Hot water rebate

Heating hot water is one of the biggest the sources of energy use in the home, accounting for 15% to 30% of household energy use. To keep these costs under control and save energy you could install an efficient heat pump or solar hot water system.

The Solar Homes hot water rebate can help you to cover the cost of this.

The hot water 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.

Check if you are eligible

As a Victorian householder, you could receive a hot water rebate if:

• you are the owner-occupier of an existing property where the system is to be installed
• the household taxable income of all owners combined is less than $210,000 per year
• the value of the property is under $3 million
• the property address has not already received a hot water or a solar battery rebate under the Solar Homes Program
• the hot water system to be replaced is at least 3 years old from the date of purchase
• you received a Solar Homes rebate and/or loan but have moved house. You can apply for another incentive at your new address as an owner-occupier if the property has not received these rebates before.

You must work with an authorised hot water retailer and use only eligible products.

Process for hot water installations

If you think you are eligible, follow the step-by-step process:

1. Do some research – read our Hot Water Buyers Guide
2. Talk with an authorised retailer
3. Select a system using products on our list to meet your energy needs
4. Ask for a written quote (your retailer will upload it into the Solar Victoria portal)
5. Wait for our email confirming the quote has been uploaded
6. Get pre-approval
7. Prove you are eligible – upload your paperwork into the portal
8. Wait for us to confirm your eligibility and send your QR code
9. Install the hot water system (within 120 days)
10. Pay the difference to the retailer – the total cost minus the rebate

If you install your hot water system before your eligibility is approved, you will not receive a rebate (unless it’s an emergency installation).

Products eligible for the locally made incentive

We will progressively add more eligible products to this list. As of 1 July, the following hot water products are eligible for the higher rebate of up to $1,400 under our locally made incentive:

Please speak with your retailer and revisit this page, as we update this list regularly. You can also download this list and the list of all eligible hot water products at product lists for our program.

Products do not need to be 100% made in Australia to attract the higher rebate of up to $1,400. ‘Locally made’ means that the product supports local manufacturing jobs, with at least 50% locally made or assembled parts.

Emergency installations

If your hot water system breaks down or is unsafe, you do not have to wait for us to confirm you are eligible before installing a replacement system. We know everyone needs hot water.

You must prove you are eligible for the rebate as soon as possible after installation. If you do not meet the eligibility criteria you may not receive a rebate.

If your hot water system needs emergency replacement:

1. contact an authorised retailer to arrange a solar hot water or heat pump installation
2. tell them you intend to apply for the hot water rebate and must use only eligible products
3. check you meet all eligibility criteria
4. go ahead with installation of replacement system
5. prepare ID and proof of income for rebate application
6. apply for rebate online.

Make sure you check the box for emergency installations when you enter your quote details.

Resources

Save on energy costs

Installing a heat pump hot water system alone can save a household up to $330 a year on electricity bills.

Eligible Victorians can also apply for a solar panel (PV) rebate to save even more on their energy costs. Find out about other Solar Homes rebates and loans.