Looking into the Solar Rebate Victoria but not sure what you’re eligible for in 2021? You’ve come to the right place – Captain Green are here to help.
If you’re located in Victoria or Melbourne, solar is an excellent solution for your property. Despite the four-seasons-in-one-day weather reputation, Victoria is one of the best Australian states for solar energy. What’s more, the Vic Gov solar rebates in place mean that those that purchase and install solar panels in 2021, could almost halve their purchase costs.
What Rebates Are Available to Victorians?
Solar panels, as part of a solar system, capture energy from the sun and convert it into electricity to power your home or property. Investing in a solar energy system is an investment into your property; reducing the amount of electricity you require from the main power grid and powering your home through an environmentally friendly, renewable energy source.
If you’re located in Victoria and are thinking about solar power, you should consider all of the available solar rebates.
Firstly, there is the Federal government rebate, which is unimpacted by the new Victorian solar rebate; it can reduce the cost of solar panels by up to one third. On top of that, there are Victorian solar rebates, where multiple incentives fall under the umbrella of the solar homes project.
More on the Federal government rebate later; we’re going to delve straight into the Victorian solar rebate available in 2021.
What Is the Solar Rebate Victoria?
The Victorian Government offers a host of rebates and incentives for eligible residential and small business customers who purchase solar energy systems. Essentially, these rebates allow for those in Victoria to claim a certain amount back from the government, when purchasing solar energy products. The solar rebate scheme aligns with Victorian and Australian climate goals and emission reduction programs to encourage widespread investment into solar and other renewable energy solutions as we move into 2022.
The current VIC Solar Rebates combined with increasingly affordable solar energy systems indicates that there has never been a better time to begin your journey with solar energy. To get your head wrapped around the current rebates and what you can expect to get back from the schemes, the solar panel experts at Captain green solar have created a comprehensive guide on the rebates and incentives available to those located in Victoria, Australia.
How the Victorian Solar Panel Rebate Works
If you are purchasing a solar panel system for the first time in Victoria, you are eligible to receive the Victorian Government Solar Panel (PV) Rebate as part of the Solar Homes Program.
The Solar Panel (PV) Rebate Victoria is available to all Victorian homeowners who are purchasing a new solar system. This rebate could halve the cost of your purchase as it covers 50% of the price. The cost is subsidised up to a maximum of $1,400 for your new solar system.
If you are a small business owner, you can also take advantage of this fantastic opportunity. The Small Business Solar Rebate Victoria has the same goals and function as the residential rebate but is capped at $3,500. Even if you rent your premises, you could still qualify with your landlord’s permission.
To provide further incentives to buyers, owner-occupiers can apply for an interest-free loan equivalent to their solar VIC rebate amount. Customers can repay this loan in instalments over four years, or with a lump sum. Another great aspect of this rebate is that it can be used in tandem with federal rebates to reduce the cost of your solar investment further.
To be eligible for the Solar VIC Rebate and interest free loan, there are criteria that buyers must satisfy.
Eligibility criteria for the Solar Panel Rebate Victoria
- The applicant is the owner-occupier of the property.
- The owners of the property have a combined taxable income of less than $180,000 per year (This is based on the previous year’s notices of Assessment presented to the Australian Taxation Office)
- They have not previously received a rebate as an owner-occupier under the Solar Homes Program.
- The existing property has a value of less than $3 million.
- There is not an existing solar PV System*
*If you installed your system before 1 November 2009, you are eligible to replace or expand the existing system as part of the VIC Gov Solar Rebate. However, if you are receiving the premium feed-in tariff, you may be better off keeping your current system as is.
Once you are confident that you satisfy the criteria for the Solar Rebate in Victoria, you will need to find a participating solar retailer and installer authorised to participate in the program. A key point to remember here is that you need to have your rebate approved before installing anything, as you can not apply for it after installation.
Captain Green is proud to be a participating partner of the VIC solar rebate program and has been assisting many of our customers to navigate and receive the full benefits of this scheme. If you’re after more information on the best options for you and how to receive this rebate, get in touch with the expert Captain Green team today to talk through your options.
Solar Panel Rebate Example
A 6.6kW system located in Geelong, Victoria, will cost $6,700. After the government solar rebate VIC is applied ($1,400), the total net cost of the system would be $5,300. With an interest-free loan of $1,400, the total upfront cost would decrease to $3,900. You can then pay the $1,400 loan over four years with a monthly repayment of $30.
VIC Gov Solar Rebate (Feed-in Tariff)
Feed-in tariffs are a perfect way to take advantage of your solar energy system after claiming the solar rebate Victoria and installing your solar system. Feed-in tariffs are an ongoing scheme so that you can receive these payments over the entire lifetime of your solar system.
If you are generating excess energy with your solar energy system, you can feed it back into the main power grid. Your energy supplier will purchase the energy provided back into the grid in what’s known as a ‘feed-in tariff.’ This payment comes in the form of a credit on your power bill.
In Victoria, the Feed-in tariff rates are set annually by the Essential Services Commissions. All electricity suppliers with more than 5,000 customers must offer the option of a ‘single rate tariff.’ The minimum single rate tariff for 2021-22 is 6.7 cents per kilowatt hour (c/kWh). Energy suppliers can also time-varying rates for off-peak, shoulder, and peak times. The 2021-22 minimum time-varying Feed-in tariffs are:
Off-peak – 6.7 c/kWh
Shoulder – 6.1c/kWh
Peak – 10.9 c/kWh
Victorian Energy suppliers must offer nothing less than these rates to their customers but may also provide higher rates, so it is essential to shop around. To get the best deal, make sure to compare the rates and conditions between energy retailers as some may offer better feed-in tariffs initially, but charge more for electricity. When doing your research, consider these factors:
- Feed-in tariff rates
- The cost of electricity
- ‘Pay on time’ discounts
- Late payment fees
- Daily supply charge
As of the moment, the best feed-in tariff rates in VIC are as follows.
It is important to note that some energy suppliers operate across specific regions of Victoria and certain feed-in tariffs are only available if customers satisfy the criteria.
Solar Battery Rebate Victoria
The Victorian government also provides rebates for solar batteries under its Solar VIC scheme. Rebates for solar batteries are available across all postcodes of Victoria. Taking advantage of the battery rebate allows you to save even more money on top of existing rebates and schemes for your solar panels.
This rebate is available to eligible Victorian households installing a solar battery. The rebate provides a maximum of $4,174 off the point of sale for a solar battery. There are a set number of rebates that are released sequentially throughout the year. Once all the rebates have been exhausted, the total discount will reduce to $3,500 for eligible customers.
The rebate will be claimed on your behalf by your solar retailer against the overall cost of your system and installation. You will then be responsible for paying the remaining balance.
This is a fantastic scheme that encourages Victorians to take advantage of solar battery technology, which can save a typical household up to $640 a year. The solar battery rebate Victoria has a set of eligibility criteria similar to the solar panel rebate as well as other requirements such as:
- The property already has PV solar panels with a capacity equal to or greater than 5kW.
- Pre-approval is obtained from your Distributed Network Service Provider (DNSP) to connect the solar battery to the grid safely.
- The energy storage solution is on the approved Solar Victoria Battery List, and the property does not have an existing energy storage system.
The Federal Solar Rebate in Vic
The federal solar panel rebate is available in tangent with the Victorian incentives. The rebate amount will vary, depending on a number of factors. While it is not as generous in Victoria as it is for Queensland residents, it still can still save you over $3,000 off the price of a 6.6kW system.
More often than not, your solar panel installation company will take care of the federal rebate and it is often factored into solar panel quotes.
Want to Take Advantage of the Solar Panel Rebate Victoria?
Now that you’ve got a better idea of the Solar Rebates in Victoria, it’s time to get going! Not only is moving to solar power a great way to reduce your monthly energy bill, but it is also a fantastic step in your home becoming more environmentally friendly. A collective adoption of solar and renewable energy solutions will play a key role in meeting renewable energy targets and improving the condition of our natural environment.
Captain Green are Australia’s leading solar provider, having installed over 270,000 solar panels across the nation in the last decade. We are passionate about sustainable energy solutions and satisfied customers. We offer our Victorian customers competitively priced solar panels and packages, with exceptional installation services. If you would like more information about our Solar Panels or your VIC rebate options, give our friendly team a call today on 1300 361 382.