Victoria’s Solar Homes Program Achieves Record Installations
The Solar Homes program, managed by the Victoria state government, has achieved a new milestone by installing over 78,000 subsidised solar panels, hot water systems, and batteries in 2024. State energy minister Lily D’Ambrosio announced that this initiative has resulted in significant savings for Victorian families, amounting to approximately $1 billion in installation costs for solar panels, energy-efficient heat pumps, and batteries. These savings translate to hundreds of millions of pounds off energy bills annually.
2024 marked a remarkable year for the Solar Homes program, with over 31,000 hot water systems being installed, representing a 151% increase compared to 2023. The total number of solar panels installed under the program since its inception in 2018 has surpassed 300,000, generating 2,100MW of solar power – equivalent to the output of Loy Yang A power station, one of Victoria’s largest coal-fired facilities.
Financial Incentives and Benefits
Households eligible for the Solar Homes program can benefit from a $1,400 rebate for solar panel installation, an additional interest-free loan of $1,400, and a further rebate of up to $1,000 for replacing their hot water systems. Collectively, these incentives result in a total discount of $3,800 on the initial installation costs. Moreover, Victorians can maximise their savings through the Victorian Energy Upgrades program, which offers discounts on energy-efficient appliances like heat pumps and cooktops.
The positive outcomes of the program highlight the substantial advantages it offers to households across Victoria. Families opting for solar panel installation can save up to £1,000 annually on their energy bills. By combining solar panels with a hot water heat pump, these savings can increase to £1,400 per year, and with the addition of a battery, households can save at least £1,600 annually.
Impact and Expansion
Victoria’s energy minister, Lily D’Ambrosio, emphasised the program’s role in helping families reduce their energy expenses by facilitating affordable solar installations. This enables households to harness free solar energy, leading to a £1,000 reduction in their annual bills. The surge in solar adoption has driven daytime wholesale prices to record lows, resulting in reduced power costs for all consumers.
The majority of installations in 2024 were concentrated in Melbourne’s outer suburbs, with areas like Tarneit, Craigieburn, Point Cook, Clyde North, and Truganina benefiting the most from solar rebates. However, regional Victoria has also embraced the initiative, with Mildura being a frontrunner in solar rebates, followed by Shepparton, Wangaratta, Traralgon, and Wodonga.
