{"id":87973,"date":"2024-11-07T05:08:10","date_gmt":"2024-11-06T19:38:10","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=87973"},"modified":"2024-11-07T06:51:11","modified_gmt":"2024-11-06T21:21:11","slug":"solar-rebate-2025-mb3046","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/solar-rebate-2025-mb3046\/","title":{"rendered":"Australian Solar Rebate Reduction Nears: What You Should Know"},"content":{"rendered":"

\"Australia's<\/p>\n

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.<\/p>\n

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.<\/p>\n

How The Solar “Rebate” Works<\/h2>\n

The subsidy operates under Australia’s Small-scale Renewable Energy Scheme (SRES) and is based on Small-scale Technology Certificates (STCs).<\/p>\n

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.<\/p>\n

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).<\/p>\n

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.<\/p>\n

How Much Is The Subsidy Worth Now?<\/h2>\n

As an example and based on an installation in Sydney, a 10kW PV system<\/a> 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):<\/p>\n

96 x $36 = $3,456<\/p>\n

That’s a decent chunk of change.<\/p>\n

How Much Will The Solar Rebate Be On January 1, 2025?<\/h2>\n

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:<\/p>\n

82 x $36 = $2,952<\/p>\n

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.<\/p>\n

You can learn more about the solar panel rebate here<\/a>, and determine certificate numbers and estimated rebate value with the SolarQuotes STC calculator here<\/a>.<\/p>\n

More Reasons For Going Solar Now<\/h2>\n

Other than the subsidy reduction, there are other reasons for installing a PV system now:<\/p>\n