Should you invest in solar energy in Victoria in 2025? Complete Buyer’s Guide

Should you invest in solar energy in Victoria in 2025?

Yes—rooftop solar remains one of the most cost-effective home investments in Victoria. With Solar Victoria rebates helping cut the upfront cost and rooftop solar generation climbing every year, homeowners are saving more than ever. At the same time, daytime electricity prices continue to drop, making the use of your own solar power (instead of buying from the grid) increasingly valuable.

In this guide, you’ll find everything you need—current rebate amounts, real-world payback examples, and a simple step-by-step checklist to help you choose the right system with confidence.

What’s available to Victorians right now

If you’re planning to go solar in Victoria, here’s the good news for you.

The Solar Homes rebate can shave up to $1,400 off your solar bill—and for a lot of families, that’s the push that turns “maybe someday” into “let’s do it now.”
Plus, Victoria has extra support for apartments and community housing, meaning most households qualify for something.

But here’s the part many people miss:

To get any of these rebates, your installer and your equipment must be listed on Solar Victoria’s approved product list.
If they’re not, you won’t get a single dollar back — no matter what you were promised.
So always double-check before you sign.

And if you want a provider you can trust, Green Electric Solution is one of Victoria’s most reliable, government-approved solar installers. They handle all rebates, STCs, and paperwork for you, making sure you get every dollar you’re eligible for without the stress.

And what about batteries?

Australia’s new Cheaper Home Batteries Program (from 1 July 2025) cuts battery costs by around 30%, offering roughly $344 per usable kWh. With no income limits and stackable state incentives, this rebate makes home battery storage far more affordable—a potential game changer for Australians looking to cut energy bills. 

Bottom line: Before you buy anything, take two minutes to check the official Solar Victoria and federal rebate pages.

That tiny step can save you thousands, protect you from bad installs, and help you plan a solar + battery setup that actually works for the next decade—not just the next power bill.

Typical system sizes, output, and how much energy you’ll actually get

• Most common residential size: The average residential system in recent reports sits near 6.6 kW, with many Victorian homeowners now considering 7–10 kW systems as panel prices drop. Larger systems (8–15 kW) are increasingly common for homes with high daytime loads.
  
• Performance & yield: Solar output isn’t the same everywhere in Victoria—and guessing can seriously mess up your payback maths.
• That’s why smart homeowners use APVI’s live PV map. It shows how much solar different postcodes are producing in real time, turning your system size (kW) into realistic annual energy estimates (kWh). Suddenly, your numbers stop being guesses and start being useful.

As a quick guide, a good 6.6 kW system in Melbourne usually delivers around 8,000–10,000 kWh a year. The exact number depends on your roof angle, direction, shading, and even your suburb’s microclimate.
But if you want accuracy instead of averages, APVI — or a reputable installer’s modelling—will give you the real picture.

Cost, incentives & realistic payback

Solar prices in Victoria aren’t one-size-fits-all—they shift based on your system size, the brands you choose, and the installer doing the work. That’s why you’ll see a wide market range. For example, a 6.6 kW system can cost anywhere from about $5,000 to $10,000 after incentives, depending on quality and installation complexity.

The good news? You don’t have to guess your final price.
Once you factor in the Solar Victoria rebate and STC discounts, you get a much clearer picture of what you’ll actually pay. And that clarity is the first step to avoiding overpriced quotes—and getting real value from your solar investment.

• Payback example (simple):
  
  • 6.6 kW system, annual production 9,000 kWh.
  • The household uses 50% of that (4,500 kWh) and exports the rest.
  • If your retail electricity tariff is $0.35/kWh and export credit is ~$0.05/kWh, annual savings ≈ (4,500 × $0.35) + (4,500 × $0.05) = $1,800 + $225 = $2,025/yr.
  • At a net installed cost of $6,000 (after rebates/STCs), payback ≈ ~3–4 years. Real payback depends on self-consumption, retailer export rates, and electricity price inflation. 

Heads up: Your solar export credits (FiTs) aren’t guaranteed. Since 1 July 2025, the Essential Services Commission no longer sets a minimum FiT, which means your retailer decides how much they’ll pay for the electricity you send back to the grid. With lower wholesale prices and plenty of solar flooding the market during the day, FiTs have dropped — so always check with your retailer before relying on export income.

Feed-in tariffs & regulatory changes you must know 

No minimum feed-in tariff from 1 July 2025: 

The Essential Services Commission no longer guarantees a minimum feed-in tariff. Now, retailers set the buyback rates, which can be flat or time-based, meaning your export credits might be very low at certain times. This makes using your solar power at home—or storing it in a battery—more valuable than ever.

What to do: When you get quotes, ask each retailer/plan for:

1. Their current single-rate FiT, 
2. Any time-of-use buyback structure (and how it interacts with your solar exports).

Batteries—when they make sense for Victorian homes

• Home batteries are finally getting affordable, thanks to federal and state support programs. They let you use more of your solar energy at home, especially in the evening, and protect you from low export credits. If you have high evening electricity use or a time-of-use tariff, a battery can cut your payback time dramatically. Keep an eye on updates from Solar Victoria and the federal Cheaper Home Batteries program to catch the best deals.

How to choose panels, inverters, and an installer

Must ask for each quote

When choosing your solar system, don’t just go by price—get the full picture of:

• Check panel models, power ratings, temperature performance, and warranties. Always confirm eligibility on Solar Victoria’s product list.
• Look at brand, efficiency, and options like export limiters—useful for safety or retailer rules.
• Ask your installer for a postcode-specific yield report using tools like APVI or PVsyst.
• Panels, inverter, mounting, cabling, labour, permits, and any switchboard upgrades—everything should be clear.
• Your installer should handle paperwork and STC claims. Confirm installation windows and warranties.
• Make sure your installer has public liability coverage and installation warranties.

Red flags to watch out for:

• Quotes that are too cheap or vague.
• No site visit before quoting.
• Installer not on Solar Victoria’s approved list—you could lose rebate eligibility.

Example buyer profiles & recommended system sizes: 

Small household, low daytime use: A 4–6 kW system is usually enough. Focus on cost-effective panels with good quality.

Average family, home during the day / EV charging planned: Go for 6.6–10 kW, ideally paired with a battery to maximize self-consumption.

Large home, high daytime demand/home business: Consider 10–15 kW with a battery and smart load management to cover all your energy needs efficiently.

Local performance & grid trends to be aware of

Reports from AEMO and QED show that rooftop solar is booming in Victoria, and renewable energy is taking a bigger slice of the grid. With so much daytime solar flooding the market, wholesale electricity prices are lower, which makes using your own power or storing it in a battery smarter than ever. As the grid evolves, expect more time-of-use pricing and export rules, so planning ahead is key.

FAQs

Q: How much does the Solar Victoria rebate reduce my price?
A: Rebates commonly reduce upfront cost by up to $1,400 for eligible households — check Solar Victoria for program eligibility and product lists.

Q: Are feed-in tariffs safe to rely on?
A: No—there’s no minimum FiT from July 1, 2025; FiTs vary by retailer and can be low. Prioritize self-consumption or battery options if your export credit is small. 

Q: Should I add a battery now?
A: If you have high evening use, an EV, or low export credits, batteries accelerate self-consumption and can improve payback—but check current federal/state incentives first.

Final checklist before you sign

1. Confirm Solar Victoria rebate eligibility, STC paperwork, and claim submission product list. Solar Victoria
2. Get 3 itemized quotes with site visits. Green Electric Solutions
3. Confirm retailer export buyback rates for your address. Energy

Local resources & direct links (so readers can verify)

• Solar Victoria—solar panel rebate and approved product lists & program pages.
• Victorian Government—feed-in tariff guidance.
• Victorian Essential Services Commission—minimum feed-in tariff policy change. Essential Services Commission
• AEMO—distributed PV, projections & QED reports.
• APVI—live PV map for postcode performance estimates.
• Australian Energy Council/Clean Energy Regulator—state/national rooftop solar stats.