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Governments worldwide are taking proactive measures to promote energy efficiency in pursuing sustainable development and combatting climate change. In Victoria, Australia, various state-funded programs, rebates, incentives, and subsidies are available to encourage residents to adopt energy-efficient practices and technologies. This comprehensive guide highlights the energy-efficient products and initiatives currently offered in Victoria.
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Solar rebates or incentives are provided to Victorian business owners, homeowners and/or renters from three basic sources.
1. Federal government incentive
Small-scale Renewable Energy Scheme (STC)
Solar panel PV systems, small-scale wind systems, small-scale hydro systems, solar water heaters, and air source heat pumps are all eligible under the Small-scale Renewable Energy Scheme (SRES), which offers financial incentives to all Australian individuals and small businesses. It does it by issuing Small-scale Technology Certificates (STC).
STCs are an incentive well worth utilising. STCs are available for solar panel installations up to 100kW.
The Renewable Energy Target operates by creating tradable STCs that provide a financial incentive for more electricity production from renewable sources. Through the REC Registry, an online trading platform managed by the Clean Energy Regulator, STCs are issued and distributed.
Commercial systems and Large-Scale Generation Certificates (LGCs)
STCs are no longer applicable when a system of 100kW or greater is installed. Instead, your system will be able to generate LGCs. Your company would be recognised as an ‘Accredited power station’.
Each year, your business will be able to make a claim for the energy generated by your system. 1MWh (megawatt hour) is equivalent to 1 x LGC. These LGCs can be sold to entities required to offset their emissions in accordance with the Renewable Energy Target.
2. Electricity retailers - Feed in Tariff (FiT)
Household Feed-in Tariff (FiT)
Because daytime wholesale power costs are expected to fall in 2022-2023, the minimum FiT rates are lower than in 2021-2022. A single rate minimum of 4.8 cents per kilowatt-hour is proposed for 2023-2024. More information on feed in tariffs in Victoria can be found here.
3. State government: Victoria solar rebates and incentives available
The nitty-gritty of the Solar Homes Program- VIC solar rebate
Do I qualify for a solar panel rebate in Victoria?
- Solar panel rebates: Solar panel rebates of up to $1,400 are available to install solar panel (PV) systems for homeowners with existing homes, homes under construction, and rental properties. Rebates are distributed each month on the specified rebate release dates. To cut installation expenses even further, qualified Victorians can apply for an interest-free loan in their rebate amount. The loan must be repaid over four years. However, it can be paid off sooner in one big amount.
- Hot water rebate: Solar hot water and heat pump hot water systems consume less energy and can be powered by renewable energy. Installing a more effective solar hot water or heat pump hot water system can assist in lowering glasshouse gas emissions and energy bills. Installing solar hot water systems can save homeowners between $140-$400 per year on their electricity bills. A hot water rebate (previously the solar hot water incentive) of up to $1,000 is offered on qualified heat pumps and hot water systems.
- Solar battery rebate: Solar Victoria supports eligible Victorian households installing solar batteries by offering a point-of-sale discount of up to $2,950. Customers interested in the solar battery incentive ought to first obtain a quote from an accredited solar retailer before submitting their application by June 30. Installations must be completed 120 days after the rebate application is approved.
- Solar rebates for rental properties: Eligible rental providers can apply for an interest-free loan of up to $1,400 to further lower the upfront cost of the solar panel installation.
| You own and live on the property where the system will be installed | ||||
| The combined household taxable income of all owners is less than $180,000 per year | ||||
| You have not already received any rebate under the Solar Homes Program | ||||
| An owner-occupier who has not already received and the property address has not previously received a solar panel (PV) rebate or solar battery rebate under the Solar Homes Program | ||||
| You have not already received and the property address a hot water rebate or a solar battery rebate under the Solar Homes Program | ||||
| The property address has not previously received a solar panel (PV) rebate or a solar battery rebate under the Solar Homes Program | ||||
| The property is valued at under $3 million, or a home under construction that will be valued at under $3 million at the time of completion | ||||
| You have not received more than two rebates for a rental property during the current financial year | ||||
| The property address has never received a refund through the Solar Homes Program | ||||
| If the property has a solar panel system ≥ 5kW or you plan to install one along with the solar battery, it qualifies. | ||||
| The energy storage solution is listed on Solar Victoria’s Approved Battery List. The property does not have an existing energy storage system | ||||
| Pre-approval is obtained from your Distributed Network Service Provider (DNSP) |
Can I 'double up' on the Victorian Solar Homes rebate and the federal incentive?
Yeah. However, keep in mind that you may only claim the Victorian rebate once, whereas you can claim the federal solar refund as many times as you want (for multiple houses, new installations, and so on).
You also cannot use the Victorian government’s incentive to update an existing system; if you already have solar panels on your roof, you are only eligible for the federal rebate (except in the example shown above).
What is the $250 Victoria rebate for 2023?
The $250.00 power saving bonus
The Power Saving Bonus is a $250 payment made to Victorian households to help alleviate cost-of-living concerns and encourage them to compare and save money on electricity.
How do I apply for a $250 energy rebate in Victoria?
From March 24, 2023, until August 31, 2023, eligible households can apply for a $250 Power Saving Bonus. To be eligible for the $250 Power Saving Bonus
- You must be a residential energy consumer (i.e. have a residential electricity account)
- You must be the account holder
- Visit the Victorian Energy Compare website or engage with an energy affordability service through one of participating community outreach partners
- Only one payment is available per household
Solar for community housing
Non-profit community housing providers can apply for solar panel rebates on behalf of their renters. This is an excellent chance for housing providers to assist in lowering the cost of living for low-income Victorians.
Solar Victoria can help eligible community housing providers plan to install solar on their properties.
The maximum reimbursement amount will be $1,400 per tenancy beginning July 1, 2021.
Solar for Business Program
This program offers rebates to qualified businesses that install a solar energy system on their property. The amount of the refund is determined by the size of the system and the amount of electricity generated. This program encourages business owners to invest in renewable energy and lower their carbon footprint. Businesses must submit rebate and interest-free loan applications before 6:00 p.m. to qualify for the rebate on June 30th, 2023.
Visit our page to learn about business solar energy rebates and incentives in VIC.
Electric Vehicle (EV) - Zero Emissions Vehicle (ZEV)
For eligible new ZEVs acquired on or after May 2, 2021, the incentive is $3,000 per vehicle. ZEV subsidies are available until June 30, 2023, at 6 p.m. Customers must first contact a participating ZEV trader to take advantage. When you buy a new ZEV, you can get the subsidy as a point of sale discount.
Are you ready to convert your next car to an electric vehicle (EV)? Book a test drive now in one of the newest electric vehicles in your location!
Virtual Power Plant (VPP) pilot program
A virtual power plant (VPP) is a network of distributed energy resources like solar PV and batteries in various locations. By aggregating these systems in a VPP, they can participate in electricity market trading and provide grid support. VPPs enable eligible households in Victoria to create, distribute, and manage power together. When households with batteries connect using smart technology, they form a network that maximises the potential of each solar system and battery. This accelerates the use of renewable energy and brings environmental benefits to local communities.
Extra solar power is stored in batteries and can be shared with the VPP network during high-demand periods, ensuring a more reliable network. This leads to fewer disruptions, stable services, and lower power costs. By joining a VPP, you can save money, reduce your carbon footprint, and be part of a community that ensures a stable energy supply for your household.
Each of the Solar Victoria-approved VPP programmes provided different incentives, such as hardware discounts, lower energy bills, or regular compensation for participation. Some were available throughout the state, while others were limited to specific geographical areas.
How to reduce energy bills?
Victorians have been actively seeking ways to reduce their energy bills while embracing sustainable practices. With the growing awareness of climate change and the need for energy conservation, individuals are turning to innovative solutions. Many Victorians are investing in energy-efficient appliances and adopting smart home technologies that allow them to monitor and control their energy usage.
Additionally, there is a surge in rooftop solar panel installations, taking advantage of Australia’s abundant sunlight to generate clean and renewable energy. Alongside these individual efforts, the Victorian government has implemented various initiatives, such as offering incentives for energy-saving upgrades and promoting energy-efficient building practices. These measures not only help residents cut down on their energy consumption but also contribute to a greener future for the state. Through a combination of personal choices and supportive policies, Victorians are successfully reducing their energy bills while making significant strides towards sustainability.
Check out our page to learn more about easy ways to save money on your energy bills.
Energy-saving strategies and carbon-reduction tips
For Victorians, there are numerous practical steps that can be taken to make a meaningful impact on both the environment and their wallets. Firstly, optimising home energy efficiency is crucial. Simple measures such as sealing drafts, improving insulation, and using energy-efficient appliances can significantly reduce energy consumption. Additionally, being mindful of electricity usage by turning off lights and unplugging electronics when not in use can lead to substantial savings. Embracing natural lighting and utilising natural ventilation whenever possible are also effective ways to minimise energy usage.
In addition to household strategies, transportation choices play a pivotal role in carbon reduction. Victorians can opt for sustainable modes of transportation such as walking, cycling, or using public transport whenever feasible. For longer distances, carpooling or using shared rides services can significantly reduce emissions. Embracing electric vehicles (EVs) is another impactful step towards a low-carbon future. The Victorian government offers incentives and subsidies for EV purchases, making the transition even more accessible. Furthermore, reducing water consumption can indirectly save energy, as water treatment and distribution require significant amounts of energy. By implementing water-saving measures such as using efficient fixtures and practising mindful water usage, Victorians can contribute to overall energy conservation efforts while conserving water resources.
By adopting these energy-saving strategies and carbon-reduction tips, Victorians can not only make a positive impact on the environment but also enjoy the long-term benefits of reduced energy costs and a more sustainable lifestyle. Each small step taken collectively contributes to a greener, more resilient future for all.
Read more about energy saving, carbon reduction and cash-saving opportunities
- How You Can Reduce Your Carbon Footprint With Solar Power
- 10 Tips To Reduce Your Live Electricity Usage In Australia
- What can you eat to reduce your carbon footprint?
- How to save money and improve your carbon footprint at your business
- Australia: Net Zero Emissions Target By 2050
- How to calculate your carbon footprint
Switching to a better plan?
You may already have an energy plan but want more power or to shop for a better deal.
Energy Matters’ “Energy Bill Comparator” is a cutting-edge energy comparator tool that allows you to compare your area’s most competitive retail offers. We collect the data from our wide range of trusted retailers, allowing you to decide about changing your plan.
If your goal is to get more electricity and minimise the cost of your gas and electricity bills, switch to a better plan now!
