We are providing a rebate of up to $1,400 for eligible rental providers to reduce the cost of installing a solar panel system on a maximum of two rental properties each financial year, subject to a Solar Homes Rental provider-Renter Agreement being signed.
You can reduce your upfront cost even further by applying for an interest-free loan to match the rebate amount.
Only one application is available per address, however rental providers can apply for up to two rental properties in a financial year provided all of the eligibility criteria are met.
Rebate eligibility
As a Victorian rental provider, you are eligible to receive a rebate for your rental property if you meet the following criteria:
- your renters have a combined household taxable income of less than $210,000 per year
- you have not received more than two rebates for a rental property during the current financial year
- the property is valued at under $3 million
- the property address has not previously received a solar panel (PV) rebate or a solar battery rebate under the Solar Homes Program
- the property has not had a solar panel (PV) system installed in the last ten years*
- a signed Solar Homes Program Agreement between you (the Rental Provider) and Renter(s) is provided
*If you are participating in the Premium Feed-in Tariff scheme you should consider whether you will be better off if you replace your existing system before the scheme ends in November 2024.
Loan eligibility
To be eligible for an interest-free loan, you will need to provide a satisfactory credit report that is less than 12 months old.
If you don't have one, it's easy to do a free credit report online through the Moneysmart .
Please be aware that a credit report can take up to 10 days to be supplied to you.
Interest free loan
Rental providers have the opportunity to apply for an interest-free loan to further reduce the upfront cost of installing solar on their investment property.
The loan is required to be repaid over four years and rental providers are ultimately responsible for the repayments. There are two options for loan repayments:
- A rental provider can make the full monthly loan repayment of $29.16; or
- The rental provider and renter can agree to a co-contribution model where the renter contributes up to 50 per cent of the monthly repayment. The maximum amount that can be contributed by the renter each month is $14.58.
If the renter agrees to co-contribution, the percentage of their contribution:
- must be agreed upfront in the Rental provider-Renter agreement
- must be paid directly to the rental provider
- Should not be altered after the loan has been established.
Renters who agree to co-contribute do so for the four-year life of the loan or until the renter vacates the property, whichever is earlier. Costs relating to the installation of the system cannot be recouped by increasing rent payments or taken from a renter’s bond when they vacate the property. Subsequent renters will not be party to any repayment agreement.
Based on an interest-free loan of $1,400, the percentage of repayments can be requested based on the figures in the table below:
| Percentage % | Repayment $ per month | Percentage % | Repayment $ per month |
|---|---|---|---|
| 5% | $1.46 | 30% | $8.75 |
| 10% | $2.92 | 35% | $10.21 |
| 15% | $4.38 | 40% | $11.67 |
| 20% | $5.83 | 45% | $13.13 |
| 25% | $7.29 | 50% | $14.58 |
Rental provider-Renter agreement
Regardless of the repayment model chosen, rental providers and renters are required to complete and sign the Rental provider-Renter Agreement.
No renter contribution
Download and complete the Rental provider-Renter Agreement (no payment) if the rental provider will be repaying the loan with no renter contribution.
Co-contribution between the renter and rental provider
Download and complete the Rental provider-Renter Agreement (co-contribution) if the rental provider and renter will be contributing to the monthly loan repayments.
If either party does not follow through with their responsibilities under the Rental provider-Renter Agreement, you can contact the Dispute Settlement Centre of (DSCV) for free advice on dispute resolution, and potential options for mediation.
Reviewed 26 October 2023
