Australian households and small businesses continue to grapple with rising energy costs in 2026. While the broad ‘Energy Bill Relief Fund’ of previous years has concluded, targeted federal and state government support remains available to eligible Australians. This guide outlines the specific rebates, concessions, and incentives you can access to reduce your energy bills and improve your home’s energy efficiency this year.
Federal Energy Bill Relief and Upgrade Programs in 2026
The Australian Government’s Energy Bill Relief Fund, which provided broader support in 2023-24 and 2024-25, largely ceased on 31 December 2025. However, an extension for the 2025-26 financial year saw eligible households and small businesses receive an additional $150 in energy bill rebates. These rebates were automatically applied to electricity bills in two $75 quarterly instalments between 1 July 2025 and 31 December 2025 for most customers. If you are in an embedded network (e.g., apartment building, caravan park), you may have needed to apply manually through your state government portal.
Beyond direct bill credits, the Federal Government offers significant support for energy efficiency upgrades:
- Small-scale Renewable Energy Scheme (STCs): This long-running scheme provides an upfront discount on eligible rooftop solar PV systems and heat pump hot water systems. The value of STCs, which are traded by installers on your behalf, reduces annually. In 2026, the ‘deeming period’ for STCs dropped from 6 to 5 years, resulting in a roughly 15-20% reduction in the upfront discount for new solar panels compared to 2025. For a typical 6.6kW solar system, this can still mean a saving of $1,500 - $2,000.
- Cheaper Home Batteries Program: As of 1 May 2026, this program, an expansion of the STC scheme, provides an upfront discount on eligible home battery systems. It now operates on a tiered rebate system, designed to encourage appropriately sized units. For example, a 10 kWh battery could attract a rebate of approximately $2,440, while a 20 kWh battery might receive around $4,438. The rebate applies to the first 50 kWh of usable capacity, with varying rates depending on the capacity.
- Household Energy Upgrades Fund (HEUF): This $1 billion fund provides discounted consumer finance products through participating lenders (such as Brighte, Plenti, Westpac, ING) to help over 110,000 households upgrade their homes. It covers solar PV systems, battery storage, heat pumps, EV chargers, energy-efficient appliances, and other improvements like insulation and double-glazing.
State and Territory Energy Bill Support 2026
While federal direct relief has scaled back, state and territory governments continue to offer a range of targeted concessions and rebates, often for eligible concession cardholders or for specific energy-saving upgrades.
New South Wales (NSW)
NSW households can access several ongoing rebates for 2025-26:
- Low Income Household Rebate: Up to $285 per year for retail customers, or $313.50 per year for embedded network customers, credited quarterly. Eligibility requires a Pensioner Concession Card, Health Care Card, or DVA Gold Card.
- Seniors Energy Rebate: $200 per household, per financial year, for self-funded retirees holding a valid Commonwealth Seniors Health Care Card.
- Medical Energy Rebate: For eligible concession cardholders with specific medical needs requiring extra heating or cooling. Offers $285 (retail) / $313.50 (embedded) per year.
- Life Support Rebate: Varies depending on equipment, up to $1,477 per year for households using approved life support equipment.
Victoria (VIC)
Victoria offers robust programs focused on energy efficiency upgrades:
- Victorian Energy Upgrades (VEU) Program: This scheme provides discounts on energy-saving products, making upgrades more accessible. Eligible items include LED lighting, efficient heating and cooling systems, heat pump hot water systems, and insulation. Many smaller upgrades can be low-cost or even free through accredited providers.
- Solar Homes Program: Provides rebates for solar PV, solar battery, and hot water systems. Hot water rebates are up to $1,000 for eligible heat pump or solar hot water products, increasing to $1,400 for locally made products from 1 July 2025. Households can often combine VEU discounts with Solar Homes rebates and Federal STCs.
“The Victorian Budget 2026/27 invests $28 million to help up to 27,000 eligible households install an energy efficient hot water system, with rebates of up to $1,400 for locally-made products, and $1,000 for others.”
Queensland (QLD)
Queensland residents have access to several concessions:
- Queensland Electricity Rebate: $386.34 per year (GST inclusive) for eligible Queensland Seniors Card, Pensioner Concession Card, Health Care Card, or DVA Veteran Gold Card holders.
- Medical Cooling and Heating Electricity Concession Scheme: Offers $522.09 per year (including GST) for eligible applicants with doctor-certified medical conditions requiring heating or cooling.
- Home Energy Emergency Assistance Scheme (HEEAS): Provides up to $720 every two years for low-income households in short-term financial hardship.
South Australia (SA)
South Australia offers targeted support:
- SA Concessions Energy Discount Offer (SACEDO): A new agreement with Origin Energy provides eligible concession card holders with 20% off electricity usage and supply charges, and 15% off gas usage and supply charges for 12 months, running until at least 2029.
- REPS Scheme: Eligible concession card holders can receive up to $2,050 in cashback when connecting their battery to an approved Virtual Power Plant (VPP).
Western Australia (WA)
WA provides several concessions, often through Synergy or Horizon Power:
- Energy Assistance Payment (EAP): $326.33 per year (2025–26 rate) for WA residents with a Pensioner Concession Card, Health Care Card, or DVA card.
- Dependent Child Rebate: $146.84 per child, per year (2025–26) for eligible concession households with dependent children.
- WA Residential Battery Scheme: Offers additional rebates of up to $1,300 for Synergy customers or up to $3,800 for Horizon Power customers (for a 10 kWh battery).
Tasmania (TAS)
Tasmanian residents have several concessions available:
- Annual Electricity Concession: Approximately $645.56 per year for retail customers ($1.76866 per day) or a $645.56 once-off payment for eligible embedded network customers (2025-26 FY rates).
- Medical Cooling or Heating Concession: Approximately $193.36 per year ($0.52975 per day) for concession households with a doctor-certified medical condition requiring heating or cooling.
- Life Support Concession: Daily discounts based on approved life support systems.
Australian Capital Territory (ACT)
ACT focuses on sustainable upgrades:
- Sustainable Household Scheme: Provides interest-free loans up to $15,000 for a range of sustainable upgrades, including solar, batteries, EV charging, heating/cooling, and insulation.
- Energy Efficiency Improvement Scheme: Offers rebates for energy efficiency improvements from participating retailers, up to $300.
Northern Territory (NT)
Energy pricing in the NT is primarily regulated by the government, with fewer specific rebates compared to other states. Residents experiencing hardship should contact their retailer or the NT government for assistance programs.
Current Energy Prices and Long-Term Savings Strategies
Electricity prices continue to be a significant concern for many Australians. In April 2026, South Australia remained the most expensive state for electricity, averaging $1,580 per year, which is $270 more than the cheapest state, the ACT. NSW prices have seen a 4.3% rise over the past six months, while Victorian prices remained relatively stable, rising less than 3% since November 2025. Across Australia, you can expect to pay around 33 cents per kWh on average.
To combat these costs, looking beyond direct rebates to long-term energy-saving strategies is crucial. This involves investing in energy-efficient appliances and home upgrades. For instance, replacing an old electric or gas hot water system with a heat pump can reduce hot water energy use by 50-70%, potentially saving an average home up to $330 annually on power bills. The upfront cost for a 270L heat pump system and installation in Melbourne, before rebates, typically ranges from $3,200 to $3,800, but after combining VEU, Solar Victoria, and Federal STC rebates, the out-of-pocket cost could be as low as $1,100 - $2,200.
Consider these strategies for substantial, lasting savings:
| Upgrade Category | Typical Cost (before rebates) | Key Rebates/Savings (2026) | Annual Bill Savings (Est.) |
|---|---|---|---|
| Rooftop Solar PV (6.6kW) | $5,500 - $8,000 | Federal STCs: $1,500 - $2,000 upfront discount | $800 - $1,800 |
| Home Battery (10kWh) | $8,000 - $12,000 | Federal Cheaper Home Batteries: ~$2,440 upfront | $300 - $800 (optimised) |
| Heat Pump Hot Water (270L) | $3,200 - $3,800 | VIC VEU/Solar Homes: up to $1,400; Federal STCs: ~$800-$1,000 | $300 - $500 |
| Ceiling Insulation | $1,500 - $3,000 | VIC VEU: up to $1,500; NSW ESS: Varies by provider | $200 - $400 |
| Draught Sealing | $300 - $800 | VIC VEU: Discounts available | $50 - $150 |
| Efficient Heating/Cooling (Split System) | $2,000 - $5,000 | VIC VEU: Discounts available; State rebates (e.g., QLD) | $150 - $400 |
To maximise your savings, it’s essential to choose reputable installers and quality products. For guidance on selecting a solar installer, refer to our guide on How to Choose a Solar Installer in Australia 2026: Accreditation, Warranties & Avoiding Scams. Implementing smart energy management systems can further optimise your usage, especially with solar and batteries; learn more in our guide on Best AI Energy Management Systems for Australian Homes with Solar & Batteries in 2026: Maximise Savings and Self-Consump. For detailed information on heat pump hot water systems, including costs and rebates, see our Best Heat Pump Hot Water Systems in Australia 2026: Costs, Rebates & Buyer’s Guide.
Bottom Line
While the broad federal Energy Bill Relief Fund has concluded, targeted support through federal upgrade incentives and state-specific concessions remains crucial for many Australians in 2026. Proactively investigating your eligibility for state rebates and federal programs for solar, batteries, and energy-efficient upgrades can lead to substantial long-term savings. Don’t rely solely on direct bill credits; instead, empower your household or business by investing in energy efficiency and renewable technologies to mitigate future energy price volatility.