Current Solar Rebates in Australia: Your Easy-to-Understand Guide

Thinking about installing solar panels? It’s not just a green move; it’s a smart money move, too. Thanks to government incentives, going solar could be more affordable than you think. Wondering, what are the current solar rebates in Australia? You’re in the right place. Let’s dive into it.

The Basics of Solar Rebates in Australia

In Australia, both the national and state governments are keen to help people use more solar energy. This is where the solar rebate comes into the picture.

Whether you’re a homeowner, a small business owner, or part of a community group, you might be eligible for a solar rebate. 

What is a Solar Rebate?

A solar rebate is a financial incentive that the government provides to individuals, businesses, or community groups. Its primary purpose is to offset a portion of the costs associated with the installation of solar panel systems, effectively acting as a solar panels rebate.

How It Works at the National Level:

The Small-scale Renewable Energy Scheme (SRES) creates a financial incentive for individuals, households and small businesses to install eligible small-scale renewable energy systems like small-scale wind systems, small-scale hydro systems, solar water heaters and air source heat pumps.

Large-scale Renewable Energy Target (LRET) incentivises the development of renewable energy power stations in Australia through a Renewable Energy Certificate Market. 

These programs enable individuals and businesses to receive certificates, known as either Small-scale Technology Certificates (STCs) or Large-scale Generation Certificates (LGCs).

These certificates act as a form of acknowledgment and incentive from the government. Recipients have the option to:

• Sell these certificates to generate revenue, or
• Use them to reduce the upfront cost of solar panel installation, thereby enhancing the appeal of the solar panels’ rebate.

According to Clean Energy Regulator Australia, estimated STC creations for the year

The STC creation estimate is the average of consultants’ forecasts (see the consultants’ modelling reports). For 2023, the estimated number of STC creations is 34.4 million.

For creations in 2023, this figure is based on data to 30 October 2022 and the Clean Energy Regulator’s (CER) estimate of STC creations for the remainder of 2022.

How Solar Rebates Work in Each State of Australia

New South Wales (NSW)

In New South Wales (NSW), when you purchase solar panels, you are eligible for a financial incentive from the Australian government known as the solar rebate. This rebate can significantly lower the price of your solar system, reducing the cost by almost one-third.

NSW does not currently offer any additional statewide solar rebate, unlike what is available in Victoria. However, if your household is currently benefiting from the Low Income Household Rebate, you have the option to exchange this annual rebate for a new 3 kW solar system.

This government incentive involves Small-scale Technology Certificates (STCs). The number of STCs you are eligible for depends on two factors: where you live and the size of the solar system you install. For example

Rebate for a 6.6kW solar system installed in Newcastle: 

To qualify for the rebate, you must purchase solar panels, an inverter, and any batteries from the Clean Energy Council’s approved product list. If your products are not approved by CEC , you won’t be eligible for the rebate. And your solar system must be installed by a professional who is accredited by the Clean Energy Council.

In selected regions, qualified residents now have the option to exchange their Low Income Household Rebate for a fully installed 3 kW solar panel system. To qualify for this rebate exchange, you must meet the following criteria:

Click here to see the list of eligible regions.

Victoria (VIC)

If you’re a homeowner in Victoria, you might be eligible for a solar panel (PV) rebate. Here’s what you need to know:

• You qualify if you own and live in an existing home or if you’re the owner of a house currently being built where the system will be installed.
• The combined taxable income for all homeowners should not exceed $180,000 annually.
• If you’ve already benefited from a solar panel (PV) rebate or a solar battery rebate as a homeowner under the Solar Homes Program, you won’t be eligible again.
• The property’s valuation should be below $3 million, including homes under construction expected to have a valuation less than $3 million upon completion.
• Any property that has previously benefited from a solar panel (PV) rebate or a solar battery rebate under the Solar Homes Program isn’t eligible again.
• If your property had a solar panel (PV) system installed post-1 November 2009, it won’t qualify. 

However, early adopters who set up their system before 1 November 2009 can upgrade or expand their existing system. But, if you’re on the Premium Feed-in Tariff, it’s wise to weigh the pros and cons before replacing your current system.

For homes under construction

If you’re building a home, you can apply for a solar PV rebate up to $1,400 and an interest-free loan. This helps reduce installation costs, letting you benefit from solar immediately after moving in.

Here are the steps to apply:

• Inform your builder early on about wanting solar.
• Get the builder’s approval for installing solar during construction.
• Ask your builder when an authorised solar retailer can install the solar products. This helps you know when to apply for the rebate.
• Check our solar panel PV Buyers Guide and consult an authorised solar retailer to choose the best products for your home.
• Share this info with your builder. Once they give you an installation date, verify it with your solar retailer.
• Prove your property ownership with a Council Rates Notice or Certificate of Title. If you don’t have these, other documents might be accepted.

Remember, while your home is being built, it won’t qualify for other Solar Homes Program rebates or loans. But after construction, other rebates might be available.

For existing properties :

Queensland (QLD)

At the moment Queensland doesn’t offer state rebates for home solar panels or battery systems. The only discount is the Federal Government’s Small-scale Technology Certificates (STCs). Thanks to Queensland’s sunny climate, residents can get higher STC values. A Clean Energy Council-certified installer must do the installation to qualify.

What is the Small-scale Renewable Energy Scheme?

Under this Queensland initiative for solar rebates, newcomers to solar power are granted what’s known as small-scale technology certificates, also termed STCs.

The number of STCs you receive is based on the size of the solar setup you decide on. For instance, a solar system with a capacity of 10 kW gets a higher count of STCs compared to one with a 3 kW capacity.

STCs carry a financial worth. This implies that if you acquire more STCs, the greater the price deduction you’ll experience when buying your solar power system. In general

terms, these certificates can account for roughly a 33% reduction in the purchase price for a solar panel setup.

For each 1000 Kwh anticipated to be produced by the solar panel up to the year 2030 (which is the expected conclusion of this scheme), 1 STC is given.

Energy Discount Initiative

The Queensland government offers an energy discount initiative, aimed at assisting low-income families with their electricity expenses and making renewable energy items more affordable.

To qualify, you should have an unpaid electricity bill, be enrolled in your energy supplier’s hardship plan, and possess an up-to-date concession card. The discount provided is $309.

For details on this initiative, reach out to your energy supplier. Once they confirm you’re eligible, they’ll guide you through the application.”

Solar Export Rewards

Among Queensland’s top solar perks is the solar export rewards, commonly known as solar feed-in tariffs. These are credits you earn when you send extra power from your solar panels back to the power grid. In Queensland, the usual rate for this credit is between 8 and 12 cents/Kwh.

Such tariffs significantly offset the initial cost of setting up solar panels on properties, allowing them to recoup their costs in roughly 4 to 5 years. Before adding solar panels, it’s wise to choose an electricity supplier offering a competitive feed-in tariff to maximize savings.

For those in South East Queensland, the tariff rate is decided by your electricity supplier. However, in other parts of Queensland, you have flexibility in selecting a tariff. You might pick a standard rate of 9 cents per kilowatt-hour, a higher rate of 13 cents/kWh during peak times, or a lower 5.7 cents/kWh during off-peak periods.

South Australia (SA)

South Australia strongly supports solar energy, and small-scale solar systems benefit from these programs:

Their National solar discount decreases annually, but it remains substantial. In 2023, a 6.6kW system gets about $2,600 off. This discount is typically already factored into any prices you’d see advertised in SA.

How Much the Solar Rebate can you get in SA?

The rebate amount depends on the specific system chosen. However, for a typical solar installation in SA, which includes around 20 panels and has a 5Kw output, you can anticipate a minimum of $4000 in STC solar discounts.

To qualify for the program:

1. You must be an Australian homeowner. Proof of homeownership, address, and ID will confirm the property where the solar PV is set up.
2. Claim STCs within a year of installation. Systems older than a year aren’t eligible. If claimed at point of sale, this isn’t a concern.
3. Your solar system must align with the Clean Energy Council’s capacity guidelines. Rebates apply to systems under 100 kWh. Larger systems fall under different rebate categories.

Please note that you can’t claim rebates for the same system twice.

Ensure an accredited company installs the solar system following the Regulator’s standards and safety guidelines.

How Do I Claim My Solar Rebates in Southern Australia?

The easiest way to claim your STC rebate is to get it as a discount when buying your solar installation.

Most people chose this option because it’s the most convenient and it safe you money right away.   

Western Australia (WA)

Eligible residents in Western Australia can avail of solar panel rebates. The rebate amount you get is determined by the size of your installed system.

On average, a rebate of $2,633 is provided in WA for those who set up a 6kWh solar panel system, which is the most preferred size for the typical household in the state.

To promote the adoption of renewable energy systems throughout the state, the Western Australia Government provides these solar subsidies. However, it’s worth noting that these rebates decrease annually and are expected to conclude in 2030..

Am I eligible for  WA solar rebate?

The CEC outlines specific criteria for homeowners in Western Australia interested in setting up rooftop solar energy systems.

To be eligible, customers must:

1. Not have previously sought the rebate. It’s limited to one per residential location.
2. Ensure the installation is carried out by a certified professional.
3. Connect their system to the grid (it shouldn’t be off-grid).

Install a system that’s up to 100kWh in size, and no larger.

What’s the value of solar rebates in WA?

The amount of the solar rebate in Western Australia is based on your residence as well as the capacity of your solar power setup.

The zones are determined by postcodes. Here you can get a basic understanding from the graphic below.

Tasmania (TAS)

Similar to various states in Australia, Tasmania is at the forefront of renewable energy production. With solar power becoming more economical due to government rebates, and rising electricity costs, many homeowners are turning to solar installations to reduce their electricity expenses.

In TAS, the typical rebate for a 5kW solar system stands at $1,875. While there aren’t any specific state government rebates, the federal incentives are consistent across the country. Eligible households and businesses can benefit from subsidies on solar panels, battery systems, and solar hot water, which are claimed via their solar installation professional.

Compared to other Australian states, Tasmania offers lesser solar rebates. Here’s a breakdown of the STC zones in Australia for clearer comprehension:

Zone 1: 1.622

Zone 2: 1.536

Zone 3: 1.382

Zone 4: 1.185

Solar energy in TAS is allotted 14% fewer Small-scale Technology Certificates than zone 3, where the majority of Australians reside.

The table below lists the TAS rebates for different solar system sizes:

How is the rebate applied?

Tasmania doesn’t offer its own rebates; instead, homeowners and businesses in TAS qualify for Federal Government STCs.

STCs are discount certificates given based on your solar system’s size, as outlined in the table above. While these can be claimed directly, the process can be complicated. Most people opt for their installer to handle this, incorporating the rebate directly into the installation price.

For example, a 5kW system in Tasmania might have a base price of $7,920. With the rebate, you’d pay only $6,045, as the $1,875 rebate is directly applied by the installer.

This method is popular because:

1. It ensures you’re working with a certified installer, which is required for rebates.
2. You’re likely to get the best value for your STCs, as many installers have set buyers for these certificates.

The rebate’s size is determined by:

• Your system’s size.
• Your STC zone.
• The current value of STCs.

What do you need for TAS solar rebates?

To qualify for solar rebates in Tasmania, as per the Clean Energy Council guidelines, you must:

1. Be an Australian homeowner with proof of ownership, such as homeownership documents and a physical address.
2. Claim STCs within a year of installation. Systems older than a year won’t be eligible for rebates. Ideally, get your STCs as a direct discount from your seller.
3. Install a solar system up to 100kW. Systems larger than this fall under a different CEC rebate category.
4. Only apply for the rebate once.
5. Ensure installation is done by a CEC-certified installer and that the panels have CEC approval.

How can I get my rebate in TAS?

Typically, your solar installer handles the rebate process. The system’s price you pay already has the rebate factored in. So, you don’t need to apply separately. Just make sure to choose a trusted, CEC-certified installer.”

Northern Territory (NT)

Residents of the Northern Territory can reduce their solar installation costs thanks to the government’s Small-Scale Technology Certificates. These rebates make solar energy more affordable for qualifying households.

In the NT, a 5kW solar PV system typically has a rebate of $2,554, while a 10kW system gets $5,147. This means eligible residents can get solar panels at a reduced price.

The exact rebate amount varies based on the system’s size, NT’s STC zone rating, and the current STC value.

How much can you save with NT’s solar rebate?

NT is in Zone 1, which means it gets the highest STC ratings. This makes solar power more affordable in NT compared to states in Zones 2, 3, and 4.

Solar systems in NT earn more STCs than in many other states.

The table below shows the STCs and rebates for common solar systems.

Am I qualified for solar panel rebate in NT?

For residents in NT and across Australia to access solar rebates, certain criteria must be met:

1. You should be an Australian homeowner with proof like homeownership papers and a physical address.
2. Claim your STCs within a year of system installation. Older systems don’t qualify, so it’s wise to have the retailer factor in the STC discount upfront.
3. Your solar system shouldn’t surpass 100kW; bigger systems fall under a different CEC rebate category.
4. Rebates can only be claimed once.
5. Ensure a CEC-certified installer sets up your system and uses CEC-approved panels.
6. Only new solar/battery systems are eligible for rebates; existing ones aren’t.

How can I access my NT rebate?

Instead of navigating the complicated rebate claim process, homeowners usually let solar installers do it. The price they quote already includes the rebate.

For example, if a 10kW solar system costs $14,012, with the rebate, you’d pay around $8,865. The installer includes the $5,147 rebate at this price.

How can I get solar installed at my place?

The best place to start is right here. By filling out this short 30 second quiz you’ll instantly be connected to a solar installer in your area that can help you navigate getting solar installed on your property