Policy

Australian Energy Policy in 2026: What It Means for You

From battery rebates to renewable targets, government policy is reshaping Australia's energy landscape. Here's what's currently in play.

Stats updated: 2026-10-18

82% by 2030
Renewable Energy Target
National electricity target
4.9% annually
Safeguard Mechanism Decline
Baseline reduction rate to 2030
Up to A$40 per STC
STC Value (Solar Rebate)
Federal point-of-sale discount
Approx. A$252 per kWh
Federal Battery Rebate
Up to 14kWh usable capacity

What are the current federal energy rebates available in Australia?

As of October 2026, the universal Australian Government Energy Bill Relief Fund, which provided up to A$150 in credits, concluded on 31 December 2025. However, federal incentives for renewable energy installations remain active. The Small-scale Renewable Energy Scheme (SRES) offers Small-scale Technology Certificates (STCs) that provide an upfront discount on eligible solar panel systems, typically valued up to A$40 per STC. Additionally, the federal Cheaper Home Batteries Program provides a discount of approximately A$252 per usable kilowatt-hour for the first 14 kWh of battery capacity, applied at the point of sale.

How much can I save on my electricity bill with state government rebates in 2026?

State government rebates vary significantly across Australia. In New South Wales, eligible households can receive the Low Income Household Rebate of approximately A$285 per year, with Family Energy Rebates also available for Family Tax Benefit recipients. Victorian households can access Solar Victoria rebates of up to A$1,400 for solar panels and A$1,400 for hot water systems (subject to a A$150,000 household income cap from 1 July 2026), alongside discounts through the Victorian Energy Upgrades (VEU) program. Queensland offers an Electricity Rebate of A$399.47 per year and a Reticulated Natural Gas Rebate of A$96.45 per year for eligible concession card holders. South Australia provides an Energy Bill Concession of A$281.78 per year and a Cost of Living Concession of A$261.90 per year for eligible cardholders. In Tasmania, the Annual Energy Concession is A$645.56 per year for eligible households. Western Australia offers targeted battery incentives of up to A$3,800 for Horizon Power customers or A$1,300 for Synergy customers, requiring Virtual Power Plant (VPP) participation. The ACT provides interest-free loans up to A$15,000 for energy-efficient upgrades through its Sustainable Household Scheme.

What are the incentives for installing solar panels and batteries in Australia right now?

Australians installing solar panels can benefit from the federal Small-scale Technology Certificates (STCs), which provide an upfront discount on the system's cost. For a typical 6.6kW solar system, this can reduce the price by approximately A$3,000 to A$3,800, with STCs currently trading around A$35–A$42 each. For home battery storage, the federal Cheaper Home Batteries Program offers a discount of roughly A$252 per usable kilowatt-hour for the first 14 kWh of capacity, applied directly by the installer. This means a 10kWh battery could see a federal discount of around A$2,520. Some states also offer additional incentives; for example, NSW provides a VPP sign-up incentive of up to A$1,500 under the Peak Demand Reduction Scheme, and WA has specific battery incentives for Synergy and Horizon Power customers.

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