Fewer Victorians Will Qualify For Solar Rebates From July

Victoria will reduce the income cap for its Solar Homes Program from 1 July 2026, tightening access to rebates for rooftop solar and energy-efficient hot water systems.

While rebate amounts will remain unchanged, fewer households will be eligible once the new income threshold comes into force.

Solar Victoria says the update ensures support is “targeted to Victorians who are most affected by cost of living pressures”.

Who Will Be Eligible For The Solar Homes Program?

Households with a combined income of up to $210,000 can currently access rebates under the Solar Homes Program, but from 1 July that threshold will fall to $150,000.

Those earning between $150,000 and $210,000 have until 5pm on 30 June to submit a completed application under the current settings.

Eligible applicants can access up to $1,400 for rooftop solar systems, along with an optional interest-free loan of the same value. Hot water rebates are also available, worth up to $1,400 for locally made systems or up to $1,000 for other eligible products.

More than 80% of existing participants would still qualify under the new income cap. For households already earning less than $150,000 a year, rebate amounts and application processes will remain unchanged.

The agency also notes that more than half of all solar PV rebates (55%) and hot water rebates (52%) have gone to households earning under $100,000 a year.

Why Is The Program Being Tightened?

The adjustment comes as rooftop solar moves further into the mainstream, with Solar Victoria estimating about 30% of suitable homes now have solar installed, up from around 14% when the program launched in 2018.

Rooftop solar is now contributing around 10% of the state’s electricity generation, while more than 45,000 homes have also installed batteries through solar-related incentives.

The shift towards tighter eligibility also comes as Victoria prepares to roll out the Victorian Midday Power Saver from October, which will offer three hours of free electricity in the middle of the day for customers who opt in.

More Hot Water Rebates To Be Added

Alongside the income cap reduction, the Victorian Government has confirmed an additional 27,000 hot water rebates will be released in 2026-27.

The expansion continues support for people switching to efficient electric hot water systems, which are increasingly seen as one of the most effective ways to cut household energy bills and reduce gas use.

What Should Households Do Now?

Households affected by the upcoming change have until 5pm on 30 June to submit a completed application and secure access under the current settings.

Applications must be fully submitted by that deadline.

If you’re considering upgrading your hot water system, our guide to heat pump hot water systems explains how they work, what they cost, and how much they could reduce your energy bills.