Hot Water Cost

Victoria's hot water rebates

Two programs can cut the price of a heat pump or solar hot water system in Victoria, and most owner-occupiers can use both.

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Solar Victoria pays up to $1,000 towards an eligible heat pump or solar hot water system, or up to $1,400 for a locally made one. A Victorian Energy Upgrades discount comes off first, so together they are reported at up to $1,630 for most eligible systems.

1. The Solar Victoria rebate

The rebate is 50% of the price, worked out after any other discounts, and capped at the amounts above. You apply through an authorised retailer, who takes it off your price.

Who qualifies

  • You are the owner-occupier of an existing home.
  • The combined taxable income of all owners is under $150,000 a year.
  • The property is valued under $3 million.
  • The system you are replacing is at least 3 years old.
  • The home has not already had a Solar Homes hot water or battery rebate.

2. The Victorian Energy Upgrades discount

Accredited providers take this discount off the price when they install an efficient system. It is tied to the price of energy efficiency certificates, so it moves. Installers report about $630 when you replace an electric system and about $560 when you replace gas.

An installation cannot be free: installers report a minimum contribution of $200. Be wary of anyone offering a $0 upgrade.

Reported Victorian Energy Upgrades discount, by what you replace

Installer-reported figures, not a program rate. They move with the price of energy efficiency certificates.

Show these figures as a table
Item Figure
Replacing electric about $630
Replacing gas about $560

Using both together

The discount is applied first and the Solar Victoria rebate is then calculated on what remains. For a locally made product, the combined reduction is reported at up to $2,030.

How to claim

  1. Check your eligibility on the Solar Victoria website.
  2. Get quotes from authorised retailers for a product on the approved list.
  3. Your retailer applies both reductions to your price, so you pay the balance.

Figures marked as installer-reported come from a named industry guide, not the program. Confirm the current VEU discount with your installer.