Updated 14 March 2026
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.
Are you looking to save money on your electricity bills and reduce your carbon footprint? Solar energy is the perfect solution! Energy Matters can help you get up to 3 FREE solar quotes from pre-qualified and vetted solar firms in your area.Â
Energy Matters has been a leader in the renewable energy industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence. With Energy Matters, you can be sure you’re getting the best possible deal on solar energy. We only work with reputable solar firms with a proven track record of delivering high-quality solar systems.
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.Â
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.Â
- 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.Â
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.
Read more about:
- 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.Â
- Cheaper Home Batteries Program: The Cheaper Home Batteries Program outlines available federal battery rebates and incentives to lower upfront costs and encourage broader adoption of residential energy storage.
- Rebates: The program offers rebates of around $370 per kilowatt-hour (kWh) for eligible battery installations, potentially saving households thousands of dollars.
- Eligibility: The program is open to homeowners with existing solar systems, those installing new solar panels and batteries, and small businesses.
- End date: Until 2030, with rebates reducing over time as costs fall
No limitations on “double-dipping” or “stacking” apply to the government rebate. The state loan and refund programmes, however, can have limitations of their own. Learn more about the Cheaper Home Batteries Programs on our comprehensive page.
- EV FBT Exemption: The exemption for Electric Vehicles (EV) Fringe Benefit Tax (FBT) is available across Australia, and you do not pay FBT when providing private use of an electric car that meets all these conditions:
- The car must have zero or low emissions, and you are exempt from paying FBT.
- The vehicle is first held and utilised on or after 1 July 2022.
- A current employee or their associates (including family members) use the vehicle.
For more information, visit the Electric cars exemption guide.
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.
- Feed-in Tariff: A feed-in tariff in Australia is a payment to households or businesses for the excess electricity they produce with solar panels and export back to the grid. Check our page about Australian Solar Feed-in Tariffs Information for more details.
- 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.
Australian Capital Territory (ACT)
- The Sustainable Household Scheme in the ACT offers zero-interest loans from $2,000 to $15,000 to homeowners for energy-efficient upgrades, including battery storage and electric appliances. The loans have a repayment period of up to 10 years, with no upfront costs. Eligible participants must meet specific criteria and attend a workshop on energy efficiency. This initiative supports the ACT’s goal of achieving net zero emissions by 2045. For more details, visit: Sustainable Household Scheme
The Home Energy Support program in the ACT offers rebates for homeowners to improve energy efficiency and reduce household emissions. Rebates are available for upgrades such as installing efficient heating and cooling systems, insulation, double glazing, and rooftop solar panels. This initiative is designed to make homes more energy-efficient and lower energy costs, particularly in older homes that require retrofitting. For more information, visit: Home Energy Support Rebates for Homeowners.
- The Sustainable Business Program empowers businesses to enhance their environmental performance through focused support in energy, transport, waste, and water management. Participants can leverage a free onsite assessment by technical experts, receive customised action plans, and gain access to valuable resources and training. Furthermore, the program offers significant financial incentives, including rebates up to $13,000 for eligible businesses, which break down as follows:
- Up to $10,000 for energy and water efficiency upgrades.
- Up to $3,000 for EV charger installations.
- All rebates require a co-contribution from the business.
- Businesses can also achieve accreditation, gaining recognition for their commitment to sustainable practices.
For more details, visit:Â Sustainable Business Program.
Victoria (VIC)
- The Solar Panel (PV) Rebate from Solar Victoria offers eligible homeowners up to $1,400 off the cost of installing solar panels. Additionally, interest-free loans are available for the same amount to further reduce upfront costs. This initiative aims to make solar energy more affordable, lower household energy bills, and reduce carbon emissions. The rebate applies to both owner-occupiers and rental properties. For more information, visit: Solar Victoria – Solar Panel Rebate.
- Hot water rebate: Eligible heat pump and solar hot water products can receive up to $1,000 in rebates. Opting for a locally manufactured product may qualify you for a rebate of up to $1,400. Visit the Hot water rebate page for more details.
- The Victorian Energy Upgrades (VEU) program helps households and businesses reduce energy bills by offering discounts on energy-efficient products and appliances. The program encourages electrification of homes and businesses to meet state emissions-reduction targets, offering significant savings and rebates for upgrades to heating and hot-water systems. For more details, visit the Victorian Energy Upgrades (VEU) program.Â
South Australia (SA)
The City of Adelaide offers sustainability incentives for residents and businesses to encourage environmentally friendly practices. These include grants for renewable energy projects, energy-efficient upgrades, and water conservation initiatives. The program aims to reduce carbon emissions and promote sustainable living in the community. For detailed information on eligibility and application processes, you can visit the City of Adelaide website.
New South Wales (NSW)
On June 30, 2025, the upfront discount component of the NSW Battery Incentive Program under the Peak Demand Reduction Scheme (PDRS) came to an end.Â
On July 1, 2025, the state government replaced it with a larger incentive for connecting batteries to Virtual Power Plants (VPPs).Â
This modification was made to coincide with the start of the Cheaper Home Batteries Programme by the Australian Government, which was announced on the same day.
For detailed information, visit our NSW Battery Incentive Program page.
Western Australia (WA)
The WA Government is rolling out the Residential Battery Scheme, providing:
Rebates: Up to $5,000 for Synergy customers and up to $7,500 for Horizon Power customers, depending on battery size.
No-interest loans: Available to assist with battery purchases.
The scheme aims to support 20,000 households, enhancing energy resilience and reducing power bills. For more information, visit the WA Residential Battery Scheme.
Queensland (QLD)
Government incentive through Small-scale Technology Certificate (STC): STCs are made upfront for the estimated sum through December 31, 2030. Consequently, fewer certificates will be available for qualifying systems.Â
Until December 31, 2030, STCs created ahead for the considered amount will be available. As a result, eligible systems will be able to receive fewer certificates.
Tasmania (TAS)
- Tasmania’s Energy Saver Loan Scheme: Effective from Monday, September 1, 2025, the Energy Saver Loan Scheme is now closed. No further applications will be accepted. Consequently, all inactive referrals have ended. Tasmania’s Energy Saver Loan Scheme offered interest-free loans of up to $10,000 to support households, landlords, small businesses, and not-for-profit organisations in adopting energy-efficient products. – source: Renewables, Climate and Future Industries Tasmania (ReCFIT) – Tasmania’s Energy Saver Loan Scheme
- Electric Vehicles (EVs): The exemption for Electric Vehicle (EV) Fringe Benefit Tax (FBT) is available nationwide in Australia.
Northern Territory (NT)
- The Home and Business Battery Scheme (HBBS) is no longer accepting new applications, having reached its $6 million funding cap. Visit NT.GOV.AU – Home and Business Battery Scheme for more information.
- Electric Vehicle (EV) Charger Grants Scheme: You can receive up to $1,000 for residential properties and save as much as $2,500 for businesses. For more information, visit the NT EV Charger Grants Scheme page.
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.
Learn more about the Cheaper Home Batteries Program on our comprehensive page.
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: Understanding solar energy benefits
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.
- Energy independence: By generating your power, you become less reliant on traditional energy sources, empowering you to take control of your energy consumption.
How to maximise your solar savings
To maximise the benefits of solar energy and take full advantage of available incentives, consider the following tips:
- Choose a reputable solar installer: Select a qualified and experienced installer to ensure a high-quality installation.
- Monitor your solar system: Use a solar monitoring system to track your energy production and consumption, optimising your energy usage.
- Stay informed: Check government websites and consult with solar experts to stay current with the latest incentives and rebates.
- Consider battery storage: Pairing your solar system with a solar battery storage system can further reduce your reliance on the grid and provide backup power during outages.
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 and batteries 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.
Contact Energy Matters, and we will guide you every step of the way. Our team of solar experts can help you get up to 3 FREE solar quotes from pre-qualified and vetted solar firms in your area. Let’s harness the power of the sun together!
