Victorian Budget 2024/25: What’s In It For Energy?

Victoria’s Allan Government says the Victorian Budget 2024/25 is firmly focused on helping families. Here’s what’s happening on that front in relation to energy.

Like many of their fellow Australians, power bills have been a source of increased hip-pocket pain for Victorians. While shopping around for gas and electricity plans can result in a better deal, there’s only so far that will go to alleviate cost of living pressures.

While there’s nothing particularly earth-shattering in Victorian Budget 2024/25, the Allan Government has committed to provide:

• $38 million more for incentives to install solar hot water and heat pump hot water systems. Currently, the hot water rebate – calculated after any other discounts have been applied – is a 50% rebate on the purchase price of the system up to the value of $1000.
• $6.1 million more for interest-free loans for the installation of solar battery storage systems for eligible households. At the moment, the initiative provides interest-free loans of up to $8,800.
• $5.9 million for the Victorian Energy Upgrades (VEU) program, which helps households switch to energy-efficient products and reduce emissions.
• $3.4 million for the Energy Assistance Program to continue to support households struggling to pay their energy bills.

In addition to the above, other existing rebates and incentives are still in play; including the still-generous and hugely popular Victorian solar panel rebate.

“Rising energy bills are a big pressure on family budgets – it’s why we brought back the State Electricity Commission and we’re now taking action to help families with these rising costs,” says a Victorian Government press release.

Clean Energy Transition Planning

Looking at the bigger picture, Victoria’s Legislative Council passed a bill in March this year that sets new renewable energy targets for Victoria – 95 per cent renewable electricity generation by 2035. The bill also sets interim emissions reduction targets of 28-33 per cent below 2005 levels by 2025; 45–50 per cent below 2005 levels by 2030; and 75-80 per cent below 2005 levels by 2035.

Last year, renewables made up 37.8% of electricity generation in the state, with rooftop solar power in Victoria contributing 8.9% (Source: OpenNEM). There’s a lot of work left to do to achieve that 2035 target, and it’s not just about whacking a bunch of panels on rooftops and plonking wind turbines in paddocks.

Here’s what the Allan Government has budgeted for in the financial year ahead.

Budget 2024/25 invests $18 million to plan for offshore wind power generation projects, and $17 million for the continuation of planning and designing a renewable energy terminal at the Port of Hastings; which is where offshore wind farm kit can be assembled.

$10 million will go towards improving spatial risk mapping and guidance for future renewable energy projects. An additional $7.3 million will help ensure environmental assessments for such projects are finished on time. Furthermore, an added $12 million will fund VicGrid to coordinate the planning and development of Victoria’s transmission infrastructure.

“We’re also helping workers to upskill or change careers, with $32 million for retraining in high-priority industries like disability services, clean energy and construction,” said Victorian Treasurer Tim Pallas in his budget speech.

The 2024/25 State Budget papers can be accessed here.