STCs for systems under 100kW
Small-scale Technology Certificates can reduce upfront commercial solar costs when the system is below the 100kW threshold.
Commercial solar rebates
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Key schemes
STCs / LGCs
What to compare
Is this system below or above the 100kW threshold?
Are STCs deducted upfront or are LGCs modelled over time?
Which state, grant, finance, or tax assumptions are included?
What payback has been calculated from solar usage versus exported power?
Incentive types
The right comparison depends on system size, energy use, certificate treatment, tax position, location, and whether the installer has clearly separated assumptions from guaranteed savings.
Small-scale Technology Certificates can reduce upfront commercial solar costs when the system is below the 100kW threshold.
Larger commercial systems can create Large-scale Generation Certificates, usually handled differently to point-of-sale STC discounts.
Some businesses may be able to use depreciation, write-off rules, or energy-efficiency incentives depending on timing and eligibility.
Grants, low-interest finance, audits, batteries, and efficiency programs can vary by state, business type, and project scope.
Eligibility lens
The most useful rebate conversation is tied to your site. A warehouse, medical centre, retail store, farm, and office building can all have different load profiles and different commercial returns.
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This is the ultimate guide to understanding commercial solar rebates, business solar incentives, tax considerations, and certificate schemes in Australia.
Below we answer the most popular questions business owners ask us about the rebates.
So if you want to:
Then you’ll find this page very helpful!
Let’s dive into it!
Going solar can be extremely beneficial to businesses of all sizes, particularly those that use the majority of their energy during the standard 9-5 schedule. A well designed commercial solar power system has the potential to become a cashflow positive asset from the day one!
The energy cost savings from installing solar can be bolstered by certificate schemes, tax treatment, grants, finance programs, and other incentives tailored to businesses. Once business owners understand the savings possible with a well designed installation, the appeal of solar energy can become an attractive business proposition.
Outlined below are key commercial solar rebates available in Australia, aimed at expediting the return on investment for businesses:
The Federal Government's Renewable Energy Target encompasses two key schemes that incentivise the adoption of commercial solar power systems:
These schemes generate Large-scale Generation Certificates (LGCs) and Small-scale Technology Certificates (STCs) respectively, providing businesses with compelling reasons to invest in renewable energy solutions.
Differentiating between LGCs and STCs: STCs are applicable to solar power systems below 100kW, whereas larger systems qualify for LGCs. While both offer avenues for reducing solar costs, businesses inclined to minimising upfront expenses typically favour STCs due to their immediate benefit in the form of a point-of-sale discount, unlike LGCs which are disbursed over time.
Anticipated Phase-Out of STCs and LGCs: The Federal Government has announced a gradual reduction in the value of STCs by approximately 6-7% annually, with the scheme slated for complete phasing out by 2030. Similarly, LGCs are expected to be phased out by the end of December 2030, with their value already displaying a downward trend in recent years. In other words, every day you put off installing a commercial solar system is costing your business thousands of dollars in potential rebates & energy savings.
While not a direct rebate, feed-in tariffs serve as a financial incentive for solar adoption by compensating businesses for excess solar electricity exported to the grid. Although their value has decreased over time, optimising internal consumption of solar-generated power remains a lucrative strategy, given the considerable disparity between grid electricity rates and solar export rates. This is particularly beneficial when an energy audit is completed, and your business energy tariff can be optimised to maximise your energy savings.
In addition to solar rebates, the Federal Government's Energy Efficient Communities Program targets solar uptake by offering avenues for investment in monitoring systems and energy audits, particularly catering to the food and beverage manufacturing sector.
States occasionally introduce initiatives such as low-interest financing or grants tailored to specific sectors. See below the current state level rebates & grants.
Northern Territory Home & Business Battery Scheme
The Northern Territory Government’s Home & Business Battery Scheme allows homeowners and businesses receive a grant of $450 per kWh of useable battery capacity up to maximum grant value of $6,000.
ACT Business Energy & Water Program
The Australian National Territory (ACT) Government’s Business Energy & Water Program allow eligible small-to-medium businesses reduce operational costs with a rebate up to $10,000 to upgrade to energy-efficient and water-efficient technologies.
Energy Rebates are available for energy efficient upgrades including gas to electric upgrades as well as upgrades for heating, cooling, lighting and refrigeration. The maximum rebate for electric-to-electric upgrades is $5,000 (incl GST), while gas-to-electric upgrades are capped at $10,000 (incl GST).
Rebates are only available for upgrades that have not yet commenced. Eligibility criteria applies.
Commercial solar can also have tax implications for eligible businesses. Depending on the business, timing, turnover, asset cost, financing structure, and current tax rules, solar may be treated through depreciation, write-off provisions, or other business asset rules.
Because tax settings change, businesses should confirm the current treatment with their accountant or tax adviser before relying on any solar proposal. A good commercial solar quote should make clear which savings are energy savings, which are certificate-based discounts, and which are tax assumptions.
When applied to business solar specifically, tax treatment can help businesses evaluate the after-tax case for investing in an asset that reduces operating costs over time.
From time to time, businesses may also be able to access incentives for energy-efficient upgrades, electrification, monitoring, audits, batteries, heat pumps, or other equipment that reduces energy use.
The details, timing, caps, and eligibility criteria can change. Some programs are federal, while others are state or territory based. Others are sector-specific, such as support for manufacturers, food and beverage businesses, or small businesses upgrading inefficient equipment.
This is why it is important to compare commercial solar proposals carefully. The strongest proposals should show the system cost, certificate treatment, tax assumptions, projected energy savings, export assumptions, and any available grant or finance support separately.
Navigating the generous rebates & tax incentives for your business. The expert team at Your Solar Quotes is here to guide you through the process. With over a decade of experience and thousands of satisfied businesses helped, we'll maximise your solar investment returns. Request obligation free quotes today to slash your business overheads, and start saving with solar!
For a commercial solar system up to 100kW installed in 2026, the upfront STC rebate is typically worth around $25,000 to $32,000, depending on STC zone, the current deeming period, and the prevailing STC market price. This rebate is normally applied as an upfront discount on the system cost by your installer rather than paid back to you as a separate amount.
For example, a 100kW commercial solar system in Australia typically lands in the order of $130,000 before the rebate, which means it would usually be quoted at around $98,000 to $105,000 after the STC discount is taken off. The exact STC zone, certificate count, and dollar value should be itemised on every commercial solar quote so you can see exactly what has been applied and check that the numbers are consistent across competing proposals.
Small-scale Technology Certificates (STCs) apply to commercial solar systems up to 100kW and are typically deducted upfront from the system price as a single discount at the point of sale. The installer claims the STCs and passes the value through to your business as a lower invoice.
Large-scale Generation Certificates (LGCs) apply to systems 100kW and above. LGCs are created each year based on the actual energy your system generates, and can then be sold on the LGC market over time. That means STCs deliver a clear upfront discount on your system, while LGCs become an ongoing revenue stream that runs alongside your energy bill savings. The right structure depends on whether your project is below or above the 100kW threshold and how you want to model the return.
Australia is divided into four STC zones based on solar resource, with Zone 1 covering the sunniest parts of the country and Zone 4 covering the least sunny. Every system is assigned a zone rating that multiplies its kilowatt capacity to calculate how many STCs are issued. Zone 1 carries the highest multiplier (around 1.622), Zone 2 around 1.536, Zone 3 around 1.382, and Zone 4 around 1.185.
In practical terms, the same 50kW system installed in Zone 3 will create roughly 17% more STCs than one installed in Zone 4, which directly increases the upfront rebate dollar value. Sydney, Melbourne, Adelaide, and Perth fall mostly in Zone 3, Brisbane and Townsville in Zone 2, the Northern Territory and northern WA in Zone 1, and most of Tasmania and the southern Victorian coast in Zone 4. Your installer should clearly show the assigned zone and the resulting rebate figure on every quote.
STC rebates are usually treated as a price reduction on the system rather than separate income, so they typically lower the capital cost of the asset for depreciation and write-off purposes rather than appearing as taxable revenue. In practice, the depreciable cost base of the system is the net price after the STC discount has been applied.
LGC revenue is generally treated differently and is usually recognised as income in the year it is received from selling the certificates. Tax treatment can also depend on how the system is financed, your business structure, and the rules in force at the time of installation, so confirm the specifics with your accountant or tax adviser before relying on a particular outcome in a commercial solar proposal.
In many cases, yes. The federal STC scheme is separate from state and territory grant, rebate, and finance programs, so a single commercial solar project may be eligible for both at the same time. For example, a 60kW system in some states may attract the full STC discount as an upfront price reduction and still be eligible for a separate state-funded grant or low-interest finance program on top of that.
The details, caps, and eligibility windows vary by state, business type, and project scope, and a small number of programs cannot be combined with each other or with specific finance products. A strong commercial proposal should list every rebate, grant, and incentive that has been applied, the dollar value of each, and any conditions or stacking rules attached, so you can see clearly what is genuinely on offer.
Since 2014, Your Solar Quotes has helped 100,000+ Australian homeowners and 3,200+ businesses compare the best solar companies and save money on their energy bills. We have built a curated network of 932+ CEC accredited installers and suppliers across Australia, every one personally vetted, so customers receive transparent, apples-for-apples proposals rather than generic sales quotes.
By requesting three obligation-free proposals through Your Solar Quotes, you put trusted installers in direct competition for your project, which typically delivers stronger pricing, better equipment, and longer warranties than going direct to a single installer. Every comparison is backed by thousands of detailed customer reviews you can read in full before you commit.
Read our Commercial Solar Guide for 2026! Learn everything you need to know about solar power, brands you can trust, commercial rebates & pricing for solar in 2026!
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