What financial incentives and rebates are available to help purchase efficient electric appliances?
There’s now plenty of research to show that electrifying our homes will save us money overtime, and help reduce carbon emissions.
But one of the main barriers for many households wanting to electrify everything is the upfront cost. Efficient electric appliances like induction stoves, heat pumps and electric vehicles usually cost more than cheaper electric options, or fossil fuel appliances and vehicles.
Modelling done by the Institute for Energy Economics and Financial Analysis (IEEFA) suggests that the upfront cost for a household to choose all-electric appliances may be $2,300 more than choosing gas appliances.
Once people get past the capital cost outlay though, they’re in a much better position to reduce their ongoing energy costs and better manage the rising cost of living.
Making our homes and businesses more energy efficient means reducing the amount of money we spend on energy, and increasing the value and comfort of our homes.
Most governments now offer some financial incentives or rebates for households to help reduce the upfront cost of replacing gas and other inefficient appliances with efficient electric ones, particularly concession holders and low income households who are at greatest risk of being left behind in the energy transition.
These incentives vary from state to state and can reduce purchase costs by thousands of dollars, depending on the appliance.
Some can actually make electric appliances cheaper overall than gas appliances in some cases. For instance, IEEFA estimates that the current rebates offered through the Victorian Energy Upgrades program (VEU) could reduce the upfront cost of full household electrification by $3,500.
So if you think you're ready to purchase an efficient electric appliance, check out this list we’ve put together of government rebates each state offers. We’ll update if further incentives are announced.
It may not be totally comprehensive -it's just a place to start - so make sure you check the relevant websites yourself, and determine which programs you might be eligible for.
NATIONAL
Small-scale renewable energy scheme (SRES)
Households and small businesses that install small-scale renewable energy systems are rewarded by the Australian government, which reduces the cost of buying one by a few hundred dollars.
Eligible systems include:
- solar photovoltaic (PV) panels
- wind turbines
- hydro systems
- solar water heaters, and
- air source heat pumps.
By installing a renewable energy system you can create small-scale technology certificates (STCs). The number of STC’s a system creates will depend on the amount of renewable electricity the system produces, or the amount of electricity consumption it reduces.
Brands and models that are more efficient attract more STCs than a less efficient brand. So if you want to compare make/model efficiency, check out the number of STCs that will be applied.
It also depends on the climate region where it’s installed, but for every megawatt hour of renewable energy generated or displaced by the system, one STC is awarded.
These STC’s can then be redeemed by selling or assigning them to an agent, usually the system installer, in exchange for a discount or delayed cash payment.
The small-scale renewable energy scheme is run by the Clean Energy Regulator, and the STCs are surrendered to the CER on a quarterly basis.
However, the SRES incentives decline every year and will be phased out by 2030.
No Interest Loans Scheme (NILS)
NILS offers individuals and families on low incomes access to affordable loans of up to $2,000 for essential goods and services, and can be used to purchase new efficient electric appliances.
NILS is offered by more than 175 local community organisations in over 600 locations across Australia.
The loans are available for eligible concession holders, and people who earn less than 70,000 before tax, or $100,000 if you have a partner or children, or have experienced family violence in the last 10 years.
Household Energy Upgrades Fund (HEUF)
The Australian Government has allocated $1 billion to create the Household Energy Upgrades Fund which provide discounted consumer finance through banks and other lenders for energy efficiency upgrades, high performing appliances and battery-ready solar PV. It's expected to be available next financial year.
We'll update when details become available.
EV Incentives
The 5% Luxury Car Tax (LCT) threshold for cars imported into Australia has been raised for fuel efficient vehicles to $89,332 to encourage the uptake of more electric vehicles. The Tax Department defines fuel efficient vehicles as ones with a fuel consumption that does not exceed 7 litres per 100 kilometres. This should knock about $2500 off the purchase price.
For other cars the LCT kicks in at $76,950 for the 2023-2024 financial year.
Since July 2022, the customs duty on electric vehicles, plug-in hybrid vehicles and hydrogen fuel-cell vehicles that have a customs value less than the fuel efficient luxury car tax threshold ($89,332) have been abolished. The only exceptions are vehicles from Russia and Belarus which have an additional duty of 35%.
Since July 2022, employers don't have to pay Fringe Benefits Tax on zero emissions or low emissions cars, or the car's expenses. Benefits provided under a salary packaging arrangement are included in this exemption. This should expand opportunities for novated leasing and fleets.
The Electric Vehicle Council estimates that companies with fleets could save over $10,000 a year, and employees with a salary sacrifice agreement could save between $3000 and $5000 on their income tax each year.
QUEENSLAND
From the 4 September 2023, Queensland households, with a taxable income of $66,667 or less, can get rebates of between $300 and $1000 to replace their old washing machines and dryers, dishwashers, refrigerators, air conditioners, solar hot water and heat pump hot water systems with at least 4 star rated appliances.
The rebates are limited to one per household and will be available until the program’s funding is exhausted on a first-in, first-served basis.
Low-income households will be able to claim a higher rebate on eligible appliances.
PeakSmart air conditioning
The PeakSmart air conditioning program provides southeast Queensland households and businesses with financial incentives of up to $400 to purchase and install a PeakSmart air conditioner, with a 10kW or more cooling capacity, or to convert an existing air conditioner to PeakSmart.
$200 is provided for air conditioners with 4kW to less than 10kW cooling capacity.
PeakSmart enabled air-conditioners can communicate with the electricity network via a signal receiver which helps manage peak demand on the electricity network.
The property must be served by either the Energex or Ergon electricity distribution networks.
Zero emission vehicle rebate scheme
Queensland provides a rebate between $3000 and $6000 when you buy a new zero emissions vehicle (ZEV) – a full battery electric vehicle.
If you purchased your EV on or after 21 April 2023, and the dutiable value of the car is up to $68,000 (including GST), you are eligible for a rebate of $3000.
If you purchased it between the 16 March 2022 and 20 April 2023, and the original dutiable value was less than $58,000 (including GST), you are also eligible for a $3,000 rebate
If you purchased a vehicle with a dutiable value up to $68,000 (including GST) on or after 21 April 2023, and have a total household taxable income equal to or less than $180,000 per annum, you are eligible for a $6,000 rebate.
If you purchased a vehicle up to a dutiable value of $58,000 (including GST) between 16 March 2022 and 20 April 2023, and have a total household taxable income equal to or less than $180,000 per annum, you are also eligible for a $6000 rebate.
Queensland businesses are ineligible to receive the $6,000 rebate but may still be eligible for the $3,000 rebate.
2nd hand ZEVs, retrofitted ZEVs, hybrids, dealer models, e-mobility devices, motorbikes, boats, heavy vehicles, vehicles managed or leased through fleet management organisations are all not eligible for the rebate.
NSW
The Energy Savings Scheme provides financial incentives to install energy efficient equipment and appliances to NSW households and businesses.
Upgrades are available for:
· LED lights
· thermally efficient windows or doors
· efficient shower heads
· draft proofing
The service is provided through an Accredited Certificate Provider (ACP).
Financial incentives are in the form of tradeable certificates, called energy savings certificates (ESCs), which are created when householders and businesses fund energy savings activities and then transfer the ESCs to accredited providers. In return they receive a discount on the cost of the energy savings activity.
The megawatt hours saved from installing the energy upgrades will determine the number of ESCs that are created. ESCs are purchased each year by electricity retailers operating in NSW so they can meet their energy savings targets.
Any household located in NSW is theoretically eligible for the scheme but it will depend on whether your location is serviced by an approved supplier.
The amount of money you save depends on the model or equipment you choose - different models have different energy savings. It will also depend on the services required, and the complexity of the installation.
NSW residents currently receiving an energy rebate may be eligible to swap the rebate for a free 3 kilowatt solar system or energy efficient upgrades.
Eligible concession card holders currently receive a $285/year electricity rebate from the NSW government, and a one-off $500 rebate this financial year from the Commonwealth.
Homeowners who are prepared to use 10 years worth of rebates, and have homes that are suitable for rooftop solar, can swap their rebate for a new solar system. Those that aren’t suitable for solar can swap them for energy upgrades. Land and Housing Corporation tenants can also swap their rebates for solar.
NSW is planning to extend the Rebate Swap for solar to social housing tenants living in a property managed by the Department of Communities and Justice later in 2023.
Smart Distributed Batteries project
The Smart Distributed Batteries project offers a discount to approximately 650 residential and small business customers in the south east of NSW who purchase and install a battery and agree to join a VirtualPower Plant (VPP).
A VPP Is a network of distributed solar and battery systems that work together to supply power to the grid when it is needed most.
For example, customers who purchase a Tesla Powerwall, which provides 5kW of sustained output, are eligible for a $4,950 discount.
Customers are also paid when their battery discharges power to support the grid.
SolarHub is building the 6MW VPP as part of NSW’s large-scale electricity and storage projects.
The Smart Distributed Batteries project is being deployed in the following Council areas:
- Shoalhaven City Council
- Eurobodalla Shire Council
- Bega Valley Shire Council
- Queanbeyan-Palerang Regional Council
- Yass Valley Council (within 100km of Canberra CBD)
- Snowy Monaro Council (within 100km of Canberra CBD)
- Goulburn Mulwaree Council (within 100km of Canberra CBD)
Until January 1, 2024, the NSW Government is offering electric vehicle rebates and stamp duty exemptions.
A $3,000 rebate is available for new battery electric and hydrogen fuel cell vehicles with a dutiable value of less than $68,750.
The dutiable value of a vehicle is the total amount paid (including GST) for the vehicle, which includes delivery costs, accessories and options added to the vehicle (e.g. tow bar, special wheels, paint protection etc) and any other charges or fees levied by the dealer on the purchaser.
Along with the abolition of stamp duty, this saves EV buyers up to $5,540.
Vehicles have to be registered on or after 1 September 2021.
2nd hand vehicles, hybrids, heavy vehicles, motorcycles, airplanes, boats, and vehicles procured under a novated lease are not eligible for the rebate.
The NSW Government has however announced that it plans to introduce a road user charge by July 2027, or when EVs account for at least 30 per cent of new car sales.
ACT
The Home Energy Support Program provides eligible homeowners living in the ACT with up to $5,000 in rebates to help with the upfront costs of installing energy-efficient products.
This includes one rebate of 50% of the total price for installing rooftop solar, up to $2,500, and a further rebate, up to $2500, of 50% of the total price of installing:
- reverse cycle heating and cooling
- hot water heat pumps
- electric stoves tops and ovens
- ceiling insulation
The program is carried out by approved providers.
Eligible ACT concession holders can combine the rebates with a zero-interest loan for $2000 to $25,000 to help with the remaining costs of purchasing energy efficient products.
There are no upfront costs or fees, no interest and applicants have up to 10 years to repay the loan.
Energy efficient products include:
· solar panels
· batteries
· air conditioners
· hot water heat pumps
· electric stove tops and ovens
· electric vehicles
· EV charging infrastructure
· ceiling insulation
The program is managed by Brighte, a fintech company that provides financial solutions for homeowners to fund home improvement and energy efficiency projects.
Only freestanding homes with an unimproved value at or below $750,000 in any year from 2022 areeligible for all products in the scheme.
To be eligible for solar the unimproved value of the property must be at or below $450,000.
Units with an unimproved value at or below $300,000 in any year from 2022 are also eligible for all products.
Applicants must attend a free workshop which will show how to apply and help with appliance choices.
Energy efficient electric water heater upgrade program
ACT residents can get $500 of the purchase price of a new hot water heat pump and a $250 credit on their ActewAGL electricity bill.
Applicants must have an electricity plan with ActewAGL.
ACT residents can get a $1000 rebate to upgrade from gas heating to reverse-cycle air conditioning, and a total credit of $500 on electricity bills over 3 years.
Applicants must have an electricity plan with ActewAGL and be upgrading from ducted gas heating.
The Wood Heater Replacement Program
ACT residents can also receive the following rebates to replace wood heaters or open fireplaces with an energy-efficient reverse cycle air-conditioner:
- $250 for permanently closing off open fireplaces and removing wood heaters.
- $750 for removing a wood heater and installing an electric reverse-cycle split system with a 3-star energy rating or higher.
- $750 for removing a wood heater and upgrading an electric reverse-cycle system with a 3-star energy rating or higher.
- $1,250 for removing a wood heater and installing a ducted electric reverse-cycle system.
Zero emissions vehicle registration
ACT residents receive 2 years of free registration for new or used zero-emissions vehicles that have been purchased or acquired from 24 May 2021 and before 30 June 2024.
The discounted registration extends to plugin hybrids, hybrids and even low emission petrol and diesel vehicles.
Heavy vehicles and motorcycles are not eligible for free registration.
Stamp duty is also waived on vehicles that emit less than 130 gms of CO2 per km. This captures all EVs and many hybrids.
Zero-interest loans of up to $15,000 are also available to assist in buying an EV.
VICTORIA
Victorian Energy Upgrades (VEU)
Every Victorian household - homeowners, renters, landlords and businesses – are eligible for energy efficient products and services that can potentially save between $120 and$1100 a year on energy costs, depending on the appliance being upgraded.
The program helps with the cost of purchasing efficient appliances and products including:
- clothes dryers
- fridges and freezers (including help with recycling old fridges)
- heating and cooling systems
- hot water systems
- lighting
- pool pumps
- showerheads
- standby power controllers
- TVs (7 star rating or above)
- insulation
- window glazing
- Weather sealing
The program has also been expanded to support Victorian households to replace gas appliances with efficient electric alternatives, install smart appliances, and receive home energy rating systems.
For instance, inefficient gas storage and instantaneous hot water systems can be replaced with heat pump hot water systems, or electric boosted solar hot water systems.
Victorians who install an electric boosted solar water heater and ditch an inefficient electric water heater will receive a discount of around $1320. Those who install a heat pump hot water heater save around $900.
Households who replace an inefficient gas water heater, and install a heat pump hot water heater, will receive a discount of around $420, and if those who install an electric boosted solar hot water system, will receive around $540.
When energy efficiency upgrades are undertaken electronic certificates are created, called Victorian Energy Efficiency Certificates (VEECs). Each certificate represents one tonne of greenhouse gas emissions reduction.
Once created the certificates can be sold to energy retailers who must surrender them each year to the Essential ServicesCommission.
The discount that a customer receives will depend on the certificate price (which fluctuates), the location of the property, installation costs, and the administrative costs of the provider.
Providers have to be accredited and authorised to install the Victorian Energy upgrades products, and only specified energy-saving products are available. The providers are responsible for organising the discount or rebate. The also provide advice on what products to use, and the qualifications of the tradesperson installing the product.
The Institute for Energy Economics and Financial Analysis estimates that the current rebates offered through the VEU program could reduce the upfront cost of of full household electrification by $3,500 and this could make electric appliances cheaper overall than gas appliances.
An average Victorian household converting from a gas ducted heating system to multiple reverse-cycle air conditioners, for instance, may be eligible for up to 32 VEECs. This could reduce the upfront cost from around $6,260 to $3,890.
See the Essential Services Commission’s VEU Registry of Accredited Persons.
See the Essential Service Commission VEU Register of approved products.
Victoria’s Solar homes program provides rebates of up to $1,400 for homeowners with existing homes, homes under construction and rental properties.
To further reduce installation costs, eligible Victorians can apply for an interest-free loan for an amount equivalent to their rebate. The loan must be repaid over 4 years
To be eligible the combined household taxable income of all home owners must be less than $210,000 per year, the property valued at under $3 million, and has not had a solar panel system installed after 1 November 2009.
The hot water rebate provides Victorian households with up to $1000 to purchase of eligible heat pump or solar hot water systems.
Not-for-profit community housing providers are also eligible to apply for the rebate on behalf of their tenants.
To be eligible households must have a combined household income of less than $180,000 per annum before tax, and be an owner-occupier of a home valued at under $3 million.
The existing hot water system must also be older than 3 years from the date of purchase, andthe new system must be on the Clean Energy Regulator’s Register of solar water heaters.
Solar battery interest free loan
Interest free loans are available for Victorians to reduce the upfront cost of installing a battery, with repayments made over a 4-year period.
The battery program is specifically targeted at designated postcodes which have a high PV penetration and population growth.
This financial year there are 4,500 loans of up to $8,800 available to households with a combined household taxable income of all owners less than $210,000 per year, in a property valued at under $3 million.
The property must also have a solar panel system with an inverter capacity equal toor greater than 5kW, or will have one installed in conjunction with the battery, but not have an existing energy storage system.
The battery must also be listed on Solar Victoria’s approved battery list and owners must seek pre-approval from their Distributed Network ServiceProvider (DNSP) to safely connect a battery to the grid.
Energy Efficiency in Social housing program (EESHOP)
Victoria is also investing $112 million to support a range of cost-effective energy efficiency upgrades for 35,000 public, community and Aboriginal housing properties.
The upgrades will include reverse cycle air-conditioners, heat pump hot water systems, ceiling insulation and draught-proofing.
Eligible properties include:
- Aboriginal Housing
- Special Disability Accommodation
- Cooperative Housing
- Rooming Houses
- other accommodation owned by the Department of Families, Fairness and Housing (DFFH)
$108 million will be available to replace fossil fuel appliances with efficient electric in apartments and social housing, including reverse cycle air conditioning, hot water heat pumps, electric cooktops and rooftop solar.
There will be no cost to renters and they do not need to apply for the program. Renters in eligible properties will be notified by an official letter and followed by a phone call to confirm enrolment in the program.
EV incentives
Victoria no longer offers its Zero Emissions Vehicle Subsidy, which provided a $3000 rebate on full battery electric cars.
TASMANIA
Energy Saver Loan Scheme (ESLS)
Tasmania doesn’t provide rebates to purchase efficient electric appliances but does facilitate no interest loans, which are adminstered by Brighte, a fintech company that provides financial solutions for homeowners to fund home improvement and energy efficiency projects.
The Energy Saver Loan Scheme provides no-interest loans between $500 and $10,000 for 1 to 3 years to all Tasmanian owner occupiers, landlords with residential tenants, and small business and community organisations to fund the purchase price and installation of energy efficient products, including:
· Solar PV and batteries
· reverse cycle air conditioning
· heat pump hot water
· solar hot water
· induction and ceramic stoves
· energy efficient white goods (fridges, freezers, washing machines, clothes dryers, dishwashers with minimum energy star ratings)
· double glazing and insulation (ceiling, underfloor, wall) that meets minimum product values
Only approved products on the Australian Government’s Greenhouse and Energy Minimum Standards (GEMS) register are eligible.
The National Construction Code sets out the recommended ‘R-values’ for approved insulation. As a rule, the higher the R-value of the insulation, the better it will perform and the more energy efficient a home will be. Minimum insulation for ceilings is R5, for underfloor R2, and for walls R2.5.
The scheme’s administrator, Brighte, operates the accreditation process for vendors wishing to take part in the scheme.
The property can be either a standalone residence, or a strata titled property, and either owned or leased by an applicant.
EV incentives
Tasmania exempts stamp duty on new, or second hand, battery electric or hydrogen fuel cell vehicles until 31 December 2023. For a new mid-range EV, this will reduce initial purchase costs by around $2,000.
SOUTH AUSTRALIA
Retailer Energy Productivity Scheme (REPS)
Low income South Australian households and businesses may be able to receive free or discounted energy efficiency and energy productivity activities from energy retailers participating in the Retailer Energy Productivity Scheme.
REPS obligates South Australian energy retailers to deliver a specific amount of ‘credits’. For a retailer to achieve their ‘credit’ target, they must choose from a list of pre-approved REPS activities which all have different credit values:
- Energy efficient lighting
- Water saving shower heads
- Hot water upgrades
- Air conditioner upgrades
- Energy efficient appliances such as a fridge, freezer, or clothes dryer, pool pumpsInsulation
- Glazing
- Sealing
- Connecting new or existing batteries to an approved Virtual Power Plant
The activities and targets differ between retailers and not all are available everywhere in the state.
REPS is not a rebate scheme, so customers don't receive a cash rebate. It is up to the energy retailers to provide incentives to South Australian households and businesses. There may be no cost to customers for REPS activities, or the costs may be shared or heavily subsidised.
Customers are encouraged to reach out to a retailer and ask about the activities they offer and whether they are eligible.
No Interest Loans Scheme (NILS)
South Australia also provides no interest loans up to $2000 for essential goods and services to low income households. These are administered by the NGO Good Shepherd.
Sustainability Incentives Scheme
The City of Adelaide offers rebates to residents, businesses, and groups located within the city’s municipal area to install sustainable technologies in their home or building. Tenanted houses and apartments are eligible.
These include:
Solar PV
A 20% rebate up to $5,000, for solar systems based on size.
Shared solar
A 20% rebate up to $20,000 per site(and a maximum of $500 per premise) for multi-storey residential strata, community or body corporation properties to install shared solar systems greater than 20 kW. A minimum of 25% has to be shared by individual tenants, not common areas.
Energy monitoring
A 50%rebate up to $100, for stand-alone energy monitoring, where no solar PV or battery system is installed.
Energy efficiency and electrification
A 20% rebate up to $25,000 for multi storey residential strata and community body corporation properties tha tmake a measurable impact on the buildings energy efficiency.
Appliance Electrification
50% of the out-of-pocket costs of replacing gas or wood burning appliances with electric or solar powered ones(e.g. for hot water), up to $1,000.
Eligible appliance categories include: hot water systems, heating ventilation and air conditioning systems, stove tops, ovens, and other gas appliances.
Electric vehicle charging
50%to install a bicycle charging station, up to $250
For 7kW to <50 kW EV charging stations:
50%to install a dedicated unidirectional charging station, up to $1,000
25%to install a ‘smart’ charging station, up to $2,000. (Smart stations include those with demand management capabilities or two-way charging capabilities.)
For demand management charging station:
25% for a stand-alone system with basic demand control, up to $1,000.
50% up to$10,000 for network integrated system with advanced demand control including VPP, virtual power plant, capabilities.
Home energy assessments
50% for a Residential Efficiency Scorecard (RES) or similar, up to $200.
REPS top up
Concession card holders and tenanted residential properties in Adelaide are also eligible for 25% of out-of-pocket expenses on any appliance purchase or upgrade which receives a REPS rebate (lighting excluded), up to $500.
Approved REPS activities are:
· Insulation and Building Sealing
· Heating and Cooling
· Water Heating
· Standby Power Controllers
· Appliances
South Australia provides a $3,000 subsidy and a 3-year registration exemption on eligible new battery electric and hydrogen fuel cell vehicles valued below $68,750 (including GST) and first registered from 28 October 2021.
However, South Australia has proposed an EV road user charge will begin on 1July 2027, or when EV uptake reaches 30 per cent.
NORTHERN TERRITORY
Home and Business Battery Scheme
The Home and Business Battery Scheme provides grant assistance to Northern Territory households, businesses, landlords and not-for-profit and community organisations to buy and install solar PV with an eligible battery and inverter.
If solar is already installed the scheme will provide an eligible battery and inverter.
The battery must have a minimum capacity of 7 kWh. The grant provides $450 per kWh of battery system capacity, up to a maximum grant of $6,000.
Batteries must be on an approved list of battery systems that have been assessed as virtual power plant capable.
Electric vehicle and plug in hybrid owners can get free registration for new and existing vehicles, and a stamp duty concession of up ot $1500 for vehicles valued up to $50,000.
If the sale price/market value of the vehicle is over $50,000, you must pay 3% stamp duty on the amount over.
Electric Vehicle Charger Grants
The Electric Vehicle Charger Grants scheme provides grants of $1000 for Northern Territory residents to install an electric vehicle charger at their residential property, and $2500 for businesses to install one.
WESTERN AUSTRALIA
Unfortunately WA offers few financial incentives for the purchase of efficient electric appliances.
Household Energy Efficiency Scheme
Whilst the primary focus of the Household Energy Efficiency Scheme (HEES) is on energy coaching, select households may receive appliance upgrades and replacement of low-energy efficiency appliances. The Government website says these appliance upgrades are targeted for those households most in need, but does not define what it determines as 'most in need' nor how these households are selected.
The website also does not provide a list of which electrical appliances it will help upgrade, other than 'old refrigerators.'
A ZEV rebate of $3500 is available to help with the purchase of fully electric or hydrogen fuel cell vehicles. Hybrids and plug-in hybrids are not eligible.
If you know of any other incentives that should be included in this list let us know at switchedon@reneweconomy.com.au
-LEAD.png){kind=icon}
