Victoria’s Solar Rebate Explained

Last Updated: 2nd Oct 2023

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

Australia’s national “solar rebate” has been with us for a decade. The details of how it works are complicated  (I explain it in detail 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 for $6,000 is actually worth closer to $9,000. The installer claims the rebate on your behalf when you buy a system, 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 and 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 then 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 own state-level rebate scheme for solar panels, which is part of the ‘Solar Homes Package‘.

The value of this Victorian rebate as at October 2023 is ‘up to’ a value of $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 are actually getting a system worth $10,200; taking into account Federal subsidy value of approximately $2,200 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 at October 2, 2023):

• 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 of all owners is less than $210,000 per year.
• you, as an owner-occupier, 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 after 1 November 2009.

On the last point, early adopters who installed a solar power system prior to 1 November 2009 are eligible to replace or expand their existing system. But households receiving the legacy Premium Feed-in Tariff should crunch the numbers to determine if they’d be better off replacing an existing system.

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 this is complete, upload proof of income and a council rates notice to confirm your details.
• When eligibility is confirmed, you will receive an eligibility number and a QR code.
• 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 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, 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 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 originally 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 2023 and that should continue, my honest opinion is while 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 it to; producing 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 need to 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 so you can get a solar power system that will give you low bills for decades to come.

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: