Installing a home battery system in Victoria has never been more attractive, thanks to government incentives that help slash the upfront cost. In this article, we explain the Victorian Government’s current home battery subsidies and rebates (such as the Solar Victoria program) and how they work. You’ll learn who is eligible, how to apply, and how to combine state-level incentives with new federal programs for maximum savings and energy independence. We’ll also outline how Luno Electrical – a trusted Melbourne home battery installer – can help homeowners and business owners navigate the process from start to finish.
Overview of Victoria’s Home Battery Incentives (Solar Victoria Program)
Victoria’s primary support for home battery installations is delivered through the Solar Homes Program run by Solar Victoria. While the state’s solar battery rebate (a direct cash rebate) has ended, it has been replaced with a generous interest-free loan to reduce your upfront costs. Eligible Victorian homeowners can access interest-free loans of up to $8,800 for installing a home battery system, with the loan repaid over four years. This zero-interest financing effectively acts as a Victorian solar battery subsidy, making battery storage more accessible than ever.
Some key points about the Solar Victoria battery incentive include:
- Up to $8,800 interest-free financing for a new or retrofit solar battery installation (one loan per household).
- No geographic restrictions – available to homeowners across Victoria (previous postcode limits have been removed).
- Offered in conjunction with Solar Victoria’s solar panel (PV) program – you can even apply for a solar panel rebate and a battery loan at the same time if installing both systems together.
- Support for businesses – While the interest-free battery loan is for residences, Victoria also offers a Solar for Business rebate for small businesses installing solar PV systems (covering 50% of a system up to $3,500). There is an option of an interest-free loan for small businesses as well (for more information for small businesses battery and solar visit here). This helps businesses reduce costs on solar panels, which can pair with batteries for greater benefits.
Overall, the Victorian Government’s program is focused on reducing the financial barriers to home energy storage. By cutting upfront expenses, more households can enjoy the benefits of solar batteries – from lower power bills to backup power during outages – sooner rather than later.
Eligibility Requirements for the Victorian Home Battery Loan
Not everyone will qualify for the Solar Victoria battery incentives. There are specific eligibility criteria to ensure the program supports those who need it most and that installed systems are safe and effective. Homeowners in Victoria generally must meet the following requirements to be eligible for the interest-free battery loan:
- Owner-occupier with property value under $3 million: You must own and live in the home where the battery will be installed, and the property value must be below the $3M cap. (New homes under construction are not eligible)
- Income threshold: Your combined taxable household income needs to be under $210,000 per year.
- No prior battery rebate: The property cannot have already received a Solar Victoria battery rebate/loan before. (You can only get one battery incentive per address.)
- Solar PV requirements: You must either already have solar panels of at least 5kW capacity on the property or be installing solar panels alongside the battery. The battery is meant to store solar energy, so a solar PV system is a prerequisite.
- No existing battery system: The home should not already have an energy storage system installed. The goal is to encourage new battery uptake.
- Battery size and approval: The chosen battery must be at least 6 kWh in capacity and listed on Solar Victoria’s approved battery product list. This ensures quality and safety standards. Additionally, you need pre-approval from the local grid distributor (DNSP) to connect the battery to the grid. Homeowners are also asked to agree to receive information about any future battery trials or Virtual Power Plant programs, which could further enhance the value of your battery system.
Business owners: The Solar Victoria battery loan is currently only for residential properties. However, small businesses in Victoria can benefit from the Solar for Business program for solar panels (businesses with <50 employees can get up to $3,500 off a rooftop solar installation). There is an option of an interest-free loan for small businesses. While there isn’t a separate state battery rebate for businesses, business owners can still pursue battery installations using federal incentives (described below) and take advantage of solar tax benefits (like asset write-offs) to make a strong financial case for adding storage.
Combining State and Federal Incentives: Bigger Savings & Energy Independence
Victoria’s state incentive is just one part of the picture. Starting in 2025, the Australian federal government has introduced the Cheaper Home Batteries Program, which offers a substantial rebate for home battery systems nationwide. By combining the Victorian program with this federal incentive, homeowners and even businesses can dramatically lower the cost of a battery installation and achieve greater energy independence.
We have a detailed article on the Australian Federal Government Cheaper Home Batteries Program but here is a summary:
About the new federal battery rebate: From 1 July 2025, the federal government will provide roughly 30% off the cost of a home battery system upfront. This national incentive is delivered via the existing Small-scale Renewable Energy Scheme and works through certificates (similar to how solar panel STC rebates work). In practical terms, Luno Electrical can apply the federal rebate as an on-the-spot discount on your battery invoice, and the government reimburses us later. You won’t have to wait for a check or fill out endless paperwork – you get the savings immediately.
Here are key features of the federal program:
- Rebate value: Approximately $330–$370 per kWh of battery storage capacity, which is about 30% of typical battery prices. For a standard home battery (~11–13 kWh), that could be around $4,000 off the cost, depending on the battery size and final per-kWh rate. The incentive scales with battery size (up to a cap of 50 kWh) – larger batteries get more dollars off.
- Eligibility: Available to homeowners, small businesses, and community facilities Australia-wide. Unlike many state programs, there is no means test on the federal rebate – any owner-occupier or business that meets basic criteria (e.g. installing a qualifying battery with at least 5 kWh capacity) can claim it. This is great news for those who might earn just above the Victorian income cap; they can still get federal support.
- Stackable with state incentives: You can use the federal rebate alongside the Solar Victoria loan or any other state schemes. In Victoria, this means you could get ~30% of the battery cost knocked off and finance most of the remainder interest-free. For example, consider a $15,000 battery system – the federal rebate might cut that by ~$4,500, bringing it to $10,500, and then a $8,800 interest-free loan covers the bulk of the rest. Your immediate out-of-pocket could be only ~$1,700 in this scenario, which is a game-changer for affordability.
- Timing: The battery must be installed and commissioned on/after 1 July 2025 to get the federal rebate. (There’s even a provision that if you install before that date, you can hold off on the final commissioning until July to still qualify.) The program is uncapped in terms of number of participants – it’s intended to support over a million new battery installations by 2030 by making them financially viable. Each property can only claim the rebate once, of course, but if you have multiple properties, each could potentially get a subsidised battery.
Financial benefits: Combining Victoria’s loan and the federal rebate significantly improves the return on investment for a home battery. By lowering the upfront price and spreading payments out, your battery system can start paying itself back immediately through energy savings. Many Australian homes with solar + battery are seeing their electricity bills drop by as much as 75% or more – in some cases nearly eliminating power bills. For instance, an analysis found that a typical home with an ~8–10 kWh battery can save around $1,300 to $2,200 per year on energy costs, depending on usage patterns. With the new rebates, the payback period for a battery (which might have been 10+ years before) could shrink to as little as 5–7 years in a favourable scenario. Even faster payback with the Victorian Government’s interest free battery loan. After that, you’re enjoying essentially free energy from your solar panels each day.
Energy independence benefits: Government incentives don’t just save you money – they enable more households to gain energy independence. By installing a battery, you can store excess solar power during the day and use it at night, drastically reducing how much electricity you need to buy from the grid. On average, a solar-only home might use 40–60% of its own solar energy directly, but with a battery, homes can use 80–100% of their own solar, approaching self-sufficiency. This means protection from rising power prices and less worry about peak rates. Moreover, a battery provides a backup power supply during outages – keeping your lights, fridge, or important equipment running if the grid goes down. For homeowners and businesses alike, this added energy security is invaluable (imagine a cafe or small factory avoiding lost productivity because their critical systems stay on during a blackout).
By leveraging both state and federal incentives, Victorian homeowners and businesses can maximise these benefits. You’ll not only save thousands on the system purchase, but also enjoy long-term savings and resiliency. It’s the perfect time to invest in a solar battery: the government is essentially covering a big chunk of the cost, and you reap the rewards of lower bills and greater control over your energy.
How Luno Electrical Can Help You Navigate the Process
Navigating rebates, loans, and installation requirements can feel complex – but Luno Electrical is here to make it easy. As a leading electrical contractor and Melbourne home battery installer, we have the expertise to guide you through every step of getting your solar battery system set up with all eligible incentives applied. Here’s how we can help:
- Expert advice and system design: Not sure what battery you need or whether you qualify? Our team will assess your home or business energy needs and explain the best options. We’ll ensure you choose a battery system that meets the Solar Victoria approved criteria (capacity, CEC-approved model, etc.), the Federal Governments program and suit’s your budget.
- Accredited and authorised installer: Luno Electrical meets all the accreditation requirements (we are a Clean Energy Council accredited installer and a Smart Energy Council member, as well as a Registered Electrical Contractor). We are familiar with the Solar Victoria authorised retailer process, meaning our quotes can be used for the state rebate/loan applications without issue. (In fact, Luno Electrical is fully compliant with Solar Victoria’s standards, so you can trust our services are approved for the program.)
- Handling the paperwork: We help prepare and submit the quote through the Solar Victoria portal, saving you from headaches. Our team will guide you on the documentation you need to provide and even assist with things like obtaining grid pre-approval from your distributor. We’ve been through the process and can ensure it goes smoothly the first time.
- Coordinating state and federal incentives: We stay up-to-date on the latest incentives. As the federal battery rebate rolls out in 2025, Luno Electrical will incorporate that into your purchase automatically – so you get the federal rebate discount upfront on your invoice, no fuss. We’ll make sure you receive both the Victorian loan benefit and the federal rebate if applicable, meaning you won’t miss out on any savings.
- Quality installation and support: Our certified installers will carry out the battery (and solar panel, if needed) installation to the highest standards. We take care of the Certificate of Electrical Compliance and any paperwork needed to finalise your rebate/loan. After installation, we’ll show you how to use your new system and provide any support you need. Our goal is to deliver a seamless experience – from the first phone call to the final switch-on – so you can enjoy your new home battery with peace of mind.
At Luno Electrical, we pride ourselves on being a one-stop solution for solar battery installation in Victoria – managing the technical details and the incentive paperwork so you can simply reap the benefits. We’ve helped many homeowners in Melbourne and across Victoria save money and gain energy independence through smart solar and battery solutions.
Ready to get started? If you’re considering a home battery, now is the time to take advantage of these fantastic government programs. Contact Luno Electrical today to discuss your project and get a free, no-obligation quote. We’ll help you understand your eligibility for the home battery interest free loan in Victoria and make it easy to access the Federal battery rebate. We’ll guide you step-by-step. With the combination of state and federal incentives, your investment in a solar battery will pay off faster than ever – and our team is here to ensure you don’t miss a thing.
