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Commercial solar installation in Melbourne

Melbourne properties sit across five distribution areas, two STC zones and a large seasonal swing in solar output. A useful comparison uses your connection, your postcode and a full year of operating data.

Vitalic delivers commercial and industrial energy systems Australia-wide, bringing solar, battery storage and control into one site assessment.

Commercial solar in Melbourne

Melbourne at a glance

Network
One of five; check the bill
STC zone
Zone 4 (1.185), some northern postcodes Zone 3
Solar exposure
15.1 MJ/m² a day
Output per kW
~1,258 kWh a year*
Noon sun height
29° June · 76° December
Strongest month
December
Solar panels on a low-pitched commercial roof. The noon sun stands 76 degrees above the horizon in December and 29 degrees in June.29°December noon · 76°June noon · 29°North →← South
Panels on a low-pitched roof catch the high summer sun well and the low winter sun less, so output follows the seasons.
Modelled monthly output per kW: highest 171 kWh in December, lowest 42 kWh in June.0100200JFMAMJJASOND17142modelled output*kWh per kW
The weakest month, June, gives 24% of the strongest, December. A heating or early-start load needs a different strategy from afternoon cooling.

Five distributors, one city

CitiPower serves the city and inner suburbs, Jemena the northern and north-western suburbs, United Energy the southern suburbs and Mornington Peninsula, AusNet Services the outer north and east, and Powercor the western suburbs. Confirm the correct one for your property and check the tariff on the bill. When comparing multiple sites, keep each connection distinct.

Above 30 kW is a negotiated connection

AusNet, for example, runs a 30 kW to 1.5 MW pathway with a paid technical assessment, requires central protection above 200 kW, and requires these systems to be enabled for Victoria’s solar emergency backstop. The backstop has applied to new systems above 200 kW since 25 October 2023 and to those of 200 kW or less since 1 October 2024; battery systems do not need to be backstop enabled. These rules shape the size and the value of a system before any panel is chosen.

Five networks, five sets of demand rules

CitiPower, Powercor and United Energy put low-voltage sites using more than 160 MWh a year on large low-voltage tariffs: a rolling 12-month kVA demand measured 7am to 7pm on workdays, plus an incentive demand charge in four months of the year, set in one of three windows (1pm to 4pm or 4pm to 7pm on summer workdays, or 4pm to 7pm on winter workdays). Jemena uses 400 MWh a year or 120 kVA as its large-business boundary and adds a summer demand incentive charge from 4pm to 7pm. On AusNet, large sites are moving to critical peak demand tariffs, where two to five called summer days, measured 3pm to 7pm daylight time, set the demand charge for the following April to March. The network decides when a battery has to discharge.

Victorian Energy Upgrades discount on business solar

Victorian Energy Upgrades gives an upfront discount on rooftop solar of 30 kW to 200 kW at non-residential sites, with an inverter of at least 30 kVA, through an accredited provider engaged before the work starts. The certificate formula steps up above 100 kW, so the Victorian Government’s indicative discount, at a certificate price of $70, rises from $9,100 for 100 kW to $25,760 for 150 kW and $34,300 for 200 kW. Larger systems can earn certificates through the measurement and verification method, and the discount can be claimed alongside federal certificates where a system is eligible for both. The same program discounts heat pumps, air conditioning, cold rooms, refrigeration, motors and some lighting upgrades; it has no battery or demand-response activity.

Other state and council support

Solar Victoria’s Solar for Business program closed on 30 June 2023, and no other state grant for business solar or batteries is open. Within the City of Melbourne, the Retrofit Melbourne scheme reimburses half the cost of a first benchmark rating (up to $2,500) and of action planning (up to $7,500) for office buildings of 1,000 to 20,000 m² that are more than 15 years old and unrated or rated 4 NABERS stars or below, with implementation funding of up to $40,000 expected from 2027; it can be combined with Victorian Energy Upgrades. Victorian councils can also offer Environmental Upgrade Agreements under the Local Government Act 1989, a building-upgrade loan repaid through council rates; availability depends on the council.

Planning permits and overshadowing

Solar attached to a building that mainly serves that land needs no planning permit in Victoria unless the planning scheme specifically requires one, for example under a Heritage Overlay where solar controls apply and the panels are visible from a street (other than a lane) or public park. In the city centre, the City of Melbourne warns that new developments can overshadow existing or planned rooftop solar, and publishes guidance on checking what may be built nearby.

Melbourne is not one STC zone

Under the 2019 zone-ratings instrument most Melbourne postcodes are Zone 4 (rating 1.185), but several northern and north-western ranges, including 3036 to 3038, 3047 to 3049 and 3061 to 3064, are Zone 3 (1.382). The zone changes the certificates a system creates by about 17 per cent, so check the postcode before pricing.

Check shared-building arrangements

For a tenancy or embedded-network property, identify the billing boundary and installation permissions before allocating savings. Provide available roof and switchboard information, existing generation details and planned equipment changes.

Commercial solar in Melbourne: common questions

What is the government rebate on a 100 kW solar system in Melbourne?

The federal incentive is small-scale technology certificates (STCs), which installers usually take as an upfront discount. For the example postcode 3000 (Melbourne, Zone 4), a new 100 kW system installed in 2026 creates 592 STCs (100 kW × 1.185 × 5 years). At the Clean Energy Regulator’s reported spot price of $39.85 that is about $23,500. This is a postcode example, not a site eligibility check. Confirm your own site’s postcode and eligibility. The figure for a 100 kW system falls each year as the scheme approaches its 2030 end.

Who is my electricity distributor in Melbourne?

One of five: CitiPower (city and inner suburbs), Jemena (north and north-west), United Energy (south and Mornington Peninsula), AusNet Services (outer north and east) or Powercor (west). Your bill names it.

What STC zone is Melbourne in?

Mostly Zone 4 (rating 1.185), but some northern and north-western postcodes are Zone 3 (1.382) under the 2019 instrument. Check the postcode: the difference is about 17 per cent in certificates.

Does commercial solar make sense with Melbourne’s winters?

Yes, if it is sized to the load. Mean June solar exposure is about a quarter of January’s, so a system sized to winter demand will export heavily in summer, and one sized to summer will cover less in winter. The interval data decides where the balance sits.

Is there a Victorian rebate for business solar?

Yes. Victorian Energy Upgrades gives an upfront discount on rooftop solar of 30 kW to 200 kW at business and other non-residential sites, through an accredited provider. The Victorian Government’s indicative figure is $34,300 for a 200 kW system at a certificate price of $70. Contact the provider before work starts, or the discount usually cannot be claimed.

Does Victoria discount business batteries?

Not through a state program. Victorian Energy Upgrades has no battery or demand-response activity, and Solar Victoria’s current offers are for households. A small business battery of 5 to 100 kWh may qualify for the federal Cheaper Home Batteries Program; a larger one is justified by the demand charges it avoids.

More on commercial battery storage and what makes a battery a strategic asset.

Can a Melbourne business claim certificates on a system larger than 100 kW?

From 1 October 2026, new solar systems above 100 kW and up to 1 MW can create small-scale technology certificates (STCs), with a fixed deeming period to 2030. The Clean Energy Regulator says applications for these systems open in mid to late November 2026, and evidence of network connection approval is required. Only capacity installed on or after 1 October 2026 is eligible, so an extension earns certificates on the added panels only.

Sources

Confirm requirements for your specific connection with the distributor named on your bill.

Compare the options for your site

Explore commercial solar, battery storage, intelligent control and EV charging, or read how they work together. For a starting estimate from your annual electricity use, try the solar sizing calculator.

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* Illustrative. Output is modelled with PVGIS 5.3, EU Joint Research Centre for 1 kW laid flat, 14% system losses and 2005–2023 weather; a real system depends on its roof, shading and equipment. Panels tilted 34° to the north would give the most generation, about 16% more (1,460 kWh per kW), but need frames that usually cost more than the extra output earns. Solar exposure is the Bureau of Meteorology’s long-term station mean. The 100 kW certificate example uses postcode 3000, its statutory zone rating and 5 deeming years, with the count rounded down. The displayed value is floored to $100 at the Clean Energy Regulator’s reported spot price; installers usually take certificates as an upfront discount. A site’s postcode and eligibility require confirmation.