Solar rebates could cut energy bills long-term

Rising energy costs have been a major pressure on households, but shifting government rebates from bill relief to solar subsidies could offer a lasting solution. Instead of temporary assistance, investing in rooftop solar and battery storage might help lower energy bills permanently while reducing dependence on fossil fuel price fluctuations.

Energy price spikes contributed to about a third of inflation between 2021 and 2023, driven largely by oil and gas costs following global conflicts. Efforts to prop up aging coal plants have also placed financial strain on government budgets, such as the $450 million allocation to maintain one power station in New South Wales during peak demand periods.

Australia already has over 25 gigawatts of rooftop solar capacity, exceeding the country’s total remaining coal power generation. Households with solar save up to $1,500 annually on energy bills, and pairing solar with battery storage could double those savings to $3,000. Yet, many renters and low-income households struggle with the upfront costs, preventing widespread access to these benefits.

Redirecting rebates toward solar and battery subsidies could make clean energy upgrades more accessible, reducing exposure to global energy price volatility. While political interest in energy solutions is growing, a large-scale, fast-tracked shift toward renewables could help stabilise household costs long into the future.

Source: Australian Financial Review, Penrith Solar, SEIA, Australian Solar Rebates, EPA, Climate Choices.