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Rebates on Solar in Victoria – The Solar Homes Program

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Georgia Carter Updated: 01 July 2022
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The future is coming up with a clean, green and sustainable tomorrow. In Australia, many people are shifting towards solar power systems that will help them lead this way of life for years to come. With advancements such as incentives and rebates on Solar Victoria, there’s no better time than now if you’re looking into going solar.

However, it can be challenging to navigate the world of solar rebates. This article outlines the incentives, regulations, and costs of the Vic gov solar rebate received. While you can be eligible for the solar panel government rebate, you can supply it back into the grid and earn feed-in traffic, saving you even more on your power if you produce excess electricity.

Key facts

  • Only 3,333 Victoria solar rebates are provided to homeowners.
  • The rebate you receive depends on the size of your solar system
  • Various rebate systems apply to different properties and solar power systems
  • The average cost of a solar power system in Victoria is around $5,000
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What solar rebates can Victoria residents get?

Through May 2021, the government will be handing out rebates to only 3,333 people through an online portal for homeowners. One hundred sixty-six will also be offered by landlords and renters who want more power at their fingertips, so make sure you sign up early or risk losing out on these savings when they run out. The new solar rebate program will require customers to go through a retailer and get approval on their rebate before installing panels. 

The rebate amount and conditions will remain the same until December 31 2021. For households with a combined income below $180,000, you can still qualify for up to $2,225 in rebates. Below are the rebate programmes:

solar rebates

Rebates for households

The government is rewarding those who install solar panels with up to $1,400 for homeowners and rental properties and an interest-free loan. To further reduce installation costs, households can apply for a reimbursement that’s equivalent in value to their rebate amount when they go through this list of approved products which will make it easier for both parties

Rental property rebates

The Solar for Rentals program offers eligible rental providers a rebate of up to $1,400 on their property to install solar panels (PV). The upfront costs are slashed while increasing value and appeal! Eligible businesses can also apply for an interest-free loan to further reduce these initial financial investments.

Solar battery rebates

Victoria’s residents are taking advantage of solar batteries to make their homes cleaner. Solar Victoria offers up to $3,500 in rebates for installing a battery that can be paired with panels for your home or business!

If you own a home in Victoria and want to go green, installing solar panels for hot water is one way of saving money. Homes eligible under the Solar Homes Program can receive up to $400 per year on their electricity bills! The average household that installs this energy-efficient system will see savings ranging from $140- $400 dollars each year depending upon how much they typically use electric heating versus Showering/Toileting etc. 

Solar hot water systems are eligible for a rebate under the Victorian Solar Homes Program if:

Rebates for community housing

Community housing providers are eligible to apply for solar panel rebates on behalf of their renters! This is a great opportunity for not-for-profit community groups that want to help make life more affordable in the state. There’ll be $1,400 per tenancy rebate available from 1st July 2021 – that’s enough money just saving your tenants over three years’ worth of electricity costs alone.

How much does a solar power system cost in NSW

The price of your new solar system will depend on how big an installation you choose. It all boils down to kW (kilowatts) and costs. If you want to go small scale with just 2kW worth of panels, it will cost between $3 – 5 thousand; however, if 10+ kW is what’s desired, then expect an excess of $9000. The average price sits around $5,000.

Average costs in Victoria for a solar power system

There are many types of solar systems to choose from, with the main systems being able to generate 3-10 kilowatts of power. The more power generated, the bigger the solar system and the more money it will cost. Below is an estimate of how much each solar system will cost, an estimate of the rebate.

Solar Panel TypeTotal CostRebateFinal Cost
6.6 kW$6,000$5,613$387

Source: Solar Choice Price Index (Nov 2021)

Is it worth installing solar panels in Victoria?

Solar power is certainly more expensive than traditional sources of energy, like coal or gas. Nevertheless, the savings you make on your electricity bills can often cover this expense after only 1-2 years! The current rebates and incentives – particularly in Victoria with its Solar Homes Program- help bring down costs significantly for homeowners who want to invest in solar panels.

Frequently asked questions and answers.

  • Do I have to change energy providers to get solar?

    In most cases, your current energy supplier also pays a Feed-in Tariff. However, this doesn’t mean you can’t switch to another gas and electricity provider as they are all required by law to pay at the same rate. So all in all, it is up to you whether you want to switch or not.
  • Can I feed in the excess energy created by solar into the grid after I install solar PV?

    The tariff you have will charge per KW/h for the electricity that flows through your home. But there’s more! You are now generating some energy yourself, which means less need to rely on traditional sources like power stations and national grids because all they offer is just enough. If you are producing excess power for your household, you can feed it back into the grid, and you will be paid feed-in tariffs for your power.
  • How does the Solar Homes rebate impact the federal Small Technology?

    A small-scale Technology Certificate is a form of rebate that you receive after installing renewable energy generators. STCs are an excellent way to save money on your solar system. The more STC’s you exchange for, the lower their value will be when compared with full-priced systems that have been installed recently by professionals to produce electricity at its maximum efficiency over time – this means it’ll last much longer!
  • How do I know which solar panel products and installers are approved for the rebate?

    When you apply for a solar panel rebate in Victoria, you will need to fill out a form to ensure that you and your household are eligible to receive the rebate. This includes purchasing a solar panel system from one of the approved companies and having it installed by approved professionals. There is a list of approved companies that you can choose from, but most solar panel companies and installers are included.
  • Can I still get the vic rebate if you live off-grid?

    A solar battery system that’s ‘off-the grid’ would need more panels, bigger batteries and different types of cells to store enough electricity for nighttime use. The best way you can think about this is by thinking in terms of your home furnace or air conditioning unit – they’re all connected together, so when one goes down, it affects the entire house. While rebates still apply, you will lose the opportunity to receive feed-in traffic and upfront costs will be way more than on-grid installations.

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