The Truth About Decreasing Rebates & Caps
The Era of Unlimited Solar Support is Ending
While solar power is more popular than ever in Australia, government support mechanisms are shifting from "adoption at all costs" to "grid stability." This means the generous, uncapped rebates of the past are being replaced by more targeted, capped, and time-sensitive incentives.
Federal Phase-Out Schedule
The Renewable Energy Target (RET) which funds the STC scheme is legislated to end in 2030. Every year on January 1st, the rebate value decreases. We are currently seeing the rebate cover approximately 30-35% of the system cost, but this will slide towards 0% as we approach 2030.
| Year | Deeming Period | Rebate Impact |
|---|---|---|
| 2025 | 6 Years | Standard |
| 2026 | 5 Years | ~15% Drop |
| 2027 | 4 Years | ~30% Drop |
| 2030 | 1 Year | Negligible |
State-Specific Caps and Changes
Beyond the federal scheme, state rebates are becoming more restrictive:
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- Victoria (Solar Homes Program): The rebate amount has been progressively reduced over the years. Furthermore, there is a capped number of rebates released each month. Once the monthly allocation is exhausted, you have to wait until the next release, risking delays.
- NSW (Empowering Homes): Focus has shifted towards battery incentives rather than just solar panels, with new programs targeting low-income households or specific regional trials.
- Queensland: Battery booster programs have seen overwhelming demand, with funding pools drying up in record time.
The "Solar Tax" Myth vs. Reality
You may have heard rumors of a "solar tax." This refers to new two-way tariff structures that some energy networks are introducing. Instead of just getting paid a feed-in tariff for exporting energy, you might be charged a small fee for exporting during the middle of the day when the grid is congested (e.g., 10am - 2pm). However, these plans often pay higher rates for exporting during peak evening times.
The Solution: This makes self-consumption and batteries even more critical. By storing your excess midday solar instead of exporting it, you avoid these potential charges and save money by using your own power at night.
Ready to explore your options?
Use our savings calculator to estimate your rebates, or request free quotes from CEC-accredited installers in your area.
