Solar Rebates NSW

Does NSW have any rebates for solar? 

If you were hoping there’d be a convenient government rebate to get you over the line when it comes to installing solar, unfortunately you’ll need to rub that genie lamp a little harder.  

Although, in the past the NSW Government has had offers available, including the rebate swap for solar initiative. This finished up in early 2024 but encouraged households receiving the Low-Income Household Rebate to swap the payment for a free 3kW rooftop solar system. With the system, they could expect savings of up to $600 a year compared to the $285 rebate they were previously getting.²NSW Government – Households urged to check rebate swap for solar eligibility So, while there’s nothing available presently, a similar incentive could still be on the cards. 

In the meantime, you could still make use of the national Small-scale Renewable Energy Scheme. That won’t be closing shop until 2030 but the sooner the better is still probably a good approach. This is because you don’t just get a flat rebate for installing your solar; it’s based off how much electricity your system is expected to generate or displace in the lead up to 2030.  

Additionally, it’s not just a straightforward cash-in-your-account rebate. You’ll be selling STCs (small-scale technology certificates) — or having an agent do so on your behalf — on the energy market. But don’t worry, it won’t be like trying to sell Beanie Babies post-2000. Energy Retailers are obliged to purchase a set number of STCs, so there’s still a market for yours even as 2030 gets closer. 

Are there other solar incentives I could apply for? 

Outside of rebates, it’s also slim pickings for solar incentives from the NSW Government. 

As of May 2024, there’s only the solar battery discount for the Smart Distributed Batteries Project in partnership with SolarHub. With it, you’ll get a $4,590 discount on a Tesla Powerwall 2 to install alongside a new solar system or retrofit an existing one.³SolarHub – Smart Distributed Batteries Project There are limited numbers though, and it’s only available to people in certain council areas. You’ll also need to be happy being part of the SolarHub 6MW Virtual Power Plant (or VPP) in order to receive the discount. If you’re keen and eligible, you can learn more at the SolarHub site. 

If your goal for solar though is to slim down your electricity bill, you might find the energy-efficiency rebates the NSW Government offers could help. These rebates could make it easier for you to upgrade from traditional lighting to long-lasting LEDs, replace your old and struggling air con, and more. You can see what’s on offer via the NSW Government’s household energy saving upgrades page. 

Is solar worth it in NSW? 

Whether you get a rebate or not, a solar system could be worth its weight in gold (or electricity bills that don’t make you wince). For instance, using 2023–24 figures, a NSW household could cut their average annual electricity bill of $2,106 by $1,015 with rooftop solar panels.⁴Sydney Morning Herald – Households could save up to $2000 with solar panels and batteries, data shows

Ultimately, they’re a long-term investment to help you save, you just need to balance a few different factors. 

For starters, the size of your solar system plays its part in whether you’ll be paying it off in a few years or a decade. While there’s truth to the idea that bigger is better, you want to be getting value for money. And in the world of solar that means self-consuming.  

No, we’re not talking about picking up that nail biting habit again. By relying more on the electricity your system generates, you reduce your need to buy electricity from the grid. While you might still need to purchase electricity, like at night if you don’t have a battery or when your demand is greater than what your system can handle, it could make a big difference to your overall bill.  

Switching to self-consuming may require you to change your routine a little, like doing your washing or cooking during the day. But, who knows, you might find a little shake-up is just what you need to save some electricity and make the most of your solar. 

Helpful Tip:

It can be hard enough to remember what you had for breakfast yesterday, let alone how much electricity you used last month. Finding ways to track your electricity use, like using apps or checking your bills, can help to track your power consumption. Look for spikes in usage and get to understand what moves the needle on your bill then try to find a way you can use the appliance / charger during daylight hours when you’re generating solar energy.

Dean Ipaviz

Sustainability Expert and Presenter

Whether you change your routine or not though, you’ll want a solar system that’s big enough to meet your average self-consuming needs but not so big you’ll need to strictly self-consume for the better part of a decade to pay off the system. You might want to get quotes and advice from a few different solar retailers to narrow down what your ideal size is, or you can use calculators like SunSPOT. 

Feed-in tariffs (FiTs) may also help pay off your system sooner. A FiT is the price your Electricity Retailer pays for any excess electricity your solar system generates and you put back into the grid. However, the caveat here is that they don’t actually have to give you a FiT and there’s no set price for what these can be. The Independent Pricing and Regulatory Tribunal does keep an eye on FiTs though to let you know what benchmark prices you could expect.  

On that note, some previous flat-rate FiT benchmarks are below. 

Source: Independent Pricing and Regulatory Tribunal – All day solar feed-in tariffs 

But how do STCs fit into all this? Well, STCs sold through an agent tend to go for at least $33 each.⁵Clean Energy Regulator – Rooftop solar So, if you installed a 4kW system in Sydney, Newcastle or Wollongong in May 2024, you could get back 38 STCs, meaning that’s $1,254 your system has made (and paid off) right there. 

Regardless, you may find that you can self-consume and sell back electricity regularly enough to make solar worthwhile for you and your home. 

Where can I find and compare Electricity Plans? 

If you’re keen to see your solar system paid off, even without the help of a rebate, changing Electricity Plans could help. Whether that’s moving to a plan with lower rates when you can’t generate electricity or capitalising on higher FiTs, iSelect can help you compare a range of Electricity Plans from different providers. In just a matter of minutes, you can use our energy comparison tool or speak with one of our Energy comparison experts on 13 19 20 and switch today.