Heat Pump Hot Water Government Rebate in Victoria
Victorian households replacing an old hot water system can draw on federal and state support at the same time. The programs have different rules, they apply to your quote in a set order, and some run in limited releases. This guide explains what each one does and who qualifies.
There are three layers of support for a heat pump hot water system in Victoria: federal small-scale technology certificates, a Victorian Energy Upgrades discount, and a Solar Victoria rebate. They are normally applied to your quote in that order, so you pay the balance. Eligibility depends on the model, what you are replacing and your household, so it is worth confirming before you buy.
The three layers of support
Each program is run by a different body and has its own rules. Understanding which is which makes a quote much easier to read.
Eligible heat pumps earn small-scale technology certificates. The number depends on the model and your climate zone, and it falls each year as the scheme winds down towards 2030.
A state discount for replacing electric or gas hot water with an efficient system. It works through accredited providers, and its value moves with the market, so we confirm it at quote time.
A rebate worth half of the price that remains after the other discounts, up to a set maximum. It is for eligible owner-occupiers and is released in limited batches.
How the discounts stack
The order matters, because the Solar Victoria rebate is calculated on the price left after the other two have been taken off.
Programs and limits change through the year. We confirm your position before quoting.
Who can claim the Solar Victoria rebate
Solar Victoria sets several conditions, and you need to meet all of them. At the time of writing they are:
- You own and live in the property where the system will be installed
- Combined household taxable income of all owners is under $150,000 a year
- The property is valued under $3 million
- The address has not already received a Solar Homes hot water or battery rebate
- The system being replaced is at least three years old
- The new system is an eligible product, bought from an authorised retailer
Rebates are released in batches, so availability can change. Solar Victoria publishes the latest rules on its hot water rebate page, and we check them for you.
Gas hot water and the 2027 change
The Victorian Government has announced that from 1 March 2027, existing homes replacing a gas hot water system at the end of its service life will need to move to an efficient electric alternative, such as a heat pump. The rule is aimed at systems that have reached the end of their life, not ones that still work, and a repair alone does not trigger it. Rental properties are covered by similar requirements.
If your gas system is ageing, replacing it before it fails gives you time to compare quotes and claim the incentives that apply, instead of rushing a decision after a breakdown.
How the discount reaches you
You normally do not pay in full and claim back later. The discounts are applied through your retailer and shown on the quote, and you pay the remaining balance. For that reason it matters that the retailer is authorised and the model is on the eligible list, since either one can stop a rebate from being applied.
- Is each rebate a separate line on the quote, with the model and eligibility stated?
- Is the model on the eligible list for the program you are relying on?
- Is the retailer authorised to apply the Solar Victoria rebate?
- Does your household meet the income, property and system age conditions?
- What happens to the quote if a rebate release runs out before installation?
Choosing a system that qualifies
Not every heat pump is eligible for every program, so the model you pick affects the discount as well as the running cost. Our heat pump hot water guide compares heat pumps with electric and gas systems, and the Rheem heat pump guide covers one of the most common eligible brands.
Frequently asked questions
Eligibility, stacking, gas replacement and how the discount is applied.
Is there a government rebate for heat pump hot water in Victoria?
Yes. Eligible heat pumps can attract three layers of support: federal small-scale technology certificates, a Victorian Energy Upgrades discount and a Solar Victoria rebate. Which of them you can claim depends on the model, what you are replacing and your household. We confirm what applies before quoting.
Can I combine the federal, VEU and Solar Victoria rebates?
Often, yes. The discounts are applied in order: certificates first, then the Victorian Energy Upgrades discount, then the Solar Victoria rebate on the price that remains. You need to meet each program's own requirements to receive it.
Who is eligible for the Solar Victoria hot water rebate?
Solar Victoria lists several conditions: you must own and live in the property, combined household taxable income must be under $150,000, the property must be valued under $3 million, and the address must not have received a Solar Homes hot water or battery rebate before. The system being replaced must also be at least three years old, and the new one must be an eligible product from an authorised retailer. Check Solar Victoria for the latest rules.
Do I have to replace my gas hot water system with a heat pump?
Not immediately. The Victorian Government has announced that from 1 March 2027, existing homes replacing a gas hot water system at the end of its service life will need an efficient electric alternative, such as a heat pump. A system that still works does not have to be replaced, and a repair alone does not trigger the rule.
Do I claim the heat pump rebate myself or does the installer apply it?
In most cases the discount is applied through your retailer and shown on the quote, so you pay the balance instead of paying in full and claiming back later. Ask for each rebate to appear as a separate line, with the model and eligibility stated.
Tell us what you are replacing and we'll confirm which incentives apply and show them on a fixed-price quote.
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