Discover the most recent solar rebates and incentives available in Victoria and how to access them for solar panels, batteries and hot water systems.
Sustainability
The future of solar: advancements in solar power and battery storage
Residential solar power has transformed the energy landscape, making renewable energy more efficient, affordable and accessible for Australian homes.
Today, more than a third of Australian households have solar panels on the roof. This world-leading uptake has been driven, in part, due to technology and price advancements making solar a more attractive option for households.
From high-efficiency solar panels and brand-new battery technology to smart home appliances and electric vehicle (EV) integration, here are the latest solar and battery advancements across technology, design, pricing and rebates.
How has solar and battery technology advanced?
Solar panel efficiency and design
Solar panel efficiency – the amount of light the panel converts to electricity – has been gradually increasing over time. On average, high-efficiency solar panels are 22 per cent more efficient than a standard panel.
The design of solar panels has also seen significant improvements over time. Bifacial solar panels, which can capture sunlight from both sides, are becoming more and more popular. This means solar panels can increasingly be installed facing east, west and even south, rather than just north-facing.
Additionally, the integration of solar panels into building materials, such as solar roof tiles and solar windows, is gaining traction. These could offer aesthetic and space-saving benefits into the future.
Solar panel efficiency has increased over time. Image: Matt Harvey
Solar battery technology
Solar battery technology has made advancements in efficiency, lifespan, affordability and safety.
Lithium-ion batteries remain the most common for residential use, but solid-state and flow batteries are advancing.
The use of AI (artificial intelligence) in energy management and storage is expected to help Australians optimise efficiency and costs in the coming years.
More: How do solar batteries work and are they worth it?
Solar inverter advancements
Nicknamed the 'brains of the solar system', the inverter is a crucial part of the system, responsible for converting the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity to be used in the home.
Modern inverters are becoming more efficient and feature-rich, with improvements in conversion efficiency and the ability to handle higher power outputs. Microinverters and power optimisers help improve system performance, ensuring maximum efficiency even in partially shaded conditions, and monitoring at the panel level.
More: Are solar panels and inverters covered by home insurance?
Microinverters sit behind each solar panel. Image: Matt Harvey
How does solar integrate with electric vehicles and smart home technology?
The rise of smart appliances, EVs and home energy management systems has opened up more possibilities for managing your home energy in conjunction with solar and batteries. Now solar power, battery storage, grid electricity, home appliances and electric vehicles can all be coordinated to optimise energy usage and minimise costs.
For example, smart appliances can be scheduled to run during solar production hours or controlled remotely via apps. Similarly, many home EV chargers come with apps that enable charging schedules to align with peak and off-peak energy tariffs, and some can be setup to charge using solar power. In the future, vehicle-to-grid (V2G) capabilities will enable bidirectional charging with EVs, so they can be used like a solar battery, to discharge energy back to the home, and even the grid during peak demand periods.
Home energy management systems (HEMS) are also becoming more sophisticated, offering real-time monitoring and control of energy usage. These systems can provide homeowners with detailed insights into their energy consumption patterns, allowing them to make informed decisions and maximise the benefits of their solar systems.
Are solar and battery costs decreasing?
While the technology has been advancing and efficiency has been improving, residential solar and battery prices have fallen. As a result, the payback period - the time it takes for savings from a solar system to cover the initial costs - have shortened. The average payback for a solar panel system in Australia is now around three to seven years, depending on the size of the system, location and energy use.
Batteries are also becoming an increasingly viable option for households.
"Battery prices have decreased an average of five to 10 per cent year on year, with the average payback now sitting at around six to eight years," says Rebecca Vitale, Head of Residential Sales at RACV Solar. "Compared to a few years ago, when prices made batteries unattainable for many households, residential uptake is growing."
How have government rebates changed?
Government rebates and incentives have played a crucial role in promoting the uptake of solar.
The federal government's Small-scale Renewable Energy Scheme provides financial incentives in the form of Small-scale Technology Certificates (STCs) for eligible solar power systems. These certificates can be sold to recoup some of the installation costs, lowering costs for households.
State and territory governments also offer additional incentives and rebates. In Victoria, the Solar Homes Program offers rebates of $1,400 for solar panels and interest-free loans of $8,800 for batteries, helping to reduce upfront costs for households.
When is the best time to install solar and a battery?
Continuous technology improvements can sometimes make it tempting to hold off installing solar so you can wait for the next big thing. However, the longer you wait, the longer it will be before you can start enjoying the benefits.
Solar panels save the average Victorian household more $1,000 on their energy bills each year, according to the Solar Home Program. They’re now mainstream technologies in hundreds of thousands of homes and can start delivering financial and environmental savings from the day they’re connected. So, the sooner you install, the sooner you’ll start saving.
