Government subsidies for solar installations

We know switching to renewable energy can be pricey, so how can you help keep costs down? Luckily, there is a range of federal and state government subsidies and incentives available to Australians to encourage and support the transition to clean energy. So what incentives could you be eligible for? 

Below is a quick summary we have prepared of some of the federal and state government subsidies and incentives. Eligibility requirements and grant amounts vary depending on the program, so make sure to check the program websites, speak to your local installers, or even contact program representatives before making any decisions. 

National

Small-scale Renewable Energy Scheme

Australia's Small-scale Renewable Energy Scheme is a federal government initiative that aims to promote the adoption of renewable energy sources such as solar panels, wind turbines, and hydro systems. 

Eligible individuals and organizations can earn Small-Scale Technology Certificates (STCs) for each megawatt-hour of electricity generated from their renewable energy systems. These STCs can be sold or traded to electricity retailers, reducing the cost of installation and making it more affordable for people to switch to clean energy. 

The good news is that installers will include any STCs on customers’ invoices and reduce the total amount payable, meaning participants don’t have to submit a separate application.

For more information, check out their website here.

Australian Capital Territory

The Home Energy Support Program

This program provides rebates of up to $5,000 for eligible homeowners to help reduce their household’s energy bills and emissions. Rebates are available for a range of energy-efficient upgrades, including solar panel installations, insulation, double-glazed windows, and more. 

The program is open to homeowners in the ACT, including pensioners, veterans, and low-income earners. The rebate amount will vary depending on the type of upgrades chosen and the customer’s income. 

For more information, check out their website here.

The Sustainable Household Scheme

This is another ACT government program that can accompany the Home Energy Support program and offers eligible ACT residents zero-interest loans of $2,000 - $15,000 to purchase and install energy-efficient technology.  

For more information, check out their website here.

New South Wales

Rebate Swap for Solar and Energy Efficient Upgrades

This NSW program offers eligible low-income households the opportunity to exchange their Low Income Household Rebate for a free 3-kilowatt solar system installation. The program aims to reduce energy bills and help low-income households make the switch to renewable energy. 

NSW residents who receive a Low Income Household Rebate, but are not eligible for free system installation, are offered a free energy assessment instead. Participants may then choose to swap their rebate for one of the recommended energy-saving measures valued at up to $4,000.  

For more information, check out their website here.

Northern Territory

Home and Business Battery Scheme

The Home and Business Battery Scheme in the NT provides grants of $450/kWh of battery capacity (up to $6,000) for the purchase and installation of eligible energy storage systems. The program is open to homeowners, businesses and not-for-profit organisations. To be eligible for the grant, batteries must be selected from an approved list and each battery is capable of connecting to a Virtual Power Plant (VPP). 

For more information, check out their website here.

Queensland

Solar Bonus Scheme

The Solar Bonus Scheme in Queensland was a government program that provided a feed-in tariff of 44c/kWh to households that installed solar PV systems before July 10, 2012. The program is now closed to new applicants, but existing participants will continue to receive the benefits of the feed-in tariff until 1 July 2028. 

Energy retailers in Queensland also offer a range of feed-in tariffs, however, the exact amount and eligibility criteria will vary between retailers. 

For more information, check out their website here.

South Australia

The Feed-in Tariff Program

This state government scheme provides payments to households and businesses that generate excess electricity from their solar PV systems and feed it back into the grid. The payment rate varies depending on the electricity retailer and the type of solar PV system installed. Participants are typically provided credits on their electricity bill.

For more information, check out their website here.

Tasmania

Energy Saver Loan Scheme

The Energy Saver Loan Scheme in Tasmania offers no-interest and no-establishment fee loans to help eligible households and small businesses purchase energy-efficient products, including solar panels, heat pumps and even energy-efficient appliances. The program is designed to help Tasmanians reduce their energy bills and carbon footprint.

For more information, check out their website here.

Feed-in Tariff

Running as part of the Energy Made Easy program, Tasmanian homes and businesses with grid-connected solar systems may be eligible for a feed-in tariff for excess energy exported back to the grid. There is a regulated minimum c/kWh​ rate but the payment rate varies depending on the individual electricity retailer and the type of solar PV system installed. Eligible customers are typically paid via a credit on their electricity bill or by direct payment.

For more information, check out their website here.

Victoria

Solar Homes Program

The Solar Homes Program is a Victorian government initiative that provides rebates for the installation of solar panels, hot water systems and batteries. 

The rebates are currently valued at:

• Solar PV: $1,400 rebate
• Solar hot water: $1,000 rebate
• Home battery: $2,950 discount

The program also provides interest-free loans for eligible households to help cover the upfront cost of installing a solar PV system. To be eligible for the rebate, households must meet certain criteria, including having a household income of less than $180,000 per year.

For more information, check out their website here.

Western Australia

Energy Buyback Schemes

The Western Australian government offers energy buyback schemes, which provide a feed-in tariff for excess electricity generated by solar PV systems. This means that households with solar panels can sell any excess energy they generate back to the grid and receive a credit on their electricity bills. The rates for the buyback schemes vary depending on the electricity retailer and plan.

For more information, check out their website here.

Published February 2023.