Solar Grants for Homeowners in Australia: A Brief Overview of All Government Solar Subsidies

The Australian Government offers solar grants for homeowners to ensure a win-win situation. Firstly, the homeowners are saving a significant amount on the upfront cost of installing rooftop solar. Meanwhile, the government is incentivizing people to move to clean energy. As a result, they are able to reduce stress on the electrical grid and decentralize power distribution. Also, as more households move to solar energy, there is a reduction in carbon emissions, and the government can achieve its climate goals.

The foundation of the Australian solar grants is the small-scale renewable energy schemes (SRES). For a typical 6.6 kW system in Sydney (Zone 3) in 2026, the SRES rebate is roughly $1,700–$1,800; however, the exact savings varies by size, location, and STC market price.

Your solar unit becomes even more profitable when you add a battery. Therefore, the government also offers the Cheaper Home Batteries Program. Combining the two, you might be able to save $5000-$7500 on the full installation of the standard system (solar+battery).

In addition to those federal programs, there are many state-specific solar grants for Australian homeowners. You can stack them with the federal incentives to get a bigger cost cut during the initial installation. Find out more.

The Major Federal Solar Grants for Homeowners in Australia 2026

There are three major federal solar grants to help the transition of Australian homes from grid electricity to solar power. The SRES is the most well-known, which offers rebates on the initial installation cost. Meanwhile, the Cheaper Home Batteries program aims to help households store and make the most out of the energy they generate. While these two are cost-cutting programs, the Household Energy Upgrade Fund offers loans to those looking to make the change.

Small Scale Renewable Energy Scheme (SRES)

The SRES is the foundation of solar grants for homeowners in Australia. The scheme started in 2011 as part of the RenewableEnergy Target and will end in 2030. The grant works using Small Scale Technology Certificates (STCs).

When someone puts up a solar panel on their roof, the government estimates how much renewable energy that system will produce until the end of 2030. Each of these estimated megawatt hours is equal to one STC. Depending on your unit size and zone, your eligibility for the number of certificates may vary. You can use this calculator to find out the number of STCs you are entitled to.

Now, the government legally demands that large electricity retailers buy a certain number of these STCs every year to meet RETs. Therefore, STCs have a dollar value that fluctuates between $35 to $40. Since the retailers must buy them, you don’t have to go out there and find a buyer for your STCs yourself. Instead, your solar panel retailer will calculate the value of the STCs on your unit and offer them as an upfront discount on your quote.

Let’s say you live in a sunny area like Sydney, which is zone 3. You put up a standard 6.6 kW on your rooftop. In 2026, such a unit can generate around 45 STCs. Assuming one STC is $38 dollars, your upfront discount will be around $1710.

Remember that the rebate shrinks by 6-7% each year on January first until it ends in 2030. So, the sooner you install, the more upfront discount you get. Here’s an estimation of how the cost cut on the unit in our example might look in the coming years.

Year	Deeming Period (time left)	Estimated STCs	Total Upfront Saving
2026	5 years	~45 certificates	$1,710
2027	4 years	~36 certificates	$1,368
2028	3 years	~27 certificates	$1,026
2029	2 years	~18 certificates	$684
2030	1 year	~9 certificates	$342

So, by 2030, the federal savings for a standard unit drop to roughly $340, losing over 80% of its current value as the program reaches its end.

All Australian homeowners, community facilities, and small businesses are eligible for this scheme. Just ensure your system has a capacity of under 100 kW. You should also install only CEC-approved panels and inverters. Plus, your system must only be installed by a SAA-accredited installer. You can learn more from this complete guide to STCs in Australia.

Cheaper Home Batteries Program

You can think of the Cheaper Home Batteries Program as the SRES for solar batteries. Like SRES, this program reduces the upfront cost of batteries through a certificate system that gets you a discount from your installer.

The Cheaper Home Batteries Program started on July 1, 2025. It aims to help Australians make the most of the energy they generate on their rooftops.

Without a battery, much of the energy the panels produce goes to waste. When they can’t store the energy, people sell the excess electricity to the grid for a mere 5-10 c/kWh. However, the grid charges you 30-40 c/kWh for this same energy. If you have a battery, you can store the excess and use it at night. Thus, you save yourself from paying the excess energy bill.

Batteries also help you join a Virtual Power Plant or VPP. This lets you rent your battery and earn a premium rate on your stored electricity instead of that 5-10 c/kWh.

In 2026, you save roughly ~$272/kWh per kWh of battery size. So, for a standard 10 kWh battery, you can get like $2,720 in discounts. Remember, the Cheaper Home Batteries Program is an extension of the SRES. So, it also ends in 2030, and the STCs shrink by 6-7% each year. That means, in 2030, you will only get a $500 discount on this same 10 kWh battery.

You should also know that as of May 2026, the government has moved to a tiered rebate model instead of offering flat rates per kWh. This is to ensure that the solar battery grants benefits to the largest number of households possible instead of a few wealthy ones.

According to the new model, you will get the full $272/kWh (approx.) rebate on your battery as long as it is no bigger than 14 kWh. For bigger batteries, the rebate rate drops to 60 percent for up to 28 kWh. Any additional capacity beyond this, and the rebate drops to fifteen percent for that extra portion. The solar battery grant in Australia applies to 100 kWh batteries, and so is smaller than 5 kWh.

For a 20 kWh usable capacity battery installed post-May 1, 2026 (STC factor 6.8, $40/STC)

• First 14 kWh: 14 × 6.8 × 100% = 95.2 STCs × $40 = $3,808
• Next 6 kWh (14-20 kWh): 6 × 6.8 × 60% = 24.48 STCs × $40 = $979
• (No capacity over 28 kWh, so third tier unused)

So, the total rebate will be ($3,808 + $979) = $4787

This ensures that people don’t abuse the rebate by installing ridiculously large batteries in their homes, while also allowing the greatest number of households to afford the standard 10-14 kWh batteries. Make sure you are installing a battery approved by the CEC and use a CEC-accredited installer like Aussie Solar Tech. This full guide can help you understand this program better.

Green Loans

Even after applying the rebates, a full installation of a standard 6.6 kW solar panel paired with a 10 kWh battery costs around $8000-$13000 in May 2026. It’s true that the unit pays this back to you within 3-5 years in the form of bill savings. Still, many people don’t have that kind of cash just lying around. Meanwhile, there are only a few years left for homeowners to take advantage of the solar grants.

The solution is Green Loans. It’s based on the $1 billion Household Energy Upgrade Fund that CEFC manages. Well, Clean Energy doesn’t give the homeowner a loan directly. Instead, it backs up private institutions like Westpac, NAB, and Plenti. You, as an Australian homeowner, will apply to these banks for a Green Loan to pay for your Solar plus Battery installation. Considering you fulfil all criteria, the bank will grant you a loan, typically 1–3% lower than standard loan rates depending on the lender.

Suppose you install a premium solar and battery system costing $15,000 (after rebates). In this case-

•   Standard Loan (9%): You might pay $3,600 in interest over 5 years.
•   HEUF Green Loan (6%): You pay roughly $2,300 in interest.
•   Total Saving:$1,300 in interest, plus your monthly electricity bill savings, will most likely exceed the monthly loan repayment.

To be eligible for this, you have to pass the following-

•   Homeowners: Must be a legit owner of the property where they install the tech.
•   Credit Worthy: You need to pass the bank’s standard credit check.
•   Approved Tech: Solar, Batteries, Heat Pumps, Insulation, or EV Chargers.
•   Most lenders require you to use a New Energy Tech Consumer Code (NETCC) Approved Seller, like us. Using an installer who is not NETCC-accredited can result in rejection of the Green Loan application.

Solar Grant for Homeowners in Different Australian States 2026

While federal solar grants can help you make the major cut on the upfront cost, you can save maybe a thousand more by stacking up a state-specific rebate. Use the following table to find out what kind of solar incentive your state is offering.

State	Solar Grant	Cost Reduced Parts	Eligibility	Other Info
Victoria	Solar Panel Rebate	Up to $1,400 discount	Income <$210k; property <$3M	Available for homes under construction.
	Solar for Rentals Rebate	Up to $1,400 discount	Landlords with tenant agreement	Up to two rental properties per year.
	Energy Upgrades for Business	Up to $3,500 rebate	Small businesses (<20 employees)	For systems <30kW; larger systems use VEU certificates.
	Solar Hot Water Rebate	Up to $1,000 discount	Replacing existing hot water system	Not for new builds; excludes gas-to-gas.
New South Wales	Peak Demand Reduction Scheme (PDRS)	$1,600 – $2,400 discount	NSW homeowners; 10kWh–20kWh battery	Upfront discount based on “peak reduction” value.
	VPP Incentive	$250 – $400 upfront	Connecting battery to a VPP	Managed through the Peak Demand Reduction Scheme.
	Solar for Apartments Grant	Up to $80,000 per building	Strata schemes & body corporates	Covers common areas and resident units.
	Energy Accounts Payment (EAPA)	Up to $400 per assessment	Residents in short-term financial crisis	Vouchers for utility bills.
Western Australia	Residential Battery Scheme	$1,300 (Metro) / $3,800 (Reg)	Residential customers; battery ≥5kWh	First-come, first-served; limited funding rounds.
	Distributed Energy Buyback (DEBS)	10c/kWh+ evening exports	New solar/battery or system upgrades	Higher rates for exports between 3pm–9pm.
Australian Capital Territory	Sustainable Household Scheme	$2,000 to $15,000 (3% loan)	ACT homeowners (UV <$750k)	Solar panels excluded; covers batteries and EVs.
	Home Energy Support Program	Up to $5,000 (50% of cost)	Pensioner or Health Care card holders	For solar panels and energy efficiency upgrades.
South Australia	REPS VPP Incentive	$500–$2,000 upfront	Joining a REPS-approved VPP	Savings vary significantly by retailer.
	Adelaide Sustainability Incentives	Up to $2,000 for batteries	Residents in postcodes 5000 and 5006	City of Adelaide council area only.
Northern Territory	Apartment Solar Rebate	Up to $7,500 per dwelling	Multi-unit complex apartment owners	Must be part of a shared solar installation.

Final words

The solar grants for homeowners who want to pay for panels and batteries, combined with Green Loans, take away almost all the financial burden of the initial installation. You can easily transition from old grid electricity to the much more profitable and climate-friendly solar option without hurting your savings. And whatever you spend will come back to you in as little as three to five years.

The only problem is that time is running out, and so is the number of STCs. There are only five years left, so you’d better hurry up. Our Aussie Solar Tech Team is active in all the major regions in Australia. Get in touch and let us help with your installation and solar grants.

FAQs

How do I apply for federal solar grants for homeowners in Australia?

For the federal solar grants that cover the panels and batteries, you don’t need to. Your installer will already include the discount in your upfront cost. What matters is that you use equipment and an installer accredited by the Clean Energy Council.

Do I need to apply for state-specific solar grants?

Yes, in many states like Victoria, Queensland, and the ACT, you need to actively apply. You have to find out which rebates you are eligible for at this government rebate assistance website and apply accordingly. The processes differ according to the program. Some regions, like NSW and SA, have a more passive application process like the SRES.

Do the state solar grants also end in 2030, like the SRES programs?

Most of the state programs don’t have an expiry date like 2030. So, in theory, most of them are supposed to continue even after federal programs expire. However, in reality, they are most likely to end around the same time or even before. That’s because as the number of solar-installed houses increases, the states would have no more incentive to run these programs.

What happened to Victoria’s $8,800 interest free solar battery loan?

The program has closed along with other battery supports like the Queensland battery booster rebate due to the Cheaper Home Batteries Program. Many other battery programs will soon follow suit since there is already an active federal program. Some areas, like the Northern Territory, have discontinued rebates for standalone panels since SRES is already taking care of it.