Solar Victoria will tighten eligibility settings for its Solar Homes Program from 1 July 2026, introducing a lower household income cap, while maintaining existing rebate levels for rooftop solar and hot water systems.
The changes are designed to direct support towards households most affected by cost-of-living pressures, while continuing to accelerate Victoria’s transition to clean energy.
Under the new settings, the combined household income eligibility threshold for solar photovolatic (PV) and hot water rebates will be reduced from $210,000 to $150,000 per year. The revised cap will apply to owner-occupiers, rental properties and households seeking support for energy-efficient hot water systems.
Despite the change, rebate values will remain unchanged. Eligible households can continue to access rebates of up to $1400 for rooftop solar installations, alongside an equivalent interest-free loan, and up to $1400 for locally manufactured hot water products, or up to $1000 for other approved systems.
Solar Victoria stated that the new threshold ensures government support is targeted towards lower and middle-income households (while still covering the majority of current program participants).
According to Solar Homes Program data, more than 80 per cent of existing Solar Homes customers would have remained eligible under the new $150,000 cap. More than half of all solar PV rebates issued to date have gone to households with a combined income below $100,000, while 52 per cent of hot water rebates have also been allocated to households within the same income bracket.
Victorians with household incomes between $150,000 and $210,000 have until 30 June 2026 to submit a completed application under the current eligibility settings. Solar Victoria shared that thousands of rebates remain available before the deadline.
The program will continue to provide exemptions for customers affected by the closure of the Solstice Energy compressed natural gas network who choose to electrify their homes.
Since launching in 2018, the Solar Homes Program has played a significant role in driving rooftop solar adoption across Victoria. Solar Victoria estimates the proportion of suitable homes with rooftop solar has increased from around 14 per cent to approximately 30 per cent during the life of the program.
The initiative has contributed to more than 850,000 small-scale solar PV systems installed across the state, with rooftop solar now supplying around 10 per cent of Victoria’s electricity generation. More than 45,000 Victorian households have also installed battery storage systems.
Looking ahead, the Victorian Government will make an additional 27,000 hot water rebates available in 2026-27 to support further electrification. Households and businesses will also continue to have access to incentives through the Victorian Energy Upgrades program.
Meanwhile the new Victorian Midday Power Saver, due to commence on 1 October, will offer participating customers three hours of free daytime electricity to help reduce energy bills and ease pressure on the grid.
To secure a rebate under the current $210,000 income eligibility cap, applications must be submitted in full by 5 pm on Tuesday 30 June 2026.
For more information, visit the Solar Victoria website.
