Governments across the world offer support to help people install solar panels and battery systems.
Here’s a simple look at how different countries approach solar and battery incentives.
Australia
Australia provides strong support for both grid-connected and off-grid solar.
- Federal Small-scale Renewable Energy Scheme (SRES):
Solar and battery systems earn Small-scale Technology Certificates (STCs), which lower upfront costs.
Typical systems receive rebates worth $2,400–$4,000 depending on size and location.
- States:
- NSW offers interest-free loans up to $14,000.
- Queensland offers $3,000 rebates for solar and another $3,000 for batteries.
- ACT provides loans up to $15,000 for solar and battery installations.
- Off-grid systems:
Systems not connected to the grid still qualify for the national STC rebate.
United States
Incentives in the U.S. combine federal tax credits with strong state-level programs.
- Federal Investment Tax Credit (ITC):
Covers 30% of the cost for solar panels and batteries (batteries must be at least 3 kWh usable capacity).
- State Programs:
- California offers rebates for batteries through the SGIP program, depending on household income and location.
- New York provides upfront rebates for solar installations and extra incentives for battery storage.
- Massachusetts runs the SMART program, offering tariff payments for solar generation and bonuses for batteries.
- Off-grid support:
Rural homeowners can access USDA REAP grants and the 30% ITC applies to off-grid installations.
Europe
European countries offer a mix of tax deductions, zero-VAT schemes, and low-interest loans.
- Germany:
- Solar installations are VAT-free (0% VAT).
- Low-interest KfW loans available for solar panels and batteries.
- No surcharges for residential self-consumption systems under 30kW.
- United Kingdom:
- Solar and battery systems are VAT-free until at least 2027.
- Homeowners can sell surplus solar energy through the Smart Export Guarantee (SEG).
- Italy:
- 50% income tax deduction over 10 years for solar and battery systems (Ecobonus).
- Net metering (scambio sul posto) available for surplus energy export.
- Spain:
- Zero VAT for residential solar since 2022.
- Net billing system allows compensation for excess solar exported to the grid.
- Plan MOVES III provides grants for batteries.
- France:
- Tax credit of 15% for solar upgrades (limited to €600).
- Zero-interest Eco-PTZ loans up to €30,000 for solar systems.
- Off-grid support:
Minor rural solar grants exist, mainly in Nordic countries like Sweden and Norway.
Asia
Asia offers a wide range of solar incentives depending on the country.
- China:
National rooftop solar subsidies have largely ended.
Green certificate markets and local time-of-use benefits still apply in some regions.
- India:
- Up to 40% upfront subsidy for rooftop solar systems under MNRE’s program.
- State-level top-up incentives available (e.g., Delhi’s additional ₹10,000/kW rebate).
- Accelerated depreciation benefits available for commercial solar systems.
- Japan:
- Some local councils offer grants for solar and home battery systems.
- Incentives exist for vehicle-to-home (V2H) battery setups.
- Southeast Asia:
- Malaysia, Thailand, and the Philippines offer net metering schemes allowing solar exports.
- Indonesia allows small rooftop systems but has restrictions on system size.
- Off-grid support:
Bangladesh’s Solar Home Systems program has deployed millions of off-grid solar kits across rural areas.
India’s DDG program supports mini-grids and standalone solar in remote villages.
Africa and Middle East
Solar programs in these regions focus on rural electrification and mini-grids.
- South Africa:
- Net metering and feed-in tariffs available for home solar systems under 100kW.
- Solar tax incentives mainly target commercial users.
- Kenya, Nigeria, Tanzania:
- Solar panels and batteries are generally VAT- and duty-free.
- Focus on private mini-grid development supported by international donors.
- United Arab Emirates and Morocco:
- Residential net metering available in Dubai and Abu Dhabi.
- Most incentives focus on utility-scale solar projects.
- Off-grid support:
Programs like Lighting Africa and SmartVillages provide grants and loans to expand access to basic solar kits for off-grid households.
Global Off-Grid Incentives
Off-grid system incentives around the world include:
- Australia:
Off-grid solar installations are eligible for STCs under the federal SRES scheme.
- United States:
USDA REAP grants and the 30% ITC both apply to off-grid solar and battery systems.
- India and Bangladesh:
Government and donor-funded programs support millions of solar home systems and rural mini-grids.
- Africa:
NGO programs such as Lighting Africa and SmartVillages continue to drive off-grid solar adoption across rural communities.
Summary
- Australia and the United States offer some of the strongest incentives globally for residential solar and battery systems.
- Europe focuses heavily on tax deductions, VAT exemptions, and low-interest financing.
- Asia’s major programs vary but include large subsidies in India and strong rural off-grid projects in Bangladesh.
- Africa and the Middle East focus on rural solar access rather than urban household incentives.
Off-grid homeowners are generally eligible for support in Australia, the USA, and India, while in Europe and Africa, off-grid programs are mainly supported through rural development funds.