Solar & energy in Melbourne

Victoria's Solar Homes program offers $1,400 rebate + interest-free loan. Payback 4-6 years despite lower sun than Sydney.

Avg electricity rate
R0.3/kWh
Australia average
Peak sun hours
4.4
Annual average
Net metering
fair
Feed-in tariff (~$0.05-0.10/kWh)
Solar friendliness
★★★★★
Out of 5

Key facts

  • RegionVictoria
  • CountryAustralia
  • CityMelbourne
  • Average rateR0.3/kWh
  • Peak rate (TOU)R0.48/kWh
  • Off-peak rate (TOU)R0.12/kWh
  • Peak sun hours4.4 hrs/day
  • Net metering policyFeed-in tariff (~$0.05-0.10/kWh)
  • NM qualityFair
  • Solar friendliness rating★★★★★/5

Available incentives

  • STCs
  • Solar Victoria rebate

Net metering quality

Quality of net metering policy (higher = better for solar economics):

Fair — Feed-in tariff (~$0.05-0.10/kWh)

What this means

Fair net metering policies pay less than retail for exports. Consider self-consumption or a battery.

Example: 900 kWh/month household in Melbourne

At 4.4 peak sun hours and a 400W panel, you'd need approximately 19 panels (7.6 kW system) to cover your usage. That produces ~10,497 kWh/year, saving about R3,149/year at the 0.3/kWh local rate.

Run the full calculator

Going solar in Melbourne

Melbourne, in Victoria, Australia, has 4.4 average peak sun hours per day — good for solar. The local electricity rate is R0.3/kWh, below the Australia average.

Net metering in Melbourne is rated fair. Feed-in tariff (~$0.05-0.10/kWh). This significantly affects solar payback: with excellent net metering, every excess kWh you produce is credited at full retail value; with poor net metering, exports may be worth only 10-30% of retail, making battery storage much more attractive.

Available incentives include: STCs, Solar Victoria rebate. These can substantially reduce the upfront cost of solar and battery installations. Note: the US federal solar tax credit expired December 31, 2025. State and local incentives still vary by region. South African taxpayers can claim accelerated depreciation under SARS section 12B.

Next steps

Use the Solar Panel Sizing Calculator with 4.4 peak sun hours to find out exactly how many panels you need. Then check the Solar Savings Calculator for a 25-year projection using the local R0.3/kWh rate. If net metering is poor in Melbourne, also run the Battery ROI Calculator — batteries may be essential rather than optional.