Solar Victoria’s Home Battery Loans Scheme Ends

Victorians wanting to apply for a State Government interest-free loan for a home battery system will be disappointed after applications closed yesterday.

Eligible Victorians were previously able to apply for zero-interest battery loans of up to $8,800 repaid monthly over 4 years. Combined with the upcoming federal Cheaper Home Batteries program rebate, this would have made home energy storage accessible to many more households.

But yesterday, Solar Victoria advised it is no longer taking applications¹.

The State Government’s original Solar Homes commitment was to help 10,000 Victorian households install batteries. A rebate of $3,500 was originally provided, but on 1 July 2022 it was reduced to $2,950. Then the rebate was dropped altogether in mid-2023 in favour of the interest-free loans, with a commitment to provide 4,500 loans.

“That target has now been exceeded with hundreds more applications now being finalised meaning that solar battery installations will continue to grow over the coming months,” states Solar Victoria.

The agency says 20,000 applications have been approved to date for state battery rebates or loans.

“Solar Victoria’s incentives have stimulated demand for batteries across the State and now the Commonwealth Government will continue this on.”

For those awaiting their existing loan application to be finalised, there is further information here. That page also notes:

“Customers are advised that they should consider carefully their purchase of a battery when taking into account the discount from the Commonwealth Government’s program as specific details, including eligibility criteria and technical requirements are subject to regulations being made and may change.”

Closure of the battery loan program was foreshadowed among the Victorian Government’s 2025/26 Budget Papers delivered on Tuesday, May 20, that stated related funding ends on 30 June 2025. It appears there was also a mention on the Solar Victoria website from sometime last week that the scheme would soon end.

Bye-Bye Battery Loans, Hello More Heat Pump Help

While the interest-free home battery loans are now off the table, the Budget has earmarked $30 million to support an extra 27,000 households to install solar and heat pump hot water systems; which can be considered batteries of sorts.

Rebates of up to $1,000 are available for eligible heat pump and solar hot water systems through the Solar Homes program, along with a Victorian Energy Upgrades (VEU) discount that can be worth up to $910 when replacing a conventional resistive electric hot water system, or up to $700 when replacing an inefficient gas system.

But solar owners can also make good use of an existing resistive electric hot water system by using a timer or PV diverter to slurp up surplus solar energy during the day to heat their water.

Cheaper Home Batteries Program Update

While on the topic of batteries and the upcoming federal scheme, a couple of the SolarQuotes team attended a related webinar yesterday held by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) and the Clean Energy Regulator (CER).

There wasn’t anything new discussed beyond what we already know. However, it’s worth mentioning DCCEEW Director Joelle Richardson reiterated that the federal scheme will allow ‘stackability’ (aka double-dipping) with state battery subsidy schemes, but added consumers and installers should check the eligibility requirements of state and territory programs to understand if there are any additional conditions or exclusions under local schemes.

Some state schemes, particularly New South Wales’ Peak Demand Reduction Scheme (PDRS), will require amendments before participants can be eligible for both schemes — but that’s a matter for the relevant state government.

Wherever you are in Australia, if you’re considering installing a home battery before the federal rebate starts², SolarQuotes’ Anthony Bennett has some advice well worth reading.