Victorian Heat Pump Rebate 2026: How Much Can You Get?

Victoria has the most generous heat pump hot water rebate package in Australia because you can combine three separate incentives on the same installation:

1. The Solar Victoria Hot Water Rebate (a state point-of-sale discount).
2. The Victorian Energy Upgrades (VEU) discount (a certificate-funded discount).
3. Federal Small-scale Technology Certificates (STCs) (the national scheme available everywhere).

Stacked together, these commonly bring around $2,000-$2,700 off a mid-range system, and can reach roughly $3,200 where every top tier applies to an eligible Australian-made system. The rest of this guide breaks down each one, who qualifies, and how the gas ban fits in.

This is the headline state rebate, delivered as a discount through an accredited retailer.

• Amount: 50% of the purchase price up to $1,000, or up to $1,400 for an eligible locally made heat pump or solar hot water system. Reclaim Energy and Rinnai's Australian-made AR Series are examples that can qualify for the higher tier.
• Property: You must be an owner-occupier of an existing Victorian home valued under $3 million.
• Income: Combined household taxable income must be under $150,000. This was reduced from $210,000 on 1 July 2026, so if you were relying on the old threshold it is worth re-checking.
• System age: You must be replacing a system that is at least 3 years old.
• One per property: The address must not have been rebated before under the Solar Homes program.

Because the higher $1,400 tier is tied to Australian-made systems, the brand you choose can be worth an extra $400 in rebate. That is worth weighing against differences in upfront price and efficiency.

The VEU program is separate from Solar Victoria and stacks on top of it.

• How it works: Your installer creates Victorian Energy Efficiency Certificates based on the energy your new heat pump will save compared with your old system, and passes the value through as a discount on your invoice.
• Amount: A variable point-of-sale discount, currently up to about $630 (roughly $200-$630). It is not a fixed rebate, and it moves with the certificate spot price and what you are replacing.
• No separate application: The installer applies it directly, but they must be a VEU-accredited provider. Not every plumber is, so ask specifically when you get quotes.

Miss the VEU accreditation question and you can leave up to about $630 on the table, so it is worth confirming before you accept a quote.

On top of the two state incentives, every eligible Victorian installation also earns federal Small-scale Technology Certificates.

• Amount: Roughly $400-$1,200 off, depending on your system's capacity, your postcode zone, and the STC market price. It is applied by your installer as an upfront discount.
• It steps down: The certificate count reduces every 1 January (the 2026 deeming period is 5 years) and the scheme is legislated to end in 2030. Installing sooner locks in a larger discount.

For the full national picture and how other states compare, see our complete rebates guide and our dedicated STC explainer.

Putting the three together for a typical Victorian household:

The other reason to act is the gas ban. From 1 March 2027, existing Victorian homes cannot replace an end-of-life gas hot water system with another gas system; they must go electric, which in practice means a heat pump. Switching before your gas system fails lets you choose the timing, avoid emergency pricing, and lock in today's rebate levels rather than gambling on what they will be later.

For the full timeline, exemptions, and what "end of life" means, see our Victoria gas ban guide.