The Small-scale Renewable Energy Scheme (SRES) continues into 2026 with updated deeming periods and revised Small-scale Technology Certificate (STC) values that directly affect how much Australian households save when installing solar. Understanding these changes before you sign a contract can mean the difference of thousands of dollars on your final out-of-pocket cost.
What is the SRES and why does it matter in 2026?
The Small-scale Renewable Energy Scheme is the federal government programme that makes rooftop solar financially accessible to everyday Australians. When you install an eligible solar PV system, you generate a set number of Small-scale Technology Certificates based on the size of your system, your location, and the remaining years in the deeming period. Installers and agents typically buy those certificates from you upfront, reducing the sticker price you pay on installation day.
The scheme has been winding down in a planned, legislated manner since 2011. Each 1 January, the deeming period shortens by one year, which means the number of STCs your system earns – and therefore the upfront discount – decreases incrementally. For 2026, the deeming period sits at nine years, compared with ten years in 2025. That single-year reduction translates to a measurable drop in the point-of-sale discount most households receive, so timing your purchase and choosing the right installer has never been more important.
For more detail on how installers price their quotes in light of scheme changes, see our cost guide.
How the 2026 deeming period reduction changes your upfront discount
The practical effect of moving from a ten-year to a nine-year deeming period is straightforward: your system earns approximately 10 per cent fewer STCs than it would have in 2025, all else being equal. For a typical 6.6 kW system installed in Sydney, that reduction amounts to roughly $280–$380 less in upfront discount, depending on the prevailing STC spot price at the time of installation.
Rooftop solar is one of Australia's most widely adopted household technologies; see Clean Energy Regulator postcode data for current installation counts. With adoption this high, the market for STCs remains liquid, but the per-system discount continues to shrink each year the scheme runs.
The STC spot price fluctuates on the open market. Locking in your installation earlier in the calendar year, before any seasonal dip, can help you capture a slightly higher certificate value. See current market data published by the Clean Energy Regulator.
Estimating your STCs
The number of STCs your system earns depends on system size, postcode zone rating, and the current deeming period. Use the Clean Energy Regulator STC calculator for an authoritative estimate. The dollar value of those STCs depends on the prevailing STC spot price, which changes over time.
For an independent directory of CEC-accredited installers, visit our listing of solar installers in Sydney or browse the full national directory.
State-based rebates that stack on top of SRES in 2026
One of the most important things Australians often overlook is that state and territory incentives can be stacked on top of the federal SRES discount. In 2026, several programmes remain active:
Victoria: The Solar Homes Programme offers rebates for eligible households installing solar panels, subject to income and property value thresholds. Verify current rebate amounts and eligibility on the Solar Victoria website. New South Wales: The NSW Government's Peak Demand Reduction Scheme provides bill credits for households with battery storage and smart controls, complementing rather than replacing the federal scheme. See NSW Energy Saver. Queensland: The Queensland Battery Booster has offered rebates on home battery storage systems for eligible households from time to time; verify current settings on the Queensland Government energy website. Western Australia: Synergy operates a Renewable Energy Buyback Scheme; check with your retailer for current buyback rate.Energy costs represent a meaningful share of household expenditure for many Australians; see the ABS Household Expenditure Survey for current figures. Solar investment is a financially significant decision worthy of careful research.
Choosing an accredited installer: what to check before you sign
Under the SRES, your installation must be carried out by a Clean Energy Council (CEC) accredited installer using CEC-approved components. If these requirements are not met, your STCs will be invalid and you will lose the upfront discount entirely – a costly mistake.
When evaluating quotes in 2026, ask every installer for:
- Their CEC accreditation number (verifiable at the CEC website) - The make, model, and CEC approval status of the panels and inverter - A written breakdown showing how many STCs they have calculated and at what price - Confirmation of who is responsible for lodging the STC paperwork with the Clean Energy Regulator - Details of the installer's workmanship warranty (industry standard is at least five years)
Be cautious of quotes that seem unusually low. In some cases, deep discounts are achieved by using non-approved components, by misrepresenting system size, or by inflating the STC count to make the effective price appear cheaper than it is. Our methodology explains how we vet and rank installers in our directory to protect consumers from these practices.
How batteries interact with the SRES in 2026
Standalone battery storage systems do not generate STCs under the SRES, because the scheme applies specifically to small-scale solar, wind, and hydro generation. However, if you install a battery at the same time as a new eligible solar system, the solar component still earns its full STC entitlement for 2026.
This distinction matters because many Australians are now purchasing solar-plus-battery packages. The battery portion of the quote receives no federal rebate under SRES – but may attract separate state-based incentives as outlined above. Always ask your installer to itemise the solar and battery costs separately so you can clearly see the STC discount applied to the solar component and evaluate the battery pricing independently.
Planning ahead: the SRES wind-down timeline to 2030
The SRES is legislated to end on 31 December 2030, when the deeming period reaches zero. From that date, new residential solar installations will receive no federal upfront discount under this scheme. The table below outlines the deeming period reduction schedule:
| Year | Deeming Period Remaining | |---|---| | 2026 | 9 years | | 2027 | 8 years | | 2028 | 7 years | | 2029 | 6 years | | 2030 | 5 years (final partial year) |Each passing year reduces your potential STC discount by roughly 10–12 per cent relative to the prior year. If you are weighing up whether to install now or wait, the financial arithmetic generally favours acting sooner rather than later, provided you select a quality installer and appropriate system size for your household's energy consumption.
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Frequently Asked Questions
Q: Do I receive the STC discount automatically when I get a quote? A: In most cases, yes. The vast majority of Australian solar installers operate as registered agents under the SRES, meaning they assign the STCs on your behalf and immediately apply the equivalent discount to your invoice price. You never handle the certificates yourself – you simply pay the reduced amount upfront. Always confirm this arrangement in writing before signing. Q: What happens if my installer goes out of business after installation but before lodging my STCs? A: This is a legitimate risk. Under the SRES rules, the installer or registered agent is responsible for lodging paperwork within 12 months of installation. If the business fails, you can lodge the STCs yourself as the system owner, though the process is more complex. Choosing a financially stable, established installer reduces this risk considerably. Q: Can I still claim SRES if I am adding panels to an existing system? A: Yes, in most cases. If you are upgrading an existing system by adding new panels and potentially a new inverter, the additional generating capacity can earn new STCs under the 2026 deeming period. However, the existing panels already claimed STCs when originally installed and cannot be double-counted. Obtain a detailed quote that clearly distinguishes new capacity from existing. Q: Is there a maximum system size eligible under the SRES? A: Yes. The SRES applies to systems with a rated capacity of up to 100 kW. For most residential households, systems typically range from 6.6 kW to 13.3 kW, well within the scheme's eligibility threshold. Commercial systems above 100 kW fall under the Large-scale Renewable Energy Target (LRET) and Large-scale Generation Certificates (LGCs) instead.---
Sources
- Clean Energy Regulator (SRES): cleanenergyregulator.gov.au – STCs - Clean Energy Council: cleanenergycouncil.org.au - Solar Victoria: solar.vic.gov.au - NSW Energy Saver: energysaver.nsw.gov.au - Australian Bureau of Statistics: abs.gov.au
Information in this article is general only. Always use a Clean Energy Council accredited installer for systems eligible for Small-scale Technology Certificates.
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