The media frequently criticises coal generation subsidies while overlooking the significantly larger subsidies for renewable energy.
Some of Australia’s leading fund managers and economists are warning that two major federal financing programs for renewable energy—the Capacity Investment Scheme (CIS) and the National Reconstruction Fund (NRF)—risk becoming “slush funds” unless the government provides far greater transparency about how taxpayer money is being allocated and what returns are being generated.
Neither the CIS nor the NRF discloses:
- the cost of individual renewable projects
- the level of subsidies provided
- expected or actual returns to taxpayers.
The government says this information is commercial‑in‑confidence and may not be released for years, if ever.
Critics argue this secrecy prevents proper scrutiny of how billions in public funds are being deployed.
Tim Toohey from Yarra Capital says the CIS and NRF may become ‘slush funds’ unless they are subjected to greater scrutiny, including independent audits.
“It’s hard for private sector economists or anyone to make genuine estimates as to how material this stuff is in terms of the economic progress of the nation, if we don’t know exactly what the projects are, how much money is going in over what time frames and the returns would be nice too”, he said.
“Now I doubt whether we’re going to get our hands on each and every one of them, but there should be some sort of audit process that could show some aggregated version of those returns”.
Ten Cap founder Jun Bei Liu agreed that the lack of transparency on the level of federal funding being committed to shore up projects in the CIS was concerning and warned that the lack of transparency raises concerns about inefficiency and poor capital allocation.
“This is when you worry about inefficiencies. The government often supports the initial projects and then industry players see opportunity because of the subsidy, and then it’s very hard for the subsidy to be taken away”, Liu told The Australian.
“Ultimately, if it’s not commercially viable, it’s not going to work”.
Liu noted that returns on renewable assets have fallen recently, making taxpayer underwriting more questionable.
Clime Investments Limited founder John Abernethy argues that it is totally unacceptable for the government to demand transparency from private companies while withholding its own, hiding behind “commercial in confidence” excuses.
“It’s taxpayers’ money. If the ASX and ASIC require the private sector to be transparent and give proper returns but not the government, then it means there’s a law for politicians and another for everyone else”, he said.
“This is not quite Trump world yet but it’s close to it—we are drifting that way”.
Jennie George—a former federal Labor MP and former head of the ACTU—provided the most scathing assessment of the secrecy surrounding renewable subsidies via the following comment in The Australian:
“From a Labor government that promised accountability and transparency, it’s unbelievable that the whole of system costs for their renewables transition remains hidden from public scrutiny”, she wrote.
“Without the billions in subsidies their renewable transition would have collapsed”.
“It’s time for a comprehensive audit by the Auditor General and a more active intervention by Senators and at Estimates. After all, it’s taxpayer funds used in these off-budget schemes, like the CIS”.
“It’s strange that the Teals, supposedly committed to integrity in politics, have nothing to say about this unacceptable situation”, George argued.
The reality is that renewable subsidies extend well beyond the CIS and NRF. At the federal level, they include subsidies provided by the following schemes:
Small‑scale Renewable Energy Scheme (SRES)
- Applies to rooftop solar, small wind, hydro, and home batteries (from 2025 expansion).
- Provides Small‑scale Technology Certificates (STCs) that reduce upfront installation costs.
Large‑scale Renewable Energy Target (LRET)
- Supports utility‑scale wind, solar, hydro, and bioenergy.
- Creates Large‑scale Generation Certificates (LGCs) purchased by electricity retailers.
- Continues to underpin financing for big solar/wind farms.
Capacity Investment Scheme (CIS)
- Federal underwriting program guaranteeing revenue floors for renewable generation (wind/solar) and firming/storage (batteries, pumped hydro).
- Target: 40 GW of new capacity by 2030.
- Acts as a de‑risking subsidy for investors.
Cheaper Home Batteries Program (from 1 July 2025)
- Provides ~30% discount on home battery installations.
- Integrated into SRES.
Community Solar Banks Program
- Grants for shared solar projects for renters, low‑income households, and apartments.
Multi‑billion‑dollar Future Made in Australia (FMIA) subsidies for:
- Green hydrogen
- Green metals (steel, aluminium)
- Critical minerals processing
- Battery manufacturing
- Includes production credits, concessional loans, and grants.
Rewiring the Nation
- $20 billion in concessional finance for transmission lines, Renewable Energy Zones (REZs), and Interconnectors (e.g., VIC–NSW, SA–NSW).
Hydrogen Headstart
- Production credits for green hydrogen projects.
ARENA (Australian Renewable Energy Agency), which provides grants for:
- Solar PV innovation
- Grid‑scale batteries
- Hydrogen
- Bioenergy
- Industrial decarbonisation
CEFC (Clean Energy Finance Corporation), a $30-plus billion green investment fund providing:
- Concessional loans
- Equity investments
- Co‑financing for large projects
On top of the above federal programs, state governments offer various renewable energy subsidies, mostly for rooftop solar and batteries.
Then there are the billions of dollars of subsidies earmarked toward electric vehicles.
The bottom line is that renewable subsidies are ginormous and transparency is desperately needed.
