Victoria Lowers Income Cap for Rooftop Solar Rebates
Victoria is set to tighten the eligibility criteria for its rooftop solar and electric heat pump hot water subsidies, following a significant milestone where the Solar Homes scheme has facilitated over 500,000 subsidised home energy and electrification upgrades.
Effective from July 1, the income eligibility threshold will decrease from £210,000 to £150,000 per annum for those eligible to receive solar and hot water rebates. This adjustment, according to Solar Victoria, aims to better assist households most impacted by rising living costs.
Details of the Rebate
The rebate amount remains unchanged, allowing owner-occupiers and rental properties to benefit from up to £1,400 off the cost of a solar PV system, as well as an equivalent interest-free loan.
For energy-efficient hot water systems, the rebate continues to offer up to £1,400 for locally manufactured units or up to £1,000 for alternative products.
Impacts on Current Participants
Solar Victoria, responsible for managing the Solar Homes Program under the state Labor government, anticipates that these changes will not drastically affect the profile of rebate recipients, with around 80 per cent of current customers still qualifying under the new £150,000 cap.
The initiative is particularly beneficial for lower-income households, as more than half of those receiving rooftop solar rebates (55%) and hot water rebates (52%) come from families with a combined annual income of below £100,000.
Success of the Solar Homes Programme
The Solar Homes initiative has proven to be remarkably successful for Victoria, achieving the installation of 353,100 discounted rooftop solar systems and 89,400 energy-efficient hot water systems since its inception in 2018, as of the end of May this year.
According to Solar Victoria, the installed rooftop solar PV systems are generating over 2.5 gigawatts (GW) of capacity across the state, with households estimated to save up to £1,000 each year through the self-consumption of solar energy.
Growing Demand for Hot Water Upgrades
Hot water system upgrades are also witnessing increased interest, with approvals granted for 89,400 energy-efficient units, of which 2,000 were produced locally. Looking ahead, Solar Victoria has earmarked an extra 27,000 hot water rebates for the 2026-27 financial year to accommodate rising demand.
Additional Subsidies
Apart from rooftop PV and energy-efficient hot water systems, the Solar Homes scheme has provided subsidies for the installation of 21,400 home batteries; however, this component of the programme concluded in mid-2023 and was subsequently replaced with interest-free loans, which will no longer be available for batteries after mid-2025.
Solar Victoria has also approved rebates for 34,900 reverse cycle air conditioners and 9,900 zero-emissions vehicles.
For those interested in receiving the latest news on clean energy directly to their inbox, over 29,000 others have subscribed to the free daily newsletter.
If you wish to support independent journalism and accurate information, consider making a one-off donation or becoming a regular supporter of Renew Economy.
