Solar power is the reusable energy produced by a solar system from solar energy. According to leading solar PV installers, there are many advantages of solar power installation Sydney or any other city in the world.
Increased use of solar PV systems is beneficial to users and government, both. Therefore, all governments across the globe have their own policies to benefit users of solar energy, so the use of renewable energy can be increased. In Australia, the Australian government has STCs (Small Scale Technology Certificates). It is commonly referred to as rebates, which make the best solar systems Australia affordable to everyone.
We have entered the year 2025 so there is no way, you can go back to get the solar rebates. However, knowing, whether year by year the rebates for solar panels decrease or not, can help you make the right decision.
In this blog, we will share more details about the changes made in solar rebates in Australia in the year 2025.
What is the Solar Rebate?
Before we invest time in exploring the changes made in the rebates for solar panels, you must know what rebate means.
- The Australian government issues STCs (Small-scale Technology Certificates) when the solar panel is installed.
- The number of STCs issued by the company that offers the solar panel system and its installation. How many STCs will be issued to you depends on a formula defined by the Australian government?
- The STCs hold a certain value depending on various factors. Your agent or company offering the solar panel will deduct the cost of STCs from the total cost of the system. This is popularly known as rebates for solar panels in Australia.
Calculate STC now to save big on solar panel system.
How the Australian Solar Rebates Will Change in 2025?
To understand how this change will take place, you will first need to understand some information related to STCs, which offer solar rebates to you.
- The STC initiative was taken by the Australian government in 2017 and it is also going to end in 2030. This is called the deeming period. It is also considered as the years or time, in which purchasers of solar panels will produce renewable energy.
- The number of STCs issued to a solar user is counted based on the following formula:
Size of the solar system x the time of purchase x the geographical region
- In the above-mentioned formula, time is the time of installation of the solar system and not the time of order or booking. It means even if you purchased the solar system in 2020, you will get the rebates for solar panels as per the year 2025 because now it will be installed in 2025.
- Deeming period makes a difference in the rebate one gets for the solar panel because it is counted as per the year the system is installed.
- According to the year of installation, the number of STCs will be reduced, which further reduces the solar rebates.
- In the last year, the deeming period was 11 years. While this year, it is 10 years. Therefore, you would have received more STCs in 2020 compared to what you will receive in 2025. The price for each STC would be $0 to $40.
Does it Mean Buying Solar is a Bad Deal Now?
- As soon as you buy the solar system, you benefit by saving on your power bills.
- You also get rebates for solar panels as per the STCs issued to you.
- Yes, you would not receive as much rebate in 2025 as you would have in 2020, but the cost of solar systems also reduces year by year, which makes this difference negligible.
Many people invest a lot of time in researching solar panel’s benefits, the cost of residential solar panel installation, and other related facts, but often neglect to research the company that will install the solar panel. Sometimes also search for solar providers near me.
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