Government Rebates & Feed-In Tariffs

On August 19th 2018 the state government announced a rebate for solar panels (PV) on your roof as well as solar hot water, solar batteries and solar pv rebates for rental properties, under the Solar Homes program run through Solar Victoria.   The rebates were introduced to make solar more affordable than ever before. The package provides a rebate on the cost of a solar PV system up to a maximum of $1,400 OR $3,500 for solar batteries.

The Solar Homes program has 3 main eligibility criteria:

  1. Household income is under $180,000 combined.
  2. The property is owner occupied – primary residence.
  3. The household property value is less than three million dollars (as per rates notice).

Please note that pre approval for the Solar Homes program needs to be received before any installation of solar is commenced. Without this, your system will not be eligible to claim the rebate from the state government.

At Velocity Solar we understand the process may be daunting and we help our customers with a personalised handbook and aim to make the experience as easy as possible. Please call our awesome admin team for more information.

At the moment the most common system size that customers are looking to install is a solar system around 5-6.6 kW.  Using some ballpark figures, a 5-6.6 kW solar system could be worth approximately $10,000 and the federal government will chip in STC’s (small technology credits) which will be deducted off the cost of an installation from all installers.  If we use a round figure of $3,000 as a federal rebate, this reduces the cost of a solar system down to $7,000 (depending on component selection and specific installation requirments). If you are eligible for the Solar Homes rebate, the $1,400 is deducted from your quoted install price and paid directly to your installer once your system has been installed on your home. This reduces your immediate out of pocket expense.

These are only ballpark figures, but it shows that the state and federal government together are almost paying for 50% of the cost of a decent quality solar system. With the state and federal rebates, most household will pay off the cost of their solar system in 4-5 years!

In addition to the $1,400 rebate available to eligible households, the Solar Homes program also offers a no interest loan (payable monthly over 4 years) of an additional $1,400 to further reduce your immediate out of pocket expenses. This means that you can install your system sooner, and start saving money on your electricity bills straight away!

To clarify the rebates further, the federal government rebate is claimed on behalf of the client by the installer, and the state government incentive is also paid to the installer after the installation and only when eligibility has been obtained by the customer.  The process of completing the application and lodging to the state government requires paperwork from your installation company and from you.

If you have a rental property, you may also be eligible for a Solar Homes rebate of up to $1,400 for the installation of solar pv on this property. There is a loan program also available. You are eligible to claim a rebate on both your owner occupied home and additional property (up to 2 per annum) as a landlord. For further information on the rental rebate please visit

The Solar Homes program also includes a battery rebate for eligible customers. It is important to note that customers can only obtain EITHER the solar pv rebate OR the battery rebate, not both. The Solar Homes battery rebate is currently $3,500. For further details visit

If you wish to know more about any of the state and federal government rebates please put through an enquiry on our contact form, or feel free to call us on (03) 5243 8364.  The government has tried to make the process as seamless as possible although we understand that there may be numerous questions that still need to be asked. We aim to make the process simple for all our customers and are here to guide you through each step.

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