If you’re thinking about going solar, the solar rebate is what makes it all worthwhile. It’s the reason solar panels are far more affordable in Australia than in most countries.
Through the Australian Government’s Small-scale Renewable Energy Scheme (SRES), you can receive a discount on the cost of installing a new solar power system.
And from July 1st 2025, there’s even better news — batteries are now included in the rebate! That means both solar and battery systems attract federal incentives, making clean energy more accessible for households and businesses nationwide.
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Are solar panels really free in Australia?
Solar panels are not completely free in Australia, but government rebates, incentives, and financing options can reduce the upfront cost to near zero for eligible households.
“Free solar panels” refers to how rebates reduce upfront costs. The SRES provides a discount via STCs, which can be combined with state incentives or loans to lower the initial cost to near zero.
How the Australian Solar Rebate Works
Australia’s federal solar rebate is officially known as the Small-scale Renewable Energy Scheme (SRES). Instead of a cash payment, it gives you an upfront discount when installing an eligible solar system under 100kW. The scheme is based around tradable certificates called Small-scale Technology Certificates (STCs).
Your accredited installer creates these certificates after installation and sells them on your behalf, passing the value back to you as a price reduction.
Think of STCs as proof that your solar PV system will produce clean electricity over time. Each STC represents 1 MWh of anticipated energy production up until 2030. The more energy your system is expected to generate, the more certificates you receive — and the bigger your rebate.
Example: How STCs Reduce the Upfront Cost
Before you can calculate your solar rebate, you need to determine the correct solar system size for your home.
Let’s say you install a 6.6 kW home solar system in Sydney (Zone 3). In 2026 (5 years left on the scheme), you’ll receive around 45 STCs.
If the market value of each STC is $39.90, that’s a discount of around $1,796 off your total system price. Your installer will normally apply this credit directly to your invoice, so you never have to deal with the paperwork.
Formula Example (Sydney in 2026)
System size: 6.6kW
Zoning Rating: 1.382
Deeming Period: 5 Years
STCs: 6.6 x 1.382 x 5 = 45.6 STCs (rounded down to 45)
Rebate: 45 STCs x $39.9 = $17,96
Solar Rebate Calculator
2025 Update – Batteries Now Eligible for STC Rebates
On July 1st 2025, the Australian Federal Government announced that home battery systems and energy storage units will now be included under the SRES program. That means if you install a new solar and battery package or upgrade an existing system with a home battery, you’ll qualify for the same federal incentives as solar panels.
What does it really mean? You get roughly a 30% discount on the price of your battery. This is HUGE news, as previously installing a battery made the ROI equation not really add up.
💡Pro tip: See our Solar Battery Rebate Guide → for more info on solar battery rebates.
How the Small-scale Renewable Energy Scheme Works
The SRES runs until 2030 and provides federal incentives for new home and business systems that use approved components and installers. Here’s the basic flow:
- You install an eligible solar system using a SAA-accredited installer.
- The installer registers your system in the Clean Energy Regulator’s REC Registry.
- You receive a certain number of STCs based on location, size, and year.
- Your installer trades those STCs and deducts the rebate value from your bill.
The program is regulated by the Clean Energy Council and the Clean Energy Regulator to ensure safety and quality compliance.
Rebate Amounts by Location
The value of the solar rebate depends heavily on where you live. Australia is divided into four STC zones that reflect average sunlight and anticipated energy production. More sun means more certificates — and a higher rebate.
| STC zone | Regions | Typical Rebate per kW |
|---|---|---|
| Zone 1 | Northern QLD, NT top end | $600 – $800 per kW |
| Zone 2 | SE QLD, NSW coast & ACT | $500 – $650 per kW |
| Zone 3 | VIC, SA metro areas | $400 – $550 per kW |
| Zone 4 | TAS, southern coastal WA | $350 – $450 per kW |
As an example, households and businesses installing a 10kW system in Queensland’s Zone 2 can receive $3,032 in rebates (STC price $39.90) — a major subsidy on the cost of installing solar.
In addition, if you install a battery, you will get $372 per usable kWh of battery installed.
State-Based Solar & Battery Rebate Programs
The federal government’s Small-scale Renewable Energy Scheme is the base level of support, but most states and territories also run their own rebate programs and incentives to make solar installations even cheaper.
Victoria – Solar Homes Program
Homeowners can get a solar panel rebate of up to $1,400 plus a matching interest-free loan. There’s also the Cheaper Home Batteries Program offering additional incentives for battery installations.
👉 View VIC solar rebate details
New South Wales – Energy Savings Scheme
Provides rebates and low-interest finance for home solar systems and energy storage. Income-tested eligibility applies.
Local Queensland Rebates
There are two programs available to help further reduce the cost of installing a battery, as well as one designed to help renters take advantage of solar savings.
- Battery Booster Program – Queenslanders may be eligible to receive an additional $3,000 – $4,000 discount on the cost of solar battery installation on top of the federal government’s rebate.
- Supercharge Solar for Renters – This incentivises landlords to install solar on their rental properties and pass savings onto the renter. A $3,500 rebate is available, aimed to help renters save around $700 per year on their electricity bill.
South Australian Government Rebates & Initiatives
There are several state-based incentives that South Australians and take advantage of, including:
- Sustainability incentives scheme (City of Adelaide) – This is an additional 10% discount on solar panels and batteries on top of the federal incentives available.
- Retailer energy productivity scheme (REPS) – This obliges utility companies to fund efficiency upgrades. Think LED lights and hot-water systems.
- Virtual Power Plant Programs (SA VPPs) – This allows battery owners to join and enjoy power rates 25% lower than the regulated Default Market Offer (DMO).
- Interest-free green loans – These loans allow you to essentially get a solar system with zero money down and begin enjoying cheaper electricity right away. The savings cover the repayments with money to spare.
WA, TAS, ACT and NT
Currently rely on the national SRES. Some regions offer government subsidies or pilot grants for shared solar and community energy projects.
Eligibility for the Solar Rebate
Most Australian households are eligible for the solar panel rebate if they meet the following requirements:
- The solar system is smaller than 100 kW.
- It’s installed by an accredited installer using approved equipment.
- The property is connected to the main electricity grid.
- You haven’t already claimed an SRES rebate at that address.
- For battery systems, compliance with 2025 Clean Energy Council safety standards is required.
The rebate applies to rental properties too — as long as the property owner purchases the system. So if you’re a landlord, you can reduce your tenants’ electricity bills and claim the rebate yourself.
Example: A homeowner in Melbourne installing a 6.6 kW rooftop solar system could be eligible for about a $1,556 rebate (39 STCs @ $39.50 each).
How to Claim the Rebate
It’s the installer will apply for and claim the rebate after they have proven the system has been installed and they are a certified installer. This is great news for you because you don’t need to worry about it. Here’s the simple process:
- Get a quote from a CEC-accredited retailer.
- Installation is completed and verified.
- Your installer creates the STCs and trades them to an energy retailer.
- The credit you receive appears as a deduction on your final invoice.
Because this is all done but the installer, there’s no need to fill out forms or wait for approval. You receive your rebate as an upfront discount on the system at point of sale.
When Does the Solar Rebate End?
The federal solar rebate is being phased down each year until December 2030. The number of STCs you receive declines by roughly 7 percent annually — a mechanism called “deeming.”
So the sooner you install or upgrade, the more you’ll save. Waiting a year could mean losing hundreds of dollars in rebates for the same system.
The STC rebate will reduce each year until it’s phased out entirely in 2030.
FAQs
Is the solar rebate a government payment?
No. It’s not a direct payment but a market-based subsidy created through tradable certificates. The savings are built into your quote and appear as an upfront discount.
How much can I save with the solar rebate?
Most households save between $2,500 and $4,000 on a 6.6 kW system, depending on location and the value of the STCs. In sunnier areas, savings can be even higher.
Can landlords or renters claim it?
Landlords can. The rebate belongs to the owner who pays for the installation on a rental property.
Are businesses eligible?
Yes, for systems under 100 kW. Larger installations qualify for the commercial Large-scale Generation Certificate (LGC) scheme.
Can I combine state and federal rebates?
Absolutely. Many VIC and NSW customers combine the SRES discount with local loans or rebates to reduce the cost of installing solar even further.
💡Learn more: Check out our updated solar battery rebate page → to see how much you can save.
The Australian solar rebate continues to be a powerful driver for home solar systems nationwide. It lowers the cost of installing solar, shortens payback times, and supports Australia’s renewable-energy targets.
With batteries now included, federal incentives stronger than ever, and state-based programs offering extra help, 2025 is a great time to join the solar revolution.
