From 1 July 2025, Australia’s renewable energy sector will undergo significant changes, introducing new solar rebates, battery incentives, and updated feed-in tariff regulations across all states and territories. Homeowners and businesses will have fresh opportunities to benefit from clean energy upgrades. Whether you’re interested in installing rooftop solar, joining a virtual power plant, or combining federal and state solar programs, these updates will redefine how Australians access, store, and profit from renewable energy. Here’s a comprehensive overview of the new policies rolling out nationwide.
Federal: Cheaper Home Batteries Program
The federal government is launching the $2.3 billion Cheaper Home Batteries Program, which offers a 30% rebate on solar battery systems ranging from 5kWh to 100kWh (the rebate is applicable for systems up to 50kWh). This initiative aims to make battery storage more affordable, reducing costs from over $10,000 to approximately $6,000. Importantly, this rebate can be combined with certain state incentives, encouraging more households and small businesses to adopt battery storage solutions.
South Australia and New South Wales: Feed-in Tariff Changes and Evolving Battery Incentives
In South Australia, the removal of mandated minimum feed-in tariffs allows energy retailers to set their own rates. Homeowners should check with their providers to understand the credits they will receive for excess solar energy. In New South Wales, the Peak Demand Reduction Scheme (PDRS) battery rebate concluded on 30 June 2025. The focus will now shift to encouraging battery owners to connect to Virtual Power Plants (VPPs). The VPP incentive has increased to up to $1,500, depending on battery size, and can be combined with the federal Cheaper Home Batteries Program. This combined support aims to enhance affordability and promote grid stability through increased VPP participation.
Victoria: Feed-in Tariff Reductions and Gas Reforms
Victoria’s minimum flat feed-in tariff is set to drop dramatically from 3.3c/kWh to just 0.04c/kWh. This change reflects the diminishing value of excess solar energy fed back into the grid. Additionally, Victoria is committed to making all new homes and most new commercial buildings electric-only starting January 2027. From March 2027, any gas systems reaching the end of their life must be replaced with electric alternatives, further advancing the state’s renewable energy adoption.
Queensland: New Planning Laws for Renewable Projects
Queensland has introduced the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Bill 2025. This legislation mandates that developers of large-scale renewable energy projects, such as wind and solar farms, conduct social impact assessments and establish community benefit agreements prior to submitting development applications. The goal is to ensure local communities are actively engaged and benefit from renewable energy developments.
Northern Territory: Electricity Price Changes and Feed-in Tariff Adjustments
Residents in the Northern Territory will see a 3% increase in electricity prices, which is above the inflation rate. To help offset these higher costs, the NT government is increasing the Community Services Obligation to $192 million, significantly lowering electricity bills, especially in remote areas. Additionally, the solar feed-in tariff will double for energy exported between 3pm and 9pm, incentivizing solar energy production during peak demand hours.
Western Australia: Launch of the Residential Battery Scheme
Western Australia is introducing its Residential Battery Scheme, which provides rebates and no-interest loans for solar battery installations. This initiative can be combined with the federal Cheaper Home Batteries Program, offering substantial financial support to households investing in battery storage solutions.
Tasmania: Continued Support for Battery Installations
Tasmania will continue to offer interest-free loans for the installation of home batteries, helping residents adopt renewable energy solutions. This initiative complements the federal Cheaper Home Batteries Program, making battery storage more accessible and affordable for Tasmanians.
National Electricity Market: Post-2025 Market Design
The Energy Security Board is implementing the Post-2025 Market Design to modernize the National Electricity Market. This reform addresses the integration of new technologies, large-scale renewable energy generation, and storage systems. It also focuses on enhancing consumer energy options, including rooftop solar, to ensure a reliable and efficient electricity market that meets evolving consumer needs.
Conclusion
The renewable energy landscape in Australia is rapidly evolving, with significant updates taking effect from 1 July 2025. These changes aim to encourage the adoption of renewable energy solutions, enhance community involvement, and modernize the electricity market to meet future demands. Households and businesses are encouraged to stay informed and take advantage of the available incentives to contribute to Australia’s sustainable energy future.