Solar scheme chalks up Loy Yang-worth of panels after record year of subsidised installs

The Victoria state government-run Solar Homes program has set another record year, installing more than 78,000 government subsidised solar panels, hot water systems and batteries throughout 2024.

State energy minister Lily D’Ambrosio said on the weekend that the Labor government scheme has saved Victorian families as much as $1 billion off the installation of solar panels, energy efficient heat pumps, and batteries in 2024, resulting in savings of hundreds of millions off energy bills each year.

In what was the largest year on record, the Solar Homes program saw more than 31,000 hot water systems installed in 2024 – a 151 per cent increase in installations on 2023.

The year also saw the total number of solar panels installed through the Program since its launch in 2018 soar to over 300,000, equating to 2,100MW of solar – the equivalent of Loy Yang A power station, one of the largest coal-fired power stations in Victoria.

Eligible households can access through the Solar Homes program a $1,400 rebate to install solar panels, a further $1,400 interest free loan and a further rebate of up to $1,000 to replace their hot water system. Combined, this adds up to a discount of $3,800 off the upfront installation costs.

And Victorians can save even more through the government-run Victorian Energy Upgrades program which delivers discounts on energy efficient appliances such as heat pumps and cooktops.

The results of the program demonstrate the potential benefits for households across Victoria.

Families who install solar panels on their homes can save up to $1,000 each year on their energy bills. When combined with a hot water heat pump, they can save up to $1,400 a year, and at least $1,600 a year if a battery is added on top of that.

“We’re helping busy families slash their energy bills by making is cheaper to install solar, so they can power their homes with free electricity from the sun and slash $1,000 off their bill each and every year,” said Lily D’Ambrosio, Victorian minister for energy and resources.

“The huge uptake of solar in Victoria has helped push daytime wholesale prices to historic lows – meaning lower power bills for everyone.”

The majority of 2024 installations through the Solar Homes program took place in Melbourne’s outer suburbs, with Tarneit, Craigieburn, Point Cook, Clyde North, and Truganina accessing the most solar rebates.

Regional Victoria isn’t missing out either, though, with Mildura leading the way for solar rebates, followed by Shepparton, Wangaratta, Traralgon, and Wodonga.