From 1 July 2026, the income test for Victorian solar and hot water rebates got tighter. The rebates themselves didn't shrink — but fewer households can now claim them.

What Changed, and What Didn't

The combined household income cap fell from $210,000 to $150,000 per year.

Everything else stayed the same:

Which Side of the Line Are You On?

The test is the combined household taxable income of all owners — not just whoever's name is on the electricity account.

If your household sits between $150,000 and $210,000, that window has closed. Applications under the old cap had to be submitted in full by 5pm on Tuesday 30 June 2026.

How big is this really? Solar Victoria says more than 80% of existing customers still qualify under $150,000 — and that 55% of solar rebates and 52% of hot water rebates have gone to households earning under $100,000. It's a targeting change, not a cut.

Four Eligibility Tests People Forget

Income isn't the only gate:

1. Property value must be under $3 million
2. The address must not have received a solar panel or battery rebate before
3. The address must not have had solar installed in the last 10 years
4. You must use an authorised retailer and eligible products

That third one catches people out. A previous owner's panels can affect your eligibility today.

One exemption: households affected by Solstice Energy's gas network closure don't have to meet the income cap.

Over the Cap? You're Not Out of Options

This is the part most articles skip.

Federal certificates still apply. Small‑scale Technology Certificates (STCs) aren't income‑tested, and are usually already reflected as a discount in your quoted price. Ask for the STC component to be shown separately.

Ask about Victorian Energy Upgrades (VEU). VEU discounts are applied through the product and retailer rather than tested against your income — so if your installer is an approved VEU provider, ask what's available.

And the Midday Power Saver arrives on 1 October. It's open to households that opt in, with no income test. Three free hours of power between 11am and 2pm. For a household with a battery, that free charging window can be worth more than a one‑off rebate ever was.

What to Do Now

Close to the line? Confirm your combined household taxable income rather than guessing. If you do qualify, don't sit on it — rebates are released in monthly batches with limited numbers each release.

Over the cap? Shift your attention to the parts that aren't income‑tested. That's where the remaining value is.

Frequently Asked Questions

What is the income limit now?

A combined household taxable income of under $150,000 per year, across all owners. It was $210,000 before 1 July 2026.

Does the cap apply to the hot water rebate too?

Yes — it covers both solar panel (PV) and hot water rebates.

We're over the cap. Is anything left for us?

Yes. STCs, VEU discounts through an approved provider, and the Midday Power Saver from 1 October. None of these are income‑tested.

Want Us to Check Your Eligibility With You?

We'll go through the tests and give you a written quote showing the rebate, the STC discount, and what you'd actually pay — before you commit.

PA Power installs solar, batteries, whole‑home backup and EV charging across Melbourne and regional Victoria. Request a quote or read the questions we get asked most (https://papower.com.au/faq).

Sources

1. Solar Victoria — Solar Homes Program continuing to provide targeted assistance (https://www.solar.vic.gov.au/solar‑homes‑program‑continuing‑provide‑targeted‑assistance) (income cap change effective 1 July 2026, published 29 May 2026)
2. Solar Victoria — Solar panel (PV) rebate (https://www.solar.vic.gov.au/solar‑panel‑rebate) (full eligibility tests, rebate and loan amounts)
3. Solar Victoria — Hot water rebate (https://www.solar.vic.gov.au/hot‑water‑rebate) (rebate amounts, STC and VEEC treatment)
4. Victorian Midday Power Saver (https://www.energy.vic.gov.au/households/save‑energy‑and‑money/victorian‑midday‑power‑saver) (three free hours from 1 October 2026)

Written by the PA Power team, licensed electricians and accredited solar installers in Mulgrave, Victoria. Reviewed 29 September 2026. Rebate amounts, income caps and program rules change — always confirm current terms at solar.vic.gov.au before making a decision.