Australian Solar Rebate Reduction Nears: What You Should Know

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.