How STCs Work & How They Reduce the Cost of Solar

What Are STCs?

STCs (Small-scale Technology Certificates) are a government-created incentive designed to make installing solar more affordable for Australian homes and businesses.

When you install a solar system under 100kW, the government awards a certain number of STCs based on:

• The size of your solar system (kW)

• Where you live (STC Zone)

• How many years remain until the STC scheme ends (2030)

Each STC has a dollar value — usually between $35 and $40 — and these certificates can be sold to electricity retailers.

Why Do STCs Reduce the Cost of Solar?

You don’t have to sell STCs yourself.

Your solar company (like SolarCloud) handles them for you and applies the value of the STCs as an up-front discount off your solar system price.

Example

A 6.6kW system might create 54 STCs.
If each STC is worth $38, the total benefit is:

54 × $38 = $2,052 discount

That means a system normally priced at $7,000 could drop to around $4,948 after STCs.

Don’t Believe the Ads About “Free Government Solar Grants”

There are many ads claiming that “free solar” or “80% government-funded solar” is available — these are misleading marketing tactics.

Here is the truth:

• There is no special grant, no free solar, and no secret funding program.

• Everyone in Australia gets the same STC rebate, calculated using the same federal formula.

• The rebate is nationwide — not postcode-targeted, not age-based, and not income-based.

If an ad claims you’re “eligible for a free government solar program,” they are simply referring to STCs, which everyone already gets.

How SolarCloud Handles STCs (Honest & Hassle-Free)

At SolarCloud, we make the STC process simple and transparent.

SolarCloud claims the STCs on your behalf

We handle all the paperwork, submission, verification, and processing.

We take no commission and no hidden margin

Some installers mark up STCs and keep a portion of the rebate for themselves.
SolarCloud does not do this.

We apply 100% of the STC value directly to reduce your system price

This means:

You get the full benefit of the government rebate, and we simply subtract it from the cost of your SolarCloud cloud-based panels.

You pay less upfront

You get the rebate instantly — no forms, no delays, no selling certificates yourself.

We make the entire process hassle-free

You get your discount automatically, and we take care of the heavy lifting behind the scenes.

Key Benefits of STCs for Customers

Lower upfront cost

Solar becomes dramatically cheaper, often removing thousands from the price.

Supports clean energy

You’re rewarded for choosing a renewable energy source.

Faster payback period

Because the upfront cost is reduced, your solar system can pay for itself even faster.

Reduces your bills immediately

Cheaper system + instant bill reduction = a rapid return on investment.

Simple Summary (Perfect for Customers)

STCs are a government incentive that reduces the upfront cost of solar.

Your system earns STCs based on its size, and your solar company applies their value as a discount — instantly making your solar system cheaper.

How STCs Are Calculated

STCs are calculated using the formula:

STCs = System Size (kW) × Zone Rating × Deeming Period (years remaining)

1. Zone Ratings (Australia)

ZoneExample LocationsRating

• Northern WA, NT, far North QLD 1.622

• QLD, northern NSW 1.536

• SA, VIC, Sydney, Perth 1.382

• Tasmania 1.185

2. Deeming Period

STCs are paid upfront for the number of years left until 2030.

Example deeming periods:

• 2025 → 5 years

• 2026 → 4 years

• 2027 → 3 years

• 2028 → 2 years

• 2029 → 1 year

• 2030 → 0 (STCs end)

Zone 1 Example Calculation (2025)

Let’s use:

• System size: 6.6 kW

• Zone rating: 1.622 (Zone 1)

• Deeming period: 5 years (for 2025)

STCs = 6.6 × 1.622 × 5

Step-by-step:

• 6.6 × 1.622 = 10.7052

• 10.7052 × 5 = 53.526

Result: 54 STCs (rounded)

Dollar Value Example

If STCs are trading at $38:

54 × $38 = $2,052

So a 6.6 kW system in Zone 1 in 2025 would receive about:

$2,050 rebate (approx)