STC, FiT, VPP the only solar acronyms you need.
STCs put cash off your invoice. Feed-in tariffs pay you for what you export. VPPs pay you for what your battery exports. Here's how each works in NSW, in plain English.
The three financial levers of NSW solar
When someone tells you solar “pays for itself,” they're typically pointing at three different revenue streams working together. Understanding each one separately helps you evaluate a quote — and helps you push back when a salesperson conflates them.
STCs: the upfront discount
Small-scale Technology Certificates are federal government certificates issued for every megawatt-hour of clean energy your system will generate over 10 years. Your installer claims them, sells them, and discounts your invoice by the trade value — currently around $34 per certificate.
For a 6.6 kW system in NSW (Zone 3), that's approximately 97 certificates, worth roughly $3,300 off your install price. You never see the certificates. They just reduce your bill.
⚠️ STC values fluctuate on the open market, and the multiplier steps down each January. If an installer quotes a high STC discount, ask what price they're assuming per certificate.
Feed-in tariff (FiT): what you get paid for export
When your solar generates more than you're using, the excess goes back to the grid. Your retailer pays you for it — the feed-in tariff.
In NSW right now, most retailers pay between 3–8c/kWh. That's significantly less than the 44c/kWh bonus rates some Queensland homes got a decade ago — and it's why battery storage has become more financially interesting.
The key insight: you want to consume as much of your own solar as possible, rather than export it cheaply and buy it back expensively. Self-consumption optimisation (shifting dishwasher, hot water, EV charging to daytime) matters more now than it used to.
VPP: paid for your battery's grid participation
A Virtual Power Plant aggregates many home batteries and dispatches them as a group during peak grid demand — typically summer evenings. The grid operator pays the VPP operator, who shares revenue with participating households.
Most NSW network areas now have at least one VPP operator. Typical payments: $250–$600/year, depending on how many discharge events occur and how much of your battery capacity you're willing to allocate.
NSW-specific note: the PDRS scheme (Peak Demand Reduction Scheme) provides an additional upfront payment — typically $1,500–$2,500 — for batteries that register for peak demand response. Many installers don't claim this by default. Ask.
How they work together
A well-structured NSW solar + battery setup might look like this:
| Stream | Type | Typical value (6.6 kW + 10 kWh) |
|---|---|---|
| STC rebate | Upfront, once-off | ~$3,300 |
| PDRS payment | Upfront, once-off | ~$1,500–$2,500 |
| Empowering Homes loan | Interest-free financing | Up to $14,000 |
| Self-consumption savings | Ongoing, annual | ~$1,200–$1,800 |
| Feed-in tariff revenue | Ongoing, annual | ~$150–$300 |
| VPP participation | Ongoing, annual | ~$250–$600 |
Values are indicative for NSW Zone 3 (Sydney metro / most of NSW). Actual results vary.
Information is current as at May 2026. STC values and rebate eligibility change — always verify current figures.
See how this applies to your address.
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