Victorian solar rebate to close in 2027: what it means for costs
Victoria's Solar Homes rebate closes to new applications on 30 June 2027, with a certificate-based discount to follow. Here is what it means for solar costs.
Victorian households planning rooftop solar have a deadline to note. According to Smart Energy Council, the state government has announced that the Solar Homes solar PV rebate and interest-free loan program will close to new applications on 30 June 2027. From 1 July 2027, a new solar activity under the Victorian Energy Upgrades (VEU) program is due to offer upfront installation discounts through certificates.
Nothing changes today. The current rebate remains available until the closing date, and it is the only part of this story that is settled.
What has been announced
According to the Smart Energy Council, the key points are:
- The Solar Homes rebate of up to $1,400 and the optional interest-free loan of up to $1,400 close to new applications on 30 June 2027.
- A VEU solar activity starts on 1 July 2027, moving Victoria from a government-funded rebate to a certificate-based market mechanism.
- The Essential Services Commission is expected to become the main regulator of the new activity.
- Solar Victoria will develop an implementation plan, with industry consultation on the design.
The council describes this as a major change in how solar is supported rather than a withdrawal of support. It also lists what is still unknown: future discount levels, consumer eligibility, how rental properties and apartments will be treated, and whether anything like the interest-free loan will continue. Accreditation, compliance and consumer protection rules are also still to be developed.
What it means for solar costs
We can't tell you what the new discount will be, because it hasn't been set. What we can do is show where prices sit today.
A typical 6 kWp system costs $8,900 in our model, with a usual range of $6,950 – $11,600. Basic systems start around $7,500 and premium systems reach $10,600. Solar prices are normally quoted after the federal STC discount, which steps down each year until that scheme ends in 2030. Our figures include 10% GST.
Victoria currently offers a rebate of up to $1,400, with an income cap of $150,000 for households from 1 July 2026. If the rebate is replaced by a certificate discount that is smaller, or if the interest-free loan disappears, the upfront cost to some households could rise. If the new discount is larger or more widely available, it could fall. Right now, either outcome is possible.
Adding a battery
Many households pair solar with storage. The federal Cheaper Home Batteries Program offers a certificate-based discount that reduces every six months until 2030, so waiting has a cost there too. Here is how battery choice changes a typical system:
- No battery: $7,500
- 5 kWh battery: $8,900
- 10 kWh battery: $10,400
- 13.5 kWh battery: $11,400
The full comparison is below.
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| No battery | $7,500 | $5,850 – $9,750 | – |
| 5 kWh battery | $8,900 | $6,950 – $11,600 | – |
| 10 kWh battery | $10,400 | $8,100 – $13,500 | – |
| 13.5 kWh battery | $11,400 | $8,850 – $14,800 | – |
Should you wait or install now?
Our view, based on what is known:
- If you are ready to go, installing before 30 June 2027 locks in a known rebate. Check how the application timing works with your installer, as the rebate applies to applications rather than installation dates.
- If you need the loan, act early. Its future is one of the open questions.
- If you can wait, watch the design details. Discount levels and eligibility should become clearer once consultation progresses.
- Don't let a discount drive a bad purchase. Federal STCs are also stepping down each year, so a delay is not automatically a saving.
Whatever you decide, get at least three quotes and make sure each one states clearly whether the price is before or after rebates and certificates. If a number looks off, run it through our "is my quote fair" tool. Electrical work must be done by licensed tradespeople, and in Victoria a Certificate of Electrical Safety is lodged by the registered electrician.
How we work out these figures
Our estimates combine labour hours multiplied by local rates with materials, then are checked against market prices and real quotes. We update them as the market moves and will revisit this article when the VEU design is confirmed.
For a full breakdown of system sizes, inverters and installation extras, see our Solar panels.