Australia boasts abundant sunshine, making solar power an attractive and environmentally friendly option for homes and businesses. To encourage the switch to renewable energy, the government offers a range of financial incentives and tax breaks to help offset the upfront cost of installing solar panels. Let’s explore the ways you can save money and embrace solar power.
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Australia's government solar grants and incentives
Here’s an overview of the key programs available who are looking to install solar panels in Australia, batteries and others:
1. Federal solar incentives: Renewable Energy Target (RET)
The Australian government’s Renewable Energy Target (RET) programme seeks to boost renewable electricity production while lowering greenhouse gas emissions from the electricity industry. The Renewable Energy Target (RET) will supply 33,000 GWh of renewable energy between 2020 and 2030.
The RET establishes a market to encourage the production and use of renewable energy. This facilitates the shift to a less carbon-intensive and more sustainable energy system. RET administers two schemes and renewable energy certificates.
- Small-scale Renewable Energy Scheme (SRES): This program issues tradable certificates (STCs) based on your system’s expected electricity generation. You can sell these certificates to retailers, reducing the upfront cost.
The number of STCs you receive depends on your location and system size. STCs, or small-scale technology certificates, are solar incentives available for systems up to 100 kW in size.
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- Large-scale Renewable Energy Target (LRET): The Federal Government also oversees the Large-scale Renewable Energy Target (LRET), which aims to produce large-scale renewable energy through power plants. The LRET provides solar incentives for developing renewable energy power plants by establishing and selling certificates known as Large-scale Generating Certificates (LGCs). The government introduced Large-scale Generation Certificates (LGCs), which are required for commercial solar installations larger than 100kW.
2. State, territory, and local government solar schemes
- Tax breaks:
- Instant asset write-off: For small businesses with a turnover below $50 million, the cost of your solar system can be instantly deducted from your taxable income in the year of installation (conditions apply). Source: Australian Taxation Office.
- Loans: Financing options with favourable terms to cover the cost of solar systems.
- Rebate swaps: Options to exchange bill rebates for solar subsidies.
- Solar rebates: Direct subsidies to reduce the cost of solar system installation.
The availability and specifics of these solar incentives can vary greatly depending on your location and the type of installation—residential or commercial. Here are some examples:
- Australian Capital Territory (ACT)
- Zero-interest loans between $2,000 and $15,000 are available under the Sustainable Household Scheme for energy-efficient home improvements. Up to a total value of $15,000, qualifying households can select from various equipment, such as solar panels, battery storage systems, heating and cooling systems, and more. Ten years is the repayment period, and depending on the results of credit checks, borrowers may be eligible for amounts over $15,000. However, interest may be charged.
- The Health Care Card is one of the concession cards qualifying for the Home Energy Support Programme (HESP). Pensioner Concession, Veterans’ Affairs Gold, and Health Care Card holders are eligible for loans up to $10,000 and a 50% rebate (up to $2,500) for installing energy-efficient items. For non-unit properties, the UV eligibility requirements for HESP are $750,000 or below, and for units starting in 2022, they are $300,000 or below.
- Victoria
- There is a zero-interest lending option available up to $1,400 for new and existing residences.
- Victorians can cut their energy bills and shrink their environmental footprint with the Victorian Energy Upgrades (VEU) program. This government initiative offers solar rebates and discounts on energy-efficient appliances, lighting, heating and cooling systems, and even draft sealing, making it easier for residents to save money and live sustainably. Depending on the upgrade, the average household can save from $120 to $1,100 per year on energy bills.
- South Australia
- If you live in South Australia and are interested in solar energy, incentive programmes are available. The City of Adelaide provides incentives for concession/senior card users and rented residences, and incentives for solar PV systems are available to households and landlords for up to $5000.
- The City of Adelaide’s Sustainability Incentives Scheme offers incentives to property owners, tenants, and non-profit groups, which are some of the examples of those who will receive incentives to encourage the installation of electric vehicle charging stations. This program aims to make charging electric vehicles more affordable and accessible and promote sustainable transportation within the city. They can claim up to $2,000 to offset the cost of installing a charging station on their property.
- New South Wales (NSW): Peak Demand Reduction Scheme (PDRS) incentives will be available to homes and businesses with rooftop solar from 1 November 2024. These incentives will allow them to install household battery storage and link to a Virtual Power Plant (VPP). These incentives will lower the cost of electricity bills and help families and businesses make the most of the solar energy they produce—source: NSW Climate and Energy Action – Incentives.
Updated 06 June 2024
Finding the right solar incentives
The specific incentives you qualify for will depend on your location, system size, and property type. To find the most up-to-date information and applicable rebates, check our pages.
Ready to upgrade your solar systems and take your energy savings to the next level? Embrace the energy efficiency revolution by upgrading your solar systems and adding a battery or solar inverters with Energy Matters.
Beyond solar rebates and incentives
While rebates and tax breaks offer a welcome upfront saving, don’t forget the ongoing benefits of solar:
- Reduced electricity bills: Generate your clean power and significantly reduce your reliance on the grid, leading to lower electricity bills.
- Increased property value: Homes with solar panels are often more attractive to buyers, potentially fetching a higher price.
- Environmental benefits: Solar power is a clean and renewable energy source, helping to reduce your carbon footprint and combat climate change.
Taking the next step
Researching the available incentives in your state and getting quotes from qualified solar installers is the first step towards harnessing the sun’s power. With government support and long-term benefits, installing solar panels can be a smart financial and environmental decision for your Australian home or business.
Remember: This article provides a general overview. Eligibility requirements and rebate amounts can vary. Consult the Clean Energy Regulator and your state or territory government for the latest information on solar incentives and tax breaks. Check out our page for What You Should Do After Solar Panel Installation.
Going solar: A bright investment
Installing solar panels can be a financially sound decision for Australian homes and businesses by taking advantage of government incentives and tax breaks. Not only will you reduce your electricity bills and environmental impact, but you’ll also benefit from government support for this sustainable energy source.
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*Prices quoted are to be used as a guide only and do not factor in state and other rebates and incentives. Includes STC discount.
