate to encourage them to install solar energy in their rental properties.
- Solar for Apartments: Provides rebates of up to $2,800 per apartment for shared solar installations in apartment buildings.
- Interest-Free Battery Loans: Provides interest-free loans of up to $8,800 to eligible households who wish to add energy storage to their solar systems.
Queensland
- Feed-in Tariffs: Queensland’s solar rebate is based on a feed-in tariff system. The rate in southeast Queensland is set by the electricity retailer, while households in remote areas of Queensland receive a flat rate of 12.377 cents per kWh.
- Community Solar Banks Program: If you live in Townsville or Caloundra, you can join a shared solar energy arrangement to cut down on electricity costs.
Western Australia
- Feed-in Tariffs: Perth’s rates are 2.25 cents per kWh off-peak and 10.0 cents per kWh at peak times. As for how much it costs in other parts of WA, that varies.
South Australia
- Home Battery Scheme: It gives households a rebate of up to $3,000 towards the cost of solar batteries. This is on top of a secure loan from the Clean Energy Finance Corporation, but you can only get this loan if you buy from an approved provider.
- Feed-in Tariffs: Prices are between 3.5 and 8.5 cents per kWh, depending on who you get your electricity from.
- City of Adelaide Incentives: If you’ve got a concession card, you can get a discount on solar systems for rental or strata residential properties.
- Energy Storage Systems rebate: 50% rebate on the purchase of new solar batteries, up to a maximum of $2,000
- Shared Solar rebate: 20% rebate on shared solar systems, up to a maximum of $20,000 per site.
NT
- Solar Rebate for Apartments: Solar Rebate for Apartments: This is a shared grant for solar panels that can cover up to 50% of the installation cost, up to a maximum of $7,500 per apartment, and is available to corporate groups and multi-dwelling buildings in the Northern Territory. In addition to solar panels, some apartment complexes are also integrating solar generator as a backup power solution.
- Home and Business Battery Scheme: This is a scheme where you can get money back on batteries. Homeowners, businesses and not-for-profit organisations can get grants of up to $5,000 for eligible battery installations. This could be for installing inverters and batteries with new solar systems or for adding batteries and inverters to existing systems.
- Peak Feed-in Tariff: You’ll be paying 18.66 cents per kWh for exporting power to the grid during peak times from 1 July 2025, which should save you about $150 per year.
ACT
- Home Energy Support rebate: You could get up to $2,500 off the cost of installing a new solar energy system, reverse cycle heating and cooling, hot water heat pumps, electric stoves and ovens, or ceiling insulation. But you’ll only be able to get this rebate if you’ve got an Australian Government Pensioners Concession Card, Department of Veterans Affairs Gold Card or Australian Government Health Care Card.
- Next Generation Energy Storage Program: There’s subsidies available for the installation of battery storage systems, with the aim of providing up to 5,000 battery systems for homes and businesses in the Australian Capital Territory.
- Sustainable Household Scheme loans: Obtain an interest-free loan of up to $15,000 for a range of projects, including new home solar systems, solar battery storage, home energy upgrades and electric vehicles.
Conclusion
Switching to solar energy is good for the environment and your bank balance. There are solar tax credits and other incentives programs all over Australia, such as the Small-scale Renewable Energy Scheme (SRES) and Large-scale Renewable Energy Targets (LRET). Now is the time to take advantage of government-backed benefits before they phase out. Pair your solar generator with the EcoFlow DELTA Pro 3 Portable Power Station and you can store excess energy, making sure you can make the most of savings.
FAQs
Can I Claim STCs More Than Once?
Yes! You can apply for multiple small technical certificates (STCs) in the following three situations.
- If you add more panels to an existing solar system without replacing the inverter, you can apply for additional STCs for the extra capacity.
- If you install a brand new solar system on the same property, including new panels and an inverter, you can apply for STCs for this new system.
- If you replace all the panels and inverters of the existing system, the new system is also eligible to apply for STCs.
How to calculate STC?
The general formula to estimate the number of STCs is:
- Number of STCs = System Size (kW) × Zone Rating × Deeming Period
Example: Consider a 6.6 kW system installed in Sydney (Zone 3) in 2025:
- System Size: 6.6 kW
- Zone Rating for Zone 3: 1.382
- Deeming Period for 2025: 6 years
Applying the formula:
- Number of STCs = 6.6 kW × 1.382 × 6 = 54.7
Rounding down, the system would be eligible for 54 STCs.
When will the solar rebate end?
Australia’s national solar subsidy programme is managed by the Small Renewable Energy Scheme (SRES) and is scheduled to end on 31 December 2030. The number of small renewable energy subsidies allocated is gradually being reduced each year, and the subsidy amount is also being reduced each year until the end of the programme. And, just to let you know, some state-level programmes (like Victoria’s Premium Feed-in Tariff (PFIT)) have expired on 1 November 2024.
How do I claim my solar rebate?
The best way to get your hands on solar rebate is to get your hands on some small technology certificates (STCs) through the Small Renewable Energy Scheme (SRES). Once you’ve installed a suitable solar energy system, you can transfer the STCs to the installer or registered agent in exchange for an upfront discount that will reduce the purchase price of the system.