Hot Water Heat-pump Rebates

The hot water rebate (formerly the solar hot water rebate) of up to $1,000 is available on eligible heat pump and hot water systems.

This is a great option for households where solar panels might not be suitable, or for households that already have solar panels installed. 


Hot water systems are one of the biggest energy users in the home, accounting for around 21 per cent of total energy use (on average, according to YourHome).

This can have a significant impact on household energy bills, but one way to keep these costs under control is to install an efficient hot water system such as a heat pump or solar hot water system.

Solar hot water and heat pump hot water systems use less energy to heat water at home, and can be run from renewable energy.

Installing a more efficient solar hot water or heat pump hot water system can help reduce greenhouse emissions and energy bills. On average, households that install solar hot water systems can expect to save between $140-$400 per year on their electricity bills.

Victorian Energy Upgrades Water Heating Factsheet

The VEU have created a handy factsheet to assist you in selecting the right size hot water system. This factsheet will also be provided to you if you undertake a hot water system upgrade under the VEU program.

Am I eligible?

As a Victorian householder, you could receive a hot water rebate if you meet the following criteria:

  • you are the owner-occupier of an existing property where the system is to be installed
  • the combined household taxable income of all owners is less than $180,000 per year
  • you have not already received a hot water rebate or a solar battery rebate under the Solar Homes Program
  • the property is valued at under $3 million
  • the property address has not previously received a hot water rebate or a solar battery rebate under the Solar Homes Program
  • the hot water system to be replaced is at least three years old from the date of purchase

Householders cannot receive the same Solar Homes rebate more than once. For example, if a householder has previously received a hot water rebate, they cannot receive another hot water rebate.

Once you’re confident that you and your property meet the eligibility criteria, you can start the application process.

To be eligible for a rebate, products must be on our products list.