Victoria confirms solar support will continue after the Solar Homes rebate ends

What happens to the current $1,400 Victorian solar rebate?

Nothing changes immediately.

Eligible Victorian households can currently receive a solar PV rebate covering up to 50 per cent of the eligible system cost, capped at $1,400. An optional interest-free loan of up to the equivalent rebate amount is also available under the current rules.

Solar Victoria says current arrangements will remain in place until 30 June 2027. From 1 July 2027, household solar support will instead transition into a new residential solar PV activity under Victorian Energy Upgrades.

That distinction matters. The government has confirmed that support will continue, but it has not yet published the value of the future VEU discount or the complete eligibility and implementation rules. Homeowners should not assume the future discount will equal today's $1,400 maximum rebate.

Our Victorian solar rebates guide explains the incentives currently available to households.

What is Victorian Energy Upgrades?

Victorian Energy Upgrades is an established state program that provides discounts for eligible energy-saving products and upgrades. Accredited providers create Victorian Energy Efficiency Certificates when qualifying activities are completed, and the certificate value can contribute to the discount received by the customer.

Residential solar PV is set to become another activity within that system from July 2027.

Solar Victoria says it will work with industry during the transition and provide further information as implementation arrangements are developed.

For homeowners, several practical details are therefore still unknown. Solar Victoria has not yet published the final value of the new solar discount, the complete eligibility criteria or the customer application process for the VEU solar activity.

We will update this article when those rules are published rather than trying to estimate the future incentive.

Should you wait until July 2027 to install solar?

The announcement removes one potential reason to rush. Victorian solar assistance is not simply disappearing on 30 June 2027.

It does not follow that waiting will produce a better deal.

A household installing under the current program can assess known rules, including the maximum rebate, loan arrangements and eligibility requirements. Someone installing after 1 July 2027 will be using a different incentive whose final value has not yet been announced.

There is also a separate federal incentive to consider. Eligible rooftop solar systems can create Small-scale Technology Certificates under the Australian Government's Small-scale Renewable Energy Scheme. That federal support is separate from Victoria's Solar Homes rebate, and the ordinary SRES solar deeming period continues to reduce as the scheme approaches 2030.

For most households, the installation date should be driven primarily by whether solar makes financial and practical sense for the property, rather than trying to predict which side of 1 July will produce the largest subsidy. Our Melbourne solar prices guide can help when comparing the underlying system cost.

What if you already have a Solar Homes loan?

Solar Victoria says it will continue administering existing solar PV interest-free loans after the transition.

The announcement therefore does not move existing borrowers into the VEU program. Solar Victoria also says it will continue administering hot water rebates.

What this means if you are getting solar quotes now

For households considering solar over the coming months, the existing Solar Homes rules remain the ones that matter.

Under the current program, eligible households can receive up to $1,400, subject to the program rules. Solar Victoria requires customers to use an authorised retailer and eligible products. The retailer must also obtain distributor pre-approval to connect and export before uploading the quote into the Solar Victoria portal.

One rule is particularly important: do not have the system installed before Solar Victoria confirms your eligibility. Solar Victoria states that a system installed before eligibility approval will not receive the rebate.

If you are comparing proposals, also check the actual equipment, system size, export arrangement and installation scope rather than comparing the post-rebate price alone. See our guides to comparing solar quotes, choosing a solar installer and Victorian solar export limits.

There is now more certainty about what comes after June 2027, but not enough information to make a meaningful dollar comparison between today's Solar Homes rebate and the future VEU solar incentive.