Is solar energy in Australia worth the hype?

Solar energy has become increasingly popular in Australia, with more households making the switch to solar power every year.

With Australia’s abundant sunlight and falling installation costs, solar energy offers a viable and cost-effective solution to reduce electricity bills, improve sustainability, and increase energy independence.

But is solar energy really worth the hype? For many, the answer is a resounding yes, thanks to government incentives and rebates that make the transition more affordable.

With state and federal programs offering financial support for installation, Australians can take advantage of these rebates to significantly reduce the upfront cost of solar systems.

In this article, we’ll break down the solar energy rebates available across each state in Australia in 2025 and explain how you can get your hands on these incentives. We’ll also look at whether solar energy actually lowers your power bills and provide top reasons to make the switch to solar today.

State by state: What solar energy rebates are available?

Australia has different solar energy rebate schemes depending on the state or territory.

While the federal government provides a rebate through the Small-scale Renewable Energy Scheme (SRES), each state offers its own additional incentives to help residents reduce the cost of installing solar panels. Here’s a look at what’s available in 2025:

New South Wales (NSW)

NSW provides a number of incentives for solar panel installations, including:

• Solar for low-income households: Through the NSW Energy Saver Scheme, low-income households can access financial assistance for solar system installations, which can reduce upfront costs.
• Solar panel rebates: While NSW doesn't offer a direct rebate for solar installation in 2025, the SRES federal rebate is still available to residents for small-scale solar power systems.

Victoria

Victoria offers one of the most generous solar incentives in Australia:

• Victorian Solar Homes Program: Homeowners can access a rebate of up to $1,400 for the installation of solar panels (depending on household income). For those who install solar batteries, there is also an additional $2,500 rebate available.
• Solar for renters: The Solar for Renters initiative allows renters to access solar power systems with no upfront costs through a special arrangement with their landlord.

Queensland

There are no solar energy rebates in Queensland. On the other hand, homeowners may install rooftop solar panels and qualify for state and federal solar subsidies and incentives.

• Solar panel rebates: While QLD doesn't offer a direct rebate for solar installation in 2025, the SRES federal rebate is still available to residents for small-scale solar power systems.

South Australia

As of 2025, South Australia no longer offers a rebate directly for solar panel installations, but residents can still benefit from federal government rebates.

Solar panel rebates: While SA doesn't offer a direct rebate for solar installation in 2025, the SRES federal rebate is still available to residents for small-scale solar power systems.

Western Australia

Western Australia does not have a state-level solar rebate program, but there are other ways to save:

• Renewable Energy Buyback Scheme: The Solar Feed-in Tariff allows households with solar power to receive payments for any excess energy sent back to the grid. This makes it easier for solar users to recoup the cost of their systems.
• Solar panel rebates: While WA doesn't offer a direct rebate for solar installation in 2025, the SRES federal rebate is still available to residents for small-scale solar power systems.

Tasmania

Tasmania offers the Home Solar Battery Scheme, which provides rebates to residents looking to install both solar systems and energy storage solutions:

• Solar battery rebates: This scheme offers rebates of up to $5,000 for the installation of solar batteries, which can help make solar more affordable.
• Solar panel rebates: While TAS doesn't offer a direct rebate for solar installation in 2025, the SRES federal rebate is still available to residents for small-scale solar power systems.

Australian Capital Territory (ACT)

The ACT is known for offering substantial support for solar systems:

• ACT Solar for Homes Program: This program provides interest-free loans to eligible households, which can help reduce the upfront cost of installing a solar system.
• Subsidies for solar battery systems: In addition to solar panel incentives, the ACT also provides rebates for installing battery storage, which can further enhance your energy savings.

Northern Territory

Currently, the Northern Territory does not have specific state-based rebates for solar power, but:

• Federal government rebates: Residents can access the federal SRES, which provides subsidies for installing small-scale solar systems.

How to get a solar energy rebate in Australia

To claim a solar energy rebate, you’ll need to follow these steps:

• Speak to our team: At Compare Energy, we’re uniquely qualified to talk you through your options for solar energy for your home. Talking to our friendly, Australia-based team gets you the answers you need as to whether you are eligible for the solar energy rebate schemes in your state.

• Research eligibility: First, check your eligibility for the various rebates available in your state or territory. Some programs are income-dependent, while others are available to all homeowners.
• Get a quote: Contact an accredited solar installer to get a quote for your solar system. They will provide a detailed breakdown of the installation costs and let you know which rebates you qualify for.
• Apply for the rebate: Your solar installer will usually help you with the application process. For federal rebates, the installer will submit the claim on your behalf to access the Small-scale Technology Certificate (STC) rebate.
• Complete the installation: Once the rebate is approved, your solar system will be installed, and you can start benefiting from lower electricity bills and a reduced environmental footprint.

Note that each state or territory may have specific application processes and requirements, so it’s always best to check with your local government or a certified installer for the most current information.

Does solar energy lower your power bills?

Yes, solar energy can significantly reduce your power bills. By installing a solar power system, you generate your own electricity, which reduces your reliance on the grid. The savings will depend on several factors, including:

• System size: The more panels you install, the more energy you can generate. Larger systems are especially useful for households with high electricity demand.
• Energy consumption habits: The more electricity you use during the day (when solar panels are most effective), the more money you’ll save.
• Feed-in tariffs: Some states offer feed-in tariffs, where you can sell excess energy back to the grid, which can provide additional savings.

Typically, Australian households can save anywhere from $500 to $1,500 per year on their electricity bills after installing a solar system, depending on the size and location of the system.

Top 10 reasons to say yes to going solar in Australia

1. Lower electricity bills: Solar panels generate free electricity from the sun, which can significantly reduce your power costs.
2. Reduce your carbon footprint: Solar power is a clean, renewable energy source, helping you reduce your impact on the environment.
3. Government rebates: Take advantage of federal and state rebates to reduce the upfront cost of installation.
4. Energy independence: By generating your own electricity, you reduce your dependence on the grid and avoid price hikes.
5. Increase home value: Installing solar panels can increase the resale value of your home.
6. Solar battery storage: With battery storage, you can store excess energy and use it at night or during power outages.
7. Substantial long-term savings: While there is an upfront cost, solar systems typically pay for themselves in 5–7 years.
8. Job creation: The solar industry creates thousands of local jobs, helping to stimulate the economy.
9. Improved technology: Solar panels are more efficient and affordable than ever before.
10. Future-proof your home: As electricity prices rise, having a solar system will keep your energy costs predictable and lower over the long term.

Contact Compare Energy today

Solar energy is a smart, sustainable, and cost-effective solution for Australians looking to reduce their electricity bills and their environmental impact. With generous rebates available across the country, making the switch to solar has never been more accessible.

If you’re ready to explore solar options and take advantage of the latest rebates available in your state, speak to the team at Compare Energy today on 1300 790 106. Our experts can help you navigate the best solar plans and rebates tailored to your needs. Start saving today!