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Small-scale Technology Certificates (STCs) reduce the upfront cost of an eligible home battery in Australia. Here's how they work and what's changing.
Under the framework in force since 1 May 2026, federal STCs for batteries are allocated by system size:
STCs are a federal incentive for renewable energy. Each certificate represents 1 megawatt-hour of generation or storage capacity.
Batteries earn STCs based on usable capacity. The count comes from the battery size in kWh and the deeming period, the years remaining until 2030.
STC prices fluctuate with market demand, usually $35-40 per certificate. Approximate values for common battery sizes at the current 6.8 STC/kWh factor:
Based on the current factor of 6.8 STCs/kWh (May–Dec 2026). 14 kWh is the full-rate cap; 14–28 kWh earns 60%, 28–50 kWh earns 15%.
STCs are scheduled to phase out completely by 2030. Each year, the value decreases as the "deeming period" shortens:
Yes. STCs help upfront, but for most systems they account for only 7-12% of the total 15-year value. The ongoing returns continue without federal incentives:
See how STCs, VPP earnings, and self-consumption savings add up over the life of a system.