Solar panel and battery rebates available in Victoria

What government incentives are there for solar?

Solar Victoria delivers the Victorian Government’s Solar Homes Program, which offers rebates and interest-free loans to help households save on solar and transition to efficient all-electric homes. There are four types of incentives for eligible Victorian households with existing homes or homes under construction:

• Solar panel (PV) rebate
• Solar panel (PV) interest-free loan
• Solar hot water system rebate
• Solar battery interest-free loan.

Since Solar Victoria began rolling out government solar rebates and loans in 2018, more than 330,000 solar panel, battery and hot water systems have been installed in Victorian households. There is also the Solar for Rentals program, which offers eligible rental providers a rebate for the installation of solar panels (PV) on their property.

What is the eligibility criteria for a solar rebate?

Victorian households must meet certain eligibility criteria to apply for a solar rebate or interest-free loan. The combined household taxable income of all owners and the value of the property are taken into account, along with other factors stipulated by the Solar Homes Program.

Solar incentives for homeowners and occupiers  

Solar Panel (PV) Rebate 
Amount: Up to $1,400

This rebate is for households that want to install a solar panel (PV) system on their property.  This rebate is accessible both to existing homes as well as those currently under construction.

If you apply for a solar panel (PV) rebate and your application is successful, Solar Victoria will pay a portion of the cost for the installation of a solar panel (PV) system. The current rebate can cover up to 50 per cent of the cost, but is capped at $1,400.

For example, if you are quoted $6,000 for a solar (PV) system, you might be eligible for the rebate of $1,400. This would mean you would only pay $4,600 upfront, with the government footing the rest of the bill.

Rebates for solar panels are released on the second Wednesday of every month.

Solar Panel (PV) loans
Amount: Up to $1,400

In addition to the above rebate, you can also access an interest-free loan equal to the amount of your rebate. An interest-free loan means you pay back only the amount of the loan, with no interest incurred. These loans must be paid back over a four-year period and are subject to applicants successfully meeting the eligibility criteria.

Solar Battery loans
Amount: Up to $8,800

After several years, the solar battery rebate was retired on June 30, 2023. In its place households can now access an interest-free loan of up to $8,800. This loan must be repaid over four years.

Hot Water Rebate 
Amount: Up to $1,000 

You don’t need to have solar panels installed to have a solar hot water or heat pump system. Water heating accounts for about 23 per cent of total energy use in the home, according to the Australian Government website YourHome, while Solar Victoria estimates that replacing a gas hot water system with a heat pump can reduce your energy bills by $250 per year. 

If you already have solar panels you can still access this rebate. You can also access this rebate in addition to the Solar Panel (PV) rebate if you want to install panels as well.

Solar incentives for rentals, community housing and apartments

Solar rebates for rental properties 
Amount: Up to $1,400 

Solar can seem inaccessible if you’re renting, but there are avenues tenants can pursue. The final decision rests with your landlord, but as a tenant you can request that solar panels be installed. 

Rental providers that install solar panels on their rental properties can access a rebate of up to $1,400 as well as an interest-free loan of the same amount (similar to the solar panel rebate for home owner-occupiers).  

If rental providers successfully apply for the loan, tenants have the option of contributing to the interest-free monthly repayments, with the presumption they will be saving money on their energy bills. These repayments are capped at $14.58 per month for the tenant and landlords are not permitted to increase the rent or take money from your bond to pay for the solar system or any associated costs (e.g. installation or maintenance). Co-contributions end after four years or when you vacate the premises (if that's earlier).

Solar for community housing 
Amount: Up to $1,400 per tenancy 

Organisations that provide existing not-for-profit community housing are also able to access discounted solar panels. This program not only helps shift the state towards cleaner energy, it also helps reduce electricity bills for tenants who are already on low-incomes. 

The rebate of up to $1,400 is available for every single tenancy provided with solar power. 

Solar for apartments
Amount: Up to $2,800 per apartment capped at $140,000

Residents in apartments can also benefit from solar energy with the potential to save up to $500 a year per household.

The Solar for Apartments program provides grants of up to $2,800 per apartment (to a maximum of 50 apartments, or $140,000) to eligible Victorian Owners Corporations (OCs). While the grants are provided to the OCs, residents, as well as strata managers, are able to begin the application process.

Applications for round one of the Solar for Apartments program ended May 31, 2024 with round two applications opening in August 2024.

What are small-scale technology certificates (STC)?

Small-scale technology certificates (commonly known as STCs as well as the Federal Rebate) are available Australia-wide and offer financial incentives for people to install small-scale solar systems like solar panels. STCs are also available for other renewable energy systems such as wind and hydro, as well as hot water systems.

The amount of the STC is calculated depending on your location, installation date and the amount of electricity generated by them (or in the case of water heaters, the amount of electricity displaced).

The discount is automatically applied by retailers when quoting the final price of their selected solar system, so you don’t need to apply and meet eligibility requirements like when accessing rebates.
 

* _{Rebate information valid as at 30 July 2024. Although we endeavour to keep this information up to date, we recommend that you also check the source sites for each rebate.}