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Blog › Heat pump rebates guide
Hot water
Upgrading to a heat pump hot water system is a smart move and often means lower energy bills, cleaner emissions, and increasingly, generous rebates.
By Andrew Damianou
CEO, Carbon Savers ·
3 Nov 2025 ·
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If you live in Victoria, there are three major rebate programs you may be eligible for which can offer a total rebate of up to $2,500, significantly reducing your upfront cost.
This guide walks you through what rebates are available, how much you might get, whether you qualify, how to apply, and some FAQs you may have.
Victorians can benefit from three stackable rebate schemes (1 federal and 2 state) for heat pump hot water systems:
| Rebate Program | What It Does |
|---|---|
| Federal STC Rebate (Small‑scale Technology Certificates) | A national scheme. Eligible heat pump systems generate STCs based on their size, model, and location1. These are claimed by your installer and passed on as a discount at the point of sale. |
| Victorian Energy Upgrades (VEU) / VEECs | State discount via certificates (Victorian Energy Efficiency Certificates) for replacing an inefficient electric or gas hot water system with a heat pump. Offers a fixed discount (about $630) depending on what you’re replacing2. |
| Solar Victoria Hot Water Rebate | State program. Provides up to $1,000 rebate for eligible hot water heat pumps or solar hot water systems3. If you choose a locally‑made unit, the rebate increases to up to $1,400. |
Here’s a realistic example of how these rebates might combine to reduce your upfront cost:
| Item | Amount (Example) |
|---|---|
| Full cost of heat pump system + installation | $4,500- $8,000 (for mid to premium systems) |
| Less STC rebate4 | ~$650–$720 (depending on your zone & system) |
| Less VEU discount5 (replacing an old electric system) | ~$630 (indicative for replacing electric systems) |
| Less Solar Victoria rebate6 | up to $1,000 (or $1,400 if locally made) |
Estimated out‑of‑pocket cost after all rebates: $1,500–$5,720 (depending on model, whether unit is locally made, your location, and installation complexity).
Learn more about available rebates and find out exactly how much you could claim when upgrading to a heat pump hot water system.
To access all or some of these rebates, here are the usual eligibility criteria:
Also, under VEU (Victorian Energy Upgrades), there is usually a minimum customer contribution (i.e. you will need to pay something out‑of‑pocket after all rebates), often around $200 for households.
Here’s a step-by-step pathway to get your rebates:
Yes, in fact, your installer should handle most of the process for you.
At Carbon Savers, our authorised and accredited team will:
Not sure which rebates you qualify for? We’ll check and show them on your quote.
With multiple rebates on offer, the heat pump market has attracted a wave of new installers but not all of them are reputable.
Yes, some offer great value. But others cut corners with poor quality systems, rushed installs, or misleading deals that end up costing you more in the long run.
Why this matters: You only get one shot at claiming these rebates per property.
Choosing the wrong installer could mean:
Choose an installer who:
A reliable provider won’t just install your system, they’ll help you maximise your rebate, future-proof your home, and avoid nasty surprises down the track.
Rebates in Victoria make heat pump hot water systems far more affordable than they used to be.
For many households, combining Federal STCs with Solar Victoria rebates and VEU discounts can bring the cost down to make it affordable.
If you’re thinking about upgrading, it’s worth having an authorised installer or company check your eligibility, show you all three rebates, and calculate your real out‑of‑pocket cost.
Talk to an expert
Tell us a little about your home and what you’re keen on. We’ll come back with your options, and the rebates you could get. No sales pressure, no cookie-cutter systems, no jargon.
We’ll check your eligibility, apply the rebates on your quote and handle the paperwork for your heat pump upgrade.
$0 upfront with our repayment plan. No call-out fees. No obligation.
More answers in the FAQ hub →
No. Even combined rebates typically leave you with an out‑of‑pocket cost. The rebates can significantly reduce cost, but you will usually pay something after everything is applied.
Products don’t need to be 100% Australian made. For the bonus up to $1,400 rebate, the product must meet criteria of locally made or assembled (some key components manufactured locally). Check the “locally made incentive” product list on Solar Victoria’s site.
Many rebates are for owner‑occupiers. Renters often rely on landlord approval. Some programs (like VEU) may allow participation if rental property meets conditions. Always check program rules.
Yes. Usually, you need to replace an old electric or gas hot water system (storage or instantaneous) that’s inefficient. Systems already using solar or a heat pump may not be eligible for some rebates.
The process can take a few weeks. You’ll need time to get quotes, upload documents and submit your application. The Solar Victoria process often requires installation within a certain timeframe after pre‑approval.
It’s tempting, but quality matters. Low‑quality systems may break down sooner, and cheaper isn’t always cheaper over time. Also, if the product fails the eligibility standards, you might risk losing rebate eligibility or warranty support.
Andrew Damianou
CEO, Carbon Savers
5 Nov 2026
Andrew Damianou
CEO, Carbon Savers
5 Nov 2026
Andrew Damianou
CEO, Carbon Savers
3 Nov 2026
