Victoria's Smart Homes program promises rebates on solar

Victorians can expect to start saving on solar as of this week, with the state government announcing a 50% rebate on solar panel systems as part of the newly launched Smart Homes program.

The rebate will be available to Victorians with a household income of up to $180,000 who live in their own home valued at up to $3 million. This means almost nine out of 10 Victorians who own their own house are eligible.

The program will be expanded to include an interest-free loan from July next year, under a re-elected government. This means consumers will be able to install a solar panel system for half price and pay the cost back over four years, saving the typical Victorian household up to $2225 for installation of an average 4 kW solar system and $890 a year on their electricity bills.

Acknowledging that not all homes can have solar panels installed because of issues such as roof design or shade, the government is also providing a $1000 rebate on solar hot water systems as part of the program. This means Victorians who can’t install solar panels will still be able to save on their electricity bills, with the average Victorian household expected to save between $160 and $400 a year.

The $1000 rebate is available to up to 6000 households from today and will be expanded to 60,000 households under a re-elected government. It is available to Victorians with a household income of up to $180,000 who live in their own home valued at up to $3 million — and who haven’t already installed half-price solar panels under the program.

A new independent agency, Solar Victoria, will be established to work with industry, regulators and training organisations to deliver the $1.24 billion program, which will create almost 5500 new jobs. The government will also invest $9 million to support the accreditation of 4500 electricians to install solar hot water and solar panel systems, thus ensuring the highest safety standards.

Overall, the program is expected to see solar panels installed on 650,000 homes over 10 years, bringing the number of homes in Victoria with solar panels to 1 million. This should save Victorians $500 million a year on their electricity bills once the program is complete, as well as cut the state’s carbon emissions by almost 4 million tonnes — the same as taking 1 million cars off the road — and generate 12.5% of Victoria’s 40% target for renewable energy by 2025.

“Putting solar panels and hot water systems on more than 700,000 homes will save Victorians more than $500 million a year on their electricity bills and generate enough solar power to keep the lights on at the MCG for 9000 years,” said Victoria’s Minister for Energy, Lily D’Ambrosio.

Image credit: ©iStockphoto.com/Alex Slobodkin