Federal Incentives For Solar Power


Apart from the obvious environmental benefits, the possibility of significantly reducing your power bills is a huge incentive to invest in solar power for your home or business. Indeed choosing to partially or fully power your property using solar can provide you a way to save on your energy bills. But, that’s not all. 

You could also qualify for Federal Solar Power Incentives such as rebates that can help make your solar power system even more cost-effective. GCR Electrical Systems is here to explain how you can enjoy these amazing financial incentives from the government.


Why GCR Electrical Systems Solar Power Solutions?

Federal Incentives And Rebates For Solar Power


The Australian government offers incentives for solar power systems, both small-scale and large-scale, under the Renewable Energy Target (RET) framework. RET categorises solar power producers into 2 segments;

Small-Scale Renewable Energy Scheme

Large-Scale Renewable Energy Target

Both segments cater to different categories of solar power producers in the country based on production capacity. The Small-Scale Renewable Energy Scheme caters for residential and commercial solar power systems that are less than 100kW in size.

The Large-Scale Renewable Energy Target caters for solar power systems that are more than 100kW in size. The latter category is mostly reserved for large-scale solar power producers like utility-scale or commercial renewable energy generation systems (such as solar farms).

Small-Scale Technology Certificates (STCs)

The federal government offers Small-Scale Technology Certificates (STCs) to home and business owners who invest in a wide range of solar power systems. The amount of STCs you accumulate over time is dependent on the quantity of electricity your system generates, which is calculated in megawatts per hour.

To qualify, your system must generate less than 100kW, and include approved solar panels and be installed by licensed professionals. You can sell your STCs to electricity suppliers and other energy firms. This means that you reduce the cost of your solar power system by being an energy producer.

How Are STCs Calculated?

STCs are calculated based on the average output of a system. One STC is equal to one megawatt-hour (MWh) of solar power. So, to calculate your STCs you need to know how many MWhs your system produces on a monthly or yearly basis.

The most important thing to note when it comes to STCs is that installers can assume responsibility and apply the incentives in the form of a discount to the cost of your system. This means that solar installers are allowed to buy and sell STCs, just like any other financial commodity like stocks or currencies.

How Many STCs Will I Get?

The amount of STCs you can accumulate varies based on your system, installation date and where you live. Your system is expected to generate a minimum quantity of electricity within a certain duration, which is commonly referred to as the “deeming period”.The general rule on STCs is that you will get 1 STC for each megawatt hour of electricity you produce during the deeming period. In Australia, the deeming period for all STCs is set to lapse in 2030.

Example Of A Typical Residential Solar Power System


The average size of a typical residential solar power system is 6.6 kW with a 5kW inverter. A 6.6kW system in Sydney is expected to produce 9 megawatt hours of electricity each year. Because 1 megawatt hour is equivalent to 1 STC, you would get 9 STC every year up until the year 2030. If you live in a sunnier location like Hervey Bay, you can expect to produce more electricity and therefore create more STCs which means more savings for you. 

The current price of a small-scale technology certificate is roughly $35. You can use this price to calculate exactly how much money your system can save you in the long run.


Apart from federal solar power incentives, individual states and territories offer their own unique incentives and rebates for individuals who choose to invest in renewable sources of energy like solar power. It’s up to you to take advantage of these incentives and rebates in order to benefit from huge savings on power and energy consumption.

GCR Electrical Systems is always here to guide you on how you can save money by investing in solar energy.