Rebates

Victorian homeowners can access several rebates (totalling up to $1,800) for replacing old water heaters with energy-efficient heat pump hot water systems. Here are the key rebates available:

1. Victorian Energy Upgrades (VEU) Program: Under the VEU rebate program, households can receive rebates for upgrading to more energy-efficient hot water systems. The rebate amount varies depending on the product’s energy efficiency rating and your location. Installing a high-efficiency heat pump water heater could make you eligible for up to $400.
2. Solar Homes Program: This program primarily focuses on solar panels, solar hot water systems and Heat pump hot water services, homeowners can receive rebates for replacing old water heaters with solar hot water systems or heat pumps  A heat pump hot water system will qualify under this rebate program, which offers up to $1,000 TO $1,400 for eligible homeowners. Please see check eligibility further down this page. 
3. Federal Government Incentives: The Australian government also provides incentives, such as Small-Scale Technology Certificates (STCs), to homeowners installing eligible renewable energy systems, including heat pumps. The number of STCs created depends on the system’s size and the location of your property. These certificates can be traded for financial benefits, effectively reducing the upfront cost of the heat pump system by up to $500.

To apply for these rebates, it’s essential to check eligibility of your existing system under the specific programs so that you can get the maximum rebates/discounts. 

The Solar Homes hot water rebate can help you to cover the cost of buying a new heat pump hot water system.  You could save even more with Victorian Energy Upgrades (VEU) hot water discounts if your retailer is also an approved VEU provider. The hot water rebate is calculated after any other discounts have been applied (including Small-scale Technology Certificates and Victorian Energy Efficiency Certificates) and is a 50% rebate on the purchase price of the product.

If you think you are eligible, follow the step-by-step process:

1. Do some research – read our Hot Water Buyers Guide

2. Talk with an authorised retailer

3. Select a system using products on our list to meet your energy needs

4. Ask for a written quote (your retailer will upload it into the Solar Victoria portal)

5. Wait for our email confirming the quote has been uploaded

6. Get pre-approval

7. Prove you are eligible – upload your paperwork into the portal

8. Wait for us to confirm your eligibility and send your QR code

9. Install the hot water system (within 120 days)

10. Pay the difference to the retailer – the total cost minus the rebate

If you install your hot water system before your eligibility is approved, you will not receive a rebate (unless it's an emergency installation).

As a Victorian householder, you could receive a hot water rebate if:

• You are the owner-occupier of an existing property where the system is to be installed

• The household taxable income of all owners combined is less than $210,000 per year

• The value of the property is under $3 million

• The property address has not already received a hot water or a solar battery rebate under the Solar Homes Program

• The hot water system to be replaced is at least 3 years old from the date of purchase

• You received a Solar Homes rebate and/or loan but have moved house. You can apply for another incentive at your new address as an owner-occupier if the property has not received these rebates before.

You must work with an authorised hot water retailer and use only eligible products.

From 1 July, households that choose an eligible locally made hot water product will receive a higher rebate of up to $1,400. The existing $1,000 rebate will remain for other eligible hot water systems. Read the announcement here.

Please revisit this page, follow us on social media, and subscribe to our newsletter for updates. Manufacturers and suppliers can now Apply for listing as a hot water product with local content.

Heating hot water is one of the biggest sources of energy use in the home, accounting for 15% to 30% of household energy use. To keep these costs under control and save energy you could install an efficient heat pump or solar hot water system.

The Solar Homes hot water rebate can help you to cover the cost of this.

The hot water rebate is calculated after any other discounts have been applied (including Small-scale Technology Certificates and Victorian Energy Efficiency Certificates) and is a 50% rebate on the purchase price of the product.

Compliance information:

Once TSB Plumbing has completed your heat pump replacement, they will provide you with a plumbing certificate.

If your hot water system breaks down or is unsafe, you do not have to wait for us to confirm you are eligible before installing a replacement system. We know everyone needs hot water.

You must prove you are eligible for the rebate as soon as possible after installation. If you do not meet the eligibility criteria you may not receive a rebate.

If your hot water system needs emergency replacement:

1. Contact an authorised retailer to arrange a solar hot water or heat pump installation

2. Tell them you intend to apply for the hot water rebate and must use only eligible products

3. Check you meet all eligibility criteria

4. Go ahead with installation of replacement system

5. Prepare ID and proof of income for rebate application

6. Apply for rebate online.

Make sure you check the box for emergency installations when you enter your quote details.