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Government Incentives
Leverage government schemes, subsidies, and grants to accelerate your investment in sustainable energy solutions.
Next Green Group is committed to simplifying the process for Australian businesses, organisations, and communities to access a complete suite of energy solutions. As part of our comprehensive service, we partner with our valued clients to help them secure available Federal and State government incentives.
Government support sits across separate federal and state programs, each with its own eligibility rules and timing. A single project can sometimes benefit from more than one, and which combination applies depends on the site, the technology and how the system is configured. We review all of this at the scoping stage, so the combination of the applicable incentives shapes the system design and delivery.
To date, our team has successfully secured more than $60 million in government incentives. This includes assisting with the creation and trading of energy scheme certificates, which translate into upfront subsidies or rebates. These incentives enable our clients to offset their initial investments, accelerate returns, and make sustainable energy solutions more accessible than ever.
Federal Incentives
Small-scale Renewable Energy Scheme (SRES)
The SRES is a federal scheme administered by the Clean Energy Regulator. It provides an upfront incentive for eligible solar and battery installations through Small-scale Technology Certificates (STCs).
Solar PV systems up to 100 kW are eligible today. That limit is expected to be expanded to 1 MW from 1 October 2026, subject to finalised regulations, which will bring mid-scale commercial, industrial and agricultural rooftops into the scheme for the first time. It’s estimated to save around 20% off the upfront cost.
The number of STCs a system earns depends on its size, its location and the deeming period that applies at the time of installation.
Eligible Solutions:
Cheaper Home Batteries Program
The Cheaper Home Batteries Program runs under the SRES. It uses the same certificate mechanism: an eligible battery creates STCs in the same way an eligible solar system does, and the value is often provided as an upfront discount on the installed price.
Households, small businesses and community facilities can access a discount of around 30% on the upfront cost. Batteries with nominal capacities between 5 kWh and 100 kWh are eligible, with the discount applying to the first 50 kWh of usable capacity. The battery must be paired with either new or existing rooftop solar.
The discount reduces over time to 2030, stepping down every six months, with the next reduction on 1 January 2027. Since 1 May 2026, it has also been tiered by battery size, so the per-kWh rate decreases as systems get larger.
Eligible Solutions:
Large-scale Renewable Energy Target (LRET)
The LRET supports larger renewable energy projects. Systems above 100 kW can create Large-scale Generation Certificates (LGCs), one for each megawatt-hour of electricity generated.
LGCs aren’t paid upfront. The system must be accredited as a power station, and certificates are issued each year based on metered generation, so the incentive arrives as a revenue stream over the life of the asset rather than a discount at installation.
Once the SRES expansion commences on 1 October 2026, new systems above 1 MW will remain under the LRET, and existing accredited systems will stay where they are.
Eligible Solutions:
State Incentives
NSW Energy Savings Scheme (ESS)
This scheme is an initiative of the New South Wales government, as part of the Energy Security Safeguard, to encourage organisations to invest in energy-saving projects by providing financial incentives. The incentive is delivered as Energy Savings Certificates (ESCs) for each notional megawatt-hour of energy saved.
Eligible Solutions:
NSW Peak Demand Reduction Scheme (PDRS)
This scheme encourages businesses to reduce or shift their electricity use during peak demand periods. The incentive comes in the form of Peak Reduction Certificates (PRCs) for activities that deliver that reduction.
From 1 September 2026, two new activities extend the scheme to commercial and industrial batteries for the first time. BESS4 covers usable capacity from 20 kWh to 200 kWh. BESS5 covers above 200 kWh and up to 30 MWh, with the incentive calculated on the first 10 MWh.
Eligible Solutions:
VIC Energy Upgrades (VEU)
Victorian Energy Upgrades, previously the Victorian Energy Efficiency Target (VEET) Scheme, provides incentives for businesses to install energy-efficient equipment. The incentive is delivered through Victorian Energy Efficiency Certificates (VEECs) for each tonne of greenhouse gas emissions reduced or avoided.
Since September 2025, the program has included a commercial and industrial solar activity covering systems from 30 kW to 200 kW, with the incentive paid upfront rather than measured over time. Larger systems can still access VEU through measurement and verification pathways. Eligible solar can create VEECs alongside federal STCs or LGCs.
Eligible Solutions:
SA Retailer Energy Productivity Scheme (REPS)
This scheme requires energy retailers to meet energy savings targets by helping their customers improve energy efficiency. This results in various offers and incentives for businesses to upgrade to energy-saving appliances and equipment. Because these targets are set annually, there is a limited pool of incentives available each year.
Eligible Solutions:
Grants & Funding
ARENA Community Battery Funding
In June 2024, Next Green Group was selected from over 140 applicants to receive funding from the Australian Renewable Energy Agency (ARENA) Community Batteries Funding Round 1. In this round, only 11 private companies and nine distribution networks were shortlisted for funding.
This funding will support the delivery of 16 community battery projects, totalling 12.8 MWh of battery storage and 4.3MW of new solar PV, representing a total investment of approximately $13 million. These projects will be rolled out throughout 2026, with completion expected in 2027.
We’re excited to partner with you on other potential upcoming battery programs to explore the benefits of shared energy storage. Contact us today!
Game On Grant for Sports Clubs
“Game on: Teaming up for climate action” is a federal grant program that helps community sports clubs upgrade their facilities for energy efficiency, electrification, and climate resilience. It’s a program by the Department of Climate Change, Energy, the Environment and Water, with $35.262 million available across two rounds to support up to 500 clubs.
Clubs can apply for $25,000 to $100,000 in funding, covering up to 100% of eligible expenditure. Councils and associations can lead a consortium application across up to 20 clubs, to a maximum of $2 million. Eligible upgrades include solar, battery storage, VPP integration, EV charging, LED lighting, heat pumps and HVAC, as well as other climate resilience solutions.
Round 1 closed at 9:00 pm AEST on 13 July 2026. Round 2 is anticipated to open in early 2027.
We work with clubs, councils and associations to scope the upgrade, size the system and prepare the quote required for the grant application. Contact us to get started ahead of Round 2!
Discovered a government incentive program not listed here?
Let us know!
While we’ve showcased some of the most prominent options, the available sustainability incentives are constantly changing. If you’re exploring a different program or have specific needs we haven’t covered, we’d love to hear from you.
Contact us today for a personalised consultation!
Frequently Asked Questions
Can a project claim federal and state incentives at the same time?
Sometimes, yes. The schemes could cover different parts of the project, so an NSW project can create federal STCs for the solar and NSW Peak Reduction Certificates for the battery. In Victoria, eligible commercial solar can create VEECs alongside federal STCs or LGCs.
Which states have commercial energy incentives?
New South Wales, Victoria and South Australia run active certificate schemes for businesses. In other states, federal programs are the primary mechanism and apply nationally.
Can businesses claim the federal battery rebate?
Yes. Despite the name, the Cheaper Home Batteries Program covers businesses and community organisations as well as households. Batteries with a nominal capacity between 5 kWh and 100 kWh are eligible, with incentives available for the first 50 kWh of usable capacity, and the battery has to be paired with new or existing rooftop solar.
When does the federal solar incentive change?
From 1 October 2026, subject to regulations being made. The Small-scale Renewable Energy Scheme currently covers solar systems up to 100 kW, and the change extends eligibility to 1 MW, bringing mid-scale commercial, industrial and agricultural rooftops into the scheme for the first time. It’s estimated to take 20% off the installed cost for systems in that range.
When does the NSW commercial battery rebate start?
BESS4 and BESS5 activities commence under the Peak Demand Reduction Scheme on 1 September 2026. BESS4 covers usable capacity from 20 kWh to 200 kWh. BESS5 covers capacity above 200 kWh and up to 30 MWh. Installations before that date aren’t eligible under these activities.
Does a battery need solar to qualify for the NSW incentive?
No. Battery-only projects can be eligible under BESS4 and BESS5, though projects installed with new solar attract a higher incentive. This differs from the federal Cheaper Home Batteries Program, which does require the battery to be paired with rooftop solar.