Sydney and the NSW coast sit in STC Zone 3; inland and northern NSW step up to Zone 2, earning about 11% more certificates per kW.
New South Wales runs two incentive schemes side by side. The federal Small-scale Renewable Energy Scheme pays an upfront STC discount on commercial solar up to 1 MW of site capacity for installs from 1 October 2026 (100 kW before), and NSW layers its own Peak Demand Reduction Scheme (PDRS) on top for batteries, paying Peak Reduction Certificates (PRCs) for equipment that cuts load during the evening peak. The two schemes are assessed separately: solar earns STCs, the battery earns PRCs, so a combined solar-plus-battery project in NSW typically claims both.
STC zone ratings vary noticeably across the state. Sydney (2000) sits in STC Zone 3, a 1.382 multiplier per eligible kW; a 100 kW system installed in 2027 has 4 years of deeming left before the scheme ends in 2030, which works out to roughly 552 STCs. Move inland to Broken Hill (2880), STC Zone 2 at 1.536, and the identical system earns roughly 614 STCs, about 11% more, because Clean Energy Regulator zone boundaries follow measured solar irradiance rather than distance from Sydney.
Above the STC ceiling (1 MW of site capacity for installs from 1 October 2026, 100 kW before), the balance earns Large-scale Generation Certificates (LGCs): one certificate per MWh actually generated, paid as ongoing annual revenue rather than an upfront discount. The system is split: STCs up to the ceiling, LGCs on the balance. A NSW business installing solar with a battery stacks the federal solar certificates with a PDRS PRC rebate on the battery. The breakdowns below cover the exact certificate maths for each.
NSW commercial solar installations can access the following incentive schemes.
STC eligibility moved from 100 kW to 1 MW of site capacity for solar installed from 1 October 2026 (Mid-scale Solar Regulations, registered 17 September 2026). The 100 kW limit still governs anything installed before that date, and capacity above the first 1 MW earns LGCs. Read the announcement.
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The zone multiplier determines how many STCs are generated per kilowatt of installed capacity. A multiplier of 1.382 means a 100 kW system in Sydney installed in 2027 generates 552 STCs over the remaining deeming period (4 years to 2030), worth approximately $21,313 at current certificate prices, less a 3% provider fee.
NSW adds a second incentive on top of federal STCs: the Peak Demand Reduction Scheme (PDRS) pays Peak Reduction Certificates (PRCs) for batteries that cut demand in the evening peak. Under the Amendment No. 3 Rule 2026 (7 September 2026) the business activities BESS4 and BESS5 cover commercial and industrial batteries from 20 kWh to 30 MWh, deemed upfront over 15 years and delivered as an install discount. Solar earns the STCs; the battery earns the PRCs.
Estimate the NSW battery rebate with the PDRS calculator →Large-scale Generation Certificates provide annual recurring revenue for solar capacity above 1 MW (above 100 kW for installs before 1 October 2026) in New South Wales. Unlike the one-time STC discount, LGCs generate income every year based on actual electricity production.
One LGC is created per megawatt-hour (MWh) of generation. At a current net price of $7/LGC (the market less a 5% provider fee), a 150 kW system in NSW generating approximately 194 MWh per year would earn roughly $1,383/year in LGC revenue.
The 99 kW design ceiling is disappearing. Here is what solar professionals need to re-size, re-quote across the 1 October start date, and add to proposal templates before then.
Above the STC ceiling (1 MW of site capacity from 1 October 2026, 100 kW before), solar earns LGCs annually instead of an upfront STC discount. Here is how the scheme works and what a certificate is really worth in 2026.
It depends on where in NSW. Sydney (STC Zone 3) carries a 1.382 multiplier; over the 4 years left in the scheme for a 2027 install, that is roughly 552 STCs. Move to Broken Hill (STC Zone 2, 1.536) and the same 100 kW system earns roughly 614 STCs, about 11% more, because CER zones track measured solar irradiance rather than distance from Sydney.
STCs are federal and reward the solar panels; PDRS is a NSW-only scheme that rewards the battery. A combined solar-plus-battery project in NSW typically claims both at once (STCs for the panels, Peak Reduction Certificates (PRCs) for the battery) since the two are assessed against different equipment.
BESS2 sits under the PDRS Demand Response schedule: it covers batteries of 2–50 kWh usable capacity, with the first 28 kWh counted for certificates, deems over 6 years, and applies a lower 0.8 firmness factor. BESS4 (20-200 kWh usable) and BESS5 (200 kWh-30 MWh usable) sit under Store & Shift, deeming over 15 years at full 1.0 firmness. Most commercial and industrial batteries quoted alongside solar land in BESS4 or BESS5, which earn more PRCs per kWh than a BESS2 system of the same size.
Yes, commercial solar capacity above 1 MW in NSW (above 100 kW for installs before 1 October 2026) earns Large-scale Generation Certificates, one per MWh actually generated, paid as ongoing annual revenue. The system is split: the capacity up to that ceiling takes the upfront STC discount and only the balance earns LGCs.
No, PDRS only certifies batteries and some non-battery demand-reduction equipment. Rooftop or ground-mount solar in NSW is certified under the federal STC scheme, not PDRS. The two are commonly quoted together on the same project but assessed independently.
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