Solar Victoria has issued a reminder that home battery installations supported by the state’s Solar Homes Program loans must be installed soon.
When is the deadline for battery installation?
In an email update yesterday, Solar Victoria explained:
“All solar battery loans have been approved by June 30. We remind retailers that all battery installations must be completed within 120 days of application approval and payment request submission to avoid payment delays or loss of eligibility. We understand that there may be scheduling and product delay issues, but no extensions will be granted beyond December 31, 2025.”
The number of credit-financed installations still to be carried out was not disclosed.
This is how the battery loan program works
Eligible Victorians could previously apply for interest-free battery loans of up to $8,800. However, the application deadline ended on May 27th this year; Not long before the national Cheaper Home Batteries Program (CHBP) officially came into play1.
Once installation is complete, the loan amount under the program will be paid directly to the retailer and deducted from the customer’s bill, and the customer will pay the retailer the balance. Loan repayments will be deducted from the customer’s bank account beginning 30 days after installation is approved by Solar Victoria. Monthly repayments are up to $183.34 over 4 years, depending on the size of the loan.
The program’s original goal was to provide 4,500 loans, a goal that was exceeded before applications were closed. In total, more than 20,000 applications were approved for pre-lending loans and/or battery allowances. When launched in 2019, the discount was originally $4,838, but had dropped to $2,950 by July 2022; then canceled in mid-2023 in favor of interest-free loans.
Solar Homes’ original commitment was to help 10,000 Victorian homes install batteries. Applications were highest in the outskirts of Melbourne; The five largest suburbs are Berwick, Pakenham, Tarneit, Sunbury and Point Cook.
CHBP fills the gap
Even without a government refund or loan, purchasing home batteries in Victoria is now accessible to more households thanks to the Cheaper Home Batteries Program subsidy. This program officially started on July 1st, but the batteries could have been installed a few months beforehand – only commissioning was not carried out until the start date.
The program currently offers an upfront discount of approximately 30%, which equates to approximately $372 per kilowatt-hour (kWh) of usable battery capacity (before administrative fees and costs).
Like the national solar rebate, the subsidy is delivered through Australia’s Small-Scale Renewable Energy Scheme (SRES). The difference is that the federal government purchases the Small-Scale Technology Certificates (STCs) on which the subsidy is based. This means that no costs are passed on to the energy supplier or households via the electricity bill. STCs for solar panel installations are purchased from “liable entities” such as electricity retailers.
Assuming funding is maintained, the Cheaper Home Batteries Program grant will be available until the program ends in 2030, but will gradually decrease each year.
Solar Homes Program Update
In other Solar Victoria news, the agency said there was growth in applications, permits and installations in the month of October. And for the first time since March of this year, applications and approvals for photovoltaics exceeded those for hot water remuneration.
“Owner-occupier applications for solar PV rose 13% and permits increased 10%, contributing to the strongest month in 2025. Installations grew 14% after rising 6% in September,” the agency said.
The Victorian PV rebate offers up to $1,400 off the upfront cost of a solar power system and can be used in conjunction with the National Solar Grant. Find out more about the Victorian solar panel rebate.
When it comes to hot water support, the Solar Homes program currently offers a rebate of up to $1,000 for eligible heat pump and solar hot water systems or up to $1,400 for eligible systems from Australia. Further details can be found here. There is also support from Victorian Energy Upgrades (VEU), which provides incentives for households to switch to efficient hot water systems.
Footnotes
- According to the Clean Energy Regulator, 15,456 CHBP-supported home batteries were installed and commissioned in Victoria between July 1 this year and October 31. Some of these batteries would also have been supported by the government loan program. ↩
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