Rebates for Heat Pump Hot Water Systems in Victoria and How to Apply
Major Benefits
Did you know that water heating accounts for around 30% of energy consumption in Australian homes, making it a major contributor to your electricity bill? But here’s the good news—switching to an energy-efficient heat pump hot water system can help you save money and simultaneously reduce your carbon footprint. And if you’re in Victoria, the generous rebates under the Victorian Energy Upgrades (VEU) program make this upgrade even more affordable. In this blog, you’ll get to know about how these systems work, why they’re worth it and how you can grab those rebates to start your journey toward a greener, more cost-effective home.
Table of contents:
- What is a Heat Pump Hot Water System?
- Why Choose a Heat Pump Hot Water System?
- Available Rebates for Heat Pump Hot Water in Victoria
- Types of Heat Pumps
- Who is Eligible for the Rebate?
- How to Apply for the Heat Pump Hot Water Rebate in Victoria
- Important Considerations
- Conclusion
- FAQs
If you’ve ever wondered how to heat water without skyrocketing your energy bills - A heat pump hot water system might be the answer! A heat pump hot water system is an energy-efficient solution that uses air source technology to heat water by extracting warmth from the surrounding air. It consists of two main components: a compressor and a water tank. The compressor has a fan that draws in air, and a refrigerant absorbs heat from the air. This heat is then amplified through a compression process, raising the refrigerant's temperature. The heated refrigerant transfers its warmth to a water line in the tank, effectively heating the water for household use. These systems are highly energy-efficient, using 3 to 4 times less energy than traditional electric water heaters.
They perform well in a variety of climates, especially in moderate temperatures and help reduce energy bills and carbon emissions while reliably meeting your hot water needs. Heating and cooling in Melbourne systems like heat pumps are a great option for homeowners looking to reduce their energy consumption while enjoying consistent performance year-round.
A heat pump hot water system offers numerous benefits that go beyond just providing hot water. Firstly, it significantly reduces energy consumption compared to traditional electric water heaters, offering substantial energy savings. With these systems using 3 to 4 times less energy than conventional models, you’ll enjoy lower utility bills over time, leading to long-term financial benefits.
Additionally, heat pump hot water systems are an environmentally friendly choice. They operate by drawing heat from the air, which results in a lower carbon footprint compared to gas and electric alternatives. By opting for a heat pump, you're making an impactful contribution towards reducing your home's environmental impact.
One of the most attractive aspects of making the switch to a heat pump hot water system is the cost-effectiveness of the available rebate. With rebates of up to $1,000, you can significantly reduce your initial investment in a heat pump system, making this energy-efficient upgrade even more accessible and affordable.
The Victorian Energy Upgrades (VEU) program offers significant rebates to help you reduce the upfront cost of installing energy-efficient systems, including heat pumps and solar hot water systems. With hot water rebates of up to $1,000 available, this program provides a great opportunity to save money while upgrading your home's hot water system. Heat pump hot water systems, which are designed to reduce energy consumption by up to 75%, are eligible for these rebates, helping you lower your energy bills and reduce your carbon footprint.
The rebates are available to both residential and business properties that meet the program's requirements. For residential properties, homeowners and renters (with landlord approval) can access the rebates, while businesses can also benefit from the program by installing efficient hot water systems. By taking advantage of these rebates, you not only save money on installation costs but also ensure long-term energy savings, as hot water systems account for around 21% of your home's total energy use.
To determine if you are eligible for a hot water rebate in Victoria, ensure you meet the following criteria:
- You must be the owner-occupier of an existing property where the system will be installed.
- The combined taxable income of all property owners should be less than $210,000 per year and the property's value should be under $3 million.
- Additionally, the property must not have previously received a hot water heat pump rebate.
- The existing hot water system to be replaced should be at least 3 years old from the date of purchase.
- To complete the process, you must work with an authorised hot water retailer and use only eligible products.
Step 1: Check your eligibility
Before starting the application process, check if you’re eligible. For this, review your household income, the energy-efficient products you’re considering and whether they meet the program's criteria. Detailed eligibility guidelines on our blog.
Step 2: Select an approved energy-efficient product
After confirming your eligibility, choose an approved heat pump hot water system. The VEU program supports a variety of options, from hot water systems to other energy-efficient appliances. Be sure the product qualifies for the rebate to maximise your savings. You can view the list of eligible products on the VEU website.
Step 3: Hire an accredited provider
Partnering with an accredited provider like EcoOrigin offers a range of advantages. Not only can you enjoy more competitive pricing through the Victorian Energy Upgrades program—thanks to their access to exclusive rates—but you’ll also benefit from enhanced safety, optimal performance and full compliance with program standards. With their professional expertise, accredited providers ensure your installation is seamless, efficient and tailored to maximise energy savings.
Step 4: Apply for rebate online
Once you’ve chosen your product and arranged the installation, head to the Victorian Energy Upgrades program website to submit your rebate application. The process is straightforward, with a user-friendly platform that walks you through each step to complete your submission seamlessly.
Step 5: Prove your eligibility
Before getting your heat pump hot water system installed, you need to verify your eligibility, you'll need to upload required documentation (e.g., proof of property ownership or rental agreement)
Step 6: Get your rebate
After submitting your application and required documents, the approval process begins. Once everything is verified, your rebate will be issued! The amount will depend on the product you’ve chosen, but many participants find it a valuable reward for investing in energy efficiency.
Do not miss on taking advantage of the heat pump hot water rebate in Victoria, making it more affordable to upgrade to an energy-efficient hot water system.
Before you make up your mind and jump into applying for the rebate, it's important to understand some key factors:
Understanding the fine print of the rebate application
Be sure to carefully read all the details of the rebate terms and conditions. This includes eligibility, application processes, and timelines. Missing a step could delay your application or disqualify you from receiving the rebate.
Choosing the right heat pump model to qualify for the rebate
Not all heat pump systems are eligible for the rebate. Ensure that you select a model that is approved under the Victorian Energy Upgrades (VEU) program. You can work with your provider to identify a system that meets the necessary criteria.
How the rebate makes switching more affordable
The rebate is designed to reduce the upfront cost of your heat pump hot water system, making the switch to energy-efficient water heating more affordable. By combining the rebate with the long-term savings from reduced energy consumption, it becomes a cost-effective investment in both your home and the environment.
The heat pump hot water rebate provides an excellent opportunity for homeowners in Victoria to make their homes more energy-efficient without breaking the bank. By taking advantage of this program, you can reduce your carbon footprint, enjoy energy savings, and benefit from long-term financial gains. Whether you are replacing an outdated system or upgrading to a more sustainable option, the rebate can help make the transition easier and more affordable.
We encourage you to explore the many benefits of heat pump hot water systems and take the next step towards energy efficiency. Apply for the rebate through accredited providers to start your journey today.
To get started, contact EcoOrigin, your trusted provider for heat pump hot water systems.
1.How long will I have to wait to get my rebate after making a purchase?
In most cases, states offer immediate discounts at the time of purchase for Home Energy Rebates, so you won’t have to wait for a refund. For Home Electrification and Appliance Rebates, states are required to set up a system that allows rebates to be applied directly at the point of sale, as per the Inflation Reduction Act.
2. What is the heat pump rebate in Victoria?
The heat pump rebate in Victoria offers households up to $1,000 to help with the purchase of an eligible heat pump or solar hot water system. Not-for-profit community housing providers can also apply for the rebate on behalf of their tenants.
3. Are heat pumps noisy?
Air source heat pumps, placed outside the home, make a steady hum of 40 to 60 decibels, similar to the noise of a fridge or dishwasher. They usually run continuously during winter.
4. Who is eligible for the Victorian split system rebate in 2025?
Homeowners, including those in apartments and townhouses, are eligible for the rebate. Renters can also apply with their landlord’s help, and businesses in Victoria with a valid ABN can apply as well.
5. What is the most cost-effective heating for a home in Australia?
Heat pumps, including reverse cycle air-conditioners, are the most energy-efficient heating and cooling systems available. Other options like ducted air and in-slab floor heating can also be used, but heat pumps are typically the most cost-effective.
