Is Solar Worth It in Victoria?

Written by Jacob, Last reviewed 2026. This guide is for informational purposes only — see methodology.

Victoria is a unique market for solar. The state gets less sunshine than Queensland or WA, but the Solar Homes rebate bridges much of that gap. For eligible homeowners, the rebate and optional loan can materially reduce the upfront cost.

The Solar Homes Rebate

Victoria's Solar Homes program offers an upfront rebate of up to $1,400 and an interest-free loan of up to $1,400^[1]. That makes a real difference to the starting price. A 6.6kW system that might cost $6,000 before rebates can drop to around $3,600 net after the rebate and STCs, with the loan reducing upfront cash to $2,200.

Key eligibility rules include owner-occupier status, combined taxable household income below $210,000, property value below $3 million, no solar panel rebate or battery rebate previously received at the property, and no solar PV system installed at the property in the last 10 years. You must use an authorised solar retailer and eligible products. Solar Victoria releases more rebates each month.^[1]

STC Zone and Generation

STC discounts vary because certificate numbers depend on expected system generation and the SRES rules. This means the upfront discount can be smaller in lower-sun areas.^[3]

Generation is also lower — based on our methodology assumptions, a 6.6kW system in Melbourne produces roughly 8,500 to 9,000 kWh per year, compared to 9,500+ in sunnier states.^[6]

System Costs in Victoria

System costs before rebates vary, but after the Solar Homes rebate and STC discount, eligible homeowners typically pay between $3,000 and $5,000 net.^[6] This estimate assumes typical inverter and panel prices and includes the Solar Homes rebate and STC discount. Actual quotes may vary.

You should use an authorised solar retailer and confirm the installer is properly accredited.^[5] Most reputable installers will handle the STC paperwork and help with the Solar Victoria application.

Feed-In Tariffs in Victoria

Since 1 July 2025, Victoria has not had a regulated minimum feed-in tariff. Retailers set their own export rates, but they cannot be below 0c/kWh. Compare plans carefully because the best value usually comes from using your solar power at home.^[4]

Winter Heating and Solar

Victorian households typically use more electricity in winter for heating. That's a problem for solar — winter days are shorter and cloudier, and heating tends to run in the evenings. A heat pump or reverse cycle air conditioner used during the day can help capture more solar value.

Worked Example: A Melbourne Home

Consider a Melbourne household using 16 kWh a day with a 6.6kW system. The net cost after the Solar Homes rebate and STC discount is around $3,600 (based on a pre-rebate price of $6,000). The interest-free loan can reduce the upfront cash needed to $2,200, but the loan is repaid over 4 years at $350 per year. For payback calculation, we use the net system cost without the loan.

Example assumptions: 8,800 kWh annual generation, 40% self-consumption, 28c/kWh electricity import rate, 6c/kWh feed-in tariff, and $3,600 net system cost after rebates and STCs.^[6]

That sub-3-year payback is very competitive, thanks to the low upfront cost from the Solar Homes rebate. Without the rebate, a $5,000 system (after STCs) would pay back in about 3.8 years with the same usage pattern.

This guide is for informational purposes only and does not constitute financial or investment advice. Solar savings estimates vary by household. Always consider your own circumstances and consult a qualified professional before making a purchase decision.