How Do Solar Rebates Work: A Guide to Saving Money on Your Energy Bills

The solar panel rebate is a government-initiated programme that offers cash back to people who install solar panels on their homes or businesses. The amount of the rebate varies from state to state, but it typically covers a significant portion of the cost of a new solar system. 

Solar rebates work by reimbursing you for a portion of the cost of your new solar system. In order to receive a rebate, you’ll need to submit an application to your state’s solar rebate program. Once your application is approved, you’ll receive a cheque or electronic fund transfer for the amount of the rebate. You can then use that money to offset the cost of your solar system. 

There are federal and state rebates available for rooftop solar systems and battery storage, which can significantly reduce the cost of acquiring and installing a solar systems.

We've put up a list of the most significant programmes in Australia, but there may be more rebates available to you. On the Federal Government's energy rebates website, you can look for federal and state government subsidies.

When you get an estimate for a solar or battery storage system, the retailer will usually disclose any rebate amount that you are receiving.

National - Small-scale Renewable Energy Scheme

The Small-scale Renewable Energy Scheme (SRES) provides an ongoing financial incentive for the installation of eligible small-scale renewable energy systems, such as solar panel systems, small-scale wind systems, small-scale hydro systems, solar water heaters, and air source heat pumps.

The scheme reduces the upfront cost of installing a system by providing Small-scale Technology Certificates (STCs). STCs can be sold or traded to cover some, or all, of the cost of installing your system. You may choose to assign your Small-scale Technology Certificates to your installer, who will then discount the price of your system by the number of STCs you are entitled to. You can also create and trade them yourself on the open market.

The amount of electricity or heat that your system produces also determines how many STCs you will create each year.

The value of an STC changes over time. The price is set by the market and is dependent on the level of installations taking place across Australia. The more people install solar PV systems, the lower the STC price will be. This is because there are a fixed number of STCs available each year, and as more people install systems, the fewer STCs are left on the market.

The Clean Energy Regulator (CER) maintains a historical record of STC prices and trading activity.

You may also be eligible for other state or territory-based subsidies or feed-in tariffs. These programmes provide payments for electricity generated by your system and exported back to the grid. Check with your local government authority or energy retailer to see if you qualify.

The Large-scale Renewable Energy Target (LRET) is also run by the Federal Government and is designed to encourage investment in renewable energy generation.

The Large-scale Renewable Energy Target (LRET) encourages the development of renewable energy power stations in Australia by creating and selling certificates known as Large-scale Generation Certificates (LGCs).



Power stations that are LRET-accredited can generate LGCs for electricity generated by the power station's renewable energy sources. LGCs can then be sold to entities with LRET liabilities (primarily electricity retailers) in order to meet their compliance obligations.

Liable entities must purchase LGCs from the market and return them to the Clean Energy Regulator on an annual basis. The renewable power percentage determines the number of LGCs that must be submitted by liable entities each year.

LGCs can also be sold to businesses and individuals who want to voluntarily offset their energy consumption and emissions.

The LRET extends the accreditation of power stations and the creation of LGCs until 2030.