What are STCs and how do they reduce the cost of commercial solar?
Small-scale Technology Certificates (STCs) are a federal incentive that provides an upfront discount on solar up to 1 MW of site capacity for systems installed from 1 October 2026 (100 kW before). The number of STCs depends on your location (STC zone), system size, and the deeming period: the years remaining until 2030, or a fixed five years for a 100 kW to 1 MW system installed from 1 October 2026. Your solar company claims the STCs and passes the value to you as a point-of-sale discount. Above 1 MW of site capacity, the first 1 MW earns STCs and the balance earns LGCs.
What are VEECs and which businesses are eligible?
Victorian Energy Efficiency Certificates (VEECs) are a state-based incentive available only in Victoria for commercial solar systems between 30 kW and 200 kW. They are created under the Victorian Energy Upgrades program (Activity 47A for systems up to 100 kW, Activity 47B for 100-200 kW) and stack on top of the federal certificates: STCs up to 1 MW of site capacity for installs from 1 October 2026 (100 kW before), LGCs above it.
What are LGCs and when do they apply?
Large-scale Generation Certificates (LGCs) provide annual revenue on solar capacity above 1 MW (above 100 kW for systems installed before 1 October 2026). Unlike STCs which are a one-time upfront discount, LGCs generate ongoing income based on the electricity your system produces each year. One LGC is created per megawatt-hour of generation.
Can I claim both STCs and VEECs for the same solar installation?
Yes, for eligible Victorian commercial systems. VEU Activity 47 allows VEECs to be created for a 30-200 kW solar system as well as federal STCs or LGCs on the same install. Systems under 30 kW fall outside Activity 47 and claim STCs only.
What incentives does a battery get?
Two, and they stack with the solar certificates because they reward different equipment. The federal Cheaper Home Batteries Program pays battery STCs on the usable capacity of a home or small-business battery up to 100 kWh, weighted on the first 50 kWh and stepping down every six months to 2030. In NSW the Peak Demand Reduction Scheme (PDRS) adds Peak Reduction Certificates for an apartment or business battery that shifts load out of the evening peak (the home activity, BESS1, is suspended), deemed upfront over the equipment lifetime. Amperage prices both alongside the solar certificates.