Guide · last reviewed 7 July 2026
The federal STC rebate, explained straight
STCs are the one hot water incentive that applies everywhere in Australia— the main upfront discount in states with no scheme of their own (WA, NT and largely TAS), and a bonus on top of the state rebate everywhere else. Here's what they are, what they're worth, and why the amount keeps changing.
What an STC actually is
STC stands for Small-scale Technology Certificate, created under the federal Small-scale Renewable Energy Scheme and overseen by the Clean Energy Regulator. When you install an eligible heat pump (or solar) hot water system, it “creates” a number of certificates based on the energy it's expected to save over its lifetime versus a conventional electric system. Each certificate has a dollar value that trades on a market — capped at roughly $40.
How it becomes a discount on your quote
- You assign the right to create the certificates to your installer or retailer — a box you tick on the paperwork, nothing more.
- They claim the STCs and pass the value back as an upfront discount on your quote. There's no rebate cheque and no form for you to chase.
- Because it's point-of-sale, the STC value should already be baked into any “from $X installed” price you see advertised — so always ask for it itemised.
Why the amount varies so much
Two things move it. First, your climate zone: Australia is split into zones, and a system in a warmer zone is deemed to save more energy, earning more certificates. Second, the market price of an STC, which floats below the ~$40 cap. Multiply the two and hot water systems commonly land anywhere from a few hundred dollars to around $1,000 or more off the price.
The system also has to be on the approved product register and installed to standard — an off-list unit or a non-compliant install earns nothing, which is one more reason to use an installer who does this every week.
The clock: STCs shrink every year to 2030
The scheme is legislated to end on 31 December 2030. Each year the number of certificates a new system earns “deems” fewer remaining years, so the dollar value steps down annually between now and then. It's not a cliff, but the incentive is quietly worth a little less every year — so if you're replacing a failing system anyway, sooner captures more of it.
Where STCs matter most
In Victoria, NSW, Queensland and SA, STCs sit on top of a state scheme — a bonus. But in Western Australia and the Northern Territory, and largely in Tasmania, they're the only upfront incentive — which makes understanding them, and the running-cost saving they unlock, the whole game.
Quick answers
What is the STC rebate on a heat pump hot water system?
STCs (Small-scale Technology Certificates) are a federal incentive under the Small-scale Renewable Energy Scheme. An eligible heat pump hot water system 'creates' a number of certificates based on the energy it's expected to save over its life. Your installer claims them and passes the value back as a discount on your quote — you don't apply for anything.
How much is the STC discount worth?
It varies by system and your climate zone, but for hot water it commonly runs from a few hundred dollars to around $1,000 or more. The exact figure moves with the STC market price (capped at about $40 per certificate) and how many certificates your system generates.
Do I get STCs on top of my state rebate?
Yes — STCs are federal and apply at point of sale everywhere in Australia, on top of any state scheme (VEU in VIC, ESS in NSW, Climate Smart in QLD, REPS in SA). In states with no scheme — WA, NT, and largely TAS — STCs are the main upfront incentive.
Are STCs going away?
They're winding down. The scheme is legislated to end on 31 December 2030, and the number of certificates a system earns 'deems' fewer years as that date approaches — so the dollar value gradually shrinks each year. Buying sooner captures more of it.
See STCs plus your state rebate, on your own numbers
Sources: Clean Energy Regulator (Small-scale Renewable Energy Scheme) and published STC guidance as at July 2026. Certificate values move with the market and system, deem down each year to 2030, and depend on your zone and an approved, compliant install. General information, not financial advice — confirm the figure on your itemised quote.