New Energy Solutions
Your Guide to the NSW Solar Rebate in 2025
The solar rebates have decreased this year and will continue to decrease until it ends in 2030. The sooner you install your solar power system, the higher the rebates and the more money you can save so don't wait too long, enquire with our team today and we'll discuss energy efficient solutions suitable to your needs.
Key Takeaways:
NSW Solar Power Rebates: financial incentives available for NSW residents to install solar power systems, including rebates and schemes aimed at reducing upfront costs and encouraging the uptake of clean electricity.
Who? These rebates are primarily aimed at homeowners and small businesses in New South Wales who are looking to adopt renewable energy solutions.
Eligibility Criteria: To qualify for the rebates, applicants must meet specific criteria, such as household income limits and system size requirements.
Solar Savings: there is a greater value placed these days on self consumption, reducing the overall amount of energy you draw from the grid. Changing your energy habits can help you maximise your savings.
As we step into 2025, investing in solar power in NSW has never been more compelling. The solar energy market is evolving, and with system prices on a downward trajectory, there's an added incentive for homeowners to embrace clean energy solutions.
In this blog post, we'll delve into NSW rebate for solar, focusing on the two primary financial incentives available for eligible households. The Small-scale Technology Certificates (STCs) and the Feed-in Tariff play crucial roles in making solar power not only environmentally friendly but also economically advantageous.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STC's) - previously known as Renewable Energy Certificates or RECS – are created when a Renewable Energy System such as a Solar PV system is installed and are used to reduce the upfront purchase price.
The number of STCs depends on the predicted amount of energy generated and hence the larger the system, the greater the rebate. In essence, one STC is created for every megawatt-hour of production capacity of the system.
STC Price
The system for trading and pricing STCs for small systems is managed by the Small-scale Renewable Energy Scheme (SRES).
STCs are bought by Liable Parties (usually electricity retailers) and must be surrendered at the end of each quarter. As the number of STCs that are required to be surrendered is a fixed amount each year, but the number of STCs created is variable, the price paid for STCs also varies and is determined by supply and demand.
The Federal Government legislated in 2010 a fixed price for STCs by implementing a Clearing House system where STCs can be bought and sold for $40. However, there is no requirement for Liable Parties to purchase from the Clearing House, so they are likely to only do so if there is a shortage of STCs or the market price exceeds $40. There is currently a surplus of STCs in the market which means the market price of STC’s below $40.
Claiming STCs
There are two ways to claim your STCs: either by assigning them to a registered agent, such as your chosen solar company, who will offer you an upfront discount or a cash payment, or by creating and selling them yourself through the REC Registry or the STC clearing house.
The majority of customers choose to assign their STCs to us as it is a simpler and faster process than trading them independently.
The STC scheme is a great opportunity for homeowners to reduce their carbon footprint, save money on their electricity bills, and support the transition to a clean energy future. However, the scheme is not permanent, and the number of STCs that a system can create will gradually decrease over time, until the scheme ends in 2030.
This means that the sooner you install a small-scale renewable energy system, the more STCs you can create, and the more money you can save.
Feed-in Tariff
The solar feed-in tariff is the amount of money that your electricity retailer pays you for each kilowatt-hour (kWh) of solar electricity that you export to the grid. This is different from the retail price that you pay for the electricity that you consume from the grid, which is usually higher than the feed-in tariff.
The solar feed-in tariff is not regulated by the government, but set by the retailers themselves. However, the Independent Pricing and Regulatory Tribunal (IPART) publishes a guide every year on the value of solar exports, based on the forecast wholesale price of electricity.
Solar Feed-In Tariff Guide 2025
IPART forecasts that the value of solar exports will be 7.7 to 9.4 cents per kWh. For example, if you have a 5kW system and you export all of the power to the grid on a typical Sydney day, you will receive a credit of approximately 20kW/h x 8c = $1.60.
This range is an increase from the previous year, when the guide was 6.2 to 10.4 cents per kWh. The reason for the increase is mainly due to the higher wholesale prices of electricity, which have been driven by the war in Ukraine that has affected the supply of gas and coal, and the disruptions in several large coal-fired power plants.
However, IPART's guide is not binding, and retailers are free to offer feed-in tariffs above or below this range. Some retailers may offer higher feed-in tariffs, but with certain conditions, such as a daily cap on the amount of solar exports, or a requirement to purchase a solar system or battery from them. Other retailers may offer lower feed-in tariffs, but with lower retail prices or other benefits. Therefore, customers need to consider the entire energy plan, as well as their electricity consumption and solar exports, when comparing offers.
Maximising Solar Savings
The benefit of a solar system is no longer in the feed in tariff, but rather in reducing the amount of power you buy from the grid. You want to avoid paying the higher retail price for the electricity that you consume and save more money than what you would get from exporting your solar electricity.
This is why it is vital to speak with one of our consultants to help you size up a system to reflect your daily energy patterns. Time of day metering is now being rolled out across the Ausgrid network, which means that during the peak period between 2 pm and 8 pm, you will be saving close to 52c for every kWh of solar power your system generates. System prices continue to fall, and coupled with the federal government’s STC incentive there has never been a better time to buy a solar system for your home.
Whether you already know what you're looking for or just starting your solar journey, request your free personalised quote below and our team will provide you with all the information you need to get started.
FAQ
Frequently Asked Questions about Installing Solar Power
There are great government rebates/incentives still in place for eligible households. Basically, the larger the panel array, the more STCs your solar system generates as it is based on the expected output of the system over time.
When you buy a solar system, the purchase price is normally reduced by the value of the STCs created by your system. You simply fill out a form on the day of installation to confirm that the system has been installed, and that’s it. There is no additional paperwork that you need to do.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STC’s) – previously known as Renewable Energy Certificates or RECS – are created when a Renewable Energy System such as a Solar PV system is installed.
The number of STC’s depends on the predicted amount of energy generated and hence the larger the system the greater the rebate. In essence, one STC is created for every megawatt-hour of production capacity of the system.
This is further multiplied by the number of years the system is likely to generate energy (for home solar systems, this is usually 15 years, although the life of the solar panels themselves is considerably more than that).
This incentive program is being phased out until 2030, so each year the number of certificates your system is eligible for reduces.
STC Price
The system for trading and pricing STCs for small systems is managed by the Small-scale Renewable Energy Scheme (SRES).
STCs are bought by Liable Parties (usually electricity retailers) and must be surrendered at the end of each quarter. As the number of STCs that are required to be surrendered is a fixed amount each year, but the number of STCs created is variable, the price paid for STCs also varies and is determined by supply and demand.
The Federal Government legislated in 2010 a fixed price for STCs by implementing a Clearing House system where STCs can be bought and sold for $40. However, there is no requirement for Liable Parties to purchase from the Clearing House, so they are likely to only do so if there is a shortage of STCs or the market price exceeds $40. There is currently a surplus of STCs in the market which means the market price of STC’s below $40
The Feed In Tariff is only something you need to worry about if you don’t have battery storage.
The price your chosen energy retailer pays for any excess electricity generated from your solar panels is recorded as a credit on your power bill.
In NSW, solar power is fed into your home as it is generated and your household will use it first before you draw power from the grid.
This means that for every kWh of solar power used in the home you are directly saving money you’d spend on your power bill. This reduction in your power bill is the main financial benefit of solar power.
Everything else will be bought up at an agreed rate by your electricity retailer.
At the moment, most feed-in tariffs are between 5 and 10 cents per kWh, with many being about 7 cents. They bounce up and down a lot, for example in previous years they have been up over 20 cents per kWh. Typically, they are always at least 5 cents per kWh.
Once you sign up for a 1KOMMA5° Installation, we immediately submit your grid application to the relevant energy distributor. For systems up to 5kWs, this is a formality. For larger systems it can take a few days or more. Once we receive approval, your installation will be managed by our installation coordinator, who will welcome you to 1KOMMA5° and book an installation date for you. This is generally booked within around two weeks and installation dates are available Monday to Friday, weather permitting.
We endeavour to have your system installed within 2-4 weeks unless you request us to hold for whatever reason. Due to our strict safety policy, we do not install solar systems when it rains. In the event of inclement weather, we will rebook your installation as soon as possible. We always work with your requests as we strongly recommend that someone be home on the day of installation.
Green Loans can be an affordable way to pay for your solar power system and is only available for approved products. As a Clean Energy Council Accredited installer, all our systems qualify.
Green Loans can be used to finance 1KOMMA5° systems from $1,000 to $30,000 over a 2-7 year term. Once you have received a referral from 1KOMMA5°, online approval usually occurs within 1-2 business days. Green Loans have a competitive fixed interest rate that is as low as 7.99% p.a.* | Comparison rate 9.21% p.a.^ Establishment fee of $299 added to the loan amount. $2.70 per week account keeping fee included in repayments.
To be eligible to apply you must:
Be over 18 years old and an Australian resident or citizen
Own or be purchasing a home
Be employed, self-employed, a self-funded retiree; or is receiving the Government Age Pension
Have an Australian driver’s license or Passport
Provide two most recent payslips or 90 days of bank statements
There are a number of good, competitive Green Loan providers – ask us about the options available.
1KOMMA5° Blog
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Head over to the 1KOMMA5° blog for more helpful tips and other important guides on everything solar, from inverters, panels and batteries to how to make the most of your investment for years to come.