Your gas hot water system has failed in Victoria: what now?

A dead hot water system is the moment Victoria's new rule actually matters. Until then nothing changes for a working gas unit. This page walks through what to do, in order, when the water goes cold.

Can my gas hot water system still be repaired?

Yes. The Building and Plumbing Commission says existing mains gas hot water systems "can continue to be repaired and maintained as usual", and the government's factsheet says the same: "Repair and maintenance of an existing gas water heater can continue as usual." (BPC, DEECA factsheet)

So the first question is a practical one for your plumber: can this unit be fixed, and is it worth fixing? Get the answer in writing, with the cost of the repair next to the cost of a replacement, so you can weigh it against the unit's age.

What counts as "end of life"?

The rule's trigger is replacement. The government's wording is: "If a gas hot water system breaks and cannot be repaired, or needs to be replaced for any other reason, it must be replaced with an electric alternative." (energy.vic.gov.au) In other words:

• Broken and can't be repaired: the replacement must be electric from 1 March 2027 (unless an exemption applies).
• Broken but repairable: you can repair it. Nothing forces a replacement.
• Working, but you choose to replace it (a renovation, say): from 1 March 2027 that replacement must also be electric, because it is being replaced "for any other reason".

The official pages don't give a checklist for "cannot be repaired". In practice that judgement comes from your licensed plumber, and if they rely on an exemption to fit gas again, the regulator expects them to keep records such as photos, measurements and manufacturer requirements.

What should I do, step by step?

1. Make it safe. If there is a gas smell, turn off the gas at the meter and call your gas distributor's emergency line. If water is leaking, turn off the cold water isolation valve at the tank.
2. Get a licensed plumber to diagnose it. Ask plainly: can it be repaired, what will that cost, and how long is a repaired unit likely to last given its age?
3. Check the age. The Solar Homes rebate needs the system being replaced to be at least 3 years old from its purchase date. The VEU discount needs the building to be at least 2 years old.
4. If replacing, get heat pump quotes from providers who can apply the discounts. Only a VEU accredited provider can apply the VEU discount, and Solar Homes rebates go through Solar Victoria authorised retailers. A retailer can be both.
5. Use the emergency path if you need hot water now. Solar Victoria says that if your system "breaks down or is unsafe, you do not have to wait for us to confirm you are eligible before installing a replacement system". Your retailer ticks the emergency installation box when entering the quote (Solar Victoria).
6. Keep the paperwork. You should receive a compliance certificate from the plumber for a heat pump installation above the monetary threshold, and a separate one if a different plumber disconnected the gas (BPC).

How quickly can a heat pump go in?

That depends on stock, the installer's schedule and your site. A like-for-like swap in the same outdoor spot is usually simpler than a move. Things that can slow it down:

• Electrical work. A gas system may have had no electrical circuit at all (a pilot light unit) or only a small one. A heat pump needs a suitable circuit, which may mean an electrician as well as a plumber.
• Space and siting. Heat pumps need airflow and are best kept away from bedrooms because of noise. The BPC says they "must be installed in well-ventilated areas, typically outdoors". An indoor gas unit in a cupboard may need a new location.
• Split systems. If the installer fits a split system with refrigerant pipework, the plumber needs refrigeration accreditation as well as water supply. Ask about this up front.

If you truly can't wait, ask about a temporary heater. For rentals, Consumer Affairs Victoria treats a temporary water heater installed for no more than 60 days as an exemption while a compliant system is arranged (CAV exemptions).

What size heat pump replaces my gas system?

Don't just match the litres on the old gas tank. The federal government's 2026 review notes heat pumps can take significantly longer to reheat at low air temperatures, so households that use a lot of hot water at once may want to go up a size. A continuous flow (instantaneous) gas unit has no tank at all, so you will need to choose a tank size from scratch. My heat pump size guide works through it by household.

What will it cost me after discounts?

The government's VEU buyers guide puts installed water heater costs at $2,500 to $7,500 before incentives (VEU buyers guide). For a heat pump replacing gas, the VEU discount is up to $560 and the Solar Homes rebate is up to $1,000 ($1,400 for eligible locally made products), on top of the federal STC discount. The Solar Homes rebate is worked out last, as 50% of the price left after STCs and VEU come off. See the Victorian rebates page for eligibility.

What if an exemption applies to my home?

Then a gas replacement may still be allowed. The exemptions the BPC lists include a gas unit that doesn't rely on electricity, needed switchboard work, network upgrades beyond a standard connection, not enough indoor space, unsuitable outdoor space and centralised gas systems. They are explained on my 2027 rule overview. Ask your plumber which one they are relying on, and why.

I rent. Who sorts this out?

Your rental provider, who is legally responsible for meeting minimum standards. From 1 March 2027 a failed system in a rental must be replaced with an efficient heat pump or electric-boosted solar system, whether the old one was gas or electric. Read the rental rules.