The Solar Rebate is being phased out

It’s official the “Government sponsored” rebate is being phased out gradually from next year!


5kW Solar Installation

According to the Governments, Clean Energy regulator website the Solar Rebate is being phased out from the 1st January 2017 to nil by December 2030. While 13 years seems a long way away, the impact on the savings or cost to you the consumer is now only going to increase as we move closer to the December 2030 deadline.

Of course for a lot of Solar Companies, there will be the usual scare-mongering of the “Rebate disappearing” a lot of which will be relying on the general public’s lack of understanding of how things actually work in the land of Australian energy.

As explained by the Clean energy Regulator – the Renewable Energy Target creates certificates which are issued through the REC Registry (an online trading platform managed by the Clean Energy Regulator). It is these traded certificates that create a financial incentive for the additional generation of electricity from renewable sources – & effectively give the home owner the “rebate’ or discounted solar system price.

Rebate STC's

These are the current savings offered by the Government using the

The easiest way to explain is that you the solar system owner (as well as large renewable power stations) create certificates for every megawatt hour of power they generate creating the ‘supply’ side of the certificate market. Then, wholesale purchasers of electricity, i.e. electricity retailers, buy these certificates to meet their renewable energy obligations, creating the ‘demand’ side of the certificate market.

The rate is determined by supply and demand of the market (the rate varies between $37 & $39 for a Solar Trade Certificate – SAE offer $38). So effectively you buy a 5 kilowatt solar system, Tier 1 panels with an SMA inverter total cost approximately $11,000. With the rebate (STC discount) you can get around $4,000 discount which means you are effecively paying $7,000. This is based on the “lifetime” of the system which is 15 -20 years.

As of the 1st January 2017, the maximum number of years you can claim as the “lifetime” of your system will be 14 years – 13 years from 1st January 2018 – 12 years from January 2019 and so on. Effectively, the Solar Rebate is being phased out over the next 13 years. But don’t take our word for it, the table below is directly from the Clean energy regulator site:

Installation date The deemed life of the system
(The specified maximum number of that certificates can be created)
Up to and including 31 December 2016 15 years
From 1 January 2017 14 years
From 1 January 2018 13 years
From 1 January 2019 12 years
From 1 January 2020 11 years
From 1 January 2021 10 years
From 1 January 2022 9 years
From 1 January 2023 8 years
From 1 January 2024 7 years
From 1 January 2025 6 years
From 1 January 2026 5 years
From 1 January 2027 4 years
From 1 January 2028 3 years
From 1 January 2029 2 years
From 1 January 2030 1 year
After 31 December 2030 Nil

Curtesy of:

So why should you invest in solar now  before the Solar Rebate is phased out in the next 13 years? The price of Solar Panel systems have declined on an average of 15% over the past 4 years alone. This means that for every year you wait and the rebate lowers the less money you save – HOWEVER the money you spend on electricity remains constant (or in most cases) will increase by an estimated 9% annually.


With the increase in electricity prices, a Solar Power system can offer a 35% return on your investment which means you can:

  • Take years off your mortgage
  • Save thousands of dollars
  • Use green solar energy instead of coal
  • Future-proof your home
  • Battery-compatible systems  (hybrid or the option to eventually go off-grid) available

Don’t lose out as the STC Rebate declines each year and electricity prices increase. Contact us today to calculate how we can save you money and help you pay your investment off sooner. Click below for one of our Solar Specialists to help you save money.



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