Reviewed by Leigh McInerney
How much is the solar rebate in NSW?
| Solar System size | Number of STCs | Gov. Rebate in NSW | System price after rebate |
|---|---|---|---|
| 1.5kW | 10 | $399 | $3,015 |
| 3kW | 20 | $798 | $4,018 |
| 5kW | 34 | $1,357 | $5,692 |
| 6kW | 41 | $1,636 | $6,678 |
| 6.6kW | 45 | $1,796 | $7,003 |
| 7kW | 48 | $1,915 | $7,465 |
| 10kW | 69 | $2,753 | $9,718 |
The solar rebate in NSW typically ranges from around $400 for small 1.5kW systems to over $2,700 for larger 10kW systems, based on the number of Small-scale Technology Certificates (STCs) generated. Most households installing a standard 6.6kW system receive around $1,700–$1,800 as an upfront discount.
What factors determine my rebate?
System size
The number of STCs you receive is directly based on the size of the solar system installed, measured in kilowatts (kW).
Location
Your location determines the STC zone you fall into, which affects how many certificates your system generates.
Deeming period
The deeming period is the number of remaining years used to calculate STCs upfront, and it reduces each year as the scheme phases down.
STC price
The market price of STCs determines the dollar value of your rebate at the time of installation, as certificates are bought and sold on the open market.
1. Calculate ideal system size
The bigger the solar power system, the bigger the rebate, but it does not make sense to overdo it.
Start by sizing your solar system based on your existing power usage. Adding extra capacity can help accommodate future changes in how much electricity your household uses.
2. Your location determines STC allocation
Your location determines the STC zone you fall into, which affects how many certificates your system generates.
Areas with higher average solar output are assigned a higher zoning rating, meaning the same system size can generate more STCs in some locations than others.
The zone assigned to your postcode is used in the STC calculation alongside system size and the remaining deeming period.
3. Deeming period
Deeming period is the fixed number of years the government assumes your solar system will generate electricity for the purpose of calculating STCs, regardless of how long the system actually lasts.
In practical terms, the deeming period determines how many STCs you can claim upfront. It shortens each year as the scheme winds down, which means the same system earns fewer STCs over time.
| Solar System size | Number of STCs | Rebate | Net price after rebate | Gross system cost |
|---|---|---|---|---|
| 1.5Kw | 10 | $399 | $3,015 | $3,414 |
| 3Kw | 20 | $798 | $4,018 | $4,816 |
| 5kw | 34 | $1,357 | $5,692 | $7,049 |
| 6Kw | 41 | $1,636 | $6,678 | $8,314 |
| 7Kw | 48 | $1,915 | $7,465 | $9,381 |
| 10Kw | 69 | $2,753 | $9,718 | $12,471 |
*Solar rebates in postcodes near zone 3 boarder towns may have different figures. It’s best to find out from your solar installer/ vendor on the exact amount you can claim at point of sale. At the same time, keep an eye on the current STC value and timing of your application. The above estimates are made with an 11-year deeming period and current STC value of $39.90.
3. STC price
The STC price is not fixed and can change daily based on market demand.
STCs are traded between installers, retailers, and energy companies, which means their value can fluctuate over time.
The long and the short of it is that the STC price is around $40 and has been for some time. $40 is the ceiling for these certificates.
When does the rebate end In NSW?
The STC-based solar rebate is set to finish in 2030 as per the masterplan drawn at the beginning of the project. It is by then that the government hopes to have reached its green energy objectives and had 100% uptake of solar products in Australia. This informs the reducing deeming periods as we get closer to 2030, as illustrated in the figure below:
Do I qualify for a solar rebate NSW?
Short answer? Probably yes. In fact. It’s safe to say that anyone within the borders of Australia qualifies for a solar rebate. So, with the risk of stating the obvious, NSW residents are entitled to not only the rebates at the federal level but also to any local solar rebates if they meet the requirements.
There are two solar rebates you could qualify for as an Aussie and living in New South Wales: federal STC rebates and the currently in-trial solar rebate for low-income households rebate.
Requirements for the STC solar rebates in NSW:
- You must time your Solar photovoltaic purchase and install within a 12-month window of applying for the certificates. Solar installs were done over a year ago when you or your vendor claimed the certificates were not eligible.
- The solar photovoltaic system must meet quality standards in Australia
- The installation company chosen must be accredited by the authorities. Additionally, the installer must have demonstrated the ability to meet the requirements set out by the Clean Energy Council in Australia.
- The installation shall be done according to the set guidelines by the Clean Energy Council.
- You will be required to comply with guidelines on safety set put by federal and NSW authorities.
- The installed solar photovoltaic system must not have a nominal capacity exceeding 100Kw and a yearly output exceeding 250Mwh.
Luckily, most of the above requirements can be met at the vendor level so long as you get in touch with one who is accredited and can claim the solar rebates on your behalf. Most buyers prefer to have the solar company handle the rebate and apply it as a point-of-sale discount. This saves you the trouble of gathering the documentation and going through the lengthy, sometimes confusing, application process with the Clean energy council.
How much Is the rebate on a 10 KW solar system?
The rebate for a 10Kw system in NSW is worth about $3,272 based on the current STC value and rating of NSW in the STC scheme. This rebate value was generated on the assumption that you will install the solar power system with a valid deeming period of 11 years and an STC valuation of $39.90 per certificate claimed.
For a more accurate figure based on when you read this, talk to your preferred solar company and find out what they can offer you at the moment. Alternatively, calculate the number of STCs you can receive for a 10Kw solar power system in NSW using the formula:
Nominal Solar Panel wattage x deeming period x zone rating.
For instance, were you to install the 10Kw solar system in 2025, the STCs received could be calculated as follows:
10 x 10 x 1.382 =138.20 small-scale technology certificates.
Now multiply the number of STCs you have with the current STC value to get the exact value. For instance, multiply 138.20 by 39.90, the current STC value, to get amount in total. This is the amount you will receive as a discount for your solar install after claiming your STCs.
How do I apply for a government solar rebate?
There are two ways you can apply for government solar rebates. The first one, which is preferred by most people, involves handing over the rights to claim your STCs to the solar company you are dealing with. They will then be able to factor the rebate to the point of the sale price as a discount. The second method involves having the solar power system installed and then:
- Going through the document gathering process yourself,
- Applying for the STCs with the Clean council through their online portal
- Trading your STCs on the open market.
As for state-level rebates, such as the solar for low income households program, a separate application process is available through the Energy NSW website.
FAQ's
There is a program in place currently that can help pensioners and low-income earners in NSW to get free solar panels from either the local or federal government. That said, available solar rebates may cover over 50% of the cost of purchasing solar panels.
Using current rates, a 3Kw system will attract 24 small-scale technology certificates worth $958 in the open market. This amount will change depending on the deeming period and current STC value.
NSW enjoys relatively sunny weather and therefore considered a prime location for harvesting solar energy. At the same time, the feed-in tariffs and savings from electrical bills are also in favour of having solar panels installed for day to day use. On top of that, you also get to enjoy some payments from government through feed-in tariffs. If you don’t have solar batteries and there is excess energy, you can feedback to the main grind. The government will compensate you through feed-on tariffs programs
You may require approval from the authorities to install solar panels in any location in Australia. In most cases, relevant bodies dealing with green energy and electrical installations will need to perform an inspection and see to it that safety standards are adhered to. This is especially important for grid-connected residential solar installations.
Solar batteries are important if you want to store your solar power. But solar batteries are for people who have large households and their energy demands usually goes up. If you cannot afford solar batteries, you can always turn to feed-in tariff. The excess energy is fed back to the main grind and you can get compensation through the feed-in tariff program.
