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, 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.

As of 30th June the battery rebates concluded, the rebate has now transitioned into an Interest-Free-Loan, allowing customers to borrow an amount ranging from $1,000 up to $8,800 (based on the customer’s discretion) repayable over a four-year period.

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 ensure that you obtain pre-approval for the Solar Homes program before proceeding with any solar installation. Without pre-approval, your system will not be eligible to claim the rebate from the state government.

At Velocity Solar, we understand that the process can be overwhelming, and we strive to assist our customers by providing a personalised guide and making the experience as easy as possible. For more information, please reach out to our efficient office team.

Currently, the most popular system size sought by customers is around 6.6 kW. Using rough estimates, a solar system of this size could have a value of approximately $10,000, and the federal government provides support through STCs (Small-scale Technology Certificates), which are deducted from the installation cost by all installers. Assuming a federal rebate of $2,300, the cost of the solar system would be reduced to $7,700 (subject to component selection and specific installation requirements). If you qualify for the Solar Homes rebate, the $1,400 rebate will be subtracted from your quoted installation price and directly paid to your installer once the system is installed on your property. This reduces your immediate out-of-pocket expenses.

These figures are estimates, but they illustrate that the state and federal governments together cover nearly 50% of the cost of a high-quality solar system. With these rebates, most households can recoup the cost of their solar system within 5-6 years!

In addition to the $1,400 rebate available for eligible households, the Solar Homes program also offers a no-interest loan of an additional $1,400, which can further reduce your immediate expenses. This allows you to install your system sooner and start saving money on your electricity bills right away!

To provide further clarification on the rebates, the federal government rebate is claimed by the installer on behalf of the client, and the state government incentive is also paid to the installer after installation, once the customer’s eligibility has been confirmed. The application process requires paperwork from your installation company and yourself.

If you own a rental property, you may also be eligible for a Solar Homes rebate of up to $1,400 for installing solar PV on that property. Additionally, there is a loan program available. As a landlord, you can claim rebates for both your owner-occupied home and up to two additional properties per year. For more information about the rental rebate, please visit the Solar Homes website: https://www.solar.vic.gov.au/solar-rental-properties.

As of 1st July 2023, the Victorian Solar Homes Program transitioned the battery rebate into an Interest-Free-Loan, allowing customers to borrow an amount ranging from $1,000 up to $8,800 repayable over a four-year period. For more detailed information, please visit the official Solar Homes website: https://www.solar.vic.gov.au/solar-battery-loan.

If you would like further information about any of the state and federal government rebates, please submit an enquiry through our contact form, or feel free to call us on (03) 5243 8364. The government has made efforts to streamline the process, but we understand that you may still have several questions. Our goal is to simplify the process for all our customers and provide guidance at each step.

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