The four buckets
Every rebate you can claim on an energy upgrade in Victoria comes out of one of four buckets: the federal STC scheme (solar), the federal Cheaper Home Batteries Program, Solar Victoria's Solar Homes rebates, and the Victorian Energy Upgrades program. They're run by different governments, funded differently and claimed differently — which is exactly why stacking them properly is worth real money.
Federal STCs — the discount already in your solar quote
Small-scale Technology Certificates are the reason a solar quote is thousands cheaper than the hardware and labour would suggest. Every eligible system earns certificates based on its size and how many years remain until the scheme winds down in 2030; your installer sells them and passes the value on as an upfront discount. You don't apply for anything — but you should ask any installer to show the STC discount as a line item so you can see what you're getting.
the STC scheme steps down every January until it ends, so the same system earns a little less discount each year.
The federal battery discount — around 30% off
The Cheaper Home Batteries Program, running since July 2025, knocks roughly 30% off the upfront cost of an eligible home battery (5–100kWh), applied at the point of sale through your installer — no paperwork on your end. The discount is worth about $250 per usable kilowatt-hour on the first 14kWh, and like the STC scheme it tapers each year until 2030, so the same battery gets slightly less discount next year than this year. The rules were adjusted in May 2026, so quotes from before then may be out of date.
Solar Victoria — the Solar Homes rebates
Solar Victoria runs the state's household rebates. The hot water rebate covers 50% of an eligible heat pump or solar hot water system, capped at $1,000 — or up to $1,400 if you choose an Australian-made product. Solar panel rebates are also available for eligible owner-occupiers. The big change for 2026: from 1 July the household income cap tightened from $210,000 to $150,000, so eligibility is worth checking before you plan around it.
The income cap changed in July 2026 — the rebate your neighbour got last year isn't automatically the rebate you'll get this year.
Victorian Energy Upgrades — the one everyone forgets
VEU is a certificate scheme (like STCs, but Victorian) that discounts efficient appliance upgrades — heat pump hot water, reverse-cycle systems replacing gas heaters, and more. The discount is applied by an accredited provider at the point of sale, and it stacks with the Solar Victoria hot water rebate: combined support on a heat pump hot water swap can run to several thousand dollars depending on the product and your home.
How they stack
The order matters. On a hot water swap, VEU certificates and STCs are applied first, then Solar Victoria's 50% rebate is calculated on the already-discounted price. On a solar + battery job, STCs discount the panels, the federal program discounts the battery, and the state rebate (if you're eligible) comes off the solar. A good installer sequences all of it inside one quote — if you're getting three quotes from three trades, nobody owns the stacking, and that's where money gets left on the table.
Want this worked out for your place?
A real electrician, at your kitchen bench, with the numbers for your roof and your bills.
What we do about it
Every Polarised quote itemises the rebates you're eligible for and lodges the paperwork that can be lodged on your behalf. The assessment is where we check eligibility properly — income caps, product lists, what your switchboard needs first. Worst case, you leave knowing exactly what you're entitled to.
- STCs discount every solar quote automatically — make them show you the line item.
- The federal battery program takes ~30% off, at point of sale, tapering until 2030.
- Solar Victoria's hot water rebate is 50% up to $1,000 ($1,400 Australian-made); the income cap is now $150k.
- VEU stacks on top for heat pumps and heating — one quote should sequence all of it.
Scheme values current August 2026 and change over time — confirm current values at solar.vic.gov.au and energy.gov.au, or ask us at your assessment.
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Written by Luke Jones, A-Grade electrician (REC 33326)
Luke runs Polarised Electrical out of Boronia. Everything here comes from jobs we've done across Melbourne's east — not a brochure.
