Is solar worth it in Victoria in 2026? Yes, with the right sizing
A 6.6kW system in Victoria costs $5,100–$7,400 installed after the $1,558 federal STC discount, generates about 7,516 kWh a year from 4.0 peak sun hours, and saves $910–$1,260 a year at 29c/kWh with a 3.00c feed-in tariff. That is a simple payback of 5.0–6.9 yrs on panels warranted for 25 years — roughly $18,162 net benefit over the panels' life at today's prices, before any electricity price rises.
What changed in 2026. Victoria's $1,400 Solar Homes rebate closed to new applicants in March 2026 (low-income and rental streams remain). Interest-free Solar Victoria loans are still available, and the federal STC discount applies in full. Melbourne is STC Zone 4, so the discount is the smallest of the capitals — the case for solar in Victoria rests on daytime self-use at 29c/kWh rather than on rebates.
Victoria's $1,400 Solar Homes rebate closed to new applicants in March 2026; eligible owner-occupiers can still take an interest-free Solar Victoria loan, and low-income households and rental properties keep access to the rebate stream. The federal STC discount still applies in full.
Payback by city in Victoria
| City | 6.6kW after STCs | Yearly output | Yearly saving | Payback |
|---|---|---|---|---|
| Melbourne | $5,060–$7,360 | 7,516 kWh | $910–$1,260 | 4.9–6.8 yrs |
| Geelong | $5,120–$7,440 | 7,516 kWh | $910–$1,260 | 5.0–6.9 yrs |
| Ballarat | $5,780–$8,400 | 7,140 kWh | $860–$1,200 | 5.9–8.2 yrs |
| Bendigo | $5,780–$8,400 | 7,891 kWh | $950–$1,320 | 5.4–7.5 yrs |
Suburb-level verdicts, with adoption rates and installer notes, are on the Victoria solar pages.
Which size pays back fastest in Victoria?
Bigger systems pay back faster in Victoria because the fixed install cost is spread over more panels — as long as you use the extra power or have a decent feed-in rate.
| System | Installed after STCs | Yearly saving | Payback |
|---|---|---|---|
| 5kW | $4,167–$6,111 | $690–$950 | 5.8–8.0 yrs |
| 6.6kW | $5,093–$7,407 | $910–$1,260 | 5.4–7.4 yrs |
| 8kW | $5,926–$8,611 | $1,100–$1,530 | 5.1–7.1 yrs |
| 10kW | $7,407–$10,741 | $1,370–$1,910 | 5.1–7.2 yrs |
| 13kW | $9,259–$13,426 | $1,790–$2,480 | 4.9–6.8 yrs |
Is a battery worth it in Victoria?
A 10kWh battery costs $6,984–$9,984 after the federal discount and saves about $759 a year in Victoria by moving daytime solar to the evening — a payback of 9.2–15.5 years against a 10-year warranty. The lower the feed-in tariff, the better the battery case — Victoria’s 3c rate means almost every exported kWh is worth more stored than sold.
Solar Victoria's interest-free loans (the $1,400 rebate closed to new applicants in March 2026, except low-income and rental streams). Brand pricing in the battery guide.
When solar is not worth it in Victoria
- Heavy shading from trees or buildings for more than a couple of hours a day — optimisers help, but a 40% shaded roof rarely pays
- Moving within 3 years — solar adds resale value, but usually less than it cost
- Nobody home in daylight and no battery — export-only systems at 3.0c barely cover the inverter
- A quarterly bill under $250 — a 5kW system still makes sense on most roofs, but a 10kW one does not
- Renting without landlord approval — see solar for renters for what does work
Victoria solar questions
Is solar worth it in Victoria in 2026?
Yes, with the right sizing. A 6.6kW system costs $5,100–$7,400 after rebates, saves $910–$1,260 a year and pays back in 5.0–6.9 yrs, then keeps producing for 15–20 more years.
What is the solar payback period in Victoria?
About 5.0–6.9 yrs for a 6.6kW system; faster for 10kW+ and for homes that use most of their power in daylight.
How much does solar save per year in Victoria?
$910–$1,260 for 6.6kW at 29c/kWh, assuming about 40% self-use and 3.0c for exports. A 10kW system saves $1,370–$1,910.
What rebates are there in Victoria?
The federal STC discount ($1,558 on 6.6kW in Zone 4), the federal battery discount ($252/kWh) and Solar Victoria's interest-free loans (the $1,400 rebate closed to new applicants in March 2026, except low-income and rental streams). Details on the VIC rebates page.
Other states
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