Should You Replace Your Small Solar System in Adelaide Before the 44c Premium Feed-in Tariff Expires in 2028?
By Solar Energy Adelaide | 28 April 2025
Many homeowners in Adelaide who installed solar panels 10-15 years ago have enjoyed the benefits of the generous 44c feed-in tariff (FiT). However, as electricity usage increases, many of these older, smaller solar systems are no longer meeting household energy needs.
It leaves homeowners asking the question: Will I lose my 44c premium feed in tariff if I upgrade my existing solar system?
The answer is “maybe”….
Homeowners on the 44c FiT can replace their existing solar system BUT if their new solar panel system is larger by more than 0.5 of a kilowatt, they will forfeit their premium feed in tariff.
With the 44c FiT set to expire in July 2028, homeowners are now faced with a decision:
- Should I upgrade my solar system before the tariff ends?
- Would a larger, more efficient system provide better savings despite losing the high Feed in tariff?
This article explores the key factors to consider when deciding whether to replace your existing solar system and how upgrading could positively impact your energy savings—even before the high FiT ends.
The 44c Premium Feed-in Tariff: A Great Deal for Early Solar Adopters
The 44c FiT was introduced as a government incentive to encourage early adoption of solar energy in South Australia. Homeowners with this tariff receive 44 cents per kilowatt-hour (kWh) for excess solar energy exported to the grid—a significant financial benefit.
However, this scheme will end in July 2028. After that, solar owners will only receive the standard feed-in tariff (typically 4-8c per kWh, depending on the provider).
So, while the 44c FiT is still in place for a few more years, is it better to upgrade now or hold onto your existing system?
Why Homeowners Are Considering an Upgrade
Although holding onto the 44c FiT may seem like a no-brainer, there are several compelling reasons to consider upgrading your solar system before 2028.
1. Smaller Solar Systems Aren’t Keeping Up with Energy Demand
Many early adopters installed 1.5kW to 3kW solar systems—which were considered sufficient at the time. However, today’s average solar system size is between 8kW and 13kW due to increasing household energy needs.
Key reasons for higher energy demand:
✅ More homes have switched from gas to electric appliances.
✅ Air conditioning, pool pumps, and electric vehicles require more power.
✅ Small solar systems often don’t generate enough power to cover daytime usage.
The Harsh Truth: If you’re not generating much excess solar energy to feed back into the electricity grid, your premium FiT isn’t actually benefiting you—and you are likely paying high electricity bills when you don’t need to be.
2. New Solar Technology is More Efficient
Solar technology has improved dramatically over the past decade:
🔹 Higher efficiency: Modern solar panels absorb more sunlight and perform better in partial shading.
🔹 Slower degradation: Older panels degrade at 1%-1.5% per year, meaning a 10-15-year-old system may be operating at less than 80% of its original output.
🔹 Longer lifespan: Newer panels degrade at only 0.3%-0.5% per year, meaning they still function at 80-88% efficiency after 25-30 years.
Upgrading to a larger, more efficient system (8kW or more) means you’ll generate more power, allowing you to purchase less power from the grid, leading to greater savings—even without the 44c FiT.
3. Battery Storage Can Increase Energy Independence
Adding a solar battery allows you to:
✅ Store excess solar energy for nighttime use.
✅ Reduce reliance on expensive grid electricity.
✅ Maximise self-consumption of solar power instead of exporting excess power at a low FiT.
The majority of older, smaller solar systems can’t generate enough excess power to effectively charge a battery. Upgrading to a larger system makes solar battery storage a more viable and beneficial option.
4. Electricity Prices Are Rising
South Australia has some of the highest electricity prices in the country. Waiting until 2028 to upgrade means:
⚠️ You’ll continue paying high power bills for several more years.
⚠️ You’ll remain reliant on grid electricity during peak times.
⚠️ You might miss out on current solar incentives and rebates available now.
The biggest financial benefit of solar isn’t the feed-in tariff—it’s self-consuming the energy your system generates.
Does Upgrading Make Financial Sense?
Upgrading before 2028 might seem counterintuitive, but let’s break down the financial impact:
✅ Loss of 44c FiT: You’ll switch to a lower feed-in tariff, but a larger system means you’ll rely more on your own solar energy—reducing your electricity bills significantly.
✅ Increased self-consumption: If your current system is too small to meet your energy needs, you’re still buying electricity from the grid. A larger system allows you to generate and use more of your own power—maximising savings.
✅ Battery storage options: A new system can be designed to work with a battery, future-proofing your home and reducing reliance on the grid.
✅ Government rebates & incentives: South Australia still offers solar rebates which could significantly reduce the upfront cost of upgrading.
When Should You Wait?
While upgrading makes sense for many, there are situations where holding onto your 44c FiT might be the better option:
🔹 Your energy needs haven’t changed – If your household uses very little power and your bills remain low, your current system may still be sufficient.
🔹 Your bills are in credit – If your existing system is consistently covering your energy costs, you might be better off waiting until 2028.
🔹 You plan to sell your home soon – If you’re planning to move in the next few years, upgrading might not provide enough return on investment before selling.
Final Verdict: Should You Upgrade Now or Wait?
The decision to replace or upgrade your solar system in Adelaide before the 44c feed-in tariff ends in 2028 depends on your individual situation.
✅ If your energy needs have grown, your system isn’t keeping up, and you want to future-proof your home, upgrading now could lead to long-term savings.
✅ If your small system still meets your energy needs and your bills are low, you might prefer to keep the 44c FiT until 2028.
It’s not a one-size-fits-all decision—every home’s energy situation is different.
Get Expert Advice on Upgrading Your Solar System
At Solar Energy Adelaide, we understand that deciding whether to upgrade your solar system is a big decision. That’s why we offer honest, expert advice tailored to your specific energy needs.
🔹 Local, family-run business with over a decade of experience
🔹 Customised solar solutions based on your home’s energy usage
🔹 Free, no-obligation assessment to determine whether upgrading makes sense for you
📞 Contact us today to discuss your options and get a personalised solar upgrade assessment!
Local, Trusted, and Here to Help – Adelaide’s Solar Experts
As a local, family-run business with over a decade of experience, Solar Energy Adelaide is committed to helping Adelaide residents make informed decisions about solar energy.
We prioritise customer satisfaction and transparency, ensuring you understand exactly how much you’ll save and how the process works.
We also provide comprehensive services, including solar battery storage and solar repairs, so you can get the most out of your solar system for years to come.
Solar power has become a staple for South Aussie homes and businesses.
With rising electricity costs, solar panel installation offers long term savings and financial security with minimal maintenance and solar rebates available.
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Solar battery storage has become more affordable in recent years and can even be added to most existing solar systems.
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