Understanding Solar and Battery STC Changes for 2026: What Customers Need to Know

The landscape of solar energy incentives is shifting as we approach 2026. Changes to the Small-scale Technology Certificates (STCs) system will affect the amount of financial support available for solar panel and battery installations. If you are considering investing in solar power or battery storage, understanding these changes is essential to make informed decisions and maximize your benefits.

Solar panels and battery storage on a residential roof, showing the setup for renewable energy

What Are Small-scale Technology Certificates (STCs)?

STCs are a government incentive designed to reduce the upfront cost of installing solar panels and battery storage systems. Each certificate represents a certain amount of renewable energy generated or displaced. When you install an eligible system, you receive STCs that you can sell to energy companies, effectively lowering your installation cost.

The number of STCs you receive depends on several factors:

• The size of your solar or battery system (measured in kilowatts)

• The location of your property (solar zones affect certificate values)

• The date of installation (earlier installations receive more certificates)

  
  

Key Changes to STCs in 2026

The STC scheme operates on a clearing house system with a set target for certificates each year. As more people install solar and battery systems, the government gradually reduces the number of certificates issued annually. This process is called "deeming" and is designed to phase out the scheme over time.

For 2026, the following changes will take effect:

• Reduced STC value per system: The number of certificates available for new installations will decrease, meaning less financial support.

• Battery storage STCs adjustment: The way STCs are calculated for battery systems will change, potentially lowering the number of certificates awarded.

• Increased focus on energy efficiency: Systems that integrate with energy-efficient appliances or smart home technology may receive different incentives.

  
  

These changes reflect the government's goal to encourage more efficient and cost-effective renewable energy solutions as the market matures.

How Will These Changes Affect You?

If you plan to install solar panels or battery storage in 2026 or later, expect the upfront financial incentives to be smaller than in previous years. This means:

• Higher initial costs: With fewer STCs, the discount on installation prices will reduce.

• Longer payback periods: The time it takes to recover your investment through energy savings may increase.

• Greater importance of system design: Choosing the right system size and technology becomes more critical to maximize savings.

  
  

For example, a 6.6 kW solar system installed in 2025 might receive around 60 STCs, but the same system installed in 2026 could receive closer to 50 STCs. This difference can translate to several hundred dollars less in rebates.

What Can Customers Do to Prepare?

Despite the changes, solar and battery systems remain a smart investment for many households. Here are some practical steps to consider:

• Install sooner rather than later: If you are ready, acting before 2026 can secure higher STC benefits.

• Consult with a trusted installer: Professionals can help design a system that fits your energy needs and budget.

• Consider battery storage carefully: Evaluate how battery incentives will change and whether the investment aligns with your energy goals.

• Explore additional incentives: Some states or local councils offer extra rebates or programs that can supplement STCs.

• Focus on energy efficiency: Combining solar with energy-saving measures can improve overall savings.

  
  

Understanding the Bigger Picture

The reduction in STCs is a sign that solar technology is becoming more affordable and widespread. As the market grows, the government is shifting support towards encouraging smarter energy use rather than just installation volume.

This means customers should think beyond just the initial rebate and focus on:

• Long-term energy savings

• Reducing reliance on the grid

• Increasing home energy independence

• Environmental benefits

  
  

By planning carefully and staying informed, you can still make the most of solar and battery technology in 2026 and beyond.