Key takeaways:
Energy rebates can reduce upfront upgrade costs for eligible solar panels, batteries, hot water systems and other energy-efficient improvements.
Energy concessions help eligible households lower electricity and gas bills, with assistance varying by state, territory and personal circumstances.
Eligibility depends on the program, property and installation requirements, so check available incentives before committing to an upgrade.
Rebates may not cover the full upgrade cost. Savings, home equity, green finance and other borrowing options may help fund the balance.
Energy upgrades aren't guaranteed to pay for themselves. Compare installation costs, expected bill savings, financing expenses and your ownership timeframe.
Energy rebates can help homeowners reduce the upfront cost of eligible upgrades, including solar panels, batteries and energy-efficient appliances.
Meanwhile, energy concessions help eligible households lower their ongoing electricity and gas bills. Understanding available government incentives, eligibility requirements and financing options can help you budget for energy-efficient home upgrades.
Energy rebates vs concessions at a glance
Comparison | Energy rebates | Energy concessions |
|---|---|---|
What they cover | Eligible home energy upgrades | Electricity and gas bills |
Who provides them | Federal, state and territory governments, sometimes through installers or retailers | Primarily state and territory governments |
Typical eligibility | Property, product and program requirements | Concession card status, household circumstances and location |
How assistance is provided | Upfront discounts or post-installation payments | Bill discounts or payments |
You might also be interested in: First-home buyer grants and concessions in Australia
What are energy rebates?
Energy rebates are government-backed discounts or payments that help cover eligible home energy upgrades. They may be offered by federal, state or territory governments and generally work in two ways:
Upfront discounts | Post-installation rebates |
|---|---|
Applied through participating installers or retailers to reduce purchase or installation costs. | Paid after you complete an eligible upgrade and submit a claim, subject to program requirements. |
Unlike rebates, discounted finance reduces borrowing costs rather than the upgrade price. You'll still need to repay the loan, including any applicable interest and fees.
Rebate availability, amounts and eligibility criteria vary by program and location. Check official government sources before committing to an upgrade.
You might also be interested in: Stamp duty concessions for non-first-time home buyers
What are energy concessions?
Energy concessions help eligible Australian households reduce their electricity and gas bills through government discounts or payments.
Eligibility varies by state or territory and may depend on circumstances or concession card status, such as holding a Pensioner Concession Card or Health Care Card.
Check the Government's energy rebates finder and your state or territory government's website for current assistance. Eligibility, program availability and requirements can change, so confirm the details before committing to an upgrade.
What home upgrades can energy rebates help with?
Government energy rebates may help cover the cost of eligible solar, battery and energy-efficiency upgrades. Available incentives vary by upgrade type and location.
Common eligible upgrades include:
Solar panels: The federal Small-scale Renewable Energy Scheme (SRES) provides incentives for eligible rooftop solar installations through small-scale technology certificates (STCs). An eligible installer or retailer may apply the value as an upfront discount, depending on the arrangement and current scheme requirements.
Home batteries: The federal Cheaper Home Batteries Program offers upfront discounts on eligible battery installations, with revised discount rules applying from 1 May 2026. The discount depends on the battery capacity and installation date, not just when the contract is signed. Check the current rules before committing.
Hot water systems: Some programs offer rebates for eligible heat pumps and other energy-efficient hot water systems.
Heating, cooling and appliances: State and territory incentives may support upgrades to energy-efficient heating, cooling and household appliances.
Insulation and windows: Some programs cover eligible insulation, draught-proofing and window improvements to improve thermal efficiency.
Use the rebates and assistance finder to check available incentives in your area. Eligibility, rebate amounts and program conditions vary, so confirm the requirements before proceeding with an upgrade.
You might also be interested in: Top 10 renovations that add the most value to your home
Who can get energy rebates?
Energy rebate eligibility depends on the program, property location and proposed upgrade. While many schemes target homeowners, some also support renters, landlords and strata properties. Eligibility may differ by property type:
Owner-occupiers: Many programs cover eligible upgrades to a principal place of residence.
Landlords: Some rebates apply to investment properties, subject to additional conditions.
Renters: Certain programs allow renters to access rebates with the property owner's approval.
Strata properties: Apartments and strata-managed properties may qualify, subject to infrastructure and strata approval requirements.
New and existing homes: Eligibility may depend on the property's age, type and existing installations.
Before proceeding with an upgrade, check:
Location: Is the rebate available in your state or territory?
Product: Does the upgrade meet the program's requirements?
Installer: Is the installer appropriately accredited or approved?
Timing: Does the installation meet the program's deadlines and conditions?
However, meeting these requirements doesn't guarantee approval. Confirm your eligibility through the relevant government program before committing to an upgrade.
How can homeowners pay for the rest of an upgrade?
Homeowners can use savings, access available home loan funds or consider other financing options to cover the difference. Borrowing may spread the cost, but it can also increase repayments, interest and total borrowing costs.
Here's how five common options compare:
Funding option | Potential benefit | Key consideration |
|---|---|---|
Savings | Avoids borrowing costs | Reduces cash reserves |
Accesses available funds | May increase loan interest costs | |
Home loan top-up | Spreads costs through additional mortgage borrowing | May increase total interest paid |
Green finance | May offer discounted rates for eligible upgrades | Product and lending criteria apply |
Personal loan or retailer finance | Provides separate financing | Rates, fees and terms vary |
If you're considering borrowing against your home, understand how each option affects your repayments:
Redraw or offset: Accessing redraw funds increases your outstanding loan balance, while withdrawing offset savings reduces your interest savings. Both can increase interest costs.
Home loan top-up: You may be able to access your home equity to fund upgrades. However, spreading additional borrowing over a longer loan term can increase total interest costs.
Other finance options: Personal loans, retailer finance or refinancing may be worth considering. Compare interest rates, fees, repayment terms and total costs.
Roy Siu, an Aussie Broker at Aussie Tarrangindi, recommends reviewing your existing home loan before accessing equity for upgrades.
"The first thing would be to investigate your current home loan and see what the rates are. Obviously, if they are at a competitive rate, we'll probably stay with where they are now, and they'll do a cash-out from the existing lender," Roy says.
If your current rate is competitive, accessing equity through your existing lender may be worth considering. Otherwise, refinancing could be an option.
"If we see an opportunity to find a better rate out there, I will let them know, 'Hey, other lenders are offering a better rate. I think it's worth moving the whole home loan to another lender or getting some cash out with the new lender,' and we'll do it that way," he adds.
Roy also notes that lenders may assess whether planned renovations involve structural changes, which can affect the information required when applying for additional funds.
The CEFC Household Energy Upgrades Fund supports discounted finance for eligible home energy upgrades through participating finance providers. The CEFC does not lend directly to individual borrowers or assess applications; participating providers assess applications and offer the relevant products. All borrowed funds must be repaid.
You might also be interested in: How to use home equity to renovate your property
What is a green home loan?
A green home loan may offer discounted interest rates or other benefits for eligible energy-efficient properties or upgrades, such as solar panels and batteries.
When comparing green home loans, consider:
Interest rates and fees: Compare upfront, ongoing and total borrowing costs.
Eligible upgrades: Check which improvements or energy-efficiency standards qualify.
Loan features: Review repayment terms, redraw and additional repayment options.
Lending criteria: Check borrowing limits and eligibility requirements.
A lower advertised rate doesn't always mean lower overall costs.
An Aussie Broker can help you compare eligible loan options and assess which features suit your circumstances.
Are energy upgrades worth it?
Energy upgrades may reduce household bills, but whether they're worth the investment depends on installation costs, potential savings and how long you'll benefit.
Consider four key factors:
Net installation cost: Calculate the total cost after eligible rebates and discounts.
Household energy use: Assess when and how much energy you use. Solar panels, for example, may deliver greater savings when you use electricity during daylight hours.
Expected bill savings: Estimate savings based on energy consumption, tariffs and system performance.
Ownership timeframe: Consider whether you'll stay in the property long enough to recover the upfront cost.
For example, an upgrade costing $6,000 after rebates that saves an estimated $1,000 annually would have a simple payback period of six years ($6,000 ÷ $1,000).
Remember: This hypothetical example excludes financing costs, maintenance and changes in energy prices. Actual savings will vary.
If you're borrowing to fund upgrades, factor in interest costs when assessing potential savings. Aussie's home loan repayment calculator can help estimate how additional borrowing may affect your repayments.
Energy-efficient features may also appeal to prospective buyers, although their impact on property value depends on local market conditions and buyer demand.
How to get started with energy rebates
Follow these five steps to check available rebates, compare costs and prepare for your home energy upgrade.
Find available rebates: Use the Australian Government's rebates finder and your state or territory government's website to check available incentives.
Compare installation quotes: Get quotes from eligible installers, comparing costs, equipment, warranties and inclusions.
Confirm how rebates apply: Check whether the discount is included in your quote or requires a separate claim after installation.
Plan your budget: Calculate your remaining costs after rebates, including any financing costs.
Check installation requirements: Confirm deadlines, approvals and required documents before signing a contract.
If you need finance for your upgrade, an Aussie Broker can help you explore borrowing options and estimate repayments before committing. All lending is subject to lender assessment and approval.
Need help financing your home energy upgrades?
Government energy rebates may make home upgrades more affordable, but consider how you'll cover any remaining costs and whether additional borrowing suits your budget.
An Aussie Broker can help you review your existing home loan features, assess available equity, explore financing options for eligible upgrades and understand how additional borrowing may affect repayments.