Solar Rebates
Victorian households and businesses could be saving thousands of dollars when installing solar systems. Take advantage of Federal and Victorian solar rebates and incentives. Learn how you can save big on solar.
What are solar rebates and incentives?
Solar rebates and incentives are government schemes that reduce the upfront cost of solar PV panels, batteries, and solar hot water systems. They offer financial incentives that make solar more affordable. There are two types of rebates: federal and state. Depending on your location and the system you plan to install, you may be able to stack federal and state support to lower your costs. If you’re installing outside Victoria, always check your state’s rules.
Federal Solar Rebates
Cheaper Home Batteries Program
The Cheaper Home Batteries Program is a solar battery rebate scheme to help more people and businesses install or upgrade their solar batteries.
According to the Department of Climate Change, Energy, the Environment and Water, before the program, only one in 40 households had installed solar batteries. Since the program has launched, one in 24 households now has a battery connected to their solar PV systems.
Requirements/Eligibility
This scheme applies to:
- Australian households, businesses, and community organisations
- Eligible batteries in the range of 5kW and 100kW capacity
- A single battery unit or a system of modular battery cells connected to serve as one battery unit
- A new battery system that adds capacity to or replaces an existing battery if the existing battery has not received support under this program, and the new battery system meets the capacity requirements
- Battery systems and inverters approved by the Clean Energy Council (CEC)
The complete set of eligibility requirements for households, businesses and community organisations is available here.
Savings
Australian households, businesses, and community organisations can get a discount of around 30% on the upfront cost of installing a small-scale battery system. This scheme complements other Commonwealth and state incentives.
Updates from 1 May 2026
The Cheaper Home Batteries Program is expanding to an estimated $7.2 billion program over the next four years. This will see more than 2 million Australians install a battery by 2030. The proposed changes will ensure the discount remains at 30% for a range of batteries and sizes, and the discount aligns with falling battery costs over time.
Small Scale Renewable Energy Scheme (SRES)
SRES is a federal program that provides incentives to households and businesses to install small-scale renewable energy systems, such as rooftop solar, solar batteries, and solar water heaters.
Installing an eligible system allows you to create Small-Scale Technology Certificates (STCs), which carry a value according to how much electricity the system can generate. This amount is then available as a discount on the purchase of your new system.
Requirements/Eligibility
To participate, individuals or small businesses must choose and install an eligible renewable energy system. Here are the eligibility requirements according to the system you’re installing.
- If installing a rooftop solar PV system, the system capacity should not exceed 100 kW, and the annual electricity output should not exceed 250 MWh.
- If you’re installing a solar water heater, the system capacity must be up to 700 L. Models over this capacity require further documentation to be eligible.
- If you’re installing an air source heat pump, the capacity must be less than 425 L.
- If you’re installing solar batteries, the battery’s nominal capacity must be between 5 kWh and 100 kWh.
For detailed eligibility requirements, read the updated information about Small-scale renewable energy systems here.
Savings
The savings depend on your system, its capacity, and the amount of energy generated.
When you install a system, you earn a certain number of STCs based on the system size, your geographic location’s zone rating, and the number of years remaining before the scheme ends (also known as the deeming period). Here’s how it is calculated:
Number of STCs = System Size (kW) × Zone Rating × Deeming Period (years)
The number of STCs is then multiplied by their market value to calculate your rebate. The current market value is capped at $40 per STC.
Here is an example of a household in Melbourne:
- System size: 5.0 kW
- Zone rating (postcode 3000): 1.185
- Deeming period (install year 2026): 5 years
Calculation
- STCs = 5.0 × 1.185 × 5 = 29.625
- STCs created (rounded down): 29 STCs
Approx. upfront discount (solar)
- 29 STCs × $40 = $1,160 (ex GST) upfront discount
So, this household can save approximately $1,160 off their solar installation.
You can use the small generation unit STC calculator to calculate your savings.
Victorian Solar Rebate Programs
Solar Panel (PV) Rebate
The Solar Panel Rebate is an incentive by the Victorian government that helps eligible households reduce the upfront cost of installing rooftop solar. For approved installations, Solar Victoria provides a rebate of up to $1,400 on existing properties, homes under construction, and rental properties.
Requirements/Eligibility
You must use an authorised solar retailer like Teaslec and use eligible products to claim a solar panel rebate Victoria-wide.
As a Victorian householder, you are eligible for a solar panel rebate if:
- You are the owner-occupier of an existing property or the owner of a home under construction.
- Your combined household taxable income of all owners is less than $210,000 per year.
- The value of your property is under $3 million (for an existing home or when construction is complete)
- The property address has not previously received a solar panel (PV) or solar battery rebate under this program.
- The property address has not had a solar panel (PV) system installed in the last 10 years.
If you received a Solar Homes rebate and/or loan but have moved house, you can apply for another incentive at your new address as an owner-occupier if the property has not received these rebates before.
As a Victorian rental provider, you are eligible for a solar panel rebate if:
- Your renters have a combined household taxable income of less than $210,000 per year.
- You have not received more than two rebates for a rental property during the current financial year.
- The value of the property is under $3 million.
- The property address has not previously received a solar panel (PV) rebate or a solar battery rebate.
- A Solar Homes Program Agreement has been signed by you and your renter(s).
- If you received a hot water rebate as an owner-occupier and have rented the same property to a tenant, you can apply for the solar PV rental rebate as a rental provider (2 per financial year still applies).
- If you received a solar battery loan as an owner-occupier and have become a rental provider of the same property, you can get a solar PV rental rebate as a rental provider. Your solar PV system must be older than 10 years.
Savings
You can save up to $1,400 for the installation of solar panel (PV) systems.
Commercial and Industrial Solar Panel Discounts
Victoria offers rebates on solar panels (PV) for commercial and industrial properties. This scheme helps businesses and eligible organisations reduce the upfront cost of installing larger rooftop solar systems.
Here is an example of how a local Melbourne business saw the benefits of switching to solar.
Requirements/Eligibility
To be eligible for a commercial solar rebate in Victoria, your systems must meet the following requirements:
- Be installed in a non-residential premises
- Be 30 kW to 200 kW in size
- Have a minimum inverter capacity of 30 Kilovolt-Amperes (kVA)
- Be connected to the relevant distribution network to produce energy
- Comply with the relevant Distribution Network Service Provider (DNSP) negotiated connection contract
- Ensure only one solar PV system is installed per National Meter Identifier
- Support a monitoring portal accessible by the end-user
- All inverters and solar panels must be listed on the Clean Energy Council list of approved products.
- For systems less than 100kW, solar panel manufacturers must be listed as a participating brand in the Solar Panel Validation Initiative.
- All solar panels and inverters must be covered by a warranty against defects for a period of at least 5 years for all inverters and 10 years for all solar panels.
Savings
Discounts are based on the price for a Victorian Energy Efficiency Certificate (VEEC). VEECs are earned in Victoria for reducing greenhouse gas emissions.
At a VEEC price of $70, a 50kW system could get you a discount of $ 4,550, and a large 200kW system could get you a discount of up to $34,300. These discounts are indicative only and do not include discounts available when you use federal rebates.
Solar Hot Water Rebate
The Hot Water Rebate (run by Solar Victoria) helps eligible Victorian households reduce the upfront cost of replacing an old hot water unit with a solar hot water system. The rebate is up to $1,000. From 1 July 2025, the rebate has increased to $1,400 if you choose an eligible locally made hot water product.
The hot water rebate is calculated after any other discounts have been applied (including Small-scale Technology Certificates and Victorian Energy Efficiency Certificates) and is a 50% rebate on the product’s purchase price.
This scheme applies to eligible Victorian households.
Requirements/Eligibility
As a Victorian householder, you are eligible for a hot water rebate if:
- You are the owner-occupier of an existing property where the system is to be installed.
- The household taxable income of all owners combined is less than $210,000 per year.
- The value of the property is under $3 million.
- The property address has not already received a hot water or solar battery rebate under the Solar Homes Program.
- The hot water system to be replaced is at least 3 years old from the date of purchase.
- You must work with an authorised hot water retailer and use only eligible products.
If you received a Solar Homes rebate and/or loan but have moved house, you can apply for another incentive at your new address as an owner-occupier if the property has not received these rebates before.
Savings
- Up to $1,000 for eligible heat pump or solar hot water systems
- Up to $1,400 if you select an eligible locally made hot water product
Community Solar Banks Program
The Community Solar Banks Program is an Australian Government initiative designed to help people who can’t easily install solar on their own roof, such as apartment residents, renters, and low-income households, access the benefits of cheaper renewable energy.
In Victoria, the program is being delivered through two co-funded state initiatives: Solar for Apartments and First Peoples’ Solar and Storage Initiative.
Applications for Solar for Apartments are open until 5 pm Thursday, 30 April 2026. The First Peoples’ Solar and Storage Initiative is closed now.
Requirements/Eligibility
To be eligible,
- You must use a Solar Victoria authorised retailer and select a solar system eligible for apartment buildings.
- Your owners’ corporation must be a ‘tier three Owners Corporation’ or ‘tier four Owners Corporation’, as defined by the Owners Corporations Act 2006 (VIC)
- The building must
- Be no more than 8 storeys tall from ground level
- Be a completed development at the time of application
- Be classed under the National Construction Code as a Class 2 domestic building
- Have a median capital improved residential lot value that does not exceed $950,000
- Have not had a solar panel (PV) system installed in the last ten years
- Be located in the state of Victoria
There may be exemptions to the building’s eligibility requirements. Please review them here.
- The solar PV systems must meet Solar Victoria’s eligibility criteria, which include that they must
- Supply power to 5-50 residential lots
- Equitably share the cost-saving benefits of the system among participating residents
- Directly supply power to residential lots behind the meter
- Are installed on parts of the roof that are common property
Review Solar Victoria’s eligibility criteria for detailed information.
Savings
Buildings can receive rebates up to $2,800 per apartment (up to $140,000 per property) under the Solar for Apartments program.
Discounted Finance Options: Household Energy Upgrades Fund (HEUF)
The Household Energy Upgrades Fund (HEUF) is an Australian Government initiative that helps households access discounted finance for energy-saving upgrades, so you don’t have to pay everything upfront. It’s a $1 billion fund delivered by the Clean Energy Finance Corporation (CEFC) in partnership with banks and lenders. It supports upgrades like battery-ready solar PV, efficient appliances, and other improvements that cut energy bills.
Participating banks and finance institutions are listed in the program information, and the lender confirms your eligibility and loan terms before you proceed with installation or purchase.
Requirements/Eligibility
This scheme applies to households with or without a mortgage, rental property owners, and strata properties. It can be used for existing homes and knock-down/rebuild projects, and may be used alongside other rebates where eligible.
Eligibility is set by participating lenders, and some properties may be excluded. The best next step is to speak directly with a HEUF participating lender to confirm your situation.
Savings
Under the HEUF, the Clean Energy Finance Corporation (CEFC) works with co-financiers to provide discounted loans for households to upgrade their homes with solar PV systems, batteries, and other energy-efficient systems. The exact savings depend on the rate and terms set by your lender, but working with an HEUF co-financed product may save households thousands in interest versus a typical unsecured loan.
Assume the household borrows $30,000 over 7 years to fund their solar system and battery installation. Here is a comparison of an HUEF co-financer vs an unsecured loan.
Westpac HEUF-backed rate (example): 3.74% p.a.
Approx repayment: $406/month
Approx total interest over the term: $4,145
Non-co-financer unsecured personal loan average: 10.49% p.a. (finder.com.au)
Approx repayment: $506/month
Approx total interest over the term: $12,476
Interest saved over 7 years: about $8,331 (i.e., $12,476 − $4,145)
Monthly cashflow improvement: about $99/month (i.e., $506 − $406)
Standard Household Case Study
Melbourne parents, Chris and Joanne, have 2 kids and have just purchased their own home in Melbourne. They installed a 6.6kW rooftop solar system to reduce their power bills.
Their installer applies the federal STC (SRES) incentive as an upfront discount in the quote, then they also claim the Solar Victoria Solar Panel (PV) Rebate (up to $1,400) because they’re eligible as owner-occupiers
Here’s how the schemes stack up:
- Typical installation price (before incentives): $8,800
- Federal STC discount (applied by installer upfront): –$3,100
- Subtotal after STCs: $5,700
- Solar Victoria PV rebate (up to $1,400): –$1,400
- Estimated out-of-pocket cost for Chris and Joanne: $4,300
The combined effect is a much lower upfront cost before they even start saving on bills from the solar they generate.
The Process to Apply for a Solar Rebate in Victoria
These incentives make switching to solar more affordable than ever, helping you reduce electricity bills, increase energy independence, and lower your carbon footprint. As a trusted Australian solar installer, we guide you through the rebate process to ensure you get maximum savings while investing in a cleaner, sustainable future.
While each scheme has its individual eligibility requirements and application process, here’s a general overview of what you need to do:
Why Choose Teaslec As Your Solar Company?
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At Teaslec, we’re an authorised Australian solar installer with the expertise to help you navigate the rebate and grant process. From assessing eligibility to submitting applications, we handle the entire process so you can focus on enjoying the benefits of solar energy without the hassle.
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