Companies get funding to deliver solar and heat pumps to vulnerable households

The Victoria government has which companies will receive grants to deliver bulk solar panel and hot water system installations to vulnerable households in order to speed up electrification in the state and the switch away from gas.

The new round of grants, worth $4 million, will be provided to seven companies, rather than individuals, and will target supplies to vulnerable people, retirees and first home buyers. 

The kitty available for this program is $10 million, as promised in April last year when the first expression of interest round finished. A government spokesperson says any unspent funds from this program will go back into the Solar Victoria rebates for individuals.

“The Residential Electrification Grants program is increasing solar by broadening the reach and scope of the program to encourage innovation in the use of solar energy,” said energy minister Lily D’Ambrosio.

The bulk deals will see the existing rebates for solar panels ($1400) and heat pump hot water systems ($1000) passed on as a discount by the installers, rather than individuals needing to apply to Solar Victoria. Properties where individual rebates have already been used aren’t eligible for the new bulk program. 

The projects have to service a minimum of 50 customers as part of a single project, and will deliver 1,875 solar systems and 1,545 hot water heat pumps, starting from July.

There are five approved projects to date, with very little detail as to how they will function. The projects are:

• Transmission provider AusNet will upgrade gas appliances and install solar PV systems for vulnerable customers. AusNet will carry the full cost of these upgrades.
• Next Generation Electrical will partner with not-for-profit mecwacare to install solar panels and hot water systems for retirement residents.
• Digital solar and installation design company UPowr is working on a project to help integrate solar panels into the construction process for new homes.
• Global Energy Solutions will supply and install solar panels and heat pump hot water systems to a new 100-home subdivision in Moe.
• Solargain PV will offer solar panels and heat pump hot water systems as a standard inclusion for first home buyers with volume home builders offering all-electric new homes.

The government says it was inundated with expressions of interest in 2022 when it opened the idea up to companies, with 40 projects requesting a total of $39 million. 

The program is intended to support local manufacturing and technologies, and a government spokesperson said all of the projects were assessed by Solar Victoria partly based on the value the customer gets at the end.  

“The program requires providers to have customers’ contracts in place, which have included strong consumer protection settings consistent with Solar Victoria’s other programs,” he said.

“As with all major purchases, consumers should also carefully consider price and quality of solar PV and hot water systems and the bill savings benefits they bring. All projects must also engage authorised installers and use products on Solar Victoria’s lists of eligible products, which also protects consumers from poor quality products.”

The message about going electric appears to be getting through in Victoria. Solar Victoria said that in its recent customer surveys, 69 per cent of respondents were keen to or have been thinking about transitioning to an all-electric home; 13 per cent have already fully transitioned thanks to Solar Victoria’s rebates and loans.

Since 2018, Solar Victoria has provided more than 350,000 rebates and loans to households across the state to install solar panels, energy efficient hot water systems, and solar battery systems.

* This article has been updated with responses from the Victoria government.