Victoria’s Solar Rebate Explained

By Finn Peacock – Chartered Electrical Engineer, Ex-CSIRO, Founder of SolarQuotes.com.au

Last Updated: 15th Oct 2024

Australia’s national “solar rebate” has been with us for a decade. The details of how it works are complicated  (I explain it here) – but the effect for Australian homeowners is very simple. It makes solar systems cheaper to buy. Typically one-third cheaper than they’d be without the rebate.

Whenever you see an ad for solar power, the advertised price will already include the rebate. For example, a system on sale in Melbourne for $6,000 is worth closer to $8,000. When you buy a system, the installer claims the rebate on your behalf, so you only pay the advertised price.

This solar rebate is a national, federal scheme.

Enter The Victorian Government’s Solar Rebate…

NOTE: The second phase of Victoria’s program began on July 1, 2019, as a subsidy rather than a rebate. But as that word has stuck and the Victorian Government is still using the term “rebate”, we’ll still keep using it at times too.

Please be aware you must have your Victorian subsidy approved before your solar power system is installed – otherwise you will not receive the rebate. You cannot install solar panels and apply for Victoria’s rebate afterwards.

During the second phase of Victoria’s program, a set number of solar PV rebates are made available each month or so during 2023/2024.

My advice:

• Get quotes for solar now. If you decide to go ahead – advise the chosen installer, but do not pay a deposit or sign a contract.
• Work with your installer to apply for the VIC solar rebate. If the rebates available for the month are snapped up before you apply (which is unlikely these days), get ready for the next monthly allocation.
• Once your VIC rebate is confirmed; i.e. you have the eligibility number – sign the contract and pay the deposit.
• Get your solar power system installed and pay the balance. Enjoy tiny bills for decades.

Solar Homes Package Details

In August 2018, the Victorian government announced their state-level rebate scheme for solar panels, part of the ‘Solar Homes Package‘.

The value of this Victorian rebate as of October 2024 is ‘up to’ $1,400 or 50% of the price, whichever is lowest. So:

• if you buy a solar system for $2,500, you can apply for a $1,250 rebate 
• if you purchase a system for $4,450, you can apply for the maximum $1,400 rebate
• if you buy a system for $6,600, you can only apply for a $1,400 rebate – because it’s capped.

You are eligible if you live in a home worth under $3 million with a household income under $180,000. That’s 9 out of 10 Victorian homeowners.

The Victorian government’s rebate is on top of the Federal scheme.

So, if you buy a 6.6kW solar system for $6,600, you are actually getting a system worth $10,000, considering the Federal subsidy value of approximately $2,000 and the Victorian rebate (subsidy) value of $1,400.

That’s huge.

Who is eligible for the rebate/subsidy, specifically?

According to information from the State Government’s Solar Victoria website, households are eligible if they meet the following criteria (as of October 29th, 2024):

• you are the owner-occupier of an existing property or the owner of a home under construction where the system is to be installed.
• the combined household taxable income is less than $210,000 per year.
• as an owner-occupier, you or the property address have not already received a solar panel or solar battery rebate under the Solar Homes Program.
• it is an existing property or a home under construction, valued at under $3 million.
• the property has not had a solar panel system installed in the last 10 years.

On the last point, early adopters who installed a solar power system over 10 years ago are eligible to replace or expand their existing system.  Those receiving the legacy Premium Feed-in tariff will lose it if they have a new system installed, but as it ends on the 1st of November 2024, little will be lost by installing new solar now.

How do I claim the VIC solar rebate?

• Contact your chosen solar provider for a quote.
• The provider will upload your quote to the Solar Victoria Portal, which starts the online process for your eligibility assessment.
• Once complete, upload proof of income and council rates notice to confirm your details.
• You will receive an eligibility number and a QR code when eligibility is confirmed.
• Give the eligibility number and QR code to your solar provider, who will then be able to proceed with the installation
• The provider will claim the subsidy on your behalf and deduct the subsidy amount from the total cost of your system.
• You pay the outstanding balance directly to your provider once your solar power system is installed.

Can I ‘double up’ and claim both the Victorian Solar Homes rebate as well as the federal rebate?

Yes – as my example above showed. However, be aware you can only claim the Victorian rebate once, but you can claim the federal solar rebate as many times as you like (for multiple properties, or new installations, etc).

You are also not allowed to claim the Victorian government’s rebate to upgrade an existing system – if you already have solar panels on your roof under 10 years old, you’re only eligible for the federal rebate (except in the example provided above).

Should I be in a rush to claim it? What else should I know about solar power before going to get quotes?

The first phase of the Victorian rebate was fully funded until June the 30th, 2019, or until 24,000 households took it up, whichever came first. On April 12, 2019, Solar Victoria announced the program for 2018-19 was fully subscribed.

The scheme kicked off again on July 1, 2019, with a set number of rebates available each month (or so), accompanied by an option for no-interest loans to cover some/all of the unsubsidised balance of a system.

Over the life of the Solar Homes Package, the aim is to see solar panels installed on a total of 650,000 homes.

In the first 24 hours after the rebate was initially announced, there was a massive rush on solar panels in Victoria. My ‘Get 3 Quotes for solar’ service saw a 1000% increase in Victorian submissions compared to the day before the announcement. So, let no one say that Victorians aren’t swayed by free money!

While competition for the rebate has eased up considerably in 2024, and that should continue, there’s never a better time to buy a system than the present, and people are always welcome to request quotes for solar, please, please…

Look before you leap

You only get one shot at this generous rebate, so use it to invest in a system that will do the job you need to produce heaps of solar energy all year round to get your electricity bills as low as possible.

Stop, take a breath, and check out this short video below I put together summarising everything I think the average Aussie should know about solar power before getting quotes:

Now that you’re up to speed:

Solar panels are quick and easy to install, but first, you must find the right installer. There are thousands of solar panel installers in Australia, many of whom operate in Victoria.

My website, SolarQuotes, provides you with 3 free, no-obligation quotes from pre-vetted installers I trust to install a well-performing system at a fair price to get a solar power system that will give you low bills for decades.

SolarQuotes operates on a very simple philosophy – if we wouldn’t recommend an installer to our grandmothers, we won’t recommend them to you. This means we only keep companies in our network who use accredited solar installers, use quality solar equipment, and care about the installation on your roof.

We’ve been operating since 2009 and are Australia’s #1 solar comparison site, with more than 659,000 homes across Australia trusting us to organise their no-obligation quotes.

If you’re considering installing solar panels for your home or business, SolarQuotes can help you get quotes from high-quality installation professionals quickly and easily: