Solar water heaters, heat pumps and solar power systems are great for the environment, and the Australian Government Renewable Energy Target scheme provides a mechanism that offers generous incentives to help you make the switch. The incentives come in the form of Small-Scale Technology Certificates (STCs) that can be traded and sold on the open market or can be used as an upfront rebate to reduce the purchase price of your new system which could save you thousands of dollars.
STCs are available in every state of Australia. However, the number of certificates that can be created per system is based on its geographical location (zone) and varies with the type, size and model of the system installed^. The value of an STC is not fixed and varies depending on market factors.
^For a Solahart Solar Hot Water system, each STC represents 1 megawatt-hour (MWh) of electricity displaced over a 10 year period. For a Solahart Solar Power system, each STC represents 1 megawatt-hour (MWh) of renewable electricity produced over a maximum deeming period. The number of STC’s created varies with the size and model of the solar water heater or PV system and the region (or zone) in which the unit is installed. The value of an STC is not fixed and varies depending on market factors.
To provide a further financial incentive to switch to solar power, some state governments and electricity providers offer preferential feed-in tariffs. These tariffs allow you to sell any excess electricity you generate back to your electricity provider.
Get in touch to find out more.
The Western Australian Government is making it easier for households to take advantage of solar energy storage with the WA Residential Battery Scheme. This initiative, if enacted, offers rebates to help eligible residents invest in home battery systems, reducing reliance on the grid and maximising solar savings.
Due to commence on 1 July 2025, the rebate is limited Up to 100,000 households and is expected to complement the Federal Government’s Cheaper Home Batteries Program for a combined rebate of up to $5,000 for Synergy customers and $7,500 for Horizon Power customers.
This means State-based rebates could now be up to $1,300 for Synergy customers ($130 per kWh of battery capacity) and up to $3,800 for Horizon Power customers ($380 per kWh of battery capacity) before administration fees and charges. In the first year, and with the assistance under the Federal Cheaper Home Batteries program, residents could be eligible to receive up to $5,000 and $7,500 respectively towards the cost of a 10kWh battery installation.
Additionally, interest-free loans of up to $10,000 are available for low and middle-income households.
Get in touch now for more information about eligibility and savings. We can assess your solar battery needs and prepare a quote now, to be ready when the scheme officially opens.
Home batteries are at the centre of Australia’s shift towards cleaner, smarter energy. Since the introduction of the Federal Government’s Cheaper Home Batteries program in July 2025, more than 236,000 systems have already been installed, which provides homeowners with a generous upfront discount.
In late 2025, the Federal Government confirmed changes to the battery incentive scheme, with adjustments to Small-scale Technology Certificate (STCs) taking effect from 1 May 2026. Specifically, the number of STCs have reduced to ensure the program’s long-term sustainability. The good news? Battery rebates are still available; they’re simply reducing gradually over time.
The Australian Government has announced major enhancements to the Cheaper Home Batteries Program, expanding its investment from the original $2.3 billion to an estimated $7.2 billion over the next four years (subject to regulations). This increased support is expected to help more than two million households install a battery by 2030.
To keep the program sustainable, several adjustments are planned to take effect from 1 May 2026, including a new, tiered, and faster-reducing rebate structure and smaller incentives for larger systems.
What does this mean for me? To maximise your savings, we recommend booking an in-home solar assessment now to give you the best chance of locking in available incentives.
Terms and conditions:
* The Australian Government Renewable Energy Target scheme provides a mechanism that offers a generous incentive to help you make the switch to solar water heaters. The incentive comes in the form of Small-Scale Technology Certificates (STCs) that can be traded and sold on the open market or can be used as an upfront discount to reduce the purchase price of your new system. The number of certificates that can be created per system is based on its geographical location (zone) and varies with the type, size and model of the system installed. The value of an STC is not fixed and varies depending on market factors. Currently, each certificate is worth $36.
1 Like STCs, ESCs have a variable market value and are subject to change. Their value can also be used to offer a discount on the purchase of a solar or heat pump water heater. Currently, each certificate is worth $26. The ESCs are only available in NSW.
What is not covered under this program:
• The replacement of an electric water heater with a solar (gas boosted) water heater, as the NSW ESS does not incentivise new gas connections.
• Installations of new solar water heaters or heat pump water heaters in new buildings or where there is no existing electric or gas hot water system.
• The replacement of an existing solar water heater or heat pump water heater.
• Any installation undertaken to comply with any mandatory legal requirement imposed through a statutory or regulatory instrument of any jurisdiction, including, but not limited to, compliance with BCA and BASIX-affected development requirements, except for alterations, enlargements or extensions of a BASIX-affected development and a water heater is being replaced.
2 Energy savings of up to 65% shown are based on Australian Government-approved TRNSYS simulation modelling of a Solahart 302L and using a medium load in Zone 3 and apply when replacing an electric water heater. Any savings will vary depending upon your location, type of Solahart system installed, orientation and inclination of the solar collectors, type of water heater being replaced, hot water consumption and fuel tariff. Maximum financial savings off your hot water bill are achievable when replacing an electric water heater on a continuous tariff.
