Today's rateSTC $38.50·VEEC $60.00Rate card

Deeming period and scheme wind-down

Solar rebate drop on 1 January: what changes

Short answer

On 1 January 2027 the solar deeming period falls from 5 years to 4, so the same system earns about 20 per cent fewer STCs. A 6.6 kW system in zone 3 drops from about 45 to about 36 certificates, roughly $300 to $360 less.

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026 · For homeowners

Every 1 January the number of years of generation that the rebate pays for goes down by one. On 1 January 2027 it goes from 5 to 4.

The size of the 2027 cut

Fewer deeming years means fewer certificates. The cut is 20 per cent on any size of system in any zone. For a 6.6 kW system:

Zone 2026 STCs 2027 STCs Difference at $38 to $40
1 53 42 about $410 to $440
3 45 36 about $340 to $360
4 39 31 about $300 to $320

These are approximate and round down.

What to do before the date

  • Get a quote that includes a commissioning date, not just a start date.
  • Ask what happens if the install slips past 31 December: does the price go up?
  • Check network approval and meter requirements early, because they commonly cause delays.
  • If you want a battery as well, note that the battery factor also falls on 1 January 2027, from 6.8 to 5.7, with another step to 5.2 on 1 July 2027.

Should you rush?

A $340 reduction on a typical system is real money, but it is only a fraction of the total cost. Do not accept a rushed install, a sloppy design or a pushy deadline to save it. A good system that is installed well in February is better than a poor one in December.

If your install slips into January

If your installation slips past the date, ask whether the installer will absorb the difference or pass it on. Sometimes the cause was a delay by the network or the customer, and sometimes it is the installer’s scheduling. The contract should say what happens in each case, which is one more reason to read it before you sign.

From the desk: Installers get hit too, since a delayed job loses margin if the quote assumed 5 years. Good ones will tell you plainly where the job stands.

What this means for you

Decide on the system first, then on the timing. See the schedule by year, should I install solar now or wait, and the 2027 changes. The STC trading pillar explains how the scheme works from the installer side.

Follow-up questions

People also ask

Is the drop automatic?
Yes. It is set in the regulations, and the Clean Energy Regulator applies the figure for the installation year.
Can I beat the drop by signing a contract before the date?
No. The install date decides the deeming period, not the signing date.

Got a claim to lodge this week?

Sign up today. Your account manager calls with your rate card and your first claim can be settled within days.

Call the deskStart trading