Updated on September 3, 2025
Are you worried about the high cost of installing solar panels? You’re not alone. Many homeowners in Australia are hesitant to make the switch to solar energy because of the upfront price.
At PSC Energy, we understand the financial concerns associated with solar installations. We’ve been helping families in Australia save money and transition to renewable energy for years. Our team is well-versed in the federal government’s solar rebate program (the Small-scale Renewable Energy Scheme (STC)).
In this article, you’ll learn:
- How the Solar Rebate Works
- Eligibility for the Solar Rebate
- How to Apply for the Solar Rebate in NSW
- End Date of the Government Solar Rebate
- Solar Battery Rebate
- How Solar Batteries Work with Solar Panels
- How to Apply for the Solar Battery Rebate
- Enphase vs. String Inverter Systems: Which Has a Bigger Rebate?
- FAQ: Federal Solar Rebate (STC) in Australia
The STC rebate can significantly reduce your solar panel installation costs. We’ll guide you through the benefits so you can take full advantage of this rebate and help the planet.
How the Solar Rebate Works
The rebate amount is determined by:
- System Size: Larger systems receive a bigger rebate.
- Location: The rebate varies depending on where you live in Australia.
- Installation Date: The date of installation affects the number of certificates you receive.
The STC scheme works by issuing Small-scale Technology Certificates. Each certificate represents one megawatt-hour (MWh) of renewable electricity generated by the system in its projected lifespan.
These certificates are then sold to companies who are burning fossil fuels as a way to balance out the destruction they’re causing as we all work towards Net Zero in 2050.
This rebate scheme provides a financial return to the homeowner and reduces the overall cost of the solar system.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
Eligibility for the Solar Rebate
To qualify for the solar rebate, you must meet specific criteria:
- Residence: You must live in NSW.
- Ownership: You must own the home where the system is installed.
- System Specifications: The system must be new, installed by a certified installer, and meet performance standards.
How to Apply for the Solar Rebate in NSW
Applying for the rebate involves a straightforward process:
- Choose a Certified Installer: Ensure your installer is certified and reputable.
- Installation: Have your solar system installed.
- Registration: The installer will register the system for you.
- Receive the Rebate: The rebate is applied as a discount on the installation cost. At least, that’s how we do it.
End Date of the Government Solar Rebate
The solar rebate is set to continue until 2030. However, the number of certificates issued will decrease each year, which means the rebate amount will also decrease over time. To maximise your rebate, you should install your solar system sooner rather than later.
You’re leaving money on the table if you’re keen on solar but waiting. The rebate will continue to decrease, and you’ll still be paying for electricity. The cost of which is only going to increase over time.
If you invest in solar, rather than fossil fuels, you’ll receive more money off the upfront price and start reducing your bills immediately.
If you’re interested in learning a bit more about weighing the cost of solar against the cost of the grid, you might want to check out the following article titled, Cost of Solar Panels vs. Cost of Energy from the Grid.
Solar Battery Rebate
In addition to the solar panel rebate, there is also a rebate that will soon be available for solar batteries. This rebate reduces the cost of adding a battery to your solar system, which (as day follows night) increases your energy savings.
We don’t know much about the rebate at this point. It’s only just recently announced and the specifications and requirements around it are still being worked out.
It will save money off a solar battery like Powerwall 2 or the Enphase IQ Batteries. We just don’t know how much yet. Somewhere between $1,600 — $2,400, with an additional incentive for joining a VPP.
We’re awfully excited about this additional rebate because you can’t typically eliminate your energy bills and gain independence from the grid without a battery.
If you’re interested in learning a bit more about how to save with solar, you might want to check out the following article titled, Self-Consumption: How to Increase Solar Energy Use.
How Solar Batteries Work with Solar Panels
A solar battery stores excess energy generated by your solar panels. This stored energy can be used when the sun is not shining, like nighttime or on cloudy days.
This increases your energy independence and further reduces (or eliminates) your reliance on the grid and energy retailers.
It’s possible to completely eliminate your energy bills with a solar battery.
- Energy Independence: Cut off energy retailers with clean energy.
- Cost Savings: Reduce your electricity bills with stored energy.
- Environmental Impact: Lower your carbon footprint with renewable energy.
If you’re interested in solar batteries, you might want to check out the following article titled, Are Solar Batteries Worth It in NSW? PSC’s Ultimate Guide for 2025.
Enphase vs. String Inverter Systems: Which Has a Bigger Rebate?
The rebate will be identical for a microinverter or a string inverter.
If you’re interested in learning a bit more about the price of solar batteries, you might want to check out the following article titled, How Much Are Solar Batteries? A Full Breakdown of Prices, Rebates, and Value in 2025.
Don’t Frog Around, Install Solar and Get Your Reeeebate
Now you know how the federal government solar rebate program works. It’s a scheme where STCs are bought and sold on your behalf. A rebate for solar batteries is on the way (November).
At PSC Energy, we know a thing or two about saving you some money and meeting your family’s evolving energy needs. By investing in solar sooner rather than later, you’ll be able to maximise your rebate and stop investing in fossil fuels.
If you’re interested in learning a bit more about the federal solar battery rebate, also known as the Federal Cheaper Home Batteries Program, you might want to check out the following article titled, What the 2025 Federal Election and the Government Rebate Means for Solar Batteries in Australia.
FAQ: Federal Solar Rebate (STC) in Australia
What is the federal solar rebate (STC) in Australia?
It is a national incentive that lowers the upfront price of small-scale solar by creating Small-scale Technology Certificates, called STCs. Your installer applies the value as a discount on your quote.
How do STCs reduce my quote?
STCs have a market value. The installer gives you an upfront discount that matches the STC value they use in your quote.
How are STCs calculated?
STCs depend on three things: your system size in kilowatts, your postcode zone rating, and the install year’s remaining “deeming” years to 2030.
What is the deeming period and why does it matter?
The deeming period is the number of years left until 2030. It steps down every year. Fewer remaining years mean fewer STCs and a smaller discount.
Does the rebate decrease over time?
Yes. STCs step down each calendar year until the scheme ends in 2030. Installing sooner usually increases your discount.
Who is eligible for the STC rebate?
Homeowners and small businesses that install a new, compliant solar system at an eligible address with a certified installer.
Do I need to live in NSW to claim STCs?
No. STCs are federal. They apply across Australia. This FAQ focuses on NSW steps because many PSC customers are in NSW.
Do microinverters or string inverters change my STC amount?
No. Inverter type does not change the STC count. STCs depend on size, location, and install date.
How do I apply for STCs in NSW?
Choose a certified installer. Install the system. Your installer registers and claims the STCs on your behalf and applies them as an upfront discount.
When will I see the rebate on my bill?
You see it on your solar quote and final invoice as a discount, not as a cash payment later.
What is the $7,000 solar rebate in NSW?
There is no fixed $7,000 solar rebate. Your STC discount varies with system size, postcode zone, and install date. Some systems come out near $7,000. Many are above or below.
How much could I save with STCs?
The total discount depends on your STC count and the STC price used in your quote. Larger systems in sunnier zones installed sooner receive more STCs.
Do STCs apply to batteries?
No. STCs are for solar PV. Batteries have separate incentives. The Cheaper Home Batteries Program has different requirements even though they’re both managed by the government.
