Heat pump hot water rebates in Victoria

Victoria has the most generous heat pump support in the country right now, and the most moving parts. The two state programs are run by different agencies, have different rules, and are claimed through the retailer or installer rather than by you directly. This page sets them out side by side with the official source for each.

What rebates can I get for a heat pump in Victoria?

On top of both, the federal small-scale technology certificate (STC) discount applies anywhere in Australia. It is not a Victorian program, but it usually comes off the price first. See how STCs work.

Can I combine Solar Homes, VEU and STCs?

Yes. Solar Victoria says its rebate is "calculated after any other discounts have been applied (including Small-scale Technology Certificates and Victorian Energy Efficiency Certificates) and is a 50% rebate on the purchase price of the product" (Solar Victoria). The order is:

1. Start with the quoted price for the product and installation.
2. Take off the STC discount.
3. Take off the VEU discount (VEECs are the certificates behind it).
4. The Solar Homes rebate is then 50% of the product purchase price that is left, up to the cap.

The government puts the combined VEU and Solar Homes saving for a heat pump replacing gas at up to $1,560, or up to $1,960 with a locally made product (VEU hot water discounts). You must pay at least $200 under VEU, because products "cannot be offered or installed free of charge" (VEU buyers guide).

Who is eligible for the Solar Homes hot water rebate?

The main tests, from Solar Victoria's rebate page:

• You own and live in the home (it is an existing property, not a new build).
• The combined taxable income of all owners is under $150,000 a year.
• The property is worth less than $3 million.
• The address hasn't already had a Solar Homes hot water or battery rebate.
• The system you are replacing is at least 3 years old from the date it was bought.

The product must be on Solar Victoria's list. For heat pumps that means a five-year comprehensive warranty, registration under VEU as tested to AS/NZS 4234:2021, a refrigerant with a global warming potential below 700, and either a user-set timer or a way to link to a solar PV system so it runs when the panels are generating (Solar Victoria product lists).

Who is eligible for the VEU discount?

VEU is broader. It covers homes and businesses, owner-occupiers and private rentals, and it has no income test. You need an existing hot water system to replace, in a building at least 2 years old, and an approved product with at least a 5-year warranty. Households can upgrade up to 2 systems and businesses up to 5 (VEU).

Both replacement paths are live VEU activities: replacing an electric resistance system, and replacing a gas or LPG system (Essential Services Commission). Only electric-boosted solar qualifies among solar systems; gas-boosted solar does not.

How much could I save on a typical job?

I won't invent a price, because quotes vary a lot with the product and the site. The VEU buyers guide says installed water heater costs range from $2,500 to $7,500 before incentives. Use this table to see what comes off and in what order:

How do I apply?

You don't apply to the government for a cheque. Both discounts come off the quote:

1. Check your Solar Homes eligibility on the Solar Victoria site.
2. Find a retailer who is a Solar Victoria authorised retailer and a VEU accredited provider.
3. Get a written quote for a product on both lists. The retailer uploads the quote to the Solar Victoria portal and you upload proof of eligibility.
4. You receive a QR code. The system must be installed within 120 days.
5. The rebate is paid to the retailer and taken off your invoice.

If your hot water has failed or is unsafe, Solar Victoria lets you install first and confirm eligibility afterwards, using the emergency installation option. For the full checklist when a gas system dies, see when gas hot water fails.

Are Solar Homes rebates running out?

They are released in batches. On 2 November 2026, Solar Victoria's page showed 684 hot water rebates remaining in the current release. I could not find an official end date for the current release. Check the live count on the rebate page before you plan around it.

What about rentals and landlords?

Landlords can get the VEU discount on rental properties. The Solar Homes hot water rebate is for owner-occupiers, apart from a temporary opening for rentals affected by the Solstice Energy compressed natural gas closure. Rentals also have their own hot water standard from 1 March 2027. See renters and landlords.

Is there any help with running costs?

Not a rebate, but Victoria's Midday Power Saver plan has offered no-cost electricity between 11am and 2pm since 1 October 2026, up to 24 kWh a day, for households with a smart meter who sign up. Prices outside the window may be higher on that plan, so it suits homes that can shift load. The government names electric water heaters as one of the loads to move into the window (energy.vic.gov.au). A heat pump with a timer is built for this. See solar and off-peak timing.