New Victorian Solar Incentive for Businesses

Victorian businesses are about to get a major boost when it comes to going solar. A new incentive announced under the Victorian Energy Upgrades (VEU) program will reduce the upfront cost of installing solar systems for C&I sites by up to 35%.

Announced October 1st, this is a significant step in levelling the playing field for business solar, which has historically lagged behind the residential market in uptake. With fresh support, commercial operators can now access financial outcomes that make solar more compelling than ever.

Victorian Business Solar Rebate: What’s Been Announced?

For the first time, the VEU program has introduced an incentive for solar systems sized 30 kW to 200 kW on non-residential premises. It works as a deemed activity, meaning the discount is applied upfront rather than spread out over time.

Key details:

• Up to $35,000 off installation costs
• Can be combined with federal rebates (STCs & LGCs)
• Up to 35% total savings when incentives are stacked
• Upfront discount with no need to wait for certificates
• Systems must include monitoring access (all Smart-installed systems include this free-of-charge for the first 12 months)
  
• Available for projects commencing after 29 September 2025
  

How the VEU Solar Incentives Work with Other Schemes

Many businesses are familiar with STCs, LGCs, and VEECs under existing renewable energy frameworks. The new incentive sits alongside these mechanisms, with rules on how they can and cannot be combined.

• STCs (Small-Scale Technology Certificates): Can be combined for additional savings.
• LGCs (Large-Scale Generation Certificates): Can also be combined where applicable.
• VEECs (Victorian Energy Efficiency Certificates): Deemed VEECs under this new activity cannot be combined with other VEECs.

Why the New C&I Solar Incentives Matter

C&I solar uptake has been slower than expected, with barriers like financing, complex business cases, and competing capital priorities holding many organisations back. By delivering a simple, upfront discount, the new incentive removes a major hurdle and shortens the payback period for businesses considering solar.

For a mid-sized system, the difference is material. A 100kW installation could see its upfront cost reduced by around $30,000 when combined with existing federal rebates. That means improved ROI and faster time to positive cashflow.

FAQs: Victorian C&I Solar Incentives

Can this be combined with the Cheaper Home Batteries Program if we add a battery?
Yes. The programs can work together for even greater savings.

Is there a close date?
No fixed close date. The activity runs by default until the VEU’s legislated end date of 2045, with government discretion over modifications and an early end if saturation is reached. It is not a capped funding pool. It is designed to be uncapped and ongoing.

Can Smart help us get this done?
Yes. We take care of everything, including energy certificate management.

Is Smart accredited?
Smart works with Accredited Providers for C&I solar under the VEU scheme.

Do Smart systems include monitoring?
Yes. Monitoring is included free for the first 12 months, then offered at an affordable ongoing cost.

How does this work with STCs, LGCs and existing VEECs?
Deemed VEECs can be combined with STCs and LGCs for deeper savings. Speak to us to find out how. Deemed VEECs cannot be combined with other VEECs.