From battery rebates to renewable targets, government policy is reshaping Australia's energy landscape. Here's what's currently in play.
Stats updated: 2026-05-31
For solar panels, the federal Small-scale Renewable Energy Scheme (SRES) provides an upfront discount via Small-scale Technology Certificates (STCs), though the deeming period reduced on 1 January 2026, leading to a 15-20% reduction in the discount. For batteries, the federal Cheaper Home Batteries Program offers an upfront discount via STCs, which from 1 May 2026, is approximately AUD$252 per usable kWh for the first 14 kWh, with reduced rates for larger systems. State-specific battery incentives are stackable: NSW offers a Peak Demand Reduction Scheme (PDRS) VPP incentive up to AUD$1,500 (gross); Victoria's standalone battery rebate is closed, but interest-free loans up to AUD$8,800 for solar PV are available; Queensland's Battery Booster program is closed, relying on federal rebates; Western Australia's Residential Battery Scheme offers up to AUD$1,300 for Synergy customers or AUD$3,800 for Horizon Power customers, plus interest-free loans up to AUD$10,000; South Australia's Home Battery Scheme provides a direct subsidy and VPP incentives up to AUD$2,050; and the ACT offers low-interest loans up to AUD$15,000 for clean energy technologies, including batteries, alongside federal STCs.
From 1 July 2026, Default Market Offer (DMO) prices are set to change across various states. New South Wales residential flat rates are projected to fall between 3.4% (AUD$66) and 5% (AUD$137), with smart meter time-of-use contracts seeing reductions from 3.7% (AUD$72) up to 7.7% (AUD$211). South-East Queensland will experience flat rate drops of 7.2% (AUD$155) and smart meter time-of-use reductions of 10.7% (AUD$229). Victorian households on the Default Offer are expected to save an average of AUD$84 annually. Conversely, South Australian flat-rate standing offers will see a modest increase of 1.4% (AUD$33), though time-of-use contracts will benefit from a 1.1% price drop (AUD$25). The universal federal Energy Bill Relief Fund for households largely concluded on 31 December 2025, meaning most households will no longer receive automatic federal credits on their electricity bills from January 2026 onwards.
The Safeguard Mechanism is a federal policy requiring Australia's heaviest emitters to reduce emissions by 4.9% each year until 2030. This mechanism is a core component of the government's emissions-reduction agenda and is scheduled for review from 2026-2027 to ensure it aligns with the 2035 emissions target. Australia's large-scale renewable energy target for 2026 is 33,000,000 MWh, with the Clean Energy Regulator setting the 2026 renewable power percentage at 16.67%. The federal government's broader ambition is to achieve 82% renewable energy by 2030. To support this, the Capacity Investment Scheme (CIS) Tender 4 aims to allocate 6 GW of new renewable energy generation across the National Electricity Market, including specific targets of 2.2 GW for New South Wales and 1.4 GW for Victoria.
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The AER has finalised Default Market Offer prices for 2026-27, revealing potential savings up to $705 for businesses and introducing a new Solar Sharer Offer for smart meter households from July, providing 3 hours of free daily electricity.
Queensland's $200 million North West Energy Fund opens bids, targeting new generation and storage projects to enhance energy security and affordability by 2030.
Australia's most powerful battery, the Waratah Super Battery in NSW, faces a $90 million payment reduction due to project delays, confirmed by the AER on May 30, 2026.
Millions of Australian households and small businesses will see electricity bill reductions from July 1, 2026, following the AER's final DMO and Victoria's VDO decisions.
Tasmania secures up to AUD$1.5 billion in federal Capacity Investment Scheme funding for the 341 MW Cellars Hill Wind Farm and 200 MW Weasel Plains Solar Farm, aiming to power 160,000 homes and stabilise energy prices by 2030.
Australia's 2026-27 Federal Budget allocates $97.2 million to establish a new Consumer Energy Resources (CER) National Technical Regulator, impacting household solar, batteries, and EVs by setting new standards for grid integration.
Federal government mandates a 20% East Coast gas reservation from July 2027, backed by $35.5M, aiming to stabilise supply and lower bills.
The Victorian Government's 2026 Budget allocates $28 million for hot water system rebates and introduces a 'Midday Power Saver' program. Discover how these initiatives can cut your energy bills.
Gladstone's Boyne Island Aluminium Smelter secures AUD$2 billion in government funding to transition to renewable energy, aiming to unlock AUD$7.5 billion private investment by 2036.
The Federal Budget 2026-27 confirms a phased reduction of the Electric Vehicle Fringe Benefits Tax exemption, impacting EVs over $75,000 from April 2027.
Victoria commits an additional $250 million to accelerate renewable energy zone transmission upgrades, targeting 6GW of new capacity and lower electricity bills by 2035. Learn how this policy impacts you.
New South Wales introduces legislation in May 2026 to accelerate 16 GW of renewable energy and 42 GWh of storage, aiming to replace coal and secure grid reliability.
Western Australia has secured over $5 billion in new renewable energy and battery projects through federal tenders, boosting grid stability and emissions reduction by 2030.
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Queensland's decision to repeal its renewable energy targets and unveil a new Energy Roadmap has sparked debate. Discover the implications for energy reliability, affordability, and the state's transition in 2026.
Prime Minister Albanese announces a $45 million federal initiative to streamline energy and resources project approvals, aiming for a single-touch process in Australia by 2026. This policy aims to accelerate critical infrastructure development.
New 2024-25 Safeguard Mechanism data shows industrial emissions reductions are 'on track' but reliance on offsets sparks debate ahead of the crucial 2026-27 review.
Australia's Clean Energy Regulator released 2024-25 Safeguard Mechanism data this week, revealing a 2.3% emissions drop and setting the stage for a critical 2026-27 policy review.
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