Across the world, governments are encouraging households to install solar panels, battery storage, and in some cases, go fully off-grid. Here’s a detailed look at current rebates, incentives, and programs you’ll find around the world in 2025.
Australia
Australia leads with strong national and state programs supporting both grid-tied and off-grid solar.
Federal Incentives
Small-scale Renewable Energy Scheme (SRES): Eligible solar and battery systems create Small-scale Technology Certificates (STCs), delivering an upfront discount.
A typical 6.6kW solar system might attract $2,400–$3,000 worth of STCs.
Off-grid systems fully qualify for STCs, giving rural households the same benefits as grid-connected homes.
State Incentives
Victoria – Solar Homes Program:
Solar panel rebate up to $1,400.
Battery rebate up to $3,500.
0% interest loans up to $8,800 for solar and up to $14,000 for batteries.
Available for existing homes, new builds, and rental properties under certain conditions.
NSW – Empowering Homes Program:
Up to $14,000 interest-free loans for solar and battery installs in selected postcodes.
Queensland – Home Energy Upgrades:
$3,000 rebate for new solar systems and another $3,000 for battery storage, targeting low- and middle-income households.
ACT – Sustainable Household Scheme:
0% interest loans up to $15,000 for solar panels, batteries, or combined systems.
Northern Territory – Solar Energy Transformation Program (SETuP) and Home Battery Scheme (closed 2023):
Rebates of up to $6,000 for batteries were available; some interest-free finance options remain through local banks.
Off-Grid Support
Federal STCs: Off-grid systems still claim STCs based on expected generation over 15 years.
Remote Area Energy Support: Some regional councils and programs (e.g., Remote Power Systems Program WA) offer top-ups for truly remote installations.
United States
American homeowners benefit from strong federal tax credits and state-specific programs, many of which support batteries and off-grid systems too.
Federal Incentives
Investment Tax Credit (ITC):
30% of total installed cost credited back through your tax return.
Applies to both solar PV and battery systems (battery must have ≥3kWh capacity).
Residential Clean Energy Credit (Inflation Reduction Act, 2022):
Covers standalone battery storage, even without solar panels, provided 100% renewable charging.
State and Local Programs
California – Self-Generation Incentive Program (SGIP):
Battery rebate between $150 and $1,000 per kWh installed, depending on household income and grid vulnerability.
New York – NY-Sun Program:
Up to $1,000/kW rebate for solar systems, plus additional $250/kW if paired with batteries.
Low-income households qualify for larger rebates under the Affordable Solar Program.
Massachusetts – SMART Program:
Fixed tariff payments for solar energy production, with additional incentives for battery-paired systems.
Nevada and Maryland: Offer separate solar tax credits (e.g., 40% state tax deduction in Nevada up to $10,000).
Net Metering Policies: Offered in over 30 states, though evolving (e.g., California’s NEM 3.0 shifts to time-of-export pricing).
Off-Grid Support
USDA REAP Grants:
Up to 50% funding for renewable energy projects in rural areas, including off-grid homes.
ITC for Off-Grid Systems:
Full 30% tax credit applies to off-grid solar+battery setups.
Europe
European countries tend to favour tax deductions, zero VAT, feed-in tariffs, and battery grants.
Germany
KfW 270 and 275 Loans:
Government-backed low-interest loans for solar PV systems and batteries.
Up to 100% of project costs covered under certain conditions.
VAT Refunds:
0% VAT on new residential solar installations introduced from 2023.
Self-Consumption Exemptions:
No grid surcharges for owners using ≤30kW systems primarily for self-use.
United Kingdom
Zero VAT: Residential solar and battery systems are VAT-free until at least March 2027.
Smart Export Guarantee (SEG):
Requires large electricity suppliers to pay homeowners for excess solar exported back to the grid.
Export rates typically range from 5p–10p per kWh.
Local Council Schemes:
Some councils and energy suppliers offer small grants or free assessments.
France
CITE (Tax Credit for Energy Transition):
15% tax credit on eligible PV costs up to €600, phased out into MaPrimeRénov in some areas.
Eco-PTZ:
Up to €30,000 in zero-interest loans for home solar and battery upgrades.
Italy
Ecobonus and Superbonus Schemes:
50% deduction (Ecobonus) over 10 years for standard solar+battery installs.
The 110% Superbonus expired in 2023, but special local schemes remain.
Net Metering: Offered through “scambio sul posto” with full or partial bill credits.
Spain
Zero VAT on Solar (since 2022): Applies to residential solar panels.
Plan MOVES III:
Provides grants for solar battery installations, especially when integrated with electric vehicles.
Net Billing: Guaranteed payments for exported solar under Royal Decree 244/2019.
Off-Grid Europe
Nordic Countries (Sweden, Norway): Small grants available for off-grid cabins and isolated farmhouses.
EU Rural Energy Grants: Available for very remote agricultural properties.
Asia
Asia offers a mix of government-backed subsidies and net metering schemes.
China
Green Certificate Market: Rooftop solar now mainly monetises by selling green certificates.
Local Subsidies: Some provinces still offer rebates for distributed solar under city-level initiatives.
India
MNRE Rooftop Solar Programme Phase II:
Up to 40% capital subsidy for systems up to 3kW.
20% subsidy for systems between 3–10kW.
State Top-Ups:
Additional rebates (e.g., Delhi Solar Policy offers extra ₹10,000/kW rebate).
Tax Benefits: Section 80EEB of India’s tax code offers income tax deductions for renewable energy loans.
Japan
Local Subsidies:
Grants from prefectures and councils for battery-backed solar systems.
V2H incentives available for EV-connected battery storage.
Southeast Asia
Malaysia – Net Energy Metering (NEM) 3.0:
Allows households to export excess solar and receive bill credits.
Thailand:
Net metering with 2–3 baht/kWh export prices capped at certain system sizes.
Philippines:
Net metering policy nationwide since 2013.
Off-Grid Asia
Bangladesh Solar Home Systems (SHS) Project:
Over 4 million off-grid home solar kits installed, backed by IDCOL and World Bank funding.
India’s DDG Scheme:
Decentralised Distributed Generation grants for mini-grid solar and off-grid villages.
Africa and Middle East
Most incentives in these regions target rural electrification and energy access, not mainstream solar rebates.
South Africa
Net Metering and Feed-in Tariffs:
Available in major cities like Cape Town and Johannesburg.
Self-generation under 100kW exempt from full licensing.
Solar Tax Incentives:
Mainly aimed at businesses through Section 12B accelerated depreciation.
Kenya, Nigeria, Tanzania
Solar VAT and Duty Exemptions:
Most solar panels and batteries are exempt from import taxes.
Private Microgrid Development:
Strong push for private solar mini-grids under donor-funded programs.
UAE and Morocco
UAE (Dubai, Abu Dhabi):
Residential net metering schemes operational through DEWA and ADDC.
Morocco:
Focus remains on large-scale solar projects, though rooftop pilot programs are expanding.
Off-Grid Africa
Lighting Africa Program: Funded by the World Bank, promoting off-grid solar kits across sub-Saharan Africa.
SmartVillages: An international program supporting mini-grid development and rural electrification.
Global Off-Grid Incentives
Off-grid-specific support includes:
Africa: Donor-led programs like Lighting Africa drive off-grid adoption across multiple countries.
Australia: STCs available even for off-grid solar homes.
USA: USDA REAP grants and 30% ITC support rural off-grid systems.
India and Bangladesh: Major rural electrification grants support millions of solar home systems.
Africa: Donor-led programs like Lighting Africa drive off-grid adoption across multiple countries.
Solar and Battery Incentives: Which Are the Most Generous (2025)?
Country/Region
Generosity Score
Summary
🇺🇸 USA (Federal + State)
⭐⭐⭐⭐½
30% federal tax credit (solar + batteries), plus generous state rebates (e.g. SGIP $1,000/kWh for low-income). REAP grants up to 50% for rural/off-grid.
🇦🇺 Australia (Federal + States)
⭐⭐⭐⭐
National STCs worth $2,500–$4,000 upfront, plus state rebates (up to $3,500 battery rebate Victoria, $14,000 loan NSW). Off-grid systems eligible for same federal rebates.
🇪🇺 Italy
⭐⭐⭐⭐
50% income tax deduction (Ecobonus), net metering available. Used to have 110% Superbonus, now scaled back.
🇪🇺 Germany
⭐⭐⭐½
0% VAT, cheap KfW loans for solar + batteries, self-consumption exemptions. No direct cash rebates now.
🇪🇺 Spain
⭐⭐⭐½
0% VAT on residential solar, net billing law paying for exported solar, grants for batteries under Plan MOVES.
🇬🇧 United Kingdom
⭐⭐⭐
0% VAT, small export payments (SEG ~5–10p/kWh). No upfront rebates or major cash incentives.
🇫🇷 France
⭐⭐⭐
15% tax credit, zero-interest Eco-PTZ loans. Local grants limited compared to others.
🇮🇳 India
⭐⭐½
Up to 40% upfront subsidy on small solar systems (good), but limited to on-grid rooftop. Strong rural off-grid grants.
🇨🇳 China
⭐⭐
Mostly ended national feed-in tariffs. Some local subsidies exist, but mostly market-driven now.
🌍 Africa (Kenya, Nigeria, SA)
⭐⭐
No real cash incentives. Focus is on VAT exemptions + rural off-grid funding via NGOs.
🇦🇪 UAE / 🇲🇦 Morocco
⭐½
Some net metering available, but no direct solar or battery rebates for homeowners. Focus is on large solar farms.
Quick Ranking
Rank
Most Generous Solar and Battery Incentives
🥇 1st Place
USA — 30% federal tax credit + strong state rebates, plus rural off-grid grants.
🥈 2nd Place
Australia — Strong federal STC program + major state cash rebates and loans.
Germany — 0% VAT + low-interest financing, but less upfront cash now.
5th
Spain — Good for 0% VAT + battery grants under EV schemes.
Off-Grid Incentives (Special Focus)
Country/Region
Support for Off-Grid Solar
Notes
🇺🇸 USA
⭐⭐⭐⭐
USDA REAP grants (up to 50%), ITC covers off-grid systems.
🇦🇺 Australia
⭐⭐⭐½
Federal STCs apply equally to off-grid, but state programs vary.
🇮🇳 India
⭐⭐⭐
Separate funding for village mini-grids and solar pumping.
🌍 Africa (NGO support)
⭐⭐⭐
Strong grant-based off-grid support, but not direct cash incentives to private households.
🇪🇺 Europe
⭐
Off-grid support rare outside specific Nordic regions.
Summary
USA currently has the most generous combination of solar and battery incentives, especially for rural and off-grid setups.
Australia is a strong second, with excellent national and state support and easier access for off-grid installations.
Italy and Germany lead Europe, though most incentives come through tax deductions rather than upfront cash.
Spain offers a decent mix with new VAT-free status and battery grants, but not as strong as Australia or the USA.
Africa and Asia have strong off-grid program support but fewer direct rebates for general households.
Off-Grid Solar Incentive Support (2025)
If you’re planning to go fully off-grid, the best support comes from the USA and Australia. Both countries offer strong financial incentives, including tax credits, rebates, and grants that apply equally to off-grid homes. India and Africa also provide substantial backing, mainly through government and donor-funded programs aimed at rural energy access. In Europe, most incentives focus on grid-connected systems, with very limited formal support for residential off-grid projects.
Choosing the right location — and matching your system to available incentives — can make off-grid living more achievable and affordable than ever before.
If you’re planning to go fully off-grid, the best support comes from the USA and Australia. Both countries offer strong financial incentives, including tax credits, rebates, and grants that apply equally to off-grid homes. India and Africa also provide substantial backing, mainly through government and donor-funded programs aimed at rural energy access. In Europe, most incentives focus on grid-connected systems, with very limited formal support for residential off-grid projects.
Choosing the right location — and matching your system to available incentives — can make off-grid living more achievable and affordable than ever before.