How does the federal solar rebate actually work?

The federal support is delivered through the Small-scale Renewable Energy Scheme. An eligible installation creates small-scale technology certificates, the number depending on system size, location and the number of years remaining in the scheme. Almost every household assigns those certificates to the installer in exchange for a lower price, which is why it looks like a discount rather than a payment.

What changes the number of certificates

• System capacity, since certificates scale with size.
• Your zone, because expected generation differs across Australia.
• The deeming period, which reduces each year as the scheme approaches its end date. This is the reason the same system is worth less each January.
• Eligibility, which requires an accredited installer and compliant components.

What this means practically

Because the certificate value moves with a market price and the deeming period shortens annually, the discount on an identical system falls over time. That is a real reason not to defer indefinitely, though it is a smaller effect than the difference between a good and a poor installation.