VIC Solar Rebate and Feed-In Tariffs 2020

Australia has some of the highest electricity prices globally, and the state of Victoria is no exception. Many electricity consumers are charged over 25 cents/kWh, and some tariffs exceed 30 cents/kWh. However, solar panels achieve greater savings when electricity is expensive since every kilowatt-hour produced is worth more.


Victoria offers incentive programs for three solar technologies: solar panels, battery systems and solar water heaters. These rebates can be combined with the nationwide incentive from the Small-scale Renewable Energy Scheme (SRES), making solar power systems very affordable. In the case of solar panels, Victoria also offers interest-free loans to complement the rebates.

Victoria Solar Rebate 2020

Victoria is the Australian state with the most solar incentive programs as of 2020. Thanks to this, homeowners can expect low upfront costs when going solar, or even zero initial cost:

  • As mentioned above, the SRES is a nationwide program that offers incentives for solar installations up to 100 kW.
  • The Solar Homes Program from the VIC government offers three rebate types that cover solar panels, batteries, and solar water heaters.
  • The program also offers interest-free loans for solar power systems, which can be combined with national and state rebates.

The SRES does not offer a direct rebate for solar panels, strictly speaking. Instead, the program awards Small-scale Technology Certificates (STC) based on their estimated production. The electricity production depends on system capacity and local sunshine, and the estimation period is from the installation year to 2030. For solar power systems installed in 2020, STCs are based on 11 years of operation.

  • One STC is awarded for every 1,000 kWh of estimated production.
  • The Clean Energy Regulator requires electricity retailers to purchase STCs, as a way to incentive renewable energy. Each STC sells for around $35 – $40.
  • Solar power systems in Victoria earn between 13 and 15 STCs per kilowatt of capacity, depending on their location. More STCs are earned in the northern areas of Victoria because they are sunnier.
  • Based on these numbers, the rebate can range from $450 to $600 per kilowatt of solar capacity. Assuming an installed price of $1600 per kilowatt, the STC rebate reduces costs by around 28-37 percent.

If you need further information about the Small-scale Renewable Energy Scheme, please visit the Australian Government Clean Energy Regulator website.

VIC Solar Interest-Free Loans

Local rebates from Victoria Solar Homes cover solar panels, battery systems and solar water heaters. The solar panel rebate can also be combined with an interest-free loan, equivalent to the rebate amount. These incentives are available for households with an income below $180,000 per year, and a property value below $3 million.

  • The solar panel rebate covers 50% of installation costs or $1888, whichever is less.
  • For example, a solar power system with a price of $3200 gets a 50% rebate of $1600.
  • On the other hand, a solar power system worth $5000 gets a rebate of $1888. In this case, 50% is equivalent to $2500, which exceeds the rebate limit.

Homeowners who get the solar panel rebate can also apply for an interest-free loan equivalent to the rebate amount. This means solar panels can get a total incentive of up to $3776, where $1888 is a rebate and $1888 is a loan that must be repaid in four years. Adding the STC rebate, the local solar rebate and the no-interest loan, going solar at zero upfront cost is possible in Victoria.

Since 1 July 2019, rented properties are also eligible for the solar panel rebate and interest-free loan, as long as the landlord and tenant sign an agreement. Applicants who have received a solar incentive for their own home can apply for another one if they own a rental property.

If you need further information about this solar rebate in Victoria, please visit the Solar Panel Rebate website from the VIC government.

VIC Solar Battery Rebates

The solar battery rebates available in Victoria are even higher than the solar panel rebates, with a maximum value of $4,838. For example, a battery system with a price of $14,000 would cost $9,612 after the rebate. This rebate has the same basic requirements as the solar panel incentive – a family income below $180,000 per year, and a property value below $3 million. However, additional requirements apply:

  • The property must have a solar power system with at least 5 kW of capacity. This ensures that batteries are charged with a clean source of electricity.
  • The property zipcode must be listed on the program website.
  • The solar battery connection must be pre-approved by the Distributed Network Service Provider (DNSP).

This program focuses exclusively on rebates for homeowners, which means there are no interest-free loans and rebates for rental properties.

If you need further information about this solar battery rebate in Victoria, please visit the Solar Battery Rebate website from the VIC government.

VIC Solar Hot Water Rebates

Solar hot water systems reduce the workload on electric and combustion-based water heaters, saving on power and gas bills. In addition, greenhouse gas emissions are reduced in both cases: less fuel is burned onsite when solar heating replaces combustion heating, and less fuel is burned at power plants when replacing electric heating. Victoria Solar Homes also covers solar hot water systems, offering rebates of up to $1,000. According to the program website, a household can save up to $400 per year with a solar water heater.

The rebate is available for homeowners who have not received a rebate for solar panels or batteries from Victoria Solar Homes. However, homeowners who already installed these systems without using rebates can claim one for solar hot water. The rebate is for existing homes, which means it cannot be used in new construction.

If you need further information about this solar battery rebate in Victoria, please visit the Solar Hot Water Rebate website from the VIC government.

Victoria Solar Power Feed-in Tariffs

The feed-in tariff (FIT) is the rate you are paid for exporting surplus solar generation to the local power grid. When high FITs are available, there is an incentive for homes and businesses to install larger solar arrays, and produce more surplus electricity. The opposite applies when FITs are low or unavailable – electricity consumers install smaller solar arrays to avoid surplus generation.

The Victoria government has a minimum feed-in tariff for electricity providers. The rate varies depending on the type of contract, single-rate or time-varying:

  • As of February 2020, the minimum FIT for single-rate clients is 12 cents/kWh.
  • On 1 July 2020, this tariff will be reduced to 10.2 cents/kWh.
  • The minimum FIT for varying-rate clients is 9.9 cents/kWh off-peak, 11.6 cents/kWh shoulder, and 14.6 cents/kWh peak.
  • On 1 July 2020, the varying-rate tariffs will be reduced to 9.1 cents/kWh, 9.8 cents/kWh and 12.5 cents/kWh.

These are the minimum FITs required by the state government, but electricity retailers can offer higher tariffs if they choose. In Victoria, it is possible to find FITs over 20 cents/kWh.

The FIT is important when estimating the annual savings of a solar power system unless you consume all the electricity generated. The following is a simplified example, but it explains the concept:

  • Assume you have a solar power system generating 10,000 kWh per year. However, you only consume 7,500 kWh and the other 2,500 kWh are exported to the grid.
  • If your electricity provider charges 25 cents/kWh, you save $1,875 per year thanks to the 7,500 kWh.
  • The value of the remaining 2,500 kWh will depend on the feed-in tariff. With the minimum FIT of 12 cents/kWh they are worth $300, increasing your annual savings by 16%. However, with a higher FIT of 20 cents/kWh, the surplus energy is worth $500 and your savings are increased by 26%.

For an actual solar installation, your site conditions and electricity tariff must be analyzed carefully before calculating costs and savings. However, a qualified provider like Instyle Solar can provide an accurate estimate of your savings and return on investment.

The most up to date VIC Solar Feed-In Tariff rates can be found by clicking here

You might also be interested in our blog that addresses the current Solar Rebates for all Australian states – ‘Solar Rebates 2020’

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