VIC solar rebates 2024: Incentives, rebates, and tariffs

In this post we will cover all the rebates available in Victoria, how they work, and how to make your claim. We’ll also cover the additional ‘green energy’ incentives designed to help Victorian households reduce their bills and environmental footprint.

Keep reading, or use one of the links below to jump to a specific section.

What solar rebates are available in VIC?

There are three solar incentives currently available across Victoria.

• First is the Small-Scale Renewable Energy Scheme, run by the federal government.
• Next are the rebates offered by Solar Victoria under the Solar Homes Program.
• Then, when your solar system is up and running, there are solar feed-in tariffs.

If you are eligible, you can claim all three incentives. Applying the federal and Victorian upfront rebates can reduce the typical cost of a really good 6.6kW system to just over $5,000 .

Effect of Victorian solar rebates on 6.6kW system:

There are also grants available under the Victorian Energy Upgrades for households program.

We’ll explore each of the incentives in detail below.

The federal solar rebate: how does it work?

The Australian federal solar rebate, is a nationwide program that encourages the uptake of small-scale renewable energy systems like household solar panels.

It provides a rebate based on the size, location, and expected power generation of your solar system.

To claim the rebate, your system will be assigned a certain number of Small-scale Technology Certificates (STCs), which are based on the projected renewable energy production until 2030. The more energy your system is expected to produce, the more STCs you’ll receive.

The value of these certificates is deducted from the installation cost of your system.

How much can I save with the rebate?

The federal solar rebate in Victoria can reduce the cost of your solar panels by nearly 30%. For example, a system size of 6.6kW can expect a solar rebate of approximately $2,160.

The exact amount will vary depending on your system size, the solar rating of your local area, and how soon you install your new system.

Our free STC Calculator can help you determine the exact amount of your rebate.

Is my system eligible?

Anyone who installs new solar panels, upgrades, or replaces old systems is eligible. Solar hot water pumps are also eligible.

Follow the steps below to make sure your system will qualify:

• Use Clean Energy Council (CEC) approved parts.
• Use a CEC-accredited installer to perform the installation.
• Install your new solar panels within 12 months of creating the STCs.

How do I apply?

You don’t need to do anything to claim your incentive! If you meet the criteria, your solar installer will calculate your STC rebate amount, handle the paperwork and deduct it from your installation cost.

The Solar Homes Program Victoria – what’s on offer?

The Victorian Solar Homes Program has several rebates and incentives for homeowners, future homeowners, and landlords.

Summary of the victorian rebate offers

Let’s take a look at each offer in detail.

Solar panel (PV) rebate

The solar panel (PV) rebate offers up to $1,400 for installing new solar panel systems or upgrading/replacing systems that are over ten years old. You can also apply for an interest-free loan up to the same amount of your rebate to help reduce the upfront cost.

Am I eligible for the solar panel (PV) rebate?

The rebate is on offer to Victorians with existing homes or homes under construction. If you’ve received the rebate in the past and you move home, you may be able to receive it again.

You also need to meet the eligibility below criteria:

• Your combined household taxable income is less than $210,000 per year.
• Your home is valued at under $3 million. Homes under construction must also be valued at under $3 million at completion.
• Your property address has not previously received a solar panel (PV) rebate under the Solar Homes Program.
• Your property has not had a solar panel system installed in the last ten years.

How do I claim the solar panel (PV) rebate?
The most important thing to know about claiming the solar panel (PV) rebate is that you must apply before you install your solar system.

We recommend following the steps below:

1. Get quotes to install a solar panel system at your home.
2. Check the Solar Victoria product list to make sure you’re using approved parts.
3. Your chosen solar company will upload your quote to the Solar Victoria website. You’ll then get an email with your quote number and a prompt to start your application.
4. Complete the application process by providing proof of income and a council rates notice. If your home is under construction, you’ll also need a copy of your Certificate of Title or another document that proves ownership.
5. If your eligibility is confirmed, your installer will deduct the rebate amount from the total cost of your system.

Check solar.vic.gov.au for more information.

Solar rebates for rental properties

The solar panel (PV) rebate offers landlords up to $1,400 towards new solar panel systems for their rental properties. You can apply for up to two rental properties in a financial year.

Interest-free loans up to the amount of the rebate are also available.

Am I eligible for the solar rebates for rental properties?
This rebate is on offer to Victorian landlords who meet the following criteria:

• Your renters have a combined household taxable income of less than $210,000 per year.
• Your property is valued at under $3 million.
• Your property address has not yet received a solar panel (PV) or solar battery rebate under the Solar Homes Program.
• Your property has not had a solar panel system installed in the last ten years.
• You can provide a Solar Homes Program Agreement signed by you and your renters.

How do I claim the solar rebates for rental properties?

To claim the rebate, you must sign the agreement with your renters and apply before installing your solar system.

Once you have the signed agreement and a quote from a solar installer, the installer will submit the quote. You will then receive an email with a link to complete the application. If approved, the rebate amount will be deducted from the final quote provided by your installer.

To view the steps and required documents, visit the Solar Victoria landlord application page.

Solar battery loans

The solar battery loans program aims to lower the initial cost of installing a solar battery solar battery by providing interest-free loans of up to $8,800.

The loan can be claimed for homes with a 5kW or larger solar system, and for homes that will have a 5kW+ system installed along with the solar battery.

To qualify, the planned battery must have a capacity of 6kWh or higher.

Am I eligible for a solar battery loan, and how do I apply?

The solar battery loan is on offer to Victorian homeowners who meet the following criteria:

• You are the owner-occupier of the home where the battery will be installed.
• Your property address has not previously received a solar battery rebate under the Solar Homes Program.
• Your combined household taxable income is less than $210,000 per year.
• Your home is valued at under $3 million.

To begin, you need to get a quote from an authorised installer and make sure they have pre-approval from your Distributed Network Service Provider (DNSP) to connect a battery to the grid.

The installer will then submit the quote to initiate the application process, and you’ll receive an email with a link to complete the application.

All the eligibility criteria and application details can be found on Solar Victoria’s solar battery loan page.

Hot water rebate

The hot water rebate offers up to $1,000 off eligible heat pumps and hot water systems.

The eligibility criteria and application process are mostly the same as for the solar panel (PV) rebate. To apply, you must get a quote from an authorised installer and submit your application before starting the project.

To learn more, visit Solar Victoria’s hot water rebate page.

Solar feed-in tariffs in VIC

Another incentive you’ll receive as a Victorian resident is a solar feed-in tariff.

There will be times when your solar system generates more electricity than you consume, this excess power gets exported back to the grid. For every kilowatt-hour (kWh) of electricity you export back, you can receive a payment known as a feed-in tariff paid as a credit on your electricity bills.

Fixed and time-varying feed-in rates

Victorians can choose from 3 different feed-in tariff options:

1. Fixed flat rate: A minimum rate of 4.9 cents per kilowatt hour (kWh) that will stay the same regardless of the time of day.
2. Time-varying 1: Between 4.4 cents and 11.3 cents per kWh, depending on the time of day.
3. Time-varying 2: Between 3.9 cents and 10.6 cents per kWh, depending on different times of the day.

Victorian solar feed-in tariffs

So, which is the better option – a fixed or time-varying rate? The answer will depend on your household’s energy usage patterns. Knowing what times of day your self-consumption is highest and lowest will help you choose the most preferable option.

The best solar feed-in rates in Victoria

Here are the best fixed flat rates for popular energy retailers across Victoria (updated January 2024), with the minimum and maximum rates on offer.

Additional renewable energy incentives in Victoria

Homeowners in Victoria can also benefit from incentives designed to support greener energy options.

Under the Victorian Energy Upgrades scheme, there are discounts available for:

• Hot water system upgrades: Replace an inefficient electric water heater with an electric boosted solar water heater, with a discount of up to $1,540.
• Pool pump upgrades: Replace your pool pump with a more energy-efficient model, with a discount of up to $210.
• Heating and cooling upgrades: Switch to a more energy-efficient heating or cooling system with various discounts available.
• Appliance upgrades: Invest in energy-efficient appliances, with $70 discounts per fridge, freezer, or clothes dryer.

View all the incentives at the Victorian Energy Upgrades website.

Next steps

If you’re keen to take advantage of the solar incentives available in Victoria, here are some next steps you can take:

• Use our STC rebate calculator to estimate your rebate amount from the Small-scale Renewable Energy Scheme.
• If you want to take advantage of Solar Victoria’s solar battery loans, read our guide to solar batteries, or calculate your solar battery size.
• Read our guide to getting solar power in Melbourne.