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Victoria Hot Water Systems Rebate

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Can you claim rebates replacing gas hot water in Victoria?

The Victorian hot water rebate. It’s a buzz word right now for everyone and I’m not surprised why. In short, the Solar Victoria hot water rebate offers up to $1,000 for eligible heat pump and hot water systems. 

This can be especially beneficial for households where solar panels might not be suitable, or for those that already have solar panels installed

Much like considering the warranty period when purchasing an inverter, the efficiency of your water heating system is of paramount importance. This is because it can account for a significant 25% of your energy bill

Therefore, similar to how you’d want a long-lasting inverter, you’d want a more efficient hot water system that can save you money in the long run.

Ok, so let’s look at what you need to know regarding the Victoria hot water rebate.

Table Of Contents

Who is eligible for the Solar Victoria hot water rebate?

To qualify for the hot water rebate, you need to meet the following conditions:

  • You should be the owner-occupier of an existing property where the system is to be installed.
  • The combined household taxable income of all owners should be less than $180,000 per year.
  • You have not previously received a hot water rebate or a solar battery rebate under the Solar Homes Program.
  • The property is valued at under $3 million.
  • The property address has not previously received a hot water rebate or a solar battery rebate under the Solar Homes Program.
  • The hot water system to be replaced is at least three years old from the date of purchase

In essence, qualifying for the hot water rebate hinges on a set of specific requirements. You need to be the owner-occupier of the property in question, and the collective taxable income of all owners should not exceed $180,000 per year. 

It’s also crucial that neither you nor the property have previously received a hot water rebate or a solar battery rebate under the Solar Homes Program. The property’s value should be under $3 million, and the hot water system you’re looking to replace must have been part of your household for at least three years. 

Much like ensuring a long warranty period for an inverter, meeting these criteria will put you on the path to not just a more efficient hot water system, but potentially significant savings on your energy bill as well.

hot water rebate

Are there any limitations to the Victorian hot water rebate?

One important limitation to remember, is that households cannot receive the same Solar Homes rebate more than once. If you have previously received a hot water rebate, you cannot receive another hot water rebate

It’s a one-time deal – much like seizing the chance to extend the warranty on a valuable inverter, it’s a decision that needs careful thought but prompt action. This underscores the importance of taking advantage of this rebate while you can.

In addition to the Solar Victoria hot water rebate, there are other incentives that can help reduce the cost of installing a solar hot water system. Specifically, the Small-scale Renewable Energy Scheme (SRES) offers small-scale technology certificates (STCs) as a financial incentive. 

The combination of the Solar Victoria rebate and the STCs from the SRES significantly reduces the upfront cost of installing a solar hot water system.

Now is a great time to take advantage of these opportunities to make your home more energy-efficient and environmentally friendly, especially considering that government incentives like these may not last forever.

What are the next steps for claiming for the hot water rebate?

Once you’ve confirmed your eligibility and decided to go ahead with a heat pump or hot water system, the next big question is – where to start? The answer is simple: reach out to an authorised hot water retailer. 

To be eligible for a rebate, the products must be on the approved products list which your chosen hot water installer can help you by recommending. There are only a few approved hot water systems right now. 

Check their accreditation and ask for customer testimonials. It’s also a good idea to research their reputation online. After all, this is not just about purchasing a product; it’s about building a relationship with a provider who will be there to support you throughout the lifespan of your system.

Don’t install your hot water system before you have been approved for your rebate

Do not install a solar hot water or heat pump hot water system until your eligibility has been approved by Solar Victoria. If you install your hot water system before your eligibility is approved, you will not receive a rebate.

Any one who is pushing you to install your system before this date should be avoided.

How much can you expect to see from the hot water rebate?

The hot water rebate you can expect will largely depend on the type of water heater you’re replacing and the one you plan to install. Let’s delve into the specifics.

If You're Replacing an Inefficient Electric Water Heater

The rebates will vary based on the type of water heater you choose to install:

  • Gas Storage Water Heater: The rebate you might get will be around $360 for small units, $780 for medium ones, and $1,020 for large ones.
  • Gas Instantaneous Water Heater: Expect a rebate of about $480, $840, and $1,020 for small, medium, and large units respectively.
  • Electric Boosted Solar Water Heater: Here, the rebates could be $960 for small units and $1,560 for medium ones.
  • Heat Pump Water Heater: The rebates could be around $660 and $1,080 for small and medium units respectively.
  • Gas Boosted Solar Water Heater: The indicative rebates are $1,020 for small units and $1,680 for medium ones.

If You're Replacing an Inefficient Gas Water Heater

If you’re switching out an inefficient gas water heater, the rebate you can expect is:

  • Efficient Gas Boosted Solar Water Heater: The rebate could be about $420 for small units and $540 for medium units.

Remember that these rebate amounts are indicative and based on a certificate price of $60 and the average efficiency of products improved under the program. The final price you’ll end up paying after the rebate will depend on several factors, such as:

  • The certificate price
  • The number of products replaced
  • Your location
  • Installation costs


In conclusion, the Victorian hot water rebate is an opportunity that’s too good to miss. The potential savings on your energy bill and the substantial rebate are persuasive reasons to consider this upgrade. Also, the STCs provide an added financial incentive to install small-scale renewable energy systems, reducing your upfront costs.

Remember, these incentives may not last forever. As we move towards a more sustainable future, now is the best time to make a change. Get in early, take advantage of the benefits, and start saving money and energy today.

In the grand scheme of things, your decision to switch to a more efficient water heating system isn’t just about the savings. It’s about playing your part in reducing carbon emissions and contributing to a greener, more sustainable future.

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About your author...

Luke Cove

Luke is passionate about renewable energy and has been an electrician for over 15 years. After spending over a decade mastering his craft on the tools, he took to a leadership role within the renewable energy industry.

On a mission to electrify Australia. Luke is known for being at the forefront of his industry offering design, supply, installation and advice on solar panels, solar batteries, lighting, electric vehicles and chargers.

Luke has been known to invest most of his time (and money) in helping people create and experience new lifestyles through clean energy at home, business and with their cars. As well as investing his time training the next generation of climate enthusiasts through his team at Lightning Energy.

1 thought on “Victoria Hot Water Systems Rebate”

  1. I appreciate your clear explanations and the emphasis on safety throughout the process.
    It’s evident that you care about your readers’ well-being and want us to tackle these issues safely and effectively.
    Your blog has become my go-to resource for appliance-related issues,
    and I’ll be sure to share it with friends and family who might face similar problems with their appliances.
    Keep up the fantastic work!

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