Solar Power

The solar power rebates Victorian homes and businesses can access

Three tradies wearing hi-vis clothing installing a solar panel on a roof

Nicola Dowse

Posted July 05, 2023

There are plenty of reasons to install solar, and thanks to many of these rebates on offer to the public, it’s now cheaper to adopt this cleaner energy source.

Installing solar panels on your property or at your business is not only a great way to reduce your energy bills long-term, but the government may even give you a discount for your trouble. 

According to Solar Victoria, a typical household can expect to save more than $1,000 every year on their electricity bill. If you choose to have a solar battery system installed as well you can save an additional $640 per year.

There’s a lot to explain when it comes to the solar incentives available in Victoria, but we’ve unpacked what discounts are available in terms that are easy to understand. If you’re considering installing a solar system in your home or business, it’s crucial to speak to the right solar provider. 

What is a solar rebate or interest-free loan? 

In Victoria, the state government is currently offering incentives to encourage the adoption of solar PV systems (photovoltaic systems, better known as solar panels) and solar hot water systems.  

These incentives take the form of rebates and interest-free loans, meaning the government will either pay a portion of the cost of installing the solar PV system, or provide a loan with no interest attached (given you meet the eligibility criteria and successfully submit an application). Rebates are no longer available for solar batteries, but you can still access an interest-free loan. 

For example, if you were quoted $5,000 for a solar PV system, you might be eligible for the Solar Panel (PV) rebate of $1,400. This would mean you would only pay $3,600 upfront, with the government footing the rest of the bill.  

There are several types of solar rebates available for different people and scenarios, but keep in mind only a specific number of each rebate are available, and don’t last forever. 

New rebates are released on the second Wednesday of every month.  

It’s also important to use an authorized solar provider to be eligible for a solar rebate.

 

Learn how to make your home more energy efficient.

What solar rebates are available? 

Solar Victoria is a Victorian government portfolio that runs the Solar Homes Program. This program encourages the adoption of renewable solar energy by offering a number of different rebates. 

You can find out more about each of the following rebates via the Solar Victoria website.  

Solar rebates for home-owner occupiers  

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

This rebate is for households that want to install a solar panel (PV) system on their property.  In addition to the rebate, you can also access an interest-free loan equal to the amount of your rebate. This loan must be repaid within four years or sooner.

This rebate is accessible both to existing homes as well as those currently under construction.

According to Government figures, since the rebate was introduced in 2018, more than 195,000 Victorian households have benefitted from the scheme.

In the 2023/24 financial year, there are 53,000 rebates up for grabs, so make sure to get in quick. 

Solar Battery Rebate 
Interest-free loan amount: Up to $8,800

After several years, the solar battery rebate was being retired on June 30, 2023. From July 1, 2023, households looking to further trim their power bills by installing a solar battery can access an interest-free loan of up to $8,800. There are 4,500 such loans available for 2023/24.

Hot Water Rebate 
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. That means installing one of these water heating systems is a great way to reduce your energy bills and lean into cleaner energy even if you don’t have the ability to install solar panels on your property, with a typical household able to shave $140 to $400 off their electricity bill 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. 4,500 rebates are available in 2023/24.

 

Solar panels installed on a roof in suburban Melbourne

Installing solar panels on your investment property can ease energy costs for tenants and increase the value of the residence. Photo: Matt Harvey

Rebates for renters 

Solar rebates for rentals 
Rebate 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. 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). 

Installing solar at rental properties can increase their value, as well as reducing the energy bills for tenants.  

Solar for community housing 
Rebate 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. 

What are small-scale technology certificates (STC)?

Small-scale technology certificates (commonly known as STCs) 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.
 

Get started on your solar journey. 
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