The Australian government encourages households and businesses to install solar panel (PV) systems to use renewable energy and reduce greenhouse gas emissions. This is why, solar energy rebates are available on federal and state levels to decrease the cost of installing a solar panel system.

Therefore, if you plan to set up a small or large-scale renewable energy system in your house or commercial estate, you must review these solar incentives, rebates, and grants to lower the upfront installation cost.

Federal Government Solar Energy Rebates and Incentives Programs

A wide range of government energy rebates, grants, and tax credit programs are available. These programs fund solar energy projects and allow Australians to benefit from PV systems. Therefore, you can avail one based on your project level and eligibility criteria.

Small-scale Renewable Energy Scheme (SRES)

The Small-scale Renewable Energy Scheme (SRES) offers monetary rewards for households and small businesses to adopt small-scale renewable energy systems. These include solar panel systems, air-source heat pumps, wind systems, solar water heaters, and hydro systems. However, rebate scheme is only available until 2030.

Eligible individuals can receive monetary benefits in the form of Small-scale Technology Certificates (STCs), which act as discount vouchers. Moreover, any renewable energy system that can generate power for more than 15 years is eligible for STCs.

Additionally, you can redeem these certificates by submitting them to a third-party retailer or solar installer. These individuals make a claim by placing them with an aggregator. You can also trade the certificates yourself and cash them out within 2 to 3 weeks. The total amount of money you receive depends on the ongoing market rate of the STC. However, this amount usually fluctuates between 35 to 40 Australian dollars.

Instant Asset Write-Off

The instant asset write-off allows small and medium businesses to claim upfront deductions in the tax. The amount is based on the full cost of all assets purchased till 30 June 2023. For example, if you pay $150,000 in tax and the solar panel system costs you $50,000, the system’s cost will be deducted from the total tax amount, reducing the tax to $100,000.

Additionally, the eligibility criteria for this scheme are straightforward:

  • You must have an annual income of less than $5 billion or an aggregated turnover of less than $50 million.
  • Your renewable energy asset only qualifies if you file a claim on it in the fiscal year of installation.
  • If the asset supplies electricity to your household, the tax deduction will only occur for the business’s electricity consumption.

The Large-scale Renewable Energy Target (LRET)

Businesses that generate solar energy can create large-scale generation certificates that can be sold or traded to liable entities. These include electricity providers who submit certificates to the Clean Energy Regulator (CER) annually. It also includes firms and entities that support reducing emissions by utilizing renewable energy and surrendering offsets, such as ACCUs.

Additionally, organizations that produce up to 100 kW of solar energy and feed it back into the electricity grid can apply for solar incentives under this program. This initiative aims to encourage the adoption of solar energy in businesses. It further promotes the use of renewable energy sources.

State Government Solar Energy Rebates and Incentives Programs

solar energy

You can also apply for solar energy rebates and grants offered by the state government. The following programs can lower the cost of solar panel system installation.

Western Australia

Similarly, residents in WA can benefit from two renewable energy initiatives. One is the Synergy Distributed Energy Buyback Scheme (DEBS). It provides a feed-in tariff for surplus energy that is exported to the grid. The other is the Federal Small Scale Renewable Energy Scheme (SRES). This can help to lower the initial cost of setting up a solar PV system. Both schemes aim to promote the use of renewable energy in the state and make it more affordable to access.

Victorian Solar Rebates

Victorian government also offers various solar energy rebates and incentives. These further allow property owners to install solar panels at a low cost, such as:

  • Solar Panel Rebate for Homeowners: You can receive up to $1400 for a PV system if you own a house valued under $3 million or have a home under construction. Homeowners can also apply for an interest-free loan to pay additional installation costs. However, the loan must be repaid within the next four years.
  • Solar Panel Rebate for Rental Properties: Similarly, landlords can receive up to $1400 and an interest-free loan to install solar panels on their rental property.
  • Solar Battery Rebate: Homeowners with an existing PV system that is equal to or greater than 5kW can benefit from this. You can avail of a maximum of $2,950 discount on purchasing solar batteries.

New South Wales (NSW) Solar Rebates

Similarly, the New South Wales (NSW) government provides multiple programs to allow NSW residents to switch to an economical energy source. NSW solar rebate programs are available for:

  • Homeowners: Individuals receiving the Low Income Household Rebate can get a free and fully installed 3kW solar panel system.
  • Tenants: Individuals living in suitable LAHC (Land and Housing Corporation) properties can swap the Low Income Household Rebate for a free and fully installed PV system.

Northern Territory (NT) Solar Grants

Meanwhile, the Northern Territory (NT) government aims to shift 50% of its power supply to a renewable energy system by 2030. Therefore, the NT government offers the following incentives:

  • Home and Business Battery Scheme: Homeowners and commercial property owners can apply for grants to purchase and install solar PV and battery systems.
  • Feed-in-Tariff (FiT): Individuals can export excess solar energy back to the grid to lower electricity bills.

Comparison of State Solar Rebates and Incentives Programs

You can review this table to learn and compare additional solar energy rebates and incentive programs.

StateSolar Subsidy
QueenslandUp to $26,00 off on 6.6kW PV system installation
NSWUp to 33% reimbursement of installation cost
ACTUp to $5,000 in rebates
VictoriaUp to $1,400 for solar panel (PV) system installation
Tasmania$1,875 for installation of 5kW solar panel system
South AustraliaUp to $2,000 in subsidies for solar battery system installation
Western AustraliaUp to $1500 for 1.5KW – 2.5KW system, $2,700 for 3KW – 4KW system, and around $4000 for 5KW – 6KW system installation
NTUp to $2,554 for 5kW and $5,147 rebate for 10kW PV system

Wrapping Up

In conclusion, the Australian government is promoting solar panel system installation by offering solar energy rebates and incentives for PV system installation.  Subsequently, homeowners and businesses can power their properties with renewable solar energy by applying for these schemes.

You can choose either a federal-level rebate or a state-based program. However, each scheme aims to reduce the cost of installing a complete solar panel system or adding new batteries.

However, if you’re having trouble deciding which program fits your needs, consult with professionals at Solaire Connect. Our experts can help you understand your options and choose the perfect one for your needs.