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Small-scale Technology Certificates (STCs) provide upfront value for eligible home batteries 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:
Small-scale Technology Certificates are federal government incentives designed to encourage renewable energy adoption. Each certificate represents 1 megawatt-hour of renewable energy generation or storage capacity.
Batteries earn STCs based on their usable capacity. The number of STCs is calculated using the battery size in kWh and the "deeming period" (years remaining until 2030).
STC prices fluctuate based on market demand, typically ranging between $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. While STCs provide helpful upfront value, they represent only 7-12% of total 15-year value for most systems. The ongoing benefits make batteries worthwhile even without federal incentives:
See the complete financial picture including STCs, VPP earnings, and self-consumption savings.