Australia offers a range of government-backed incentives to make solar power more affordable and attractive for households and businesses. If you’re considering rooftop solar or battery storage, here’s a look at the main rebate schemes and small-scale credits available in 2025 — and how they help you save.
Key Incentive: Small‑scale Renewable Energy Scheme (SRES) & Small‑scale Technology Certificate (STC) Credits
• Under SRES, eligible small-scale systems — like rooftop solar, solar hot-water, and now solar batteries — qualify for STCs.
• The STC “rebate” effectively reduces the upfront cost. Installers or retailers often apply the discount at purchase by assigning (or buying) STCs from you.
• The number of STCs (and thus rebate value) depends on system size, location (sunlight zone), and installation date.
• Most quotes Australians get for solar already include the STC discount — so you pay a lower net price.
Depending on your system size (e.g., a 6.6 kW rooftop system), rebates typically reduce the cost by AUD 1,800–3,800 (as of 2025).
Incentives Extended to Solar Batteries: Cheaper Home Batteries Program
From 1 July 2025, solar battery installations also qualify for STCs under this new program.
• Eligible batteries receive a discount, effectively giving about 30% off on the upfront battery cost.
• This subsidy aims to make battery storage more accessible, encouraging homeowners to store excess solar energy and use it at night — improving self-consumption and energy independence.
State & Local Rebates Can Stack with Federal Incentives:
Many states and territories offer additional rebates, low-interest loans, or feed-in tariffs to complement the federal incentives.
For example, some states provide rebates for solar panel installations or interest-free loans to help cover the remaining cost after STCs.
Important to Know: Incentive Reduction Over Time
The STC scheme is being phased down toward 2030; each year the “deeming period” shrinks, meaning fewer certificates — and lower rebates — for new installations.
For those considering solar or battery systems, installing sooner rather than later locks in higher savings.
Conclusion:
Australia’s mix of federal rebate schemes (SRES + STCs) and the new Cheaper Home Batteries Program makes solar + storage substantially more affordable. The upfront discount on solar panels and batteries dramatically lowers your initial cost, making solar a financially smart choice — especially when combined with state/local incentives. But because these benefits shrink over time, acting now helps you maximise savings and enjoy the long-term rewards of clean energy.
