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What are STCs and how do they reduce my cost?

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Short answer

STCs (small-scale technology certificates) are certificates created by eligible solar panel, battery and other small-scale renewable systems under the federal Small-scale Renewable Energy Scheme. As at November 2026, you can assign your STCs to a registered agent, usually through your installer, in exchange for a discount on the system price.

Key points:

  • One STC equals one megawatt hour of renewable electricity generated, stored or displaced by an eligible system.
  • It’s a discount, not a government payment. The value depends on the STC market price at the time and any administration fees, so it isn’t a fixed amount.
  • The number of STCs for solar panels is falling each year. It’s based on a “deeming period” that drops by one year every year until the scheme ends in 2030. Systems installed in 2026 use a 5-year deeming period.
  • Accredited installers only. Systems must be designed and installed by Solar Accreditation Australia (SAA) accredited professionals to be eligible.

STCs are different from state certificates such as PRCs in NSW and VEECs in Victoria, which run under separate schemes with their own rules.

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