In just under 8 weeks, Australia’s solar panel rebate won’t be as generous as it is now. Here’s what’s happening in 2025.
Not to be confused with feed-in tariffs (credits for exporting electricity to the grid), the rebate is actually an up-front discount on the cost of an eligible solar power system. The incentive has helped millions of Australians get solar panels installed. It’s a significant incentive that can be worth thousands of dollars, but it’s being gradually reduced and will be entirely phased out by 2031.
How The Solar “Rebate” Works
The subsidy operates under Australia’s Small-scale Renewable Energy Scheme (SRES) and is based on Small-scale Technology Certificates (STCs).
The number of certificates that accompany a qualifying system depends on the system’s solar panel capacity, the geographical location of installation and installation year, and decrease on January 1 each year.
The certificates have a value that can vary between $0 and $40 depending on market conditions. “Liable entities” such as such as electricity retailers are required to buy STCs under Australia’s Renewable Energy Target (RET).
You can sell the certificates yourself, which is a bit of a hassle. The most common arrangement sees the value of the certificates (minus admin fees) being provided to the system buyer as a discount. The system owner signs over the rights to the certificates to the installer’s registered agent on the day of installation; and they subsequently create and sell them.
How Much Is The Subsidy Worth Now?
As an example and based on an installation in Sydney, a 10kW PV system installed this year is entitled to 96 STCs. Certificate values have remained very steady throughout this year, bumping up against the $40 maximum. So, based on an estimated value of $36 after fees (and admin fees can vary):
96 x $36 = $3,456
That’s a decent chunk of change.
How Much Will The Solar Rebate Be On January 1, 2025?
When the calendar flips over to January 2025, that same system installed in the same location will be entitled to 82 STCs. Based again on an after-fee value of $36, the solar rebate in 2025 would be:
82 x $36 = $2,952
It’s still a good saving, but a system installed on January 1, 2025 will get a subsidy that is $504 less than if it was installed on December 31, 2024.
You can learn more about the solar panel rebate here, and determine certificate numbers and estimated rebate value with the SolarQuotes STC calculator here.
More Reasons For Going Solar Now
Other than the subsidy reduction, there are other reasons for installing a PV system now:
- High STC values may continue for some time, but could also drop – although there’s nothing I’m aware of to indicate this will happen in the short term; particularly to a level that would have a major impact.
- Many solar panel manufacturers in China are running at a loss due to a fierce price war that’s been going on for a while. That’s good for consumers, but can’t be sustained forever.
- The possibility of significant currency exchange fluctuations impacting component costs (but if it happens, it could go in either direction).
- The longer you put off an installation, the longer you’ll have electricity bills much higher than they would otherwise be.
If you want to install a system soon, you’ll need to get cracking. Aside from the STC reduction deadline not far off, bear in mind good solar installers are usually busy and many take a well-earned break towards the end of December. And remember, the rebate level is based on installation date, not contract signing date.
A word of warning – choosing the wrong system/installer through rushing could prove more costly more than waiting. That being the case, get informed first and check out SQ’s Solar 101 Guide. The guide will tell you what you need to know about choosing the right system for your circumstances, and at the right price. Even if you miss the deadline, being better informed will set you up well for a better solar experience and savings over the long term.
But if you’re really keen to get started straight away, request a quote and we’ll match your requirements with up to three pre-vetted solar installers we trust – and this free service is backed by the SolarQuotes Good Installer Guarantee.
About Michael Bloch
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Hi Finn,
I know you sold out to Origin, but something clicked to me the other day.
After reading my comment, please don’t use the old “But didn’t you read the small print?” rubbish on me.
I’ve noticed that ever since I commented here, I get phone calls every night, around tea time, all based on solar panels. I took you for being the good guy, but are you just one of them?
Hi Eric,
The deal with Origin doesn’t settle until December so if you’re getting some spam calls then it’s not through any of our data.
In fact we’ve just been through our database and have a program to anonymise the more current information and delete old details, just in case there was a breach or hack of some sort.
Rest assured we take privacy and security seriously, and despite various approaches, we’ve never sold details.
I wonder if old mate has been discussing his solar in earshot of a Google or Apple device in listening mode? I know at home when we discuss something different all our social feeds start hitting us with ads for obscure products 😁😁
I have had my 6.6Kw system for about 2 years. I am confused by the ads from retired cricketers suggesting that your installation will only cost you about $3500. I thought that that price was the government subsidy.
My system was around $10,000 with a government subsidy of $3500 leaving me with an out of pocket cost of $6500.
Have I been ripped off or are the cricketers spreading confusion?
Hi Derek,
The washed up sportzball celebrities are generally flogging cheap gear, installed by careless monkeys on fixed rate subcontracts.
If you have a look at the SolarQuotes review page for Arise, Sunboost etc, and select the 1 star reviews… it explains how the poor man always pays twice.
Systems are cheap when they come with zero after sales support… especially if it’s a sales company operating from a serviced office that “goes broke” and disappears without honouring any warranties.
$1 per watt of system is a good yardstick for reputable gear and a good sustainable installer business.
Whole the STC incentive has fallen 7% per year, panel prices have continued to fall too.
Nothing good comes from paying 50c/watt unless you have a stroke of luck with mid tier system components and a reputable compliant subbie who’s just filling a day in his calendar between better paid jobs.
Hi, I hope someone can confirm the battery rebate amount I would be entitled to? I have just read the post below from Solar Quotes site.
“Your battery is SunGrow SBR HV 9.6 kWh, which attracts 773 PRCs. At a rate of $2.00 per PRC, this gives you a base rebate of $1,546.”
I thought my rebate would be $2400.00 as related to all the posts I have previously read. I have already locked in and signed a contract with one of your recommended installers. Why has my previously calculated rebate dropped from $2400.00 to $1546.00? Am I able to legally cancel my contract with the installer?
Hi Rob, my post above was about the national solar *panel* rebate. Regarding the NSW *battery* rebate:
In late May, the NSW Government announced a home battery subsidy – *generally* between $1,600 and up to $2,400 – and I believe that was mentioned in most of our older posts. At that point and until not long before the incentive was launched this month, the NSW Government was still developing guidelines and structure for the program.
The rebate level depends on a number of factors; for example your location, battery capacity and the value of PRCs (which fluctuate).
For more information on the rebate and how it works, see this page:
https://www.solarquotes.com.au/battery-storage/nsw-rebate/
I hope this helps, but if you have any further questions regarding the rebate and the quote you received, I suggest contacting the SolarQuotes support team, who will be happy to help.
https://www.solarquotes.com.au/contact/
Thanks Anthony for the reply. What I find confusing is that the retired cricketers are suggesting that the total solar installation costs $3500, not the full price of panels, inverter and installation.
This is very misleading
Hi Derek,
Everyone quotes a figure for out of pocket cost, so STC rebates are included in the price.
The point still stands that $1/watt is usually a decent price for quality gear. 50c/watt or less will get you a load of rubbish.
If you’re in Victoria and receiving a loan as a state government inventive then that should be stated clearly.