Government incentives for solar

Small-scale Technology Certificates (STCs)

Solar water heaters, heat pumps and solar power systems are great for the environment, and the Australian Government Renewable Energy Target scheme provides a mechanism that offers generous incentives to help you make the switch. The incentives come in the form of Small-Scale Technology Certificates (STCs) that can be traded and sold on the open market or can be used as an upfront rebate to reduce the purchase price of your new system which could save you thousands of dollars.

STCs are available in every state of Australia. However, the number of certificates that can be created per system is based on its geographical location (zone) and varies with the type, size and model of the system installed^. The value of an STC is not fixed and varies depending on market factors.


^For a Solahart Solar Hot Water system, each STC represents 1 megawatt-hour (MWh) of electricity displaced over a 10 year period. For a Solahart Solar Power system, each STC represents 1 megawatt-hour (MWh) of renewable electricity produced over a maximum deeming period. The number of STC’s created varies with the size and model of the solar water heater or PV system and the region (or zone) in which the unit is installed. The value of an STC is not fixed and varies depending on market factors.

Feed-in Tariffs

To provide a further financial incentive to switch to solar power, some state governments and electricity providers offer preferential feed-in tariffs. These tariffs allow you to sell any excess electricity you generate back to your electricity provider.

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Terms and conditions:
* The Australian Government Renewable Energy Target scheme provides a mechanism that offers a generous incentive to help you make the switch to solar water heaters. The incentive comes in the form of Small-Scale Technology Certificates (STCs) that can be traded and sold on the open market or can be used as an upfront discount to reduce the purchase price of your new system. The number of certificates that can be created per system is based on its geographical location (zone) and varies with the type, size and model of the system installed. The value of an STC is not fixed and varies depending on market factors. Currently, each certificate is worth $36.

1 Like STCs, ESCs have a variable market value and are subject to change. Their value can also be used to offer a discount on the purchase of a solar or heat pump water heater. Currently, each certificate is worth $26. The ESCs are only available in NSW.

What is not covered under this program:

• The replacement of an electric water heater with a solar (gas boosted) water heater, as the NSW ESS does not incentivise new gas connections.
• Installations of new solar water heaters or heat pump water heaters in new buildings or where there is no existing electric or gas hot water system.
• The replacement of an existing solar water heater or heat pump water heater.
• Any installation undertaken to comply with any mandatory legal requirement imposed through a statutory or regulatory instrument of any jurisdiction, including, but not limited to, compliance with BCA and BASIX-affected development requirements, except for alterations, enlargements or extensions of a BASIX-affected development and a water heater is being replaced.

2 Energy savings of up to 65% shown are based on Australian Government-approved TRNSYS simulation modelling of a Solahart 302L and using a medium load in Zone 3 and apply when replacing an electric water heater. Any savings will vary depending upon your location, type of Solahart system installed, orientation and inclination of the solar collectors, type of water heater being replaced, hot water consumption and fuel tariff. Maximum financial savings off your hot water bill are achievable when replacing an electric water heater on a continuous tariff.

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