Victoria will lower the income cap for its Solar Homes program from July 1, 2026, tightening access to rebates for rooftop solar and energy efficient hot water systems.
While the refund amounts will remain unchanged, fewer households will be eligible once the new income limit comes into effect.
Solar Victoria says the update ensures support is “targeted at Victorians who are suffering the most from cost of living pressures”.
Who is eligible for the Solar Homes program?
Households with a total income of up to $210,000 can currently access rebates under the Solar Homes program, but starting July 1, that threshold will drop to $150,000.
Individuals earning between $150,000 and $210,000 have until June 30 at 5:00 p.m. to submit a complete application under current settings.
Eligible applicants can receive up to $1,400 for rooftop solar, along with an optional interest-free loan of the same amount. Hot water rebates are also available up to $1,400 on locally manufactured systems or up to $1,000 on other eligible products.
More than 80% of existing participants would continue to fall under the new income cap. For households already earning less than $150,000 per year, reimbursement amounts and application procedures remain unchanged.
The agency also notes that more than half of all solar PV rebates (55%) and hot water rebates (52%) went to households making less than $100,000 per year.
Why is the program being tightened?
The adjustment comes as rooftop solar systems become more mainstream. Solar Victoria estimates about 30% of eligible homes now have solar, up from about 14% when the program launched in 2018.
Rooftop solar now contributes around 10% of the state’s electricity generation, while more than 45,000 households have also installed batteries through solar-related incentives.
The shift towards stricter eligibility requirements also comes as Victoria prepares to roll out the Victorian Midday Power Saver from October, which will offer three hours of free electricity in the middle of the day to customers who opt in.
More hot water discounts will be added
As well as lowering the income cap, the Victorian Government has confirmed that an additional 27,000 hot water rebates will be made available over 2026-2027.
The expansion continues to help people switch to efficient electric hot water systems, which are increasingly seen as one of the most effective ways to reduce household energy costs and reduce gas consumption.
What should households do now?
Households affected by the upcoming change have until 5pm on June 30 to submit a full application and secure access under current settings.
Applications must be submitted in full by this deadline.
If you’re considering upgrading your hot water system, learn how they work, how much they cost and how much they can reduce your energy costs with our guide to heat pump hot water systems.
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