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Solar and Battery Incentives Around the World

  • re-energy
  • General
  • April 28th, 2025

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.