Australia offers a mix of favorable conditions for solar power. The country is very sunny, which makes solar panels more productive. Local electricity rates are also among the highest in the world, which increases the savings per kilowatt-hour produced. In addition, there are many solar rebates and incentives that make solar panels more affordable and easier to purchase.
In Australia, there is a national rebate program called the Small-scale Renewable Energy Scheme. The benefit applies for solar panels, solar water heaters and heat pump systems. Depending on the state or territory where you live, additional incentives may be available from the local government.
Find out more about Australian solar rebates in 2020
There is a wrong belief that Australian solar rebates ended in 2019. Actually, the government only lowered the rebate amount slightly, but the program will continue to exist until 2030. The annual reduction in rebates is a normal part of how the program works.
For example, a 6-kilowatt solar power system in Queensland earns around 91 STCs if installed in 2020. Assuming each STC is sold at $40, the total rebate is $3640, which is equivalent to $607 per kilowatt. If the sales price of the 6-kW solar system is $9500, the net price after the rebate is only $5860.
The STCs earned by your solar power system depend on two things: the system size and your location. Larger installations get more STCs, simply because they produce more electricity. Assuming an equal capacity, solar systems in sunny places get more STCs for the same reason – the extra sunshine makes them more productive.
In addition to the Small-scale Renewable Energy Scheme, some incentives are available at the level of states and territories. These are determined by local governments, and they are applied independently from the national rebate program. The following table summarises the solar rebates by state, along with other incentive programs and benefits.
| State or Territory | Local Rebates and Incentives Programs |
| New South Wales solar rebate | The NSW Empowering Homes program offers loans of up to $14,000 for solar battery systems, and up to $9,000 for adding batteries to existing solar PV systems. The benefit is available for households with an income of up to $180,000 per year.Solar for Low Income Households is a program currently on trial, which will give 3-kW solar systems to 3000 homes in specific areas of NSW. The program is available for holders of a Pensioner Concession Card or a Department of Veterans’ Affairs Gold Card. |
| Queensland solar rebate | The QLD Solar for Rentals program offers rebates of up to $3,500 for landlords, if the installation is completed before June 30, 2020. However, this is a trial program with limited funding. The GLD government also offers interest-free loans for solar power and energy storage systems. |
| Victoria solar rebate | VIC offers a solar panel rebate of up to $1888, a solar battery rebate of up to $4838, and a solar hot water rebate of up to $1000. The benefit applies for households with an income below $180,000 per year, and an assessed property value below $3 million.The solar rebate can be combined with an interest-free loan up to $1888, which must be paid within four years. There are no equivalent loans for solar batteries and hot water systems. |
| Western Australia solar rebate | WA does not offer solar rebates and incentives, beyond the federal STC program. |
| South Australia solar rebate | SA offers a rebate of up to $6000 for energy storage, through the Home Battery Scheme. Low-interest loans are also available to complement the battery subsidy. |
| Northern Territory solar rebate | NT does not offer solar rebates and incentives, beyond the federal STC program. |
| Tasmania solar rebate | TAS does not offer solar rebates and incentives, beyond the federal STC program. |
| Australian Capital Territory solar rebate | The ACT Solar for Low Income Program offers a solar power subsidy of up to $2500.The Next Generation Energy Storage program offers a battery rebate of $825/kW, for systems up to 30 kW. |
Solar panel rebates reduce the upfront cost of going solar, and this shortens the payback period while increasing the return on investment.
The Small-scale Renewable Energy Scheme, which was described above, is the main solar panel rebate program in Australia. Being a nationwide incentive, it applies regardless of the local regulations from state and territory governments.
Additional solar panel rebates are available in some states and territories. They were listed previously on the state sections, but they are summarised below for convenience:
Local solar rebate programs are combined with the national rebate from the Australian government, reducing the cost of solar panels even further.
Battery systems are an excellent complement for solar panels, since they eliminate their main limitation. Solar panels have a variable energy output – they become less productive with clouds, and unproductive at night. However, when batteries are added, they can store electricity for times when solar panels cannot generate it.
Australia does not have national solar battery rebates, but some state governments have already introduced them:
The Small-scale Renewable Energy Scheme also offers STCs for solar hot water systems and heat pumps. Since these systems save electricity instead of generating it, the STCs are calculated based on the estimated savings. However, the end result is similar to that of the solar rebate: solar water heaters and heat pumps become more affordable thanks to the STCs.
The Victoria Solar Hot Water Rebate is the only state program that applies for solar water heaters, and it offers up to $1,000 per heating system.
The federal rebate for solar panels applies for all installations that meet the following conditions:
These requirements apply for all solar power systems in Australia, regardless of their location. When additional incentives are available from the local government of a state or territory, these have their own requirements as well. For example, some are limited to certain cities, while others target households below a certain income threshold. The eligibility requirements are published on the official government site that covers each program.
As mentioned above, the requirements for solar rebates in Australia vary depending on the specific program. However, you must get the benefits approved for your solar power system before proceeding with the installation.
The Australian Clean Energy Regulator provides both installation requirements and documentation requirements before a solar power system can earn STCs. However, these requirements are easily covered by working with a qualified provider like Instyle Solar.
With respect to the STCs, you can assign them all upfront to a registered trader, or you can claim and sell them on your own over time. However, using a registered agent is easier, and you can claim a large rebate upfront. On the other hand, when STCs are claimed and sold directly by the solar system owner, the financial benefit is spread between the installation year and 2030.
The solar feed-in tariff is the amount you get paid for every kilowatt-hour that is not consumed and exported to the local power grid. However, an FIT can also be considered a type of incentive in some cases: if the payment for each kilowatt-hour is high, the business case for a solar power system improves.
Feed-in tariffs are normally equal or less than the electricity retail price. Around the year 2010, some FITs in Australia were higher than the kilowatt-hour price, and in these cases the best option was exporting 100% of your electricity production to the grid. However, these FITs have been phased out.
The exact FIT depends on your electricity provider. However, the minimum FIT is normally established by the local government at the state or territory level. The following table summaries the range of FITs currently available in Australia:
| State or Territory | Minimum FIT | Maximum FIT Available |
| New South Wales Solar Power Feed-in Tariff (NSW) | 0 cents/kWh | 21 cents/kWh |
| Queensland Solar Power Feed-in Tariff (QLD) | 0 cents/kWh | 18 cents/kWh |
| Victoria Solar Power Feed-in Tariff (VIC) | 0 cents/kWh | 16 cents/kWh |
| Western Australia Solar Power Feed-in Tariff (WA) | 7.1 cents/kWh | 7.1 cents/kWh |
| South Australia Solar Power Feed-in Tariff (SA) | 0 cents/kWh | 22 cents/kWh |
| Northern Territory Solar Power Feed-in Tariff (NT) | 8.3 cents/kWh | 23.7 cents/kWh |
| Tasmania Solar Power Feed-in Tariff (TAS) | 8.5 cents/kWh | 14.3 cents/kWh |
| Australian Capital Territory Solar Power Feed-in Tariff (ACT) | 0 cents/kWh | 16 cents/kWh |
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