{"id":25856,"date":"2018-11-16T05:15:10","date_gmt":"2018-11-15T18:45:10","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=25856"},"modified":"2023-09-13T14:12:28","modified_gmt":"2023-09-13T04:42:28","slug":"solar-subsidy-2019-mb0827","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/solar-subsidy-2019-mb0827\/","title":{"rendered":"How Much Will Australia’s Solar Subsidy Reduce By In 2019?"},"content":{"rendered":"

\"Solar<\/h2>\n

‘Tis the season for solar subsidy scare tactics. It’s that time of the year again when some solar retailers are starting to scream that the solar rebate\/subsidy\/incentive will reduce next year, hoping to turn more browsers into buyers.<\/p>\n

Just to briefly recap, Australia’s national solar subsidy (aka the solar rebate<\/a> and not to be confused with feed in tariffs<\/a>) is based on small-scale technology certificates (STCs), which have a value that fluctuates with market conditions. The number of certificates a solar power system is eligible for depends on its size and where in Australia it is installed.<\/p>\n

The value of the certificates that will accompany a system is usually traded for a point-of-sale discount, so technically it’s not a rebate.<\/p>\n

When the subsidy was at full strength, one STC was issued for every estimated 1,000 kilowatt-hours of electricity a solar power system would generate over period of 15 years – this is called the deeming period. However, the subsidy started being phased out from the 1st of January 2017 by reducing the deeming period by one year, each year.<\/p>\n

For solar power systems installed this year, the deeming period is 13 years, in 2019 it will be 12 years, and so on. This reduction will continue until December 31, 2030, after which the deeming period will be zero and the subsidy will be kaput.<\/p>\n

Subsidy Deeming Period Reduction Impact In 2019<\/h2>\n

Just as an example, a 6kW solar system<\/a> installed in Brisbane<\/a> up until December 31 this year is eligible for 107 STCs. At a current market value of around $35 per STC, that works out to a $3,745 subsidy – a significant chunk of change that greatly reduces the up-front cost of going solar<\/a>1<\/a><\/sup>.<\/p>\n

If the same system was installed in January 2019, it would be eligible for 99 STCs – so, a $3,465 subsidy assuming an STC value of $35 each2<\/a><\/sup>.<\/p>\n

That’s a difference of $280, and it will be less for smaller systems. $280 is certainly better off in your pocket, but it’s not a sky-is-falling situation or one that should be encouraging Australians to rush a purchase decision. After all, it’s a decision buyers will living with for a long time.<\/p>\n

From a financial viewpoint, a poor quality and\/or poorly installed solar power system won’t achieve the same level of savings provided by a good quality, well-installed one. This will add up to far more than $280 in losses over the system’s life – and in the case of a poor quality system, it may be a comparatively short one. The other risk is rushing into the purchase of what turns out to be a good quality system, but is overpriced.<\/p>\n

Also bear in mind the cost of components such as solar panels<\/a> and solar inverters<\/a> has been decreasing and with the end of the year not that far off, some solar companies may already be factoring in the deeming period reduction in quotes if installations may not occur until January 2019. While the buyer receives the subsidy discount at the point of sale, STCs aren’t issued until after the system is installed.<\/p>\n

A Wildcard – STC Value<\/h2>\n

It appears a premature axing of the subsidy altogether<\/a> is off the table (for now), but one other wildcard is STC value, which as mentioned fluctuates with market conditions. The maximum value an STC can reach is $40 and the minimum, $0. In 2017, the value of STCs plummeted<\/a> to well below $30 for a while, pushing up solar prices<\/a> and taking some installers by surprise<\/a>.<\/p>\n

Again, the potential of something like that reoccurring shouldn’t force a hasty purchase decision.<\/p>\n

It’s always a good time to go solar and the longer you put it off, the longer you’re locking yourself into high electricity bills. But it’s important to do your research first and a good place to start is with our Solar 101 Beginner’s Guide<\/a> and installer reviews<\/a>. The guide doesn’t take long to read and could save you headaches, disappointment and bucks down the track.<\/p>\n","protected":false},"excerpt":{"rendered":"

‘Tis the season for solar subsidy scare tactics. It’s that time of the year again when some solar retailers are starting to scream that the solar rebate\/subsidy\/incentive will reduce next year, hoping to turn more browsers into buyers.<\/p>\n","protected":false},"author":17,"featured_media":25857,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[678],"tags":[],"class_list":["post-25856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-battery-news","entry"],"acf":[],"yoast_head":"\nHow Much Will Australia's Solar Subsidy Reduce By In 2019?<\/title>\n<meta name=\"description\" content=\"It's that time of the year again when some 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The situation may still\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Australia's solar rebate in 2020","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/01\/australia-solar-rebate-2020.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/01\/australia-solar-rebate-2020.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/01\/australia-solar-rebate-2020.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/01\/australia-solar-rebate-2020.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/01\/australia-solar-rebate-2020.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":61658,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-stc-values-mb2465\/","url_meta":{"origin":25856,"position":1},"title":"Strong STC Spot Prices Supporting High Solar Rebates","author":"Michael Bloch","date":"May 9, 2022","format":false,"excerpt":"With STC spot prices bumping up against their maximum, it's a great time to install solar panels in Australia. So, what is an STC and why does this matter? Australia's solar rebate - more accurately a subsidy providing an up-front discount on the purchase of a system - is based\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Australia's solar rebate and STC spot prices","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-stc-value.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-stc-value.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-stc-value.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-stc-value.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-stc-value.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":72321,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-stc-value-mb2858\/","url_meta":{"origin":25856,"position":2},"title":"Rooftop Solar STC Value Still Solid","author":"Michael Bloch","date":"March 14, 2023","format":false,"excerpt":"Value of the virtual bits of paper underpinning Australia's national solar rebate is looking very strong - and that's good news for solar buyers. Australia's solar panel \"rebate\" can knock a big chunk off the up-front cost of going solar. For example, it can save around $4,000 on a 10kW\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"STC value - solar panel rebate","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/solar-stc-value.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/solar-stc-value.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/solar-stc-value.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/solar-stc-value.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/03\/solar-stc-value.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":45323,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-rebate-2021-mb1783\/","url_meta":{"origin":25856,"position":3},"title":"What’s Happening To Australia’s Solar Rebate In 2021?","author":"Michael Bloch","date":"December 2, 2020","format":false,"excerpt":"It's that time of the year again when some ads may start screaming about a reduction in the solar rebate. Here's what you need to know. Australia\u2019s \u201csolar rebate\u201d is delivered under the Small-scale Renewable Energy Scheme (SRES) and is based on Small-scale Technology Certificates, or STCs. These certificates have\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Australia's Solar Rebate In 2021","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/12\/australia-solar-rebate-2021.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/12\/australia-solar-rebate-2021.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/12\/australia-solar-rebate-2021.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/12\/australia-solar-rebate-2021.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/12\/australia-solar-rebate-2021.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":13341,"url":"https:\/\/www.solarquotes.com.au\/blog\/stc-prices-solar-subsidy-mb0133\/","url_meta":{"origin":25856,"position":4},"title":"STC Prices Plummet – The Impact On Australia’s Solar Subsidy","author":"Michael Bloch","date":"July 20, 2017","format":false,"excerpt":"A sudden reduction in the value of certificates upon which solar subsidies in Australia are based has resulted in some solar companies needing to re-issue recent quotes. Australia's major subsidy for small-scale systems, sometimes referred to as the \"solar rebate\", shouldn't be confused with solar feed in tariffs - those\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"STC values impacting Australia's solar subsidy","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/07\/stc-value-solar-subsidy.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/07\/stc-value-solar-subsidy.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/07\/stc-value-solar-subsidy.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/07\/stc-value-solar-subsidy.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":87973,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-rebate-2025-mb3046\/","url_meta":{"origin":25856,"position":5},"title":"Australian Solar Rebate Reduction Nears: What You Should Know","author":"Michael Bloch","date":"November 7, 2024","format":false,"excerpt":"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\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Australia's solar rebate in 2025","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/25856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/comments?post=25856"}],"version-history":[{"count":6,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/25856\/revisions"}],"predecessor-version":[{"id":78754,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/25856\/revisions\/78754"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media\/25857"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=25856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=25856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=25856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}