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Solar series: The clock is ticking on solar and battery rebates
If you’ve been thinking about installing solar panels or a home battery, now is the time to pay attention. Federal and state rebates that make solar and battery systems more affordable are gradually reducing, and waiting could cost you thousands of dollars in lost savings.
These rebates are designed to help homeowners offset the upfront costs of installing solar systems and batteries, but the government plans to slowly scale them back over the coming years. Acting sooner rather than later allows you to lock in the largest rebates, reduce your out-of-pocket costs, and start saving on electricity bills sooner.
Essentially, the earlier you install, the more money you keep in your pocket, which is exactly what Aussies love to hear.
Key rebate timelines
July 2025 marks the beginning of the first round of rebate reductions. Certain solar systems and battery storage setups will see smaller rebates from this point, so homes that manage to complete installations before this date can still claim the full amount.
By January 2026, a significant decrease in federal Small-scale Technology Certificates, or STCs, comes into effect. This means rooftop solar rebates will shrink, making the upfront cost of solar panels noticeably higher for those who delay.
Midway through 2026, battery rebate reductions will roll out in stages. Homeowners who put off installing a battery until this period will likely see a reduction of several thousand dollars in rebate value depending on system size and type.
Looking further ahead to 2027 and beyond, further incremental reductions in both solar and battery rebates are expected. By this point, the financial advantage of waiting will have mostly evaporated, leaving homeowners with higher upfront costs and longer payback periods.
Why timing matters
The timing of your solar or battery installation can have a huge impact on your finances. Installing a system before rebate reductions ensure you receive the largest possible government contribution, which directly lowers the amount you need to pay out of pocket.
To illustrate, a 6kW solar system installed before January 2026 might benefit from a $1,600 rebate, meaning the household only needs to pay $10,400 upfront. The same system installed after January 2026 could see the rebate drop to $1,400, increasing the upfront cost to $10,600.
For battery systems, the impact can be even more dramatic. A 10kWh battery installed now might receive a $3,000 rebate, whereas delaying by a year could cut the rebate to $2,000. That’s a thousand dollars lost simply by waiting, and the effect on your overall electricity savings over the life of the system could be much greater.
Acting early allows your system to start generating savings sooner, shortening the time it takes for the installation to pay for itself.
Tips for staying on top of the countdown
Planning early is essential. You should start comparing solar panels, battery options, and installers now to ensure you are ready to install before the rebates drop. It’s also important to check that your home meets eligibility requirements for the federal and state incentives, as some rebates have specific conditions relating to system size, location, or roof orientation.
Once you find a system that matches your energy needs and budget, scheduling installation promptly can secure the current higher rebates. Missing key deadlines can cost you thousands, so keeping an eye on the timeline is crucial.
It's also worth thinking ahead about future energy needs. If you plan to add an electric vehicle or expand your home, sizing your solar and battery system now can save money and hassle later. In essence, careful planning ensures you don’t miss out on any opportunities to maximise savings and future-proof your home.
Benefits of acting before rebates shrink
Installing solar panels or a battery before rebate reductions does more than just save money upfront. Doing so allows you to reduce your electricity bills from day one, by using solar energy instead of buying expensive power from the grid.
Early installation also gives you a degree of energy independence, protecting you from future price hikes and providing peace of mind.
Solar and battery systems are not only good for your wallet but also for the environment, helping to reduce your household’s carbon footprint.
Homes with solar systems and batteries are also more attractive to potential buyers, increasing property value.
Finally, investing in a system now helps you future-proof your home, making it ready for electric vehicles, smart energy consumption systems, or additional solar expansion. Acting early ensures you get maximum value, convenience, and control over your home energy.
Don’t wait until it’s too late
The rebate countdown is real, and every month you delay could cost you money and slower long-term savings.
By installing a solar system or battery now, you lock in higher rebates, reduce upfront costs, and start saving immediately on electricity bills.
It’s also a chance to protect your household from rising energy prices and prepare your home for future energy upgrades.
The team at Compare Energy can help you navigate the changing rebates, compare solar and battery systems, and find the best options for your home and budget. Call 1300 790 106 today to secure the largest rebates and start saving before the reductions kick in.
