incentivesstcveec
STC vs VEEC vs LGC: Which Fits Your Business?
Three incentive schemes, different eligibility rules. Find out which ones apply to your business and how much they are worth.
5 June 20268 min read
NSW benefits from strong solar radiation across most of the state, with Zone 2 STC multipliers for northern and central regions.
New South Wales runs two incentive schemes side by side. The federal Small-scale Renewable Energy Scheme pays every commercial solar installation up to 100 kW an upfront STC discount, 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 2026 has 5 years of deeming left before the scheme ends in 2030, which works out to roughly 691 STCs. Move inland to Broken Hill (2880), STC Zone 2 at 1.536, and the identical system earns roughly 768 STCs — about 11% more, because Clean Energy Regulator zone boundaries follow measured solar irradiance rather than distance from Sydney.
Above 100 kW, NSW systems move from STCs to Large-scale Generation Certificates (LGCs) — one certificate per MWh actually generated, paid as ongoing annual revenue rather than an upfront discount. The whole system falls under one federal scheme based on its size, so a NSW business installing a 150 kW system with a battery stacks two incentive streams: annual LGC revenue on the solar and 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.
Adjust system size to see your NSW incentive breakdown at current certificate prices.
The zone multiplier determines how many STCs are generated per kilowatt of installed capacity. A multiplier of 1.536 means a 100 kW system in NSW generates 768 STCs over the remaining deeming period (5 years to 2030), worth approximately $29,952 at current certificate prices.
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. 2 Rule 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 systems above 100 kW 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 current prices of $47/LGC, a 150 kW system in NSW generating approximately 378 MWh per year would earn roughly $17,786/year in LGC revenue.
Three incentive schemes, different eligibility rules. Find out which ones apply to your business and how much they are worth.
Payback varies from 3 to 7 years depending on state, system size, and incentives. See the live state-by-state table and your own scenario.
It depends on where in NSW. Sydney (STC Zone 3) carries a 1.382 multiplier; over the 5 years left in the scheme for a 2026 install, that is roughly 691 STCs. Move to Broken Hill (STC Zone 2, 1.536) and the same 100 kW system earns roughly 768 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 from 2 kWh to 50 kWh usable capacity (though the certificate count is calculated on the first 28 kWh), 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 above 100 kW in NSW earns Large-scale Generation Certificates, one per MWh actually generated, paid as ongoing annual revenue. Systems that size claim LGCs instead of the upfront STC discount: the whole system falls under one federal scheme based on its capacity.
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.