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Heat Pump Rebates Guide for Victorian Homeowners — Everything You Need to Know

Upgrading to a heat pump hot water system is a smart move and often means lower energy bills, cleaner emissions, and increasingly, generous rebates.

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.

What Hot Water Heat Pump Rebates Are Available?

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 location. These are claimed by your installer and passed on as a discount at the point of sale.
Victorian Energy Upgrades (VEU) / VEECs	A national scheme. Eligible heat pump systems generate STCs based on their size, model, and location. These are claimed by your installer and passed on as a discount at the point of sale.
Solar Victoria Hot Water Rebate	State program. Provides up to $1,000 rebate for eligible hot water heat pumps or solar hot water systems. If you choose a locally‑made unit, the rebate increases to up to $1,400.

Example Rebate Calculations

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 rebate	~$650–$720 (depending on your zone & system)
Less VEU discount (replacing an old electric system)	~$630 (indicative for replacing electric systems)
Less Solar Victoria rebate	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.

Am I Eligible for These Rebates?

To access all or some of these rebates, here are the usual eligibility criteria:

Must be an owner‑occupier of the property where the system is installed
Combined household taxable income under $210,000/year
Property value under $3 million
The hot water system being replaced must be at least 3 years old
You must use an installer and equipment authorised under the relevant programs
Your property must not have already received a hot water or solar battery rebate under Solar Homes for that address

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.

How to Apply for Heat Pump Rebates

Here’s a step‑by‑step pathway to get your rebates:

1. Research eligible products & installers

Look up the list of products approved under Solar Victoria and VEU
Make sure you get an authorised installer under these programs

2. Get written quotes from Authorised Retailer/ Installer only

Ask for a quote that shows product cost and installation
Let them know you want the quote to include the expected rebates so you can see the discount.

3. Check your eligibility & documentation

Be ready with proof of income, property value, proof of age of the existing system, etc
Confirm that your address has not already claimed Solar Homes hot water or battery rebate

4. Submit rebate applications where required

For Solar Victoria rebate: after getting an authorised quote, you upload it into the Solar Victoria portal and proceed via their process
VEU discount is typically included via the installer/retailer that is also VEU‑accredited

5. Installation

Must be done by an authorised retailer/installer
For Solar Victoria, installation must take place within a certain period after rebate approval (for example, within 120 days of quote approval in some cases)

6. Final payment

After rebates are subtracted, you pay the remaining balance

Can an installer handle most of the above?

Yes, in fact, your installer should handle most of the process for you.

At Carbon Savers, our authorised and accredited team will:

Ensure all products meet the Solar Victoria and VEU approved lists
Provide a compliant, rebate-ready quote that meets program requirements
Upload (or assist you in uploading) the quote and supporting documents
Schedule installation within the approved timeframe after rebate approval
Clearly explain your final out-of-pocket cost, showing all rebates and discounts applied

Treat “Too Good to Be True” Offers with Caution

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:

Lower efficiency and smaller long-term savings
Higher chance of breakdowns or noise complaints
Missed rebate opportunities (if system doesn’t meet criteria)
No support when something goes wrong

How to protect yourself

Choose an installer who:

Uses reputable brands with long warranties (5-10 years)
Provides clear, all-inclusive quotes showing expected rebates up front
Has a track record of professional installations
Is authorised under Solar Victoria, VEU, and STC schemes

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.

Final Thoughts

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.

Common FAQs

Q: Will I get the full cost of the heat pump covered?
A: 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.

Q: What does “locally made” mean for the Solar Victoria rebate bonus?
A: 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.

Q: Can renters apply for these rebates?
A: 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.

Q: Do I need to upgrade from gas or a particular kind of hot water system?
A: 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.

Q: How long do I have to wait for the rebates?
A: 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.

Q: What if I choose a cheaper or lower quality heat pump?
A: 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.