NSW solar rebates: Incentives, rebates, and tariffs

If you live in New South Wales and are keen to contribute to this positive change, the federal government solar rebate, plus feed-in tariffs from your electricity retailer, can make solar power an attractive investment.

In this article, we’ll cover these rebates, how they work, and how to make your claim. We’ll also cover the additional ‘green energy’ incentives that are available to homeowners in New South Wales looking to reduce their household bills and environmental footprint.

Keep reading, or use one of the links below to jump to any section.

What solar rebates are available in NSW?

There are three main solar incentives currently available across NSW:

• First is the Small-Scale Renewable Energy Scheme, run by the federal government.
• Next is the Rebate Swap for Solar program, which offers low-income households a free 3kW solar system.
• Then, when your solar system is up and running, there are solar feed-in tariffs.
• There are also grants available under the Energy Savings Scheme, as well as grants for electric vehicle charging infrastructure.

We’ll explore each offer in detail below.

The small-scale renewable energy scheme

The Small-Scale Renewable Energy Scheme, also known as the federal government solar rebate, is a nationwide program that encourages small-scale renewable energy systems, such as household solar.

The rebate is given in the form of Small-scale Technology Certificates (STCs), which are calculated based on the size, the location, and the amount of power your system is expected to generate by 2030.

The more renewable energy your system is projected to produce, the more STCs you’ll receive.

The value of these certificates is deducted from the installation cost of your solar system.

How much will the scheme save me in NSW?

The federal solar rebate in NSW can reduce the cost of your solar panels by up to a third.

For example, the table below shows the rebate value you can expect for a 6.6kW system in Newcastle.

Solar rebate for a 6.6kW system in Newcastle:

To estimate the rebate amount for your system size and location, use our free STC Calculator.

Who is eligible to make a claim?

Anyone who installs new solar panels can claim the rebate. System upgrades, panel replacements, and even solar hot water pumps are all eligible.

To make sure your new solar panels will qualify, follow the steps below:

• Use Clean Energy Council (CEC) approved parts.
• Choose a CEC-accredited installer to perform the installation.
• Install your new solar panels within 12 months of creating the STCs.
• Keep your system under 100kW, with a maximum annual production of 250MWh.

If you meet the criteria, your solar installer will calculate your STC rebate amount and deduct it from your installation cost. You don’t need to do anything extra to claim your incentive!

Rebate Swap for Solar in NSW

For low-income households, the NSW government is offering a free 3kW solar system.

This scheme is an alternative to the Low Income Household Rebate – an annual payment that helps low-income households pay their energy bills. Eligible homeowners can choose to swap their rebate payments for the free solar system.

Who can claim the Rebate Swap for Solar?

If you’re currently receiving the Low Income Household Rebate, you may be eligible for the free 3kW solar system. You must also:

• Agree not to receive the rebate for 10 years
• Hold a valid Pensioner Concession Card or Department of Veterans’ Affairs Gold Card
• Be an owner-occupier
• Not already have a solar PV system installed

Check energy.nsw.gov.au for more information and an application form.

Solar feed-in tariffs in NSW

A solar feed-in tariff is another incentive you’ll receive as a NSW resident. But what is a feed-in tariff?

If your solar system generates excess energy, it can be exported to the grid. For every kWh of power you export you can receive a payment, known as a feed-in tariff.

Typically, the rates range from 5c to 12c.

The best solar feed-in rates in NSW

In New South Wales, your feed-in tariff rate is set by your electricity retailer. Unlike in other states across Australia, the NSW state government does not set a minimum rate, meaning retailers can offer competitive rates.

As of the last update (January 2024), Origin Energy had the best solar feed-in tariffs in NSW, with a maximum rate of 20 cents per kilowatt hour (c/kWh). AGL was second with 15c/kWh.

The table below shows the best feed-in tariff rates in NSW for popular retailers (updated January 2024), with the minimum and maximum rates on offer.

The best feed-in tariffs in NSW

How do I claim my feed-in tariffs?

To receive feed-in tariffs in NSW, you must have a grid-connect solar system installed at your home. Only one system per household is eligible for the tariff.

Not all electricity providers offer feed-in tariffs, and some have specific conditions, such as restricting eligibility to customers who buy solar panels from them.

Your feed-in tariffs will be paid as credits on your electricity bills.

How helpful are feed-in tariffs?

Feed-in tariffs can help you pay back your system, but the best way to use your solar is to choose a system size that meets your electrical requirements without producing excess energy.

This way, you’ll only pay for what you need, instead of exporting excess energy to the grid.

Our Solar System Size Calculator can help you determine the right system size for your needs.

Additional renewable energy incentives in NSW

Homeowners in NSW can also benefit from incentives designed to support greener energy options.

Under the Energy Savings Scheme, there are grants available for:

• Lighting upgrades: Replace halogen downlights with LED downlights.
• Air-conditioning upgrades: Switch to a more energy-efficient air conditioning system.
• Hot water system upgrades: Upgrade to a more energy-efficient hot water system.
• Pool pump upgrades: Replace your pool pump with a more energy-efficient model.

Electric vehicle rebates and incentives in NSW

While the New South Wales state government has discontinued its EV purchase rebates, it has announced more programs designed to increase EV infrastructure across the state.

One program that can help homeowners is the EV Ready Buildings scheme, in which you can get your apartment building retrofitted with EV charging infrastructure.

All the initiatives are explained under the NSW EV Strategy.

Next steps

If you’re interested in taking advantage of the solar incentives available in NSW, here are some next steps you can take:

• Use our STC rebate calculator to estimate your rebate.
• If the Rebate Swap for Solar program caught your eye, learn more about 3kW solar systems.
• Read our tips on selecting the best solar installer.
• Read our guide to getting solar panels in Sydney.