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STCs on heat pump and solar hot water The federal discount, explained.

Small-scale technology certificates (STCs) come from a federal scheme that can lower the price of an eligible heat pump or solar water heater anywhere in Australia. They're certificates, not a rebate. You often hand the right to create them to an agent, and get a discount in return. A plumber who specialises in hot water can show you that discount on the quote.

Updated 29 October 2026

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What STCs are

The Clean Energy Regulator runs the Small-scale Renewable Energy Scheme. An eligible system can create certificates, and the right to create them has value.

The regulator says owners often assign that right to an agent "in exchange for a discount or delayed cash payment". That's why an STC discount often appears as a line on a hot water quote.

What qualifies

  • Air source heat pumps under 425 L.
  • Solar water heaters under 700 L.
  • The exact model is on the register. The regulator's words: "You need to make sure the model you choose is on the register."
  • The installation meets your state's licensing rules. The system "must meet installer licensing requirements by the relevant state or territory government".

How long the scheme runs

Certificates are issued until the scheme ends in 2030. We don't quote a dollar value for STCs, so ask the installer to show the STC discount as its own line on the quote.

How STCs sit with state programs

STCs apply in every state and territory, alongside whatever your state offers. In Victoria, Solar Victoria works out its hot water rebate after other discounts, STCs among them. So the STC discount comes off first, and the rebate is half of what's left, up to its cap.

What else applies depends on where you live: see rebates by state.

How the discount reaches you

  1. Pick a model that qualifies

    Check it's on the register and under the size limit for its type.

  2. Agree who gets the certificates

    Find out who you're assigning the right to, and whether you get a discount now or a cash payment later.

  3. Check the quote

    The STC discount should be a separate line, so you can see the price before and after it.

  4. Use a properly licensed installer

    The install has to meet your state's licensing requirements, or the system may not qualify.

  5. Keep the paperwork

    The quote, the invoice and anything you signed about the certificates.

Things that should make you pause

  • STCs sold to you as money from the government. They're certificates, not a government payment.
  • A model that isn't on the register. No listing, no STCs.
  • No STC line on the quote, just a promise that it's "included".
  • An installer who can't show the licence your state requires.

Questions to ask the installer

  • Is this exact model on the Clean Energy Regulator's register?
  • Who am I assigning the STCs to, and do I get a discount now or a payment later?
  • Where is the STC discount shown on this quote?
  • Which licence do you hold for this install in our state?

What we would do

Treat STCs as part of the price, not a bonus. Ask every quote to show the full price, the STC discount and what you pay, so you compare like with like. Choose the system that suits your house first: a discount on the wrong system is still the wrong system. A plumber who specialises in hot water can tell you which eligible models they would fit, and why.

Questions people ask

Are STCs a rebate?

No. They're certificates under a federal scheme. The discount often comes through the business you buy from, once you assign them the right to create the certificates.

Do STCs apply in every state?

Yes. It's a federal scheme. State programs on top of it differ a lot from place to place.

Can a large heat pump get STCs?

Only if it's under 425 L and the model is on the register. For solar water heaters the limit is under 700 L.

When do STCs end?

The Clean Energy Regulator says certificates are issued until the scheme ends in 2030.

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