The cost of switching to solar power has become more accessible and attractive over the years thanks to its benefits as well as the left & right incentives or solar rebates it brings to homeowners.
At present, federal battery subsidy schemes, state-specific virtual power plant incentives, and energy efficiency loans mean there has never been a better time to switch to renewable energy amid rising energy prices.
If you’re among those who are looking to go solar, now is the best time to do so. Acting sooner rather than later allows you to lock in the highest incentive rates before scheduled regulatory step-downs occur. Below is a quick rundown of available incentives, rebates, and subsidies that you can go for depending on the state you’re residing in.
Government Rebates & Subsidies
These federal and state rebates significantly reduce the total cost of purchasing and installing a solar power system. You can look for the ones available to you on the Federal Government’s Energy Rebates website. You can also get an idea of how much rebate you can receive through a solar quote from your chosen retailer.
National Solar Subsidy
Categorized into the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET), these subsidies allow solar users to save big with financial incentives.
SRES: Designed for residential systems and small businesses, providing an upfront point-of-sale discount through Small-scale Technology Certificates (STCs). These certificates are subject to variation depending on factors like the size and location of your solar system, and naturally decrease slightly at the start of every year as the program steps down toward 2030.
LRET: Facilitated by the Federal Government, mainly incentivizing renewable energy power stations like solar farms.
Federal Cheaper Home Batteries Program
Launched to make energy storage more affordable, the federal government now subsidizes home batteries ranging from 5 kWh to 100 kWh through the STC framework. Following a major structural update on 1 May 2026, the battery discount features a tiered structure to reward appropriately sized systems:
0 to 14 kWh usable capacity: Incentivized at 100% of the current base STC factor.
14 to 28 kWh usable capacity: Incentivized at 60% of the base rate.
28 to 50 kWh usable capacity: Incentivized at 15% of the base rate.
Feed-in Tariffs
Feed-in tariffs refer to a certain amount you are paid for with every excess energy generated by your solar system that is fed back into the grid. These are mostly available for residential systems but can also extend to commercial setups provided that the consumer is able to negotiate with their electricity retailer.
Electronic Vehicle Incentives
Those who purchase an EV are subject to a subsidy or rebate which varies depending on the state and price paid for the vehicle. Some states also offer additional perks including free registration, stamp duty exemption, and low-interest loans.
State-by-State Incentive Breakdown
| State / Territory | Current Solar & Battery Incentives |
|---|---|
| New South Wales (NSW) | PDRS VPP Incentive: Earn an upfront discount of $1,600 to $2,400 for connecting a standard battery to a Virtual Power Plant (PDRS), which stacks with the federal rebate. NSW also offers up to 50% funding grants for shared solar installations in apartment buildings. |
| Victoria (VIC) |
Solar Homes Program: Provides up to a $1,400 subsidy when you purchase a solar power system. Important Update: On 1 July 2026, the household income eligibility cap for this program will drop from $210,000 to $150,000. |
| Australian Capital Territory (ACT) |
Sustainable Household Scheme: Provides a low-interest 3% loan with up to 10 years to pay for energy-efficient upgrades. On 1 July 2026, the loan limit will increase from $15,000 to $20,000. Home Energy Support: Eligible concession cardholders can still access a maximum rebate of up to $2,500 on rooftop solar systems. |
(Note: Other states primarily utilize the generous Federal SRES and Battery Rebate frameworks as localized programs have largely closed to new applicants).
Knowing Your Incentives In and Out
If you’re on your way to being a solar energy user, congratulations. Here are some of the factors you want to get sorted out with your electricity retailer before having your on-grid system installed:
- Will your daily fixed charge be higher once you install solar?
- Will you be paid via cash or credit for the electricity you produce?
- Are there penalties or termination fees you need to be aware of?
- What is the timeline for calculating the excess energy you generate?
- How much will you get paid per kWh for exported electricity?
Secure Your Savings Today
Excited to enjoy your solar perks? You should be! If you’re yet to decide on getting an on-grid system for your home, get a FREE quote from VoltX Energy today. Secure your specialized setup while stocks last!
