Federal Incentives & Solar Rebates For Solar Power
The Large-Scale Renewable Energy Target (LRET)
The LRET is a government scheme that requires electricity retailers to source a certain percentage of their electricity from renewable sources.
The LRET was met in 2022-2023, with 33,070 GWh of renewable electricity generated. The LRET has now been replaced by the Clean Energy Target (CET).
The Clean Energy Target (CET)
The CET is a government scheme that requires electricity retailers to source a certain percentage of their electricity from renewable sources. The target is set annually. The first target under the CET was 35,000 GWh in 2023-2024. The target for 2024-2025 is 38,000 GWh.
The Small-Scale Renewable Energy Scheme (SRES)
The SRES is a government scheme that provides an incentive for the installation of small-scale renewable energy systems, such as solar panels.
The SRES is currently set at 350,000 small-scale technology certificates (STCs) per year. This is a decrease from the previous target of 400,000 STCs per year.
STCs are created for every megawatt hour (MWh) of electricity generated by a small-scale renewable energy system.
STCs can be sold to electricity retailers or on the open market. The current price of an STC is around $33.
The incentives provided under the RET and CET have helped to make solar power a more affordable option for households and businesses. As a result, the amount of solar power installed in Australia has increased significantly in recent years.
In addition to the RET and CET, there are a number of other government incentives available for solar power, such as state-based rebates and feed-in tariffs. These incentives can vary from state to state, so it is important to check with your local government to see what is available.
How Much Can I Save with the SRES Rebate?
The amount you may save through the SRES depends on your solar system and installation details.
The potential incentive is affected by:
- Solar system size
- Installation postcode
- Solar zone
- Installation year
- Applicable deeming period
- Current STC market value
Because these factors vary between installations, there is no single fixed SRES rebate amount that applies to every Australian household.
For an accurate estimate, homeowners should use the current Clean Energy Regulator STC calculator.
The STC market value can also change. Therefore, it is better to avoid publishing a fixed dollar value such as “$33 per STC” on the page.
How Do I Calculate My SRES Rebate?
For eligible solar PV systems, the number of STCs is determined using the system’s capacity, location and applicable deeming period.
A simplified calculation can be represented as:
STCs = System Capacity (kW) × Postcode Zone Rating (MWh/kW) × Deeming Period (years)
For a solar PV system installed in 2026, the applicable deeming period is 5 years.
The Clean Energy Regulator provides different postcode zone ratings because solar generation varies across Australia. Therefore, the final STC entitlement can differ depending on where the system is installed.
Example
If an eligible solar system has:
- System size: 6.6 kW
- Postcode zone rating: applicable rating for the installation location
- Deeming period: 5 years for a 2026 installation
The STC entitlement would be calculated using the applicable zone rating and then multiplied by the 5-year deeming period.
Important: The actual STC entitlement should be confirmed using the Clean Energy Regulator’s current calculator rather than relying on a generic example.