Heat Pump Hot Water Rebates in Victoria 2026: Full Guide
Written and reviewed by the ThermaQuote team · Last updated
Eligible Victoria households can stack heat pump hot water rebates worth up to ~$2,600 off the installed price. Below is every program, what it's worth, who qualifies and how to claim — plus a worked example of the cost after rebates.
Victoria heat pump hot water rebates in detail
Victorian Energy Upgrades (VEU)
variable upfront discount, commonly up to ~$1,000Administered by Victorian Government (Victorian Energy Upgrades)
- Who's eligible
- Replacing an existing electric or gas hot water system at an eligible property. The discount is certificate-based (VEECs), so the exact amount varies by product and the market price at the time.
- How to claim
- Applied as an instant discount at the point of sale by an accredited VEU provider — no separate application.
Solar Victoria Hot Water Rebate
up to $1,000 (50% of the price after other discounts); up to $1,400 for eligible Australian-made productsAdministered by Solar Victoria (Solar Homes Program)
- Who's eligible
- Owner-occupiers only (rentals are not eligible under this rebate); property value under $3 million; the system being replaced is at least 3 years old; one hot-water or battery rebate per property.
- How to claim
- Apply via Solar Victoria (Service Victoria portal) with a quote from an authorised retailer; the rebate is 50% of the price after VEU and STC discounts.
- Income test / key date
- Combined household income under $210,000 now, reducing to $150,000 or less from 1 July 2026
Federal STCs (Small-scale Technology Certificates)
~$400 point-of-sale discount (varies by model and STC price)Administered by Clean Energy Regulator
- Who's eligible
- Eligible heat pump water heater models installed by an accredited installer; can be claimed in addition to the VEU discount.
- How to claim
- Certificates are assigned to your installer in exchange for an upfront discount.
Before & after rebates: a worked example
A realistic Victoria example for a 270L system. Illustrative only — your price and eligibility will vary.
| Indicative 270L system (installed) | $3,400 |
|---|---|
| Less rebates available (up to) | −$2,600 |
| Indicative cost after rebates | from $800 |
Eligibility checklist
Most Victoria programs share similar conditions. You'll generally need to confirm:
- You own the property (or have owner consent for a rental)
- The property and product meet the program’s eligibility rules
- Installation is by an accredited installer using an eligible product
- You haven’t already claimed the same rebate at this address
- You meet any household income or property-value thresholds
Rebate amounts, eligibility and deadlines change frequently and depend on your circumstances. Figures here are a guide only and were last checked on the date shown — always confirm current values and eligibility with the relevant authority before purchasing. ThermaQuote does not guarantee eligibility.
Victoria rebate FAQs
How much does a heat pump hot water system cost in Australia?
Most systems cost between $2,000 and $4,500 installed before rebates. In Victoria, Victorian Energy Upgrades and federal STCs are taken off at the point of sale, and eligible households may add a Solar Victoria rebate, so the price you actually pay is often well below that range.
How much can I save on running costs?
A heat pump uses roughly a third of the electricity of a conventional electric element. For a family of four that can cut hot-water running costs from around $700 a year to under $250 — and close to zero if you run it on solar during the day.
Do heat pumps work in cold Victorian winters?
Yes, but quality matters. Cheaper units can fall back on their electric element on frosty mornings, which reduces savings. In colder areas choose a unit rated for low ambient temperatures, such as a CO2 split system.
What rebates are available in Victoria?
You may be able to stack Victorian Energy Upgrades (a variable discount, commonly up to ~$1,000), a Solar Victoria hot water rebate (up to $1,000, or up to $1,400 for eligible Australian-made products) and federal STCs (around $400). Amounts and eligibility change frequently — always verify current values before buying.
How long does installation take?
A straightforward like-for-like changeover usually takes a few hours. Relocating the unit, adding a dedicated circuit or timer, or removing an old gas system can add time.
Claim your heat pump hot water rebates
Get free quotes from accredited installers who apply the rebates for you.