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How do we harvest energy from the sun?

Solar energy is energy created by the heat and light of the sun. Solar power is produced when this energy is converted into electricity - with photovoltaic (PV) panels - or used to heat air, water, or other substances.

We can use solar energy at different scales. It can be a small number of solar panels on the roof of a house or a large-scale array of hundreds of panels that can power hundreds of thousands of homes when connected to the power grid.

Solar for households

Many Victorians are using small scale solar systems in their homes. This gives them independence from conventional energy supplies and can reduce energy bills. A feed-in tariff is also provided in certain circumstances.

Get support to put solar on your home at Solar Victoria.

Solar for business program

The Solar for Business Program is an initiative designed to support Victorian businesses to reduce their energy costs by accessing the benefits of renewable energy.

Rebates cover up to 50% of the cost of a rooftop solar system, with businesses eligible for a maximum rebate of $3,500 to reduce the upfront cost of installing solar on their business premises, plus the option of an interest-free loan.

To further reduce costs, business owners can apply for an interest-free loan. Loans offered start from $1,000 up to a maximum amount of $5,000. You can pay loans over 12 or 24 months or repay them sooner in one lump sum.

Visit Solar Victoria to check your eligibility and find out how to apply.

Large-scale solar farms

Large-scale solar farms need access to electricity transmission or distribution networks. They also need large expanses of flat and flood-free land. Panels can be raised to allow sheep grazing and some types of horticulture.

The Minister for Planning is the responsible authority for new planning permit applications for all energy generation facilities that are 1 megawatt or greater. Learn more about large-scale solar energy projects in Victoria.

Renewable energy zones

Our electricity system must also change to carry energy from where it is generated to where it is needed. Shifting to renewable energy will deliver affordable, reliable and secure electricity. It will also help us deal with climate change by reducing our emissions.

To achieve these goals, we are developing renewable energy zones.

Page last updated: 19/06/23