A NEW government subsidy will take the financial sting out of switching from analogue to digital TV for many Northern Rivers households.

The Satellite Subsidy Scheme is open to people in Drake, Lismore East, Mullumbimby Creek, Urbenville and other areas of NSW who receive TV signals from local towers not being upgraded to digital.

Eligible households will be subsidised for the installation of a satellite dish and high-definition viewer access satellite television set-top box, which will give people access to 16 free-to-air channels and a regional news channel.

However, the service is not entirely free and households will be required to "make a contribution" of $220 for installation.

People receiving a pension, carer payment, or Department of Veteran's Affairs Income Support Supplement may be excluded from paying the fee.

Lismore Chandlers sales assistant Peter Pisani said the Federal Government had handled the switch from analogue to digital well.

"In the United States they set an analogue-to-digital date for the country and switched it off completely," he said.

"They were not as generous as they have been in Australia. They have kept people very informed about the change-over here."

You may be disappointed if you plan to keep watching analogue TV in Australia after 2012.

"Eventually you'll receive no signal," Mr Pisani said.

To find out if you are eligible for the Satellite Subsidy Scheme, call 1800 201 013 before August 10.