The Small-scale Renewable Energy Scheme (SRES) continues to be one of the most important financial levers available to Australian households considering solar, but recent changes to how small-scale technology certificates (STCs) are calculated and phased down mean the scheme works differently in 2026 than it did even a year ago. Understanding what has changed, and acting with accurate information from registered professionals, helps you make a confident, well-timed decision about solar installation.
What is the SRES and why does it matter in 2026?
The Small-scale Renewable Energy Scheme is a federal government programme administered by the Clean Energy Regulator that supports households and small businesses installing eligible renewable energy systems, including rooftop solar panels, solar water heaters, and small wind systems. It works by allowing installers and households to create small-scale technology certificates (STCs) based on the expected clean energy output of an installed system.
These certificates can be traded or assigned to a registered agent, typically your solar installer, who then factors their value into the upfront cost of your system. The net effect is that eligible installations become less expensive at the point of purchase, which has historically encouraged widespread rooftop solar uptake across Australia.
The scheme has always included a legislated deeming period that decreases each year, meaning the number of STCs a system can generate gradually reduces over time. In 2026, the deeming period is shorter than in previous years, which directly affects the certificate value built into your quote. Households researching solar now are wise to understand this phased reduction before comparing quotes.
For a broader view of installer quality in your area, see our best solar installers in Sydney guide.
How the STC deeming period affects your upfront discount
When a solar system is installed, the number of STCs it generates is calculated by multiplying the system's capacity by a deeming period, which represents the remaining years left in the SRES before it is scheduled to close. As that period shortens each year, fewer certificates are generated per system, and the upfront discount embedded in your installer's quote becomes smaller.
The Clean Energy Regulator publishes current deeming year information and the STC calculation methodology on its website. Because the scheme is legislated to end in 2030, households installing in 2026 are working with a meaningfully reduced deeming period compared with those who installed in 2021 or 2022. The discount is still real and worth capturing, but it is smaller than it once was.
This is why you may notice that solar quotes in 2026 reflect a lower built-in rebate than friends or neighbours received several years ago. That difference is not an error or a sign of a less competitive market. It reflects the legislated wind-down of the scheme.
What changed specifically for 2026?
Each calendar year, the deeming period used to calculate STCs reduces by one year under the scheme's structure. For 2026, this means the multiplier applied to your system's capacity in the STC formula is lower than it was in 2025. The Clean Energy Regulator's STC calculator allows you to estimate the number of certificates your proposed system might generate based on its size, your location, and the current deeming period.
Because STC prices can also fluctuate based on supply and demand in the certificate market, the final discount you receive depends on both the number of certificates your system is eligible for and the market price of each certificate at the time of installation. The Clean Energy Regulator publishes guidance on how the market operates and what drives price movements.
Reputable installers accredited by the Clean Energy Council will be transparent about how they are applying the STC discount in your quote, and should be able to explain the calculation clearly if asked.
How to assess whether your quote reflects the current scheme correctly
One of the most practical things you can do before signing a solar contract is ask your installer to itemise how the STC discount has been calculated and applied. A trustworthy installer will be able to tell you the number of STCs your system is expected to generate, the rate at which they are assigning those certificates, and how that translates to a reduction in the final price you pay.
If an installer quotes a discount that seems significantly larger than others you have received, it is worth asking questions. The STC calculation is based on a standardised formula, and while market prices do vary, large discrepancies in quoted rebates can sometimes indicate that a figure has been misrepresented or that there are hidden costs elsewhere in the contract.
The Clean Energy Council's accreditation directory lets you verify whether the installer you are considering holds current accreditation, which is a baseline quality and compliance indicator.
For full transparency about how we evaluate installers, visit our methodology page.
State-based incentives that work alongside the SRES
The SRES is a federal scheme, but several Australian states and territories run their own parallel rebate or loan programmes that can be combined with STC benefits. The interaction between federal and state incentives varies by jurisdiction, and eligibility criteria differ.
For example, some state governments have historically offered rebates, interest-free loans, or virtual power plant participation incentives that effectively layer on top of the STC discount. In 2026, the availability and terms of these programmes depend on your state government's current budget commitments, which change over time.
Your state or territory energy regulator or government energy authority is the right place to check what is currently available. The Australian Energy Regulator provides a gateway to energy market information, and state bodies such as the NSW Energy Saver programme, Solar Victoria, and equivalent agencies publish current offer details on their official websites. Always check directly with those agencies for current eligibility, as programme details frequently change.
See our cost guide for a more detailed breakdown of what solar installation typically involves.
What this means for timing your solar installation
Given the annual reduction in the deeming period, the STC-based discount available to households does decrease over time. This does not necessarily mean you should rush a decision, as a poor-quality installation or an unsuitable system will cost more in the long run than any modest difference in the upfront discount.
However, if you have been sitting on the fence about solar for some time, understanding that the federal scheme winds down by a set date is a legitimate factor in your planning. The Clean Energy Regulator provides clear information about the scheme's legislated end point and the annual deeming period reductions that lead to it.
The Australian Energy Market Operator publishes forecasting data on renewable energy uptake and grid integration that can contextualise how household solar fits into Australia's broader energy transition, which some households find useful for understanding the long-term value of their investment.
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Frequently Asked Questions
Q: Do I still receive an STC benefit if I install solar in 2026? Yes. The SRES remains active and eligible installations in 2026 can still generate STCs, which are typically applied as an upfront discount by your installer. The number of certificates is lower than in earlier years due to the reduced deeming period, but the benefit still exists. Check the Clean Energy Regulator's current guidance for up-to-date eligibility details. Q: Can I claim the STC discount myself, or does the installer do it? Most households assign their right to create STCs to their installer, who then reflects the certificate value as a reduction in the system price. You can also create and trade certificates yourself, but this requires registration and involves additional steps. The Clean Energy Regulator outlines both pathways. Q: Does the SRES cover batteries as well as solar panels? The SRES applies to eligible small-scale renewable energy systems, which include solar photovoltaic panels and solar water heaters. Standalone battery storage is generally not eligible for STCs under the current scheme, though batteries installed alongside eligible solar systems may form part of a broader package. Confirm eligibility for your specific configuration with the Clean Energy Regulator. Q: How do I find an accredited solar installer who will apply the SRES correctly? The Clean Energy Council's accreditation directory is the recommended starting point. Accredited installers must meet ongoing training and compliance standards, and are authorised to assign STCs on your behalf as part of an installation contract.---
Sources
- Clean Energy Council - Clean Energy Regulator - Small-scale Renewable Energy Scheme - Clean Energy Regulator - STC Calculator - Australian Energy Regulator - Australian Energy Market Operator
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Information in this article is general only and not technical advice. Verify the details with the linked sources or an appropriately qualified Australian professional before relying on them.
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