A further $A53,073 has been made available through the Australian Government's Renewable Remote Power Generation Program.
The renewables project will include wind and solar generated energy to reduce the use of diesel generated power on the island, which is considered a scientific resource and part of Tasmania's Southwest National Park and the Tasmanian Wilderness World Heritage Area.
The project will be managed by Hydro Tasmania, with works carried out by Tasmanian renewable energy systems installer Power Plus.
Jackson said that Maatsuyker Island had special significance as a lighthouse, native environment and source of data for the Bureau of Meteorology.
The new power system is expected to supply the majority of the island's energy requirements from renewable sources, with diesel generation available as a back-up or peaking option.
Currently, all power generated on the island is derived from diesel, which has to be flown into the island.
"Installation of a hybrid system will improve conditions for the volunteer caretakers on Maatsuyker, reduce running costs and reduce greenhouse emissions," Jackson said.