The Victorian Hot Water Rebate
Victorians are lucky enough to have a state government rebate available for Hot Water Systems as well as solar. This Rebate is offered under Solar Victoria's Solar Homes Program, much like the solar panel rebate, but this one applies to Heat Pumps and Solar Hot Water systems.
The Hot Water Rebate is a 50% discount off the total cost of a Heat Pump or Solar Hot Water system installation, up to $1,000. Unlike the Solar Panel rebate though, here there is no option of an interest-free loan. Today, we’re going to break down how you can make the most of this rebate when installing a new hot water system.
Unlike the national solar rebate, this rebate has strict eligibility criteria and you'll need to submit an application to confirm you qualify.
Is the Victorian Hot Water Rebate Worth It?
Absolutely! If you qualify and you were already thinking of upgrading your hot water system with a more energy efficient one, it's a "free" discount you can claim to reduce the cost to you.
Most people don't know that the Federal Government STC incentive also applies to Heat Pump and Solar Hot water systems, and just like with the solar rebates, these hot water discounts STACK on top of each other.
On top of that, Victorians have a third rebate available on hot water systems, this one under the Victorian Energy Upgrades program and it brings the price down even further.
Let’s make sure you qualify…
To qualify for this rebate:
You are the owner-occupier of an existing property where the system is to be installed.
The combined household taxable income of all owners 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 solar battery rebate under this program. (The solar battery rebate ended on June 30th 2023).
The hot water system to be replaced is at least 3 years old from the date of purchase.
You must choose an approved hot water retailer and only use approved products.
So the criteria is similar to the VIC solar rebate with a few key differences:
To be eligible, you must be replacing an existing hot water system.
Because this rebate is based on you replacing an older, less efficient hot water system, it is only available to pre-existing homes.
Also, if you received this rebate for one of your previous houses, you can apply for this rebate at your new address as an owner-occupier AS LONG AS your new house has not had a new hot water system installed with this rebate.
If I'm Eligible, How do I Claim The Rebate?
Before you can get the discount off your hot water installation, here's what you need to do:
Step 1: Get a Written Quote
Once you’ve picked a retailer, they’ll upload a formal quote directly to Solar Victoria’s portal. You’ll receive an email confirming the submission—hold tight for this before proceeding.
Once you receive the email, there will be a link to complete step 2.
Step 2: Prove You’re Eligible
Time to upload your documents! You’ll need:
Two forms of ID: Driver's licence, medicare card, Australian passport, Australian birth certificate, Australian citizenship certificate, foreign passport with valid Australian visa, immicard.
Proof of income: Recent Notice of Assessment, Pensioner concession card, Centrelink payment summary or Statutory declaration. (depends on your situation)
If you're earning a taxable income from work, you must use a Tax Notice of Assessment for proof of income.
If most of your income is from Centrelink, you can either use a Centrelink payment summary or a Pensioner concession card if you have one.
If you're not earning any taxable income, you must submit a signed Statutory Declaration that states you did not earn a taxable income for that financial year.
The main difference between this rebate and the VIC solar panel rebate is that, if your current hot water system has stopped working, that is classified as an Emergency installation which means you can actually get the new hot water system installed BEFORE the rebate application is approved.
Step 3: Await Your Golden Ticket (a.k.a. the QR Code)
Once approved, you’ll receive a unique QR code via email just like with the solar rebate.
With the hot water rebate, if your existing hot water system is still working, your installer will scan it on-site before any work begins. If your existing hot water system is not working and you have already had your new system installed, the retailer will scan the QR code as soon as the application is approved.
Step 4: Install Within the Deadline
For the hot water rebate, the deadline is 120 days.
Miss the window, and you’ll forfeit the rebate—so mark that calendar and chase up your retailer!
Step 5: Pay the Balance
The rebate is paid directly to your retailer, slashing your upfront cost. The last step is to pay the retailer the balance left after the rebates and your deposit (if you paid one).
The loan isn’t automatic—you have to opt in during the application. This is a no-interest loan with no fees whatsoever, making it a no-brainer if cash flow is tight.
Just like the VIC Solar Rebate, this rebate will end eventually as well…
So if you haven't upgraded your hot water system yet and are thinking of doing so, just remember:
Stick to authorised retailers that can offer this rebate.
Submit documents promptly to get the application approved.
Stay on top of Solar Victoria so you can get your system installed as soon as possible!
Ready to join Victoria’s renewable revolution? ☀️ Click here to speak to an authorised hot water retailer ☀️ (Link coming soon)