In Melbourne, Victoria (VIC), solar adoption is rapidly growing, with over 100 small-scale solar installations contributing a total capacity of around 3,083 kW as of October 2024. This adoption rate indicates that roughly 20-25% of households in Melbourne have home solar systems. These installations enable homeowners to save significantly on energy costs, often reducing bills by $800 to $1,000 annually. This reflects a growing trend toward renewable energy adoption in Melbourne, which not only helps households reduce their electricity expenses but also contributes to environmental sustainability.

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Melbourne solar statistics
Melbourne boasts ideal sun exposure for great solar output throughout the year. Below are some of the most important factors that affect solar production in Melbourne.
Data: Weatherspark
- Average Solar Hours: Melbourne experiences peak solar hours ranging from 4.5 hours in winter (June) to 8.5 hours in summer (January), with the highest solar energy potential occurring in the summer months.
- Temperature Ranges: Melbourne has mild winters and warm summers, with average high temperatures peaking at 25.5°C in January and low temperatures dipping to 6.0°C in July.
- Cloud Cover: Cloud cover tends to be higher in the winter months (up to 80%), with lower cloud cover during summer, particularly in January and December, contributing to better solar conditions.
Melbourne homes with a solar system
100
Melbourne homes with battery storage
Unknown
Victoria EV ownership
Unknown
Figures updated 2024
Why Solar and Battery Storage are essential for Melbourne homes and businesses
As Melbourne continues to embrace renewable energy, solar and battery storage offer innovative solutions for homes and businesses. These technologies provide financial benefits and contribute to a more sustainable and energy-efficient future for the region.
- Cost Savings: Solar energy reduces electricity bills, and battery storage allows homes and businesses to store excess energy for use during peak times, further minimizing costs.
- Energy Independence: Solar systems with battery storage provide greater control over energy supply, ensuring reliable power even during grid outages.
- Sustainability: Solar power is a clean, renewable energy source, helping reduce carbon footprints and supporting Melbourne’s environmental goals.
- Incentives: Government incentives and rebates make solar installations and battery storage more affordable, providing financial benefits to homeowners and businesses.
City of Melbourne suburbs
The following suburbs can enjoy the benefits of solar and battery storage. Contact your council to find out if your home has any restrictions or heritage overlays that may impact the installation of solar on your home or business.
- Abbotsford – 3067
- Albert Park – 3206
- Ashwood – 3147
- Balaclava – 3183
- Bentleigh – 3204
- Bentleigh East – 3165
- Brunswick – 3056
- Brunswick East – 3057
- Carlton – 3053
- Carlton North – 3054
- Caulfield – 3162
- Caulfield East – 3145
- Caulfield North – 3161
- Caulfield South – 3162
- Chadstone – 3148
- Cheltenham – 3192
- Clifton Hill – 3068
- Collingwood – 3066
- Docklands – 3008
- East Melbourne – 3002
- Elsternwick – 3185
- Elwood – 3184
- Fitzroy – 3065
- Fitzroy North – 3068
- Glen Iris – 3146
- Hampton – 3188
- Hampton East – 3188
- Hawthorn – 3122
- Hawthorn East – 3123
- Hughesdale – 3166
- Kew – 3101
- Kew East – 3102
- Malvern – 3144
- Malvern East – 3145
- Middle Park – 3206
- Moonee Ponds – 3039
- North Melbourne – 3051
- Parkville – 3052
- Prahran – 3181
- Richmond – 3121
- South Melbourne – 3205
- South Yarra – 3141
- St Kilda – 3182
- St Kilda East – 3183
- St Kilda West – 3182
- Toorak – 3142
- Windsor – 3181
Rebates and Incentives for Solar, Batteries, and more in Melbourne
Victoria Solar Homes Program
The Victoria Solar Homes Program aims to install rooftop solar panels in one million homes over ten years. Those homeowners who qualify for this incentive can reduce expenses dramatically by:
- Solar panels: $1,400
- Solar batteries: $2,950
- Solar water heaters: $1,000
Small-Scale Technology Certificates (STCs)
Australians who install rooftop solar systems can receive STCs, a form of rebate, to assist in defraying the initial installation costs. The number of STCs is influenced by
the system’s expected lifetime output.
Feed-in Tariff (FiT)
Energy retailers provide FiTs when homeowners export excess energy into the grid. There are two types of FiTs in Victoria:
- Single-rate FiT: Applies one rate for all energy produced
- Time-varying FiT: Applies different rates at different times of the day
It’s essential to be mindful of peak times, which are usually between 3 pm and 9 pm on weekdays to get the most out of your FiTs.
How much can I save with solar in Melbourne?
In Melbourne, VIC, the savings from installing a solar system depend on its size and energy consumption. Here’s a breakdown of potential savings for different system sizes:
5 kW system:
- Estimated annual output: Approximately 6,643 kWh
- Savings: Based on an average electricity cost of around 30 cents per kWh, you could save about $1,993 annually by self-consuming most of your solar power, assuming around 80% self-consumption.
6.6 kW system:
- Estimated annual output: Roughly 8,831 kWh
- Savings: Estimated annual savings could reach about $2,649, assuming similar self-consumption rates.
8 kW system:
- Estimated annual output: Approximately 10,950 kWh
- Savings: You could save around $3,285 per year if you consume most of this power.
10 kW system:
- Estimated annual output: Around 13,250 kWh
- Savings: With this system size, potential annual savings could be about $3,975.
Key points to consider:
- Feed-in Tariffs: Any excess power fed back into the grid is typically compensated at rates between 3 to 12 cents per kWh, which can affect overall savings.
- Government incentives: The federal government offers incentives through Small-scale Technology Certificates (STCs), which can cover up to 30% of installation costs.
- Payback period: The average payback period for solar installations in Hobart ranges from 3.4 to 3.9 years
Energy Matters’ solar and battery installation services in Melbourne
Energy Matters proudly serves Melbourne by connecting homes and businesses with local and trusted installers. Our network of solar companies provides high-quality solar and battery installations, ensuring that residents and businesses can benefit from solar technology tailored to Melbourne’s unique environment.
- Solar panel installation: With extensive knowledge of solar panel installation Melbourne, Energy Matters connects you with installers who will provide expert consultations to identify the most effective systems, allowing customers to benefit from Melbourne’s abundant sunlight and achieve maximum energy savings.
- Battery storage solutions: Offering advanced storage solutions from a range of quality manufacturers, Our installers help our customers enhance their solar installation Melbourne setup with reliable backup options.
- Ongoing support and maintenance: Support and maintenance services ensure that solar system installation Melbourne customers can rely on their systems year-round, optimising efficiency and performance.
- Financing options and incentives: Our network of installers offers flexible financing and guides home and business owners through local rebate options, making solar installations Melbourne accessible to more residents.
Energy Matters is here to help you find the best solar system installation company in Melbourne.
Energy efficient upgrades
Saving on your energy bills goes deeper than just solar and battery storage. Upgrading your home appliances can see significant reductions in your bills and your environmental impact. Here are just some of the energy efficiency upgrades you can make in your home and business:
- Hot water system: Solar hot water systems and heat pumps
- Energy and water-efficient appliances: Dishwashers, refrigerators, washing machines, dryers, and air conditioners
- Electronics: LED lighting and smart home monitoring
- EV chargers: Installing EV chargers at home or work provides convenient charging and reduces reliance on grid power, especially when paired with solar.