Victoria boosts Solar Homes rebate scheme to help households quit gas

Victoria’s Labor government has boosted its efforts to wean the state’s homes and businesses off costly and polluting gas, with an expansion of its energy subsidy scheme that will broaden access to rebates for the installation of electric hot water systems.

The changes, announced this week, mean that households that have already claimed a rooftop PV and/or battery rebate through the $1.3 billion Solar Homes program will now also be able to claim a further $1,000 discount on a solar or heat pump hot water system.

Since the 2018 launch of Solar Homes in Victoria, the policy has subsidised the installation of solar panels, solar hot water/heat pumps, solar batteries for more than 200,000 homeowners, renters and business owners.

But applicants to the rebate have been limited to one of the three technologies and, so far, the vast majority have opted for the rooftop solar discount, which currently sits at up to $1,400, plus the option of an interest-free loan

This has been a great success, but doesn’t solve the problem of the state’s continued heavy dependence on gas for heating, hot water and cooking.

As state government data confirms, Victoria has the highest national level of gas reticulation and a significantly higher level of residential gas usage than any other Australian state or territory – accounting for 37% of domestic consumption on the east coast market.

This is a problem for a government targeting reductions in emissions of 28-33 per cent by 2025, 45-50 per cent by 2030, and net zero emissions by 2050. And to address the problem, the Andrews government is developing the Gas Substitution Roadmap.

Electrification will be a big part of that effort, but weaning the state’s households off gas – particularly in the face of the recent gas industry public relations campaigns – will require the pulling of some policy levers.

Boosting access to discounts for solar hot water and efficient electric heat pump technologies is a decent start.

“Expanding the program will help even more Victorians to save money, while supporting clean energy jobs and helping meet our target of halving emissions by 2030,” said D’Ambrosio in a statement on Tuesday.

“We’re putting power back into the hands of Victorian Homes and businesses – driving down energy costs and boosting supply, while creating 5,500 jobs.”

For businesses, there are new options, too, with the government also announcing up to $8,500 off the upfront cost of a solar system installation through the expansion of eligibility criteria of the $47.5 million Solar for Business Program.

And businesses with up to 50 employees will be able to access a rebate of up to $3,500 to install solar panels, up from the current 20 employee threshold.

Businesses will also be able to apply – for the first time – for zero interest loans of between $1,000 and $5,000 to reduce the initial outlay for solar installation.