For good reason, many homeowners in Victoria (VIC) are thinking about installing a solar energy system. With government solar rebates in VIC and panels on your rooftop, you can reduce your electricity costs significantly. Being a renewable energy source, solar power is also considered good for the environment.
In Victoria, a solar panel system is a good investment. Even though the initial cost may be high, the payback time is usually no longer than four years. You are saving energy costs, so the system will pay for itself after some time.
To make it easier and more affordable for Victorians to purchase a solar panel system, the Australian government offers a federal rebate. In addition to this, there is a Victorian rebate, which will cut your costs even more. So, what are the federal government rebates in VIC? Let’s dive into it!
The solar government rebates in VIC
The federal government solar panel rebate is a financial incentive given by the Australian government. This rebate varies across Australia and is based on the size and effectiveness of your solar energy system. It will also depend on the number of sunlight hours where you live.
The federal government solar rebate in VIC is not as big as in Queensland and some other areas, however, it will still cover a great amount of your costs. In total, this rebate can cut your costs by more than $3,000 (if you buy a 6.6kWh solar panel system).
The federal government rebate will be included directly in the quote you receive from your solar panel retailer in most cases. If it’s not shown clearly you should ask your installer for the details.
The Victorian solar panel system rebate
Starting from July 2021, residents in Victoria may receive a rebate in addition to the federal government solar rebate in VIC when purchasing a solar panel system. The Solar Homes Program rebate will reduce the costs of the systems by 50%, up to a maximum limit of $1,400.
To be eligible for the rebate, you must meet the following criteria:
- The annual income of the household is under $180,000
- The value of your home is $3,000,000 or less
- You are the property’s owner-occupier
- The system is bought from a CEC (Clean Energy Council) approved retailer
- The system itself is approved by the CEC (including battery, inverter and panels)
- The system is installed by a CEC-approved installer
Through the Solar Victoria department, there are also incentives for renters living in Victoria.
Battery rebate for VIC residents
You may be eligible for the Victorian battery rebate when purchasing a battery for your solar panel system. Thanks to the battery rebate, you can save up to 50% of the battery costs – up to a maximum limit of $4,174.
But remember, you may not claim both the battery rebate and the solar panel system rebate. This means that the rebate is most relevant for Victorians who want to add a battery to their already existing solar panel system.
Example: How will government solar rebates in VIC affect the costs?
When installing a solar panel system in Victoria, the cost will typically be around $4,200 if you install a 5 kWh system. This is the cost after applying the rebates. With no rebates, the costs would be significantly higher – around $8,200.
So, if the total cost of the solar panel system is $8,200, you can expect a federal rebate of around $2,500. In addition, you will receive a Victorian rebate of up to $1,400 if eligible. This will give you a net cost of around $4,300.
In other words, your costs will be reduced by almost 50%.
Feed-in tariffs in Victoria
If you install a solar panel system on your house, it is normally connected to the grid. You can sell excess electrical power generated by your system to the grid through your energy company. The feed-in tariff in Victoria is set by your power retailer and may vary.
However, the Victorian tariff rates are never lower than 10.2 cents, which is the limit set by the local governments.
Getting your government solar rebates in VIC – Summary
As a Victorian, you can receive different incentives when installing a solar panel system, which will make the purchase more affordable. Not only can you receive a federal government solar rebate in VIC, but you may also get a Victorian rebate.
In addition to this, you can earn some money through the feed-in tariffs in Victoria. To sum up, the investment can be a smart choice. You will save a lot of money over time thanks to the reduction in your electricity costs.
Find a solar panel retailer today, and find a system that fits your needs. And remember, the retailer and the system itself must be approved by the Clean Energy Council. If not, you may risk losing your rebate.
If you want to learn more about solar panel systems and rebates, please take a look at our other helpful guides. Make sure you use a CEC-accredited installer for obtaining quotes.