The Solar Rebate (That's Not Really a Rebate!)
G'day, solar enthusiasts! Ready to shed some light on those confusing solar subsidies? If you've been scratching your head over the so-called "solar rebate" (spoiler alert: we're not supposed to call it that!), you're not alone. Let's break down this sunshine-powered saving scheme that could potentially put thousands back in your pocket!
What's This "Not-A-Rebate" All About?
First things first – the government gets a bit touchy when we call this a rebate. Officially, it's the Small-scale Technology Certificate (STC) program, which reduces the upfront cost of installing solar panels.
Why the semantic gymnastics? Well, the government isn't actually handing you cash directly. Instead, they've created a clever system where fossil fuel generators are required to either build renewable energy systems or buy the right to someone else's system through these certificates. Sneaky, right?
The bottom line is this: if you install a solar system in 2025, you'll get approximately $300 off per kilowatt installed. For a typical 6.6kW system, that's about $2,000 in savings right off the bat!
You can find out the maximum Solar rebate you’re entitled to with our Solar STC Calculator →
How Much Can You Actually Save?
Let's talk real numbers. After the STC discount, here's what you might expect to pay:
Typical cost of a 6.6kW solar system: $8,200
Government STC incentive: $2,000
Your final cost: Approximately $6,200
Of course, prices vary depending on the quality of components and your installation location. Generally speaking, a good quality 6.6kW system in 2025 will range from $5,500 to $9,000 after the incentive.
If you’re lucky enough to live in a state that has a state government rebate/incentive for solar (like the Solar Homes Program in Victoria), that rebate would stack on the STC incentive and your out-of-pocket cost would be even lower.
The Solar Subsidy Explained (Without Making Your Head Spin)
Here's how this not-a-rebate works:
The government creates virtual certificates called Small-scale Technology Certificates (STCs).
Fossil fuel generators are required to buy these certificates (Power companies like AGL, Origin, etc.)
When you install solar panels, you're entitled to a certain number of STCs based on your system size and location.
These STCs have a market value (currently around $36 each after fees).
Your installer typically handles the sale of these STCs and passes the savings directly to you.
It's a bit like being handed discount vouchers that someone else is legally obligated to buy from you. Not too shabby!
When will the “rebate” end?
Here's where things get interesting – the value of these STCs fluctuates based on market demand. Currently, the price is hovering around $36 per certificate (after processing fees), which translates to that $300 per kilowatt we mentioned.
But here's the kicker: this price can drop if too many people install solar panels all at once. A few years ago, the price plummeted to $17 per certificate when the market was flooded. At that price, your 6.6kW system would only get about $1,000 off instead of $2,000. That's quite a difference!
On top of that, the entire scheme is designed to phase out gradually. It started reducing bit by bit each year from January 2017 and will continue declining until it hits zero in 2031.
Location, Location, Location!
Your postal code actually matters when it comes to these solar incentives. Australia is divided into four solar zones based on how much sunshine your area receives.
Here is the estimated STC discount assuming a value of $36 per STC:
Zone 1 (most of NT, parts of QLD and WA): $2,304 incentive for a 6.6kW system
Zone 2 (parts of NSW, QLD, WA): $2,160 incentive
Zone 3 (parts of NSW, QLD, SA, VIC): $1,944 incentive
Zone 4 (TAS, southern VIC): $1,656 incentive
Essentially, the sunnier your location, the more STCs you'll get!
What You Need to Qualify
The good news is that claiming this incentive is pretty straightforward. The key requirements are:
Your system must be 100kW or smaller.
Installation must be done by a Solar Accreditation Australia accredited professional.
You must use solar panels and inverters approved for use in Australia by the Clean Energy Council. (Click here to view the approved products lists)
There's no means testing, so your income doesn't matter. If you meet these criteria, you're good to go!
Ready to Calculate Your Savings?
Wondering exactly how much you could save with the current solar incentives? Our STC Calculator will help you crunch the numbers based on your location and desired system size.
Just pop in your postcode and the size of the system you're considering and the estimated year of installation, and we'll show you how much the current incentive could knock off your installation price.
The Bottom Line
The "rebate-that's-not-a-rebate" is a significant helping hand if you're considering solar power. While it's gradually reducing year by year, there's still plenty of savings to be had in 2025.
And remember, this incentive is separate from feed-in tariffs, which pay you for the excess energy your system exports to the grid. So you're saving in two ways – upfront with the STC program and ongoing with reduced energy bills and potential feed-in payments.
Ready to catch some rays and save some cash? The sun's not waiting, and neither should you! If you’re ready to speak to an authorised solar retailer and secure your STC subsidy, click here.