Solar batteries: what they are, how they work, and how much money can they save you.
Solar Power
Solar panel & battery rebates Victoria 2026
Learn how the Solar Homes Program rebate and federal government STC discounts can help you save on solar PV and batteries in Victoria.
With energy prices fluctuating and sustainability front of mind for many households, installing solar panels and battery storage has become an increasingly attractive option for Victorians. The upfront cost, however, can still be a barrier. Fortunately, a range of solar panel and battery rebates in Victoria can significantly reduce installation costs and improve long-term savings.
This guide outlines the key rebates and incentives available across Victoria, how they work, and what to consider before applying. You’ll also find information on planned changes to small-scale technology certificates (STCs), which will progressively affect the discount available for home solar batteries over the next few years.
Solar battery discount in Victoria and Australia
Cheaper Home Batteries Program
The federal Cheaper Home Batteries Program is available to help more households install solar batteries.
The discount is based on small-scale technology certificates (STCs), which are generated when a household battery is installed. It is calculated according to the battery’s usable capacity.
Eligible Australian households can receive a discount of around 30 per cent on the upfront cost of installing a range of small-scale battery systems from 5kWh to 100kWh connected to new or existing solar PV systems.
The Cheaper Home Batteries Program is not means tested. Instead, the battery system must be:
- between 5kWh and 100kWh in nominal capacity
- accredited by the CEC and listed on the relevant CEC-approved product list
- technically capable of participating in a VPP, if it is an on-grid system.
Read more about the eligibility criteria on the program's website.
More: Guide to Tesla Powerwall 2 for solar
How rebates for home solar batteries are changing
Homeowners looking to install home batteries can still access rebates, but rebate amounts will start decreasing from 1 January 2027.
The decrease is due to changes in how small-scale technology certificates (STCs) are calculated under the Cheaper Home Batteries Program. These changes mean the STC factor – the factor used to determine how many STCs a battery receives and, in turn, the size of the rebate — will reduce every six months until the end of 2030.
In effect, this will cause the rebate available for eligible home battery installations to gradually reduce over time. For example, an eligible customer whose battery is installed on 31 December 2026 may be able to access a higher rebate than customers who install a battery after that date.
Below, you can see the planned reductions in the STC factor over the next few years. As the STC factor drops, so too may the total rebate amount available.
STC Factor for home battery systems May 1, 2026-December 31, 2030.
- May-Dec 2026: 6.8
- Jan-Jun 2027: 5.7
- Jul-Dec 2027: 5.2
- Jan-Jun 2028: 4.6
- Jul-Dec 2028: 4.1
- Jan-Jun 2029: 3.6
- Jul-Dec 2029: 3.1
- Jan-Jun 2030: 2.6
- Jul-Dec 2030: 2.1
What does this mean for you?
To receive the current rebate amount, you must have your battery installed and commissioned by December 31, 2026. Getting a quote or placing an order before this date is not enough to access the current rebate amount.
Rebates on home batteries will still be available from January 1, 2027, but the amount may be lower and is expected to become lower still every six months until the end of 2030.
If you're currently considering a battery make sure you allow enough time for quoting, acceptance, scheduling and installation if you want to access the 2026 rebates.
How to apply for the Cheaper Home Batteries rebate
You don’t need to apply for the Cheaper Home Batteries discount.
Eligible battery systems will typically have the current rebate amount applied automatically as an upfront discount on your quote. Your installer will then manage the rebate process on your behalf.
Check with your installer if you’re unsure whether your chosen battery system meets the rebate eligibility requirements.
Rebates are available to help eligible households save on solar panel systems.
Solar panel rebates in Victoria
Solar Homes Program: Solar panel (PV) rebate
The Victorian Government's Solar Homes Program is the primary incentive for households installing solar panels.
Eligibility changes for the scheme came into effect on 1 July 2026, reducing the income cap from $210,000 to $150,000.
Eligible owner-occupiers can access:
- a rebate of up to $1,400 on the cost of installing a solar panel (PV) system
- an optional interest-free loan of up to $1,400, repayable over four years.
To qualify, you must meet the following criteria:
- You must be the owner-occupier of an existing property, or the owner of a home under construction, where the system is to be installed.
- The property value must be below the specified threshold of $3 million.
- Your combined household taxable income must be under the set limit.
- The property address must not have had a solar panel system installed in the past 10 years.
- The property address must not have previously received a solar panel or solar battery rebate under the Solar Homes Program.
- The system must use approved solar products installed by an approved solar retailer, such as RACV Solar)
The rebate is applied upfront, meaning you pay less at the time of installation rather than claiming it later.
In August 2026, Solar Victoria reported that 355,786 solar panel systems had been installed since August 2018. To apply for the Solar Victoria rebate, you must first get a quote from an authorised retailer, such as RACV Solar.
Solar panel interest-free loan
You can reduce your upfront cost further by getting an interest-free loan to match your rebate amount. If approved, the loan amount is processed with your rebate approval and deducted from your quote, reducing the upfront cost you'll pay.
Your loan repayments:
- must be repaid monthly over four years
- are automatically debited from your bank account
- begin 30 days after your installation is approved.
How to apply
To apply for a solar rebate in Victoria under the Solar Homes Program, you should:
- check your eligibility
- talk to an authorised solar retailer, such as RACV Solar to select an appropriate system
- ask for a written quote, which your retailer will upload to the Solar Victoria portal
- wait for an email confirming that the quote has been uploaded
- apply for pre-approval through the program
- prove your eligibility by uploading your paperwork to the portal
- wait for the program to confirm your eligibility and send your QR code
- arrange installation of the new system, typically within 120 days, or 270 days for homes being built
- pay the difference between the total cost and the rebate to the retailer
- start repaying the interest-free loan, if you opted for one.
More: What makes a good solar provider?
Solar for Rentals
The Solar Homes Program can help rental providers (landlords) install solar panels, while giving renters access to lower energy bills.
Under the solar for rentals stream, eligible rental providers can receive a rebate of up to $1,400 for the installation of solar panel (PV) systems on up to two rental properties each financial year. They can also apply for an interest-free loan to match the rebate amount.
The program requires a Solar Homes Program Agreement signed by both the rental provider and tenant, helping ensure the arrangement is understood by both parties.
Rental providers must meet certain criteria, including:
- a Solar Homes Program Agreement signed by the rental provider and tenant
- a property value under $3 million
- tenants with a combined household taxable income under the set limit
- a property address that has not previously received a solar panel or solar battery rebate under the Solar Homes Program
- approved solar products installed by an approved solar retailer, such as RACV Solar.
This initiative can help renters reduce their energy bills while encouraging rental providers to invest in energy-efficient upgrades that may improve the value and appeal of their property.
The Cheaper Home Batteries Program can help households reduce the cost of installing a solar battery.
Solar hot water rebates in Victoria
Hot water accounts for 15 to 30 per cent of household energy use, according to Solar Victoria. Therefore, switching to a more efficient system can deliver significant savings over time.
Solar Homes Program: hot water rebate
The Victorian Government's Solar Homes Program also includes a hot water rebate.
The rebate is calculated after any other discounts have been applied and covers 50 per cent of the product purchase price:
- up to $1,000 for installing an approved solar or heat pump hot water system; or
- up to $1,400 if you install an eligible Australian-made system.
Eligible systems generally include:
- solar hot water systems, which use roof-mounted collectors to capture sunlight
- heat pump hot water systems, which extract heat from the air.
Both options are significantly more energy-efficient than traditional electric or gas storage systems and can reduce ongoing energy bills.
To qualify for the hot water rebate, households typically must:
- be owner-occupiers of an existing property
- have a property value under $3 million
- have an annual household taxable income under $150,000
- have a property address that has not already received a hot water or solar battery rebate under the Solar Homes Program
- be replacing a hot water system that is at least three years old from the date of purchase
- use eligible products and an authorised hot water retailer, such as RACV Trades.
The rebate is not available for new builds, as it's designed to encourage upgrades from less efficient systems.
How to apply
To apply for solar rebates in Victoria under the Solar Homes Program, you should:
- check your eligibility
- talk with an authorised retailer like RACV Trades to select an appropriate system
- ask for a written quote, which your retailer will upload into the Solar Victoria portal
- wait for an email confirming the quote has been uploaded
- get pre-approval from the program
- prove you are eligible by uploading your paperwork into the portal
- wait for the program to confirm your eligibility and send your QR code
- install the new system (typically within 120 days)
- pay the difference (total cost minus rebate) to the retailer.
You must not install your system before your eligibility is approved, or you will not receive a rebate.
More: What makes a good solar provider?
Victorian Energy Upgrades (VEU)
Under the Victorian Energy Upgrades (VEU) program, households that install or replace an inefficient gas hot water heater or inefficient electric hot water system can claim:
- a discount between $560 and $910
- $400 in operating costs annually when replacing an existing gas hot water heater with a heat pump water heater.
The house where the upgrade takes place must be at least two years old, and the replacement must be an eligible heat pump hot water heater or solar-boosted hot water system.
Households may be eligible for a rebate when upgrading to an energy-efficient hot water system.
Other potential incentives and savings
Feed-in tariffs
Victorian households with solar panels can receive payments for excess electricity exported back to the grid. While feed-in tariffs have decreased in recent years, they may still provide a small return on your solar investment.
From 1 July 2025, the Essential Services Commission no longer sets a minimum feed-in tariff in Victoria. Energy retailers can set their own rates, provided they are not below 0.00 c/kWh. It can be worth comparing offers to find the best deal.
Energy retailer incentives
Some electricity providers offer additional benefits such as sign-up credits, promotional feed-in tariff rates, or plan discounts for solar customers.
These can complement government rebates, but should be weighed against long-term costs.
Key considerations for upgrading solar systems
Before committing to solar panels, batteries or hot water upgrades, here are some things to consider.
- System suitability - your energy usage patterns and household size will influence the best system for your needs.
- Upfront cost vs savings - even with rebates, there is an initial investment. Solar panels typically offer faster payback than batteries, while hot water upgrades can deliver steady savings.
- Installer accreditation - rebates require approved installers. Always compare quotes and check credentials.
- Property suitability - roof orientation, shading and available space can affect solar performance. A reputable solar company will take all of this into consideration while designing and quoting your system.
- Staging your upgrades - some households install solar panels first, then add batteries or upgrade hot water systems later. Talk to your retailer about your priorities to ensure you're planning adequately for your future.
More: What to consider when upgrading your solar power system
FAQ: Solar rebates in Victoria
What rebates are available for solar panels in Victoria?
Eligible households can access up to $1,400 through the Solar Homes Program, plus federal STC incentives.
Are battery rebates still available in Victoria?
Battery rebates are available and accessed via the federal Cheaper Homes Battery program.
What is the hot water rebate in Victoria?
Eligible households can receive up to $1,000 (or $1,400 for Australian-made systems) for solar or heat pump hot water upgrades through the Solar Homes Program.
Can renters access solar rebates?
Renters cannot apply directly, but landlords can access rebates for rental properties.
Do I need to pay upfront and claim later?
No. Most rebates are applied upfront as a discount through your installer.
Are there income limits?
The Solar Homes Program includes income and property value thresholds, but the Cheaper Homes Battery Program is not means-tested.
Is a solar battery worth it in Victoria?
It depends on your usage and budget. Batteries offer energy independence but typically have longer payback periods than solar panels.
Rebate information valid as of 19 September 2026. Although we endeavour to keep this information up to date, we recommend that you also check the source sites for each rebate.
