Solar Victoria said more than 84,000 rooftop solar, energy-efficient hot water, and battery energy storage system applications were received through the Solar Homes program last year, and more than 78,000 installations were completed.
State Energy Minister Lily D’Ambrosio said the scheme saved Victorian households as much as $1 billion (USD 640 million) off the installation of solar panels, energy efficient heat pumps, and batteries in 2024.
The result lifted the total number of rooftop solar systems installed through the program since its launch in 2018 to more than 300,000, equating to 2.1 GW of power, equivalent to that generated by the Loy Yang A power station, one of the largest coal-fired plants in the state.
The Solar Homes program offers eligible Victorian households a $1,400 rebate plus a further $1,400 interest-free loan to install solar panels, a further rebate of up to $1,000 is available for eligible heat pump and solar hot water systems, and an interest-free loan of up to $8,800 for the installation of a battery system.
Melbourne’s outer suburbs are leading the household solar boom in Victoria with Tarneit, Craigieburn, Point Cook, Clyde North and Truganina accessing the most solar rebates.
Regional cities in northern Victoria are leading the uptake in the state’s rural areas, notably Mildura, Shepparton, Wangaratta, Traralgon and Wodonga.
The update from the Victorian government comes at the Essential Services Commission (ESC) prepares to publish its final decision on the minimum amount electricity retailers must pay solar customers for the electricity they export into the grid.
The ESC has published its draft decision, proposing to cut the minimum flat feed-in tariff for solar PV to 0.04 cents per kWh from 1 July 2025, down from the current 3.3 cents per kWh. The draft decision also proposes two time varying feed-in tariffs ranging from 0.0 to 7.5 cents per kWh, down from last year’s tariffs that ranged between 2.1 cents to 8.4 cents.
Retailers will be able to offer more than these rates if they want to but ESC Chair Gerard Brody said the lower feed-in tariffs reflect the widespread uptake and success of rooftop solar in the past few years.
“The amount of rooftop solar in Victoria has increased by 76% since 2019, from approximately 446,000 systems to 787,000,” he said.
“This has both increased supply and reduced demand for electricity during the middle of the day, resulting in decreasing value of daytime solar exports.”
The final decision on minimum feed-in tariffs is to be published before the end of the month.
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