At least one house has been lost in the blaze west of Ballarat but that number is expected to increase.
Assessment teams had started to survey the damage but it could take time given the active fire threat and terrain, Premier Jacinta Allan said.
More than 1000 firefighters and almost 60 water bombing aircraft are working to contain the blaze. (James Ross/AAP PHOTOS)
"We are sadly hearing reports of property loss that are starting to come through," Ms Allan told reporters on Friday.
More than 1000 firefighters and almost 60 water bombing aircraft are working to contain the blaze.
Media footage from the area showed houses saved by firefighters surrounded by hundreds of metres of burnt grass and sheds.
Country Fire Authority chief officer Jason Heffernan expects there to be significant losses of outbuildings, fences and stock.
He said while the temperature had dropped in the fire zone, strong southwesterly winds did not let up on Friday as expected.
An emergency warning was issued for four communities late in the day, with residents told to leave immediately, while watch and act alerts for more than a dozen towns stated it was not safe to return.
The Country Fire Authority expects there to be significant losses of outbuildings, fences and stock. (James Ross/AAP PHOTOS)
Conditions are expected to ease from Saturday until Monday but warm up again on Tuesday.
Wednesday has been described as a potential "spike" day as the mercury is set to again soar above 40C.
Six schools were closed or relocated on Friday and 1365 power customers were left without electricity.
Almost 60 hospital patients and residents of aged care homes near the fire have been transferred to other facilities.
Evacuees have been directed towards relief centres at Ararat, Maryborough, and Wendouree in Ballarat.
The cause of the blaze is under investigation.
11°C