Solar and battery rebates in Victoria, explained simply

If you are in Victoria, there are two completely separate rebate schemes that can bring the cost of solar and a battery down — one federal, one state. Most people we talk to have heard of one, or neither. Here is what each actually covers, in plain language.

The federal battery rebate

The federal Cheaper Home Batteries Program cuts around 30% off an installed battery, with the full rate applying to the first 14kWh of usable capacity. There is no income test. Your system has to be VPP-capable (able to join a Virtual Power Plant), which everything we install is. It steps down every six months — the next reduction is 1 January 2027 — so the earlier you install, the more you save.

The Victorian Solar Homes Program

Run by Solar Victoria, this is a separate rebate of up to $1,400 on a new solar system, with a matching interest-free loan available to spread the rest of the cost. There is also a hot-water rebate of up to $1,000 if you are switching to an eligible heat-pump hot water system. Eligibility has an income cap, and you need to use an authorised Solar Victoria retailer fitting approved products — which we are.

How the step-down works

The federal battery rebate is not fixed. It is designed to taper as more batteries are installed and prices fall, dropping in steps every six months. That is why timing matters: the same battery costs more to put in after each step-down. It is not a sales tactic — it is how the scheme is written.

We handle the paperwork

Both schemes involve forms, approvals and eligibility checks. We manage all of that as part of your install — it is not an extra service, and it is not something you have to learn. You tell us about your home; we work out what you are entitled to and apply for it.

For the full detail — how solar works, finance, and warranty — see our Solar 101 page. Figures current as of July 2026; rebates change roughly every six months.