Solar Rebates- in Australia (2025–2026)
Solar rebates in Australia continue to play an important role in keeping rooftop solar and battery systems affordable. While system prices have fallen over time, government incentives still significantly reduce upfront costs and improve payback periods for many households.
This guide explains how solar rebates actually work in Australia, what incentives are available at federal and state level in 2025–2026, and what homeowners should realistically expect when reviewing quotes.
Is the Solar Rebate a Cash Payment?
Not usually.
The main federal solar incentive does not involve money being paid directly to homeowners. Instead, it works through a certificate system that reduces the price of your solar system before installation.
This approach has been in place for many years and is why solar pricing in Australia is generally quoted as “rebate included”.
What Is a Solar Rebate in Australia?
In Australia, a “solar rebate” usually refers to any government incentive that lowers the cost of installing solar panels or batteries. These incentives do not always come as direct cash payments.
Solar support can take several forms:
- upfront discounts applied at installation
- tradable certificates that reduce system pricing
- battery rebates or grants
- interest-free or low-interest government loans
- feed-in tariffs paid for exported solar energy
Most advertised solar prices already include the main federal incentive, which is why rebate figures can sometimes feel confusing.
Federal Solar Rebates & Incentives
Large-scale Renewable Energy Target (LRET)
The LRET applies to commercial solar systems over 100kW.
Instead of an upfront discount, these systems generate Large-scale Generation Certificates (LGCs) based on actual electricity production. LGCs can be sold over time, providing ongoing income rather than a one-off rebate.
This incentive is mainly relevant to large commercial and industrial projects.
Small-scale Renewable Energy Scheme (SRES)
The SRES is the primary solar incentive for Australian households and small businesses. It applies to solar systems under 100kW.
Under this scheme, eligible systems generate Small-scale Technology Certificates (STCs). These certificates have a market value and are usually assigned to the installer, who applies them as an upfront discount on your system.
The number of STCs depends on:
- system size
- installation postcode (solar zone)
- the year the system is installed
- remaining years until the scheme ends in 2030
Because the scheme reduces slightly each year, systems installed earlier attract more STCs than the same system installed later.
Important:
Almost all advertised solar prices already include the STC discount. You don’t need to claim it separately.
Eligibility basics
- system size under 100kW
- Clean Energy Council (CEC) accredited installer
- CEC-approved panels and inverter
Federal Battery Rebate (National Battery Incentive)
A federal battery rebate is available across Australia and reduces the cost of installing eligible home and small-business batteries.
The rebate:
- is calculated per usable kilowatt-hour of battery capacity
- applies up to a capped size
- typically reduces battery pricing by roughly 25–30% (indicative only)
- can usually be combined with state incentives or loans
Battery eligibility rules apply, and installation must be completed by accredited professionals.
Is It Better to Install Solar in 2025 or 2026?
For most Australian households:
- installing solar earlier usually delivers better rebate value
- waiting rarely improves incentives
- savings come primarily from reduced electricity bills, not rebates alone
Rebates help, but system quality, correct sizing, and installation standards matter more over the life of the system.
Solar Rebates & Incentives by State (2025–2026)
In addition to federal incentives, some states and territories offer their own rebates, grants, or loan schemes. Availability changes regularly, and many programs close once funding limits are reached.
Northern Territory (NT)
- Federal solar rebate (STCs) — among the highest in Australia
- Federal battery rebate
- Previous NT battery grants closed in 2025
- Apartment solar rebates for shared systems
- Retailer-based feed-in tariffs
Australian Capital Territory (ACT)
- Federal solar rebate (STCs)
- Federal battery rebate
- Solar support for concession card holders
- Sustainable Household Scheme offering low-interest loans
- Feed-in tariffs through electricity retailers
Queensland (QLD)
- Federal solar rebate (STCs)
- Federal battery rebate
- State battery rebate programs have closed
- Feed-in tariffs depend on retailer and plan
Most advertised prices already include the federal rebate.
South Australia (SA)
- Federal solar rebate (STCs)
- Federal battery rebate
- Virtual Power Plant incentives for eligible batteries
- State battery subsidies closed
- Retailer-based feed-in tariffs
Some council-level grants remain available in limited areas.
Victoria (VIC)
- Federal solar rebate (STCs)
- Solar Homes Program panel rebate (eligibility applies)
- Interest-free solar loans
- Solar for rentals incentive
- Solar for apartments rebates
- Federal battery rebate (state battery rebates largely closed)
Victoria also offers separate electrification incentives that can complement solar.
Western Australia (WA)
- Federal solar rebate (STCs)
- Federal battery rebate
- State battery subsidy (higher in Horizon Power regions)
- Zero-interest battery loans
- Distributed Energy Buyback Scheme (DEBS) feed-in tariff
Battery incentives differ between Perth and regional WA.
New South Wales (NSW)
- Federal solar rebate (STCs)
- Federal battery rebate
- NSW battery rebate has ended
- Virtual Power Plant (VPP) incentives still available
- Apartment and community solar grants
- Empowering Homes Program offering interest-free loans
- Limited local council sustainability rebates
Feed-in tariffs vary by electricity retailer and plan.
Final Thoughts
Australia’s solar rebate system remains generous, but it is complex and constantly changing. Most rebates are already included in quoted prices, so the real focus should be on system design, realistic energy usage, and long-term performance.
Understanding how rebates actually work puts homeowners in a far stronger position when comparing quotes and deciding when to install.
Australian Solar Rebates & Incentives – Summary Table
Program / Incentive | Location | Applies To | Indicative Value Only | Status |
Small-scale Renewable Energy Scheme (STCs) | Australia-wide | Solar panels (<100kW) | Often several thousand dollars | Active (reducing yearly) |
Large-scale Renewable Energy Target (LGCs) | Australia-wide | Commercial solar | Ongoing certificate income | Active |
Federal Battery Rebate | Australia-wide | Home & small business batteries | ~25–30% battery cost reduction | Active |
NSW Battery VPP Incentive | NSW | Battery + VPP | Modest incentive | Active |
Solar Homes Program | VIC | Solar panels | Panel rebate + loan | Active |
Solar for Apartments | VIC / NSW / NT | Shared solar | Capped per dwelling | Active (limited rounds) |
WA Battery Subsidy | WA | Batteries | Higher in regional area | Active |
Zero-interest Battery Loans | WA / ACT | Batteries | Loan-based support | Active |
Feed-in Tariffs | All states | Exported solar energy | A few cents per kWh | Ongoing |
Solar Rebates: 2025 vs 2026 – What’s Changed?
Solar Panels
Each year, the federal solar rebate reduces slightly as the scheme moves toward its planned end in 2030. A system installed in 2025 generally attracts more STCs than the same system installed in 2026.
Batteries
Battery incentives have expanded nationally, with the federal battery rebate applying in both 2025 and 2026. Some states have shifted support from grants to loans and VPP participation.
State Programs
More state rebates have closed than opened, with a growing focus on targeted groups such as apartments, VPPs, and low-income households.
Feed-in Tariffs
Feed-in tariffs have not materially improved and remain retailer-driven.
Can Federal and State Rebates Be Combined?
In most cases, yes. Homeowners can often combine:
- the federal solar rebate
- the federal battery rebate
- state rebates or loans (where available)
- feed-in tariffs
Eligibility rules still apply, and not all incentives stack automatically.
Feed-in Tariffs Explained
Feed-in tariffs are payments from electricity retailers for surplus solar energy exported to the grid They:
- are not government rebates
- vary by retailer and electricity plan
- are generally modest compared to self-consumption savings
Most financial benefit from solar comes from using your own electricity rather than exporting it.
How Solar Rebates Are Calculated
Solar Panels (STCs)
STCs are calculated based on:
- system size
- postcode solar zone
- installation year
As an example only, a typical 6.6kW system installed in a major city in 2025–2026 may generate around 85–95 STCs. The dollar value depends on the market price at the time.
Batteries
Battery rebates are calculated per usable kilowatt-hour, up to a capped amount, and depend on eligibility rules in place at installation time.