Interest in EVs – and electrification more generally – has risen along with fuel prices amid the global energy shock unleashed by the US-Israel war on Iran.

Kristen McDonald, a director at Rewiring Australia, says the case is “even more compelling now” for electric upgrades to home appliances, solar panels, batteries or cars.

“Because once you do have them in place, they’re permanent savings for you,” she says.

It can be a costly undertaking, however. Here’s what is available to Australians looking to electrify on a budget.

Want to buy an EV? You can try salary sacrificing

The federal government’s electric car discount program provides an exemption from fringe benefits tax (FBT) for novated leases and company cars.

Australian employers typically pay FBT on non-salary benefits they provide to employees. Under the program, workers can get an eligible EV using a novated lease – a three-way agreement between themselves, their employer and a financing company – and pay for it with their pre-tax income, reducing the amount of income tax they pay each year.

The Albanese government confirmed earlier this week it would extend the tax break, which is its signature measure to boost electric vehicle uptake. The program had been under review, after the Productivity Commission last year recommended it be scrapped because it was costing the government more than expected in lost income and FBT tax revenue.

The policy will be extended until April 2027. After that, the FBT discount will only apply to vehicles costing under $75,000 until April 2029, in a bid to encourage manufacturers to offer more affordable EVs in Australia.

During this second phase, electric vehicles costing more than $75,000 but priced below the luxury car tax threshold – currently set at $91,387 for fuel-efficient vehicles – would receive a 25% FBT discount. In the third and final phase, from April 2029, the electric vehicle incentive will be limited to a 25% fringe benefits tax discount for all EVs below the luxury car tax threshold.

McDonald says the fringe benefits exemption should stay until the market matures and more EVs flow through to secondhand sales.

It is “too early to take away the incentives that would encourage a switch to electric vehicles,” she says. “Only 2% of Australia’s car fleet are electric vehicles.”

What about state government subsidies for EVs?

There aren’t any direct subsidies for EVs any more. States and territories have phased out subsidy schemes, and many have stopped providing discounts on registration fees and stamp duty. However, there are still a few incentives.

In Queensland, EV owners are eligible for small discounts on stamp duty and annual registration costs.

In New South Wales, electric vehicles and some low-emission hybrid vehicles receive a concession on motor vehicle tax and a small discount on registration costs.

In the Northern Territory, buyers of new or used battery-electric, fuel-cell and plug-in hybrids can receive a $1,500 discount on stamp duty until July 2027. New and existing EVs are eligible for free registration.

The Western Australian government has a $15m grants scheme to help small businesses, not-for-profits and local governments install EV charging infrastructure.

McDonald says she saves money by plugging her EV into an ordinary wall socket and charging it slowly overnight, using a retail plan that has a “really cheap” overnight charging rate.

“It won’t charge your whole battery overnight, but if you’re only doing short distances, then that’s fine because you only need a little top-up each night,” she says.

Solar panels

Available Australia-wide, the federal government’s small-scale renewable energy scheme reduces the cost of most new residential and business rooftop solar systems. The government estimates the amount of electricity your system will generate until 2030 and issues your installer with small-scale technology certificates (STCs). The installer then gives you a discount based on the certificate’s worth.

You may also qualify for other incentives such as a payment or subsidy for a solar system, or a loan with a favourable interest rate. This varies depending on where you live, your personal financial situation, and the panels you’re after. For example, in Victoria, eligible households can receive a rebate of up to $1,400 on solar panels plus an interest-free loan.

The federal government has a tool you can use to check what assistance is available for individuals and businesses here.

You can be paid for additional electricity you send into the network – once your solar system is up and running. The feed-in tariffs vary depending on which state or territory you live in. Generally, rooftop solar owners receive a lower rate for the electricity they contribute than what the power is sold for.

Home batteries

Solar batteries allow you to store energy generated by your panels for use at night and during times of peak demand.

Similar to its scheme to incentivise solar panel uptake, the federal government offers STCs for solar batteries installed by households and small businesses. If eligible, you can get a discount on the purchase price of your battery system.

As of May this year, the scheme has changed. The available discount for new battery systems will decline more quickly over time – every six months, and at a higher rate.

The discounts will be applied on a tiered basis depending on the size of your battery, tapering off after 14 kilowatt hours.

The government says the changes ensure the system can be sustained until 2030. It has a calculator here to estimate how many small-scale technology certificates your battery is worth.

You may be eligible for other battery programs at the state, territory or local government level. You can check what’s available here.

If you live in Victoria, NSW or South Australia, and own a battery, you may be able to get a higher feed-in tariff and other discounts if you sign up to a virtual power plant – a network of small distributed energy resources that operate together.