Should electricity discounts apply for regional communities in the clean energy transition?

Rural and regional communities are at a crossroads. They have borne the brunt of climate change impacts – floods, droughts, and bushfires – and now they are being asked to host wind and solar farms, and battery storage projects. 

These communities should not be seen simply as locations for infrastructure but as vital partners in the energy transition. 

While some communities already receive electricity discounts, others negotiate community benefits such as infrastructure investment and jobs creation through state legislation, permit requirements, and agreements.

The question of whether electricity discounts should be offered to these communities is certainly worth discussing, but it's just one of many levers that can be used, and so we also need to broaden the conversation.

We need to focus on self-determination – asking communities what is meaningful to them and responding appropriately. Australians are not fans of being told what’s right for them, so it is about listening and addressing their specific needs.

GHD’s SHOCKED report, which examines the current challenges and opportunities in the global energy sector, found that 65 per cent of Australian energy leaders identified community opposition as a major barrier to new project approvals. 

Involving communities earlier in the project planning stages and devising shared benefits, such as discounting power prices, could help to recognise a community's contribution, overcome resistance, and accelerate the pace of viable energy projects.

It can't just be a single solution. We need to work with communities to find the response that works for them, making sure their unique needs are met while moving projects forward.

To gain real support, we must also adopt a thoughtful approach to understanding what rural communities need and how energy projects can provide more than just power.  

It’s also really important to understand that community needs are as complex and important as the technical and economic factors driving the energy conversation.  

Too often rural areas are treated as backdrops for renewable energy development, with little regard for how projects could holistically support the communities that host them. 

Against this backdrop, it’s important to understand the multiple complex issues that arise, particularly the importance of communities understanding the economics of a project, especially in its preliminary stages. 

There is often a lot of emotion involved, and on many occasions, the first question that developers are asked is, ‘Why put it here instead of further out?’ 

The answer usually is that the issue of grid connectivity is a significant factor. Projects cannot just be placed in a remote location and then light up a town. It costs money to build transmission lines, so developers cannot simply locate them in an isolated area. 

There is also a real need for a more coordinated approach to engagement between industry and communities to prevent the recurrence of “consultation fatigue,” where multiple uncoordinated projects overwhelm residents with repetitive engagement requests. 

The concept of ‘consultation fatigue’ or even consultation exhaustion is real when these communities are bombarded with requests for input that seem disjointed or superficial. A more strategic approach to community engagement would help streamline these processes and build trust. 

For renewable energy projects to succeed in regional and rural areas, developers must earn the trust and support of local communities through genuine, transparent engagement. 

Developing community trust and acceptance goes beyond ticking boxes; it’s about creating a real partnership with the community. This means listening to concerns, integrating feedback, and making sure that the environmental, social and economic benefits of renewable projects are shared fairly. 

If managed correctly, the transition to renewable energy offers an unprecedented opportunity for rural communities to diversify their economies, prosper, and lead Australia’s clean energy revolution. 

With the right approach – one that prioritises genuine engagement, builds trust, and shares the benefits – Australia’s rural regions can become the backbone of a prosperous, green energy future.

It’s time to put regional and rural Australia at the forefront of our climate solutions and energy transition, not just as hosts but as valued stakeholders.