Ensuring more Victorian households and small businesses have access to solar energy

The Victorian Government is accelerating the Solar Homes Program to meet surging demand from owner-occupier households and community housing tenants and support the economic recovery of Victorian small businesses. The program will now deliver 778,000 rebated installations plus 15,000 rebates for small businesses.

This major investment will deliver:

• 42,000 solar photovoltaics (PV) rebates to be brought forward over the next two years – bringing the total number of rebates to be delivered over the next two years to 140,000
• 17,500 battery rebates over three years and the removal of postcode eligibility requirements for battery rebates
• 15,000 solar PV rebates for Victorian small businesses over the next three years.

The Victorian Government’s 2020 State Budget commitment to expand the Solar Homes program will help meet a surge in demand and accelerate access to solar energy for more Victorians, providing immediate savings and environmental benefits, whilst maintaining quality and safety.

The package will also support the economic recovery of Victorian small businesses, create jobs within the solar industry, and improve the living standards of vulnerable households - ensuring that no Victorians are left behind in the state’s energy transition.

More than 117,000 households have installed solar PV thanks to Solar Homes – saving an average of up to $890 per household - a clear sign of the need for this program, and its success, but we are not stopping here.

This budget will help bring forward 42,000 solar PV rebates to households over the next two financial years, bringing the total over this time to 140,000.

The Victorian Government is working closely with AEMO and the Energy Security Board to ensure that the National Electricity Market and electricity grid are fit for purpose. Through our investment in smart meters and inverters, upgrades to grid infrastructure and small and large-scale battery storage, we are ensuring we can continue to connect more renewable energy to grid.

To enable more solar to be connected to the grid without increasing network costs, we have invested $10 million in a Grid of the Future work program. This work is helping to ensure that Victorians can get the benefits from rooftop solar and other forms of distributed energy resources.

To ensure the ongoing reliability for our network, the Government has announced the Victorian Big Battery – the largest battery in the Southern Hemisphere – which will transform the way renewable energy, such as solar, can be stored and utilised by the grid. In 2018 the Victorian Government invested $50 million in two large-scale batteries that support grid stability in Ballarat and Gannawarra.

The Solar Homes battery program is working with industry partners to deploy new business models that will store solar power through aggregating batteries in arrangements such as virtual power plants.

The average household in Victoria is saving up to $890 on their energy bills each year after installing solar.

Yes. Even during lockdown in Victoria, demand for household solar PV rebates remained strong. July 2020 was the program’s strongest ever month for owner/occupier rooftop PV applications (6951). Even with the solar industry on pause in August due to stage 4 restrictions, applications were up significantly year on year (5523 in August 2020, vs. 3364 in August 2019).

Now that the solar industry is back at work, the Solar Homes Program is breaking its own records for both the number of rebates approved, and the number of solar systems installed.

More than 117,000 Victorian households have already successfully applied for a solar PV panel rebate.

A total of 17,500 batteries will be available between 2020-23.

5,000 batteries will be available in 2020-21. Rebates will be released fortnightly in line with the current schedule of rebate release dates.

The Solar Homes Program has been immensely popular with Victorian households and the battery rebate releases in recent months has frequently reached full allocation under one minute.

Our modelling shows that there will be sufficient demand to justify the increased rebate numbers over the next three years. The additional battery rebates will also allow us to support Victorians who want to participate in energy aggregation programs, Virtual Power Plants (VPPs) and microgrids. We will have more to say on that in coming months.

A solar battery rebate of up to $4,174 is available in 2020-21. The battery rebate amount is scheduled to reduce over the next three years.

Total solar battery costs can vary anywhere from around $4,000 to $15,000 depending on the size of the system.

Households can save up to $640 per year on their energy bills, in addition to savings they are already making from their solar PV system.

More than 1,457 Victorian households have approved applications for a solar battery rebate, with 1,139 of those systems now installed. These households are now saving up to $640 per year on their energy bills.

We’re thrilled the program is as successful as it is – it’s a good problem to have. We’re working with industry to ensure it continues to grow and have increased rebates for both solar and batteries in response to demand. That’s a mature and reasonable approach to delivering a 10-year program.

With the expanded supply of rebates and our work with distribution companies, we are now comfortable that batteries can be efficiently deployed across Victoria.

With many Victorians working from home, energy use in the home is on the rise.

A battery can help households further reduce their energy bills by storing power from their solar PV panels and providing it back to the household when they need it.

There are a number of eligibility criteria.

Victorians are eligible to receive a battery rebate if they meet all of the following criteria:

• the property has solar PV panels with a capacity equal to or greater than 5 kilowatts
• pre-approval is obtained from your Distributed Network Service Provider (DNSP) to safely connect a battery to the grid
• the energy storage solution is listed on Solar Victoria’s Approved Battery List and the property does not have an existing energy storage system
• you are the owner-occupier of the property where the system is to be installed
• the combined household taxable income of all owners is less than $210,000 a year (based on your Australian Taxation Office Notice of Assessment)
• it is an existing property, valued at under $3 million based on the current Council Rates Notice
• the property address has not previously taken part in the Solar Homes Program
• the owner/s agrees to receive information from their DNSP about taking part in battery trials to maximise the value households get from them
• owner/s agree to receive a free safety inspection and/or audit under the Solar Victoria Audit Program, if selected.

Solar Victoria requires stringent quality and safety standards to be met so that solar customers applying for a rebate receive a high-quality product, installed safely by a qualified professional.

Solar Victoria maintains a regularly updated list of authorised providers, who are required to only use products on Solar Victoria's approved products list. All installers must be A-Grade electricians with endorsements for solar batteries.

To qualify for inclusion on the approved products list, products must meet standards set by the Clean Energy Council. Solar Victoria also requires battery installations to comply with the Australian Battery Installation Standard.

Solar Homes rebated solar batteries are not currently available for rental properties.

However, the Solar for Rentals Program offers eligible landlords a rebate of up to $1,850 for the installation of solar PV panels on their property, slashing the up-front costs of solar while increasing the value and appeal of their property. Visit https://www.solar.vic.gov.au/solar-rental-properties for more details.

Coupling batteries with renewable energy generation allows for energy created by a solar PV system to be stored during times of low demand and released at times of peak demand.

Batteries can respond faster than other energy storage or generation technologies and help maintain grid stability by turning on and off in fractions of a second.

Batteries can be located in a range of areas and installed in small or large quantities for different uses. For example, a large number of batteries installed together, known as grid-scale or large-scale battery storage (LSBS), can act as a large-scale power generator connected into the electricity transmission system. Smaller-scale batteries can be installed in homes to provide backup power but can also be operated as a collective in what is called a Virtual Power Plant (VPP).

If you have already received a solar PV panel rebate, unfortunately you cannot apply for a solar battery rebate. You can only apply for one rebate under the Solar Homes Program.

Solar Victoria has implemented a tough audit regime which audits 5 per cent of installations funded by a Solar Homes rebate. The program works closely with industry bodies and regulators (Energy Safe Victoria, WorkSafe Victoria and the Victorian Building Authority).

Solar Homes has never been more popular with Victorian households, and the solar industry has a strong pipeline of work with around 13,000 approved solar rebate applications awaiting to proceed to installation across Victoria.

With the easing of restrictions on 19 October 2020, installations have restarted in metropolitan Melbourne and continue in regional Victoria.

Installers in both metropolitan Melbourne and regional Victoria must have a High-Risk COVIDSafe Plan in place for each workplace or site. Random spot checks are underway to ensure compliance. Installers must regularly review and update their COVIDSafe Plans, especially when restrictions or public health advice changes.

As Victoria’s solar industry grows, advances in technology and increased competition in the marketplace put downward pressure on prices. For this reason, rebates reduce slightly over time. The current maximum solar PV rebate available is $1,850. The current maximum battery rebate available is $4,174.

Within two years of launching, more than 119,500 Victorians have successfully applied for a solar PV, battery OR hot water system rebate, supplied by one of 1600 accredited retailers and installers across the state.