Government Subsidies For Electricity: When And How To Get Them

when is government giving money for electricity

Governments around the world have implemented various programs to assist citizens with their electricity bills. For example, the Australian government has extended the Energy Bill Relief Fund, providing households and small businesses with rebates on their electricity bills. The UK previously offered a £400 credit to all households with domestic electricity bills. In the US, the Weatherization Assistance Program (WAP) and LIHEAP programs help low-income individuals and families with their energy bills and home weatherization costs. New York also had a Phase 2 Bill Relief program that provided credits to eligible customers with unpaid electric or natural gas utility bills. These initiatives aim to alleviate the financial burden of rising energy costs and support those struggling to pay their utility bills.

Characteristics Values
Country Australia
Amount Up to $300 for households and up to $325 for small businesses
Eligibility Households and small businesses with electricity bills
Time Period 2024-25 financial year
Application Process Automatic rebate for most customers
Additional Support Existing $3.5 billion energy bill relief
Extension $1.8 billion extension for six months in 2025-26
Increased Rebate Up to $150 in energy bill rebates from July 1, 2025, to the end of 2025
Frequency Quarterly instalments of $75
Other Schemes Weatherization Assistance Program (WAP), LIHEAP

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The Australian Government's $1.8 billion Energy Bill Relief Fund extension

The Australian Government has announced a $1.8 billion extension of the Energy Bill Relief Fund (EBRF) for six months, from 1 July 2025 to the end of 2025. This fund is designed to provide relief to Australian households and eligible small businesses facing high electricity bills.

Eligibility

Households and small businesses in Australia that hold an active electricity account with an energy retailer or embedded network electricity supplier are eligible for bill relief. Small businesses must meet their state's definition of an electricity 'small customer' and have an annual electricity consumption below the threshold set by their state or territory government to be eligible for rebates. Additionally, households in embedded networks, such as those receiving electricity from a strata or landlord in a caravan park, apartment building, or retirement village, will be eligible for a rebate.

Rebates

Eligible households and small businesses may receive up to $150 in energy bill rebates, provided in two $75 quarterly instalments. This is in addition to the $300 rebate provided to households and $325 to small businesses during the 2024-25 financial year. The rebates will be automatically applied to electricity bills, and most customers won't need to take any action to receive them.

Implementation

The Australian Government is working with state and territory governments to finalise the implementation details of the 2025 extension. State and territory governments will administer the rebates and deliver the payments through retailers. This extension builds on the government's existing $3.5 billion energy bill relief initiative in the 2024-25 financial year, demonstrating a continued commitment to supporting Australians during challenging economic times.

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Household Electricity Credit in Western Australia

The Government of Western Australia is offering a minimum $400 Household Electricity Credit to every household across the state. This initiative was announced as part of the 2023-24 Budget to help Western Australians cope with the rising cost of living. The credit is available to all Western Australian households, including those in embedded networks or off-grid households.

Households that receive an electricity bill and are connected to the grid are eligible for rebates until the end of 2025. The Australian Government has extended the Energy Bill Relief Fund by six months in the 2025–26 Budget, providing up to $150 in energy bill rebates from 1 July 2025 to the end of 2025. This is in addition to the existing $3.5 billion energy bill relief being rolled out in the 2024-25 financial year, where households are eligible for up to $300 of energy bill relief.

For Western Australians, the $400 Household Electricity Credit will be automatically applied to eligible Synergy or Horizon Power accounts, split over two equal payments in the July/August and November/December billing cycles. If you are not billed by Synergy or Horizon Power, you can apply for the credit through RevenueWA. Applications for the 2024 credit were open from 31 July 2024 to 31 March 2025.

Additionally, around 350,000 vulnerable Western Australian households receiving the Energy Assistance Payment will receive a higher credit of $500, split over the same billing cycles. This is in addition to the Energy Assistance Payment, which is credited to the account across the year. For the 2023-24 year, the payment will be increased to $326, bringing the total electricity credit to $826. To be eligible for this additional support, a household member must be a concession cardholder.

Small businesses and charities in Western Australia that operate in embedded networks can also apply for electricity credit through the Small Business and Charities Energy Bill Relief program. Eligible small businesses will receive a $650 credit on their energy bills if their annual electricity consumption is below the threshold set by the state government.

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US government's Weatherization Assistance Program (WAP)

The US Department of Energy's (DOE) Weatherization Assistance Program (WAP) helps low-income households reduce their energy costs by improving energy efficiency. The program, which began in 1976, has helped over 7.2 million families save an average of $372 or more annually on their energy bills.

To apply for WAP assistance, you must first determine your eligibility. Households with incomes at or below 200% of the poverty income guidelines or those receiving Supplemental Security Income are generally eligible. Additionally, each state or territory may use the US Department of Health & Human Services' (HHS) Low-Income Home Energy Assistance Program (LIHEAP) eligibility criteria of 60% of state-median income. Priority is given to the elderly, families with disabilities, families with children, high-energy users, and households with high energy burdens. Both homeowners and renters can apply.

Once your home is selected for weatherization services, a local WAP provider will schedule an energy auditor to visit. The energy auditor will conduct a computerized assessment of your home's energy use, including an analysis of energy bills, a blower-door test, and an inspection of all energy equipment and areas for potential improvements and health and safety issues. After the assessment, the energy auditor will recommend the most cost-effective energy conservation measures.

The local WAP provider will then explain how the work will be carried out and provide a timeline for completion. Once the work is finished, an inspector will review it to ensure it meets the required standards and that all equipment is safe. Throughout the process, your health and safety are a priority.

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New York's Electric and Gas Bill Relief Program

New Yorkers have access to a range of programs that provide financial relief for electricity and gas bills. The Energy Affordability Program (EAP) is a statewide initiative that offers discounts on monthly electric and/or natural gas bills for income-eligible consumers. This program is administered by major electric and gas utilities in New York, and smaller utilities like Corning and Liberty St. Lawrence Gas also offer similar discount programs. The EAP aims to provide assistance to around 2.7 million households living at the Federal Poverty Level, making their utility bills more affordable.

The Electric and Gas Bill Relief Program has been implemented in two phases by the Public Service Commission (PSC). Phase 1 was adopted in June 2022 and provided credits to residential low-income customers enrolled in their utility's Energy Affordability Program (EAP) for unpaid COVID-period balances accrued through May 1, 2022. This phase concluded on December 31, 2022, and assisted approximately 311,000 utility customers. Recognizing the ongoing financial need, the PSC adopted Phase 2 of the program on January 19, 2023, which provides credits for eligible customers with unpaid COVID-related balances. This phase will assist about 478,000 residential customers and 56,000 small businesses, totaling $672 million in assistance. The credits will be automatically applied, and there is no separate application process required.

In addition to these programs, New York City residents may also apply for the EnergyShare grant, which provides up to $300 towards their annual bill. To be eligible, residents must meet certain criteria, such as having made a good-faith payment towards their bill in the last 12 months and being eligible for government financial assistance or meeting Home Energy Assistance Program (HEAP) income guidelines.

These programs demonstrate New York's commitment to ensuring that residents have access to essential energy services, regardless of their financial situation. By providing bill credits, discounts, and grants, these initiatives help alleviate the financial burden of electricity and gas costs for low-income households and individuals facing financial difficulties.

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US LIHEAP program

The Low-Income Home Energy Assistance Program (LIHEAP) is a US government initiative that helps families with energy costs. The program provides federally funded assistance to reduce costs associated with home energy bills, energy crises, weatherization, and minor energy-related home repairs. LIHEAP's primary goal is to ensure families stay safe and healthy by reducing the risks associated with unsafe heating and cooling situations. The program is administered by the National Energy Assistance Directors' Association (NEADA) and does not provide direct grants or charge fees to individuals.

LIHEAP assists eligible households in staying warm during the winter and cool in the summer. It helps prevent energy shut-offs and provides support for those facing energy crises. The program offers resources and information on its LIHEAP Data Dashboard, including funding allocations, Model Plan details, and Quarterly Report updates. Additionally, the Disaster Flexibilities Hub visually tracks and displays key data, guidance, and resources on declared disasters and disaster preparedness efforts.

Eligibility for LIHEAP is based on income, and applicants can check their eligibility and apply through EnergyHelp.us, available in English, Spanish, Traditional Chinese, and Simplified Chinese. Video information and spotlights are offered in English, Spanish, and Mandarin. Alternatively, applicants can contact the National Energy Assistance Referral (NEAR) number at 1-866-674-6327.

For those seeking assistance with home improvements that save energy, the Weatherization Assistance Program (WAP) is another option. Eligibility for WAP is also income-based, and individuals already receiving benefits through federal assistance programs such as Temporary Assistance for Needy Families (TANF) or Supplemental Security Income (SSI) may qualify. To understand eligibility and the application process, individuals can contact their state's WAP office.

Frequently asked questions

The Australian government has extended the Energy Bill Relief Fund until the end of 2025. Households and eligible small businesses may receive up to $150 in energy bill rebates from 1 July 2025 to the end of 2025.

The UK government previously gave £400 to every household that paid a domestic electricity bill to help with the rising cost of energy. This scheme ended in March 2023.

The US government has the Weatherization Assistance Program (WAP) and LIHEAP to help with energy bills. Each state has its own policy and programs to help with utility bills.

In most cases, your electricity provider will automatically apply the bill relief to your electricity account and you will not be required to take any action.

Your eligibility for the Weatherization Assistance Program (WAP) depends on your income. You may also qualify if you already receive benefits through a federal assistance program such as TANF or SSI.

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