Global Residential Solar and Battery Incentives

Global Residential Solar and Battery Incentives

(Including Off-Grid Systems)

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/RegionGenerosity ScoreSummary
🇺🇸 USA (Federal + State)⭐⭐⭐⭐½30% 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⭐⭐⭐½0% VAT, cheap KfW loans for solar + batteries, self-consumption exemptions. No direct cash rebates now.
🇪🇺 Spain⭐⭐⭐½0% 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⭐⭐½Up 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⭐½Some net metering available, but no direct solar or battery rebates for homeowners. Focus is on large solar farms.

Quick Ranking

RankMost Generous Solar and Battery Incentives
🥇 1st PlaceUSA — 30% federal tax credit + strong state rebates, plus rural off-grid grants.
🥈 2nd PlaceAustralia — Strong federal STC program + major state cash rebates and loans.
🥉 3rd PlaceItaly — 50% long-term tax deduction + solid net metering laws.
4thGermany — 0% VAT + low-interest financing, but less upfront cash now.
5thSpain — Good for 0% VAT + battery grants under EV schemes.

Off-Grid Incentives (Special Focus)

Country/RegionSupport for Off-Grid SolarNotes
🇺🇸 USA⭐⭐⭐⭐USDA REAP grants (up to 50%), ITC covers off-grid systems.
🇦🇺 Australia⭐⭐⭐½Federal 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.
🇪🇺 EuropeOff-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.