Federal STC Programme – Upfront Rebate for <100 kW Systems
The Australian Federal Government’s Small-scale Renewable Energy Scheme provides an upfront incentive for solar PV systems up to 100 kW in size.
Under this scheme, installing a solar system creates Small-scale Technology Certificates (STCs) – essentially tradable credits for the renewable energy your system will produce up until 2030 (when the scheme ends).
Residential and commercial systems alike qualify, as long as they are under the 100 kW threshold.
How STC rebates work:
When you install a solar system, a certain number of STCs are generated based on the system’s size (kW) and the installation date (the formula accounts for how many years of generation remain until 2030).
Each STC represents 1 MWh of renewable generation and has a market value (usually around $30–$40 per STC, though it fluctuates).
In practical terms, most installers (like Synergex) will handle the STC process for you and offer the STC value as an upfront discount off your system price.
For example, a 99 kW commercial solar array in Perth could generate a few thousand STCs; if each STC is worth ~$35, that could equate to over $30,000 in incentives, directly reducing your cost.
This is why you’ll often hear about “rebates” for solar – it’s the STC programme.
As a business owner, you don’t need to trade certificates yourself; Synergex will take care of the paperwork and apply the benefit to your quote.
The key point is that smaller commercial systems can receive a substantial upfront subsidy, making solar extremely cost-effective.
(Keep in mind, the number of STCs per kW decreases slightly each year until 2030, as the scheme phases out. So the sooner you install, the larger the incentive.)
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Large-scale Generation Certificates (LGCs) for >100 kW Systems
For solar installations larger than 100 kW, the project falls under the Large-scale Renewable Energy Target.
Instead of upfront STCs, these systems generate Large-scale Generation Certificates (LGCs) on an ongoing basis.
LGCs are issued for every 1 MWh of electricity the system actually produces, and they can be created and sold (or retained) on the renewable energy market.
The value of LGCs varies with market conditions (it has ranged roughly $30 to $50 in recent years).
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Here’s how LGCs You
Additional Revenue Stream
If your business installs, say, a 250 kW solar system that produces ~400 MWh per year, it will create 400 LGCs annually.
You can register and sell those LGCs to electricity retailers or other liable entities who need them for compliance.
For instance, at a price of $40 per LGC, those 400 certificates would be worth $16,000 each year.
Over a 10-year period, that’s $160,000 of potential revenue, which can greatly improve the project’s economics.
Reduction in Net Cost
Some businesses choose to factor in projected LGC revenue to effectively reduce the net cost of their solar investment.
Others might use a service (or their installer/PPA provider) to handle the certificate trading.
Synergex can advise on LGC management – whether you want to sell them for profit, retire them to claim carbon-neutral energy, or assign them to a PPA provider (in case of a PPA arrangement).
Certification and Compliance
Note that creating LGCs requires your system to be accredited as a power station in the Clean Energy Regulator’s registry.
Synergex can guide you through this process if you’re owning a large system.
We ensure all our large commercial installations meet the metering and reporting requirements so you can fully capitalise on LGCs.
In Summary
For large solar projects, LGCs act as ongoing cashback for the energy you produce.
They are a key reason why even multi-megawatt commercial solar farms are financially attractive in Australia – these certificates incentivise renewable generation at scale.
Accelerated Depreciation and Tax Benefits
Beyond direct energy certificates, the Australian tax system provides incentives to invest in renewable assets like solar:
Accelerated Depreciation
Businesses can typically depreciate solar equipment faster than the usual rate.
In some cases, solar assets may fall under general capital allowance rules that let you depreciate over an effective life of, say, 20 years, or even faster if using simplified depreciation for small businesses.
The net effect is you can deduct the cost of the system from your taxable income quicker, saving on taxes in early years.
This improves the project’s net present value.
Instant Asset Write-Off / Temporary Full Expensing
In recent years, the government has offered schemes (for example, the instant asset write-off for SMEs, or temporary full expensing during COVID recovery) that allow businesses to immediately write off the full cost of eligible assets in the year of purchase.
Solar installations have qualified for these in the past when the schemes were active.
If such a scheme is available in the current tax year and your business qualifies, you could potentially deduct most or all of the system cost upfront, leading to a significant tax saving.
This is subject to government policy changes, so it’s worth checking the latest status or consulting with a tax professional.
Synergex stays up to date on these incentives and can point you in the right direction.
(Note: as of 2025, temporary full expensing was phased out, but an instant write-off for SMEs on assets up to a certain value may exist – always confirm current rules.)
GST and Other Considerations
Remember that if your business is GST-registered, you can claim input tax credits on the GST component of the solar system purchase, effectively reducing the cost by another 10%.
Solar installations can also qualify for certain grant programmes from time to time (for example, regional development grants, or sustainability grants for specific industries).
We monitor local WA grant opportunities and can advise if any are available.
Why Synergex
Experienced In-House Installers
All installations are handled by our own expert technicians — no subcontractors, ensuring quality and accountability every step of the way.
Trusted Brands
We use only premium panels, inverters, and batteries from trusted manufacturers for long-lasting performance and peace of mind.
Fair Pricing
No hidden fees or pressure tactics — just clear, honest pricing tailored to your energy needs and budget.
Hassle Free Process
From your initial quote to final installation, we take care of everything so you don’t have to lift a finger.
Local Experts
Based in WA, we know the regional regulations and conditions to maximise your solar investment.
Ongoing Support
Our relationship doesn’t end at installation — we offer ongoing service, system checks, and performance monitoring.
Western Australia – State Policies and Programmes
Currently, Western Australia does not have a state-specific rebate for commercial solar like some other states do.
The good news is that WA’s regulatory environment supports commercial solar through measures like facilitating PPAs.
(The WA government streamlined the process for solar PPA providers to obtain retail licence exemptions, which has encouraged more $0-down solar offerings in the state.)
Additionally, commercial solar system owners in WA can participate in the Renewable Energy Buyback Scheme (REBS) or new Distributed Energy Buyback Scheme (DEBS) to receive credits for excess solar energy exported to the grid, if eligible.
For business systems, feed-in tariffs are generally modest and often only apply up to certain system sizes or during certain times, but it’s still a benefit for any surplus power your system sends out.
Another state-level incentive to mention is the ability to create carbon offsets if you’re reducing your grid energy usage.
While there isn’t a direct rebate, by installing solar you are effectively cutting carbon emissions.
If your business has sustainability targets or is aiming for carbon neutrality, the emissions avoided through your solar generation could be counted toward those goals or even potentially turned into Australian Carbon Credit Units (ACCUs) if part of an approved project methodology.
(This is less common for standard solar installs, but larger companies sometimes aggregate their renewable usage into carbon reporting.)
Also, keep an eye on energy efficiency grants – occasionally, programmes like the Energy Efficiency Grants for SMEs (federal, administered regionally) have funding rounds where businesses can get grant money for solar power as an energy efficiency measure.
These are competitive and not always open, but Synergex can notify clients when such opportunities arise.
Example – How Incentives Add Up
To illustrate, let’s say a Perth manufacturing business is installing a 100 kW solar system (just under the threshold for LGCs, so it gets STCs).
Suppose this system costs $100,000. Here’s how incentives could make a difference:
- STC Rebate
100 kW in 2025 might generate roughly 1,200 STCs (example number) which at $35 each equals $42,000.
This amount would typically be deducted from the price by the installer.
So the business might only pay ~$58,000 instead of $100k upfront.
- Tax Write-off
If eligible for instant asset write-off, the business could deduct the full $58,000 in the first year.
At a 30% company tax rate, that’s ~$17,400 saved in taxes – effectively reducing net cost to around $40,600.
- GST Credit
The business claims back ~$5,800 in GST (10% of $58k) in their next BAS, further reducing out-of-pocket to roughly $34,800. - Net Effect
Over 40% of the total cost was offset between the STC rebate and tax/GST benefits in year one.
Now consider the energy savings – this 100 kW system might save about $20,000/year on power bills.
So in less than 2 years, the remaining cost is recovered through savings, and the system will continue generating savings for decades.
This showcases the powerful impact of incentives.
For larger systems over 100 kW, the maths is a bit different since you earn LGCs annually instead of an upfront STC rebate.
But those LGCs can be significant over time.
For instance, a 250 kW system might generate perhaps 400 LGCs/year.
If sold at $40 each, that’s $16k/year coming back.
Over a 10-year span, if prices hold, that’s $160k which could be half or more of the system’s cost recouped just from certificates – not even counting the electricity savings!
So although upfront you pay more (no STC rebate), you have a steady incentive revenue each year.
What our Say
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Adam
Home Owner, WembleyNavigating the Incentives with Synergex
Synergex’s team will ensure you capture every incentive your project is eligible for.
We handle the STC creation and trade process for you seamlessly.
For larger projects, we can either manage LGCs on your behalf or set up the system so you can claim them – whichever you prefer.
We provide guidance on tax incentives (while we aren’t tax advisers, we work closely with many accounting firms and stay informed on current depreciation rules that apply to solar).
Our goal is to maximise your savings and shorten the payback period for your investment.
When we present a proposal, we’ll clearly show the estimated incentives applied and how they impact your net cost.
In summary:
Australian businesses in WA have access to generous support when switching to solar power.
These incentives reflect the government’s commitment to renewable energy adoption.
By taking advantage of programmes like STCs, LGCs, and tax benefits, you can significantly reduce the cost of your commercial solar project and boost its financial returns.
Solar isn’t just an environmentally responsible choice – it’s fiscally smart, and the incentives are there to prove it.
If you’re considering solar, reach out to Synergex.
We’ll walk you through the current incentives and ensure your project is structured to make the most of them.
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