On a $4,000 heat pump quote, the Victorian Energy Upgrades discount comes off first, then the Solar Victoria rebate is worked out on what's left. That order is why the two headline figures don't always simply add together.
Victoria is the most generous state for this swap and the most confusing to price. Two programs, two bodies, and a rebate that's a percentage with a cap rather than a flat amount. Here's one quote taken all the way through.
Step 1: the quote
Installers report heat pump systems costing $3,000–$5,200 installed in Australia. Take $4,000 as a mid-range quote for an eligible system. Your installer's quoted price already includes the federal STC discount, so the federal discount isn't a further reduction still to come.
Step 2: the Victorian Energy Upgrades discount
An accredited provider takes this off the price at the point of sale. The program's indicative figure is $630 when a heat pump replaces an inefficient electric system. That leaves $3,370.
The discount is tied to the price of energy efficiency certificates, so it moves with the market. There's also a floor: households pay a minimum contribution of $200, so an upgrade is never free. Treat a free offer as a reason to ask more questions.
Step 3: the Solar Victoria rebate
The rebate is 50% of the price, and Solar Victoria pays up to $1,000. Half of $3,370 is $1,685. That's above the cap, so the rebate lands at $1,000 and you pay $2,370.
A worked example, not a price. The quote is a round figure inside the sourced installed-price range; both reductions come from the sourced figures below and change with the certificate market and your eligibility.
Show these figures as a table
| Item | Figure | Before |
|---|---|---|
| Installer quote | $4,000 | |
| After the VEU discount | $3,370 | $4,000 |
| After the Solar Victoria rebate | $2,370 | $4,000 |
The combined reduction here is $1,630. Solar Victoria's own stated maximum for the two together is up to $1,630, so on a quote this size you'd reach it. On a cheaper quote, half of what's left after the discount can fall under the cap, and the rebate shrinks with it. For a product on the locally made list the cap is up to $1,400.
Whether you qualify
The Solar Victoria half has real eligibility rules. You need to meet all of these:
- You're the owner-occupier of an existing home.
- Combined taxable income of all owners is under $150,000.
- The property is valued under $3 million.
- The system being replaced is at least 3 years old.
The Victorian Energy Upgrades discount has no income test, so a household that misses the rebate can still get the discount. In that case the arithmetic above stops at step 2. Replacing gas rather than electric? The discount is smaller, and from 1 March 2027 a Victorian gas system that dies has to be replaced with an electric one anyway. The 2027 rule.
What to ask your installer
- Is this model on the Solar Victoria approved products list?
- What VEU discount are you applying today, in dollars?
- What is the price before both reductions, and what do I pay on the day?
The calculator runs the same sequence for other states and system types, and the Victoria rebate page has the program detail.