When you install an eligible small-scale renewable energy system at your home or business, you may be eligible to earn financial incentives.

Before you install a renewable energy system, make sure you understand:

  • what type of system you should install
  • the installation requirements
  • which systems and components are eligible
  • which installers and designers are approved under the Small-scale Renewable Energy Scheme.

Types of small-scale renewable energy systems

There are 5 types of small-scale renewable energy systems eligible under the scheme:

  • solar photovoltaic (PV)
  • wind turbines
  • hydro systems
  • solar water heaters
  • air source heat pumps.

Classification of a small-scale system is based on the system's capacity or how much energy the system displaces. Systems with higher capacity may be classified as power stations. Power stations can be accredited under the Large-scale Renewable Energy Target and may be eligible for large-scale generation certificates.

System capacity: no more than 100 kW.

Annual electricity output: less than 250 MWh.

Find out more about installing rooftop solar.

System capacity: up to 700 L.

Models with a capacity over 700 L need further documentation to be eligible for STCs.

Find out more about installing solar water heaters.

System capacity: no more than 425 L.

Find out more about installing air source heat pumps.

System capacity: no more than 10 kW.

Annual electricity output: less than 25 MWh.

Find out more about small-scale wind systems.

System capacity: no more than 6.4 kW.

Annual electricity output: less than 25 MWh.

Find out more about small hydro systems.

Battery storage systems aren't eligible under the scheme.

If a battery storage system is integrated in a solar PV, wind or hydro system, we collect information about it from retailers, installers and agents.

New systems

To be eligible for STCs, newly installed small-scale systems must meet certain requirements.

Small generation units

A solar PV, wind or hydro system must:

Solar water heater systems

Solar hot water systems and air source heat pumps must:

Find out more about how to install a solar water heater.

Expanding, upgrading or replacing existing systems 

You should consider your options and compare the benefits and costs of installing a new or expanded system. This includes:

  • electrical wiring upgrades
  • compliance with current standards
  • operating efficiency
  • hidden costs of changes or upgrades
  • impacts on feed-in tariffs.

If you are expanding a system, you may need to replace or upgrade components of your system to participate in the scheme. It's important to note that systems with replaced panels that previously received STCs aren't eligible for additional STCs.

Expanding systems and claiming STCs

If you expand your system before your initial claim for STCs is approved, you risk not being able to claim any STCs for the system. For example, if your initial STC claim for a small-scale system fails, you may not be able to re-create STCs for an expanded system above 100 kW.

Find out more about upgrading a small-scale system.

We have provided some examples to help you determine if your new system, or updates to an existing system, is eligible.

A home uses an existing inverter to add more panels to its rooftop solar system.

The upgrade will be eligible if:

  • the total system capacity after the upgrade has a rating of no more than 100 kW
  • the new panels and existing inverter are on the CEC approved products list
  • the inverter has sufficient capacity
  • all components meet the current relevant standards.

Systems that have a capacity increased to more than 100 kW may be eligible to apply for accreditation as a power station. Find out more about upgrading a small-scale system to a power station.

A house has an existing rooftop solar system. They install an additional inverter and new panels.

The additional system will be eligible if:

  • the combined capacity of the systems has a rating of no more than 100 kW
  • the new panels and new inverter are on the CEC approved products list
  • all components meet the current relevant standards.

A house replaces its original rooftop solar system in its entirety. This includes removing the original system to install a new inverter and panels.

The new system will be eligible if:

  • the system has a rating of no more than 100 kW
  • the panels and inverter are new, with no previous STC claims
  • the new panels and new inverter are on the CEC approved products list at the time of installation
  • all components meet the current relevant standards.

A house replaces some of the panels in its existing rooftop solar system. It continues to use existing system components, including the inverters.

This system update is not eligible for STCs. This is because the inverter and some panels have previously been used to claim STCs.

Small-scale technology certificate eligibility for recalled products

For a small-scale renewable energy system to be eligible to claim STCs, the system must meet the requirements under the Renewable Energy (Electricity) Act 2000 and the Renewable Energy (Electricity) Regulations 2001. Under the Regulations, a product model is ineligible for STCs if it's subject to a recall under Australian Consumer Law.

We'll communicate with industry following a recall notice publication from the Australian Competition and Consumer Commission. The product recall notice will include instructions for repairing the product.

We may consider a product eligible for STCs if you repair it as outlined in the recall notice.

You should contact the manufacturer to arrange the repair. Once repaired, send evidence of the repair and the product serial number to the manufacturer. The manufacturer will pass these details to us to consider STC processing.

If you have questions about a recalled product, contact the manufacturer or the Australian Competition and Consumer Commission.

Current recalled products

For support, email us at deemedunits@cer.gov.au or contact us.