Victoria has closed off applications to its zero interest solar battery loan, one month ahead of the launch of the federal government rebate that promises to cut the cost of home energy storage by around 30 per cent.
The Victorian Labor government launched the interest-free statewide loan scheme in July 2023, as a replacement to the state’s nearly $3,000 home battery rebate which was launched through Solar Victoria in 2019.
In a news item published on Tuesday, Solar Victoria said it has closed off the incentive after meeting and beating the original commitment to provide 4,500 home battery loans through the scheme.
“That target has now been exceeded with hundreds more applications now being finalised meaning that solar battery installations will continue to grow over the coming months,” the statement says.
Solar Victoria says the target that was set for the rebate, back in 2018, to support 10,000 Victorians to install batteries in their homes, had also been “well and truly exceeded,” with a total of 20,000 applications approved for rebates and loans combined.
The decision to close off the loan program just as a nationwide discounted battery offer comes into play means Solar Victoria can put to bed any questions around “stacking” state and federal incentives.
“Solar Victoria’s incentives have stimulated demand for batteries across the State and now the Commonwealth government will continue this on,” the statement says.
It also means the highly successful Solar Homes scheme can focus its funding and attention elsewhere, including in support of residential electrification, as the Victorian government continues its policy push to get gas out of homes.
As Solar Quotes points out here, Victoria’s 2025-26 state budget in May earmarked $30 million to support an extra 27,000 households to install solar and heat pump hot water systems.
Rebates of up to $1,000 are available for eligible heat pump and solar hot water systems through the Solar Homes program.
On batteries, Solar Victoria says that of the 20,000 that were incentivised through its rebate and then loan offer, applications were most popular in Melbourne’s outer suburbs, including Berwick, Pakenham, Tarneit, Sunbury and Point Cook.
It says that the average Victorian household that invests in rooftop solar and a mid-sized battery (around 10kWh) can expect to save around $1,400 per year, and receive a return on investment over 10 years.
Solar Victoria’s Solar Battery Loan web page currently advises those interested in investing in a home battery to sign up for updates on the federal government’s Cheaper Home Batteries Program.
It also offers the following advice: “Customers are advised that they should consider carefully their purchase of a battery when taking into account the discount from the Commonwealth Government’s program as specific details, including eligibility criteria and technical requirements are subject to regulations being made and may change.”
Sophie is editor of One Step Off The Grid and editor of its sister site, Renew Economy. Sophie has been writing about clean energy for more than a decade.
