Solar Incentive Still Generous…But It Wouldn’t Last Long


solar rebate phasing out

Did you know that the government incentive to install solar goes up and down depending on how many people are installing?

The incentive was designed to “self-regulate” the market.

When a lot of people are installing solar, the value of the incentive falls. This increases the cost to the consumer and slows down the market.

When fewer people are installing, the incentive increases, reducing costs and encouraging more people to install.

The incentive gets passed on by solar installers to you with a discount off the cost of installing.

Currently, with the market slowing, the value of the incentive has crept higher. In real terms, households that install solar are now eligible to receive up to $3,700* off the up-front price of the system.

   System size 3kW 4kW 5kW 6.6kW
   2017 – After June $1,682 $2,233 $2,784 $3,863
   2017 – Before June (STC price at $38/kW) $2,204 $2,926 $3,648 $4,826
   2016 $2,356 $3,116 $3,914 $5,168

**Incentive estimate based on calculations for STC zone 3 at STC price of $29/kW. The amount of STCs received depends on the location of your installation. The price of STCs is calculated based on market value and is subject to change. Check online to get the most accurate price.


There are no guarantees this will continue.


Looking back just a few years ago, huge demand for solar installations caused the value of the solar incentive to drop to less than half of the current price!

The result was a significant increase in the cost to install solar for consumers.


So… Could this happen again?


You may have heard a lot of news recently about solar batteries and Tesla’s Powerwall. This has thrust solar back into the limelight, which will most likely continue into the near future.

The simple fact is that when solar is in the news, more people start installing.

Now, we can’t say for certain that the value of the incentive will decrease again this year. But, what we can say for certain is that it won’t be getting any higher than it is right now.

If you’ve been considering installing solar, you couldn’t pick a much better time than now.

Fortunately, you can get started right here with us.

Here at Solar Market, we have helped over 188,000 consumers like yourself find out if solar is right for them, by getting 3 quotes from solar installers.


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Understanding Batteries

Off-Grid Systems

For some households a battery system can be of great benefit and minimise a home’s reliance on the grid. However, it’s important to understand for a battery to be useful your solar system needs to be generating excess energy for the battery to store, which you can then use at night or when the sun is not out.

When selecting a battery, you’ll want to invest in a system that is most suited to your home and can drive the best return on investment (ROI). Despite a larger upfront cost, a higher quality battery may significantly increase your ROI.

    Battery systems start from $6,000 and costs can vary greatly based on the following factors:

  1. Cycle Life-Time

    The number of times a battery can fully charge and discharge.

  2. Battery Power (kW)

    How fast it can be charged or discharged.

  3. Storage Capacity (kWh)

    The maximum amount of energy a battery system can store.

  4. Battery Management System (BMS)

    An electronic ‘smart’ system that gathers data and manages the battery ensuring it does not overload or operate outside of its safe functioning zone..

  5. Inverter

    Battery systems require their own inverter if your solar system does not have a hybrid inverter.

  6. 'All-In-One Unit’

    A system which includes the battery, BMS and an inverter all in one unit.

  7. Warranty

    Length of time or cycles the battery system is under guarantee.

  8. Blackout Protection/Backup

    It’s important to note this is not a common feature of a battery system and could cost thousands of dollars to include. Blackout protection not only requires additional components but also a specialised installation and rewiring. For grid-connected homes, the cost for blackout protection can outweigh the benefit.

Additionally, if your purpose for adding battery is to go Off-Grid and become completely independent from the grid you will need to ensure your solar system can generate enough energy to power your home and your battery system is large enough to store this energy. For homes in metro areas going Off-grid is not cost effective and is only recommended for those in remote areas with limited access to the grid. Off-grid solar systems with battery start at approximately $30,000.

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