Switching to a heat pump hot water system is one of the cheapest ways to cut your energy bills — and in Victoria, several rebates can bring the upfront cost right down. Here is how the heat pump hot water rebates work in 2026.
Heat pump hot water rebates in Victoria (2026)
| Rebate / incentive | What it is worth |
|---|---|
| Solar Homes hot water rebate (Solar Victoria) | Up to $1,000 (or up to $1,400 for a locally made product) |
| Victorian Energy Upgrades (VEU) | An upfront discount that varies with the certificate market |
| Federal STCs | Roughly $300 – $600 extra off |
Combined, eligible Victorian households can access $3,000 or more towards a heat pump hot water system.
How the discounts work
The Victorian Energy Upgrades discount is not a claim-back rebate — instead, accredited providers generate energy-efficiency certificates (VEECs) for your install and pass the value on as an upfront discount on your invoice. The amount moves with certificate prices. There is a mandatory minimum customer contribution of $200 (incl. GST), so a system can never be installed at zero cost under this program. The Solar Homes hot water rebate and federal STCs are applied separately.
What will I actually pay?
A supplied-and-installed heat pump hot water system typically costs around $3,000–$4,500 before incentives. After combining the available rebates, many eligible households pay only a few hundred dollars to around $1,500 out of pocket — though your exact price depends on the system, your eligibility and current certificate values.
Am I eligible?
- Owner-occupier (separate rules apply for rentals)
- Combined household income at or under the current cap ($150,000 from 1 July 2026 for the Solar Homes rebate)
- Replacing an existing electric or gas storage hot water system
- Installed by an accredited provider
Eligibility changes, so confirm the latest at solar.vic.gov.au.
Is a heat pump hot water system worth it?
Yes for most homes — a heat pump uses roughly a third of the energy of a conventional electric storage system, and pairs brilliantly with solar if you run it during the day.
Frequently asked questions
Can I combine the rebates?
Generally yes — the VEU discount, Solar Homes rebate and federal STCs can stack, which is how the total reaches $3,000+.
Will it work in winter?
Yes — modern heat pumps are designed for Melbourne’s climate and run efficiently year-round.
Get a quote
Pivot Trade Services provides heat pump and hot water installation across Altona and Melbourne’s western suburbs, from Footscray to Werribee, with upfront fixed pricing. See our heat pump and hot water installation service, get a free quote or call 0401 500 446.
Prices and rebates are general estimates current as of 2026 and can change; rebate eligibility depends on your circumstances. Confirm current figures and eligibility with your installer and the official program sites (solar.vic.gov.au, energy.gov.au).