Heat Pump Hot Water in Victoria (2026): cost, rebates and what to know

By Josh James, Founder of PumpSwapUpdated 23 September 2026How we check

In Victoria, a heat pump hot water system typically costs $2,200 - $4,250 installed after rebates. At VIC energy prices a four-person home pays about $338 a year to run it, against $761 for gas storage and $1,315 for electric storage. That saves about $423 a year against gas storage and $977 against electric storage, so the extra cost over a like-for-like swap is paid back in roughly 2.1 years against gas and 1.6 against electric at these averages. A premium model or low hot water use stretches that towards the 3 to 5 years most households see.

Living in Melbourne? See our guide to heat pump hot water in Melbourne, with prices for every Melbourne suburb we cover.

A typical Victoria suburb has 723 plumbing and electrical businesses within 25km. You do not need to ring around them. Tell us about your system and up to 3 who cover your street will send you a quote.

$2,200 - $4,250

modelled installed price after VIC rebates

$338 a year

to run, four-person home, at 31c/kWh

$1,900 - $4,900

full range across 360 Victoria suburbs

Victoria gas rules

From 1 March 2027, Victorian law requires a mains gas hot water unit that fails in an existing home to be replaced with an electric one. The rules cover owner-occupied homes and rentals, and new homes must be all-electric from January 2027. Victorian Government, electric and efficiency standards for buildings

Are heat pumps worth it in Victoria?

The case rests on running cost. A heat pump moves heat from the air instead of making it, so it uses a fraction of the electricity of an element. At VIC energy prices (31c/kWh electricity, 3.6c/MJ gas), a four-person home that uses about 200 litres of hot water a day pays roughly:

System	Running cost a year	Installed cost
Heat pump	$338	$2,200 - $4,250 after rebates
Gas storage	$761	$1,200 - $3,500
Electric storage	$1,315	$800 - $2,500

That saves about $423 a year against gas storage and $977 against electric storage, so the extra cost over a like-for-like swap is paid back in roughly 2.1 years against gas and 1.6 against electric at these averages. A premium model or low hot water use stretches that towards the 3 to 5 years most households see.

About 80% of Victoria households are on mains gas, so for most of them the comparison is with gas storage.

In July, usually the coldest month, Melbourne averages a minimum of 7.5°C at the Bureau of Meteorology's Melbourne (Olympic Park) station, and in January a maximum of 26.8°C. That station's record runs from 2013, so it is a 13-year average. Most winter nights stay well above freezing, where a heat pump keeps most of its efficiency. Bureau of Meteorology, climate statistics for Melbourne (Olympic Park)

Running costs are PumpSwap's model at the state average tariffs above, for a 45°C temperature rise and a heat pump coefficient of performance of 3.5. Your tariff and usage will move the numbers.

What a hot water system costs installed in Victoria (2026)

System	Installed, before rebates	Rebates
Heat pump	from $2,500 (brands below); $2,200 - $4,250 after rebates	Federal STCs plus VIC schemes
Electric storage	$800 - $2,500	None
Gas storage	$1,200 - $3,500	None
Gas continuous flow	$1,500 - $3,000	None
Solar hot water	$4,000 - $7,500; $3,500 - $6,000 after STCs	Federal STCs

National installed bands for the other systems come from the two 2026 cost guides in the sources below. The heat pump figures are PumpSwap's modelled prices for Victoria.

Modelled heat pump prices across Victoria

Area	After rebates
Geelong	$2,100 - $4,200
Ballarat	$2,200 - $4,400
Bendigo	$2,100 - $4,300
Tarneit	$1,900 - $3,900
Point Cook	$2,000 - $4,000
Craigieburn	$2,000 - $3,900
Shepparton	$2,200 - $4,400
Clyde North	$2,000 - $3,900

Heat pump rebates in Victoria

In Victoria, three discounts can stack on a heat pump hot water system installed in 2026: the federal STC discount (typically $500 to $800), a Victorian Energy Upgrades (VEU) discount of up to $630 when replacing electric or up to $560 when replacing gas, and, if you qualify, the Solar Victoria hot water rebate of 50% of the price after those discounts, up to $1,000 or up to $1,400 for a locally made product. All three come off the invoice rather than being claimed back later.

The federal STC discount is typically $500 to $800 for a 2026 install and steps down every 1 January until 2030. Melbourne postcodes are in Clean Energy Regulator zone 4 for air source heat pumps. On the regulator's register the same model earns more certificates in zone 4 than in zone 3, which covers Sydney, Brisbane, Adelaide and Perth. Clean Energy Regulator, postcode zones for solar water heaters and heat pumps

Victoria heat pump rebates: who qualifies, how to claim, and what is changing →

Heat pump brands sold in Victoria

Installed prices before rebates, from PumpSwap's model. Warranty years are the maker's tank and compressor terms; noise is the quietest model's rated level. Brands on Solar Victoria’s locally made list qualify for the higher $1,400 rebate tier.

Brand	Installed, before rebates	Warranty (tank / compressor)	Sizes	Noise	$1,400 tier
MideaChina	$2,500 - $4,100	5 / 5 years	170, 200, 280L	50 dB	No
EmeraldAustralia	$2,750 - $3,750	7 / 5 years	220, 270, 320L	49 dB	No
iStoreAustralia	$2,800 - $4,400	5 / 5 years	180, 270L	49 dB	No
ChromagenIsrael	$2,800 - $4,200	5 / 5 years	170, 235, 280L	48 dB	No
HaierChina	$3,000 - $3,650	7 / 5 years	195, 246, 330L	43 dB	No
ApricusAustralia	$3,000 - $3,250	6 / 6 years	260L	43 dB	No
RheemAustralia	$3,200 - $4,800	10 / 5 years	180, 270L	47 dB	Yes
QuantumAustralia	$3,250 - $4,450	5 / 2 years	150, 200, 270, 340L	48 dB	No
DuxAustralia	$3,300 - $3,850	7 / 3 years	200, 270, 285L	Not published	Yes
Stiebel EltronGermany	$3,500 - $5,000	5 / 5 years	302L	44 dB	No
RinnaiJapan/Australia	$3,900 - $7,250	7 / 5 years	250, 280, 340L	45 dB	Yes
DaikinJapan	$5,500 - $8,500	10 / 10 years	250, 315L	40 dB	No
SandenJapan	$6,500 - $8,000	15 / 6 years	250, 315L	37 dB	Yes
Reclaim EnergyAustralia	$6,600 - $8,000	10 / 5 years	315L	37 dB	Yes

Beware of quotes that look too cheap

Because rebates come off the price, Victoriasees advertised "from" prices that leave out half the job. Before comparing quotes, check each one covers:

removing and disposing of the old system, and capping the gas line if you are leaving gas
any electrical work, including a new circuit if the switchboard needs one
a tempering valve and the pipework changes for a new tank position
a base or pad for the unit, and the outdoor position that keeps noise away from bedrooms
every rebate as its own line, with the model's certificate count, so you can see what was assigned to the installer

Two installers quoting the same model can differ by more than the rebate. That is why PumpSwap sends your request to up to 3 local installers rather than showing one price.

The downsides, in Victoria

Noise. The outdoor unit is a small compressor and fan, and each brand's quietest model is rated between 37 dB and 50 dB, on the makers' own figures. It runs in bursts to reheat the tank, so position it away from bedrooms and a neighbour's windows, and set it to run in the day if you have solar. Victoria's Environment Protection Regulations 2021 put hot water systems and heat pumps in a group that must not be heard inside a habitable room of a neighbour's home before 7am or after 10pm on weekdays, or before 9am or after 10pm on weekends and public holidays. EPA Victoria, residential noise

Recovery time. A heat pump reheats a tank more slowly than gas, which is why sizing matters: a 270L or 315L tank suits most three to four person homes, and larger homes go bigger rather than relying on the boost element.

Cold nights. In cold weather the unit draws less heat from the air and works harder, and many models switch on an electric boost element on the coldest nights, so winter running costs sit above the annual average. In July, usually the coldest month, Melbourne averages a minimum of 7.5°C at the Bureau of Meteorology's Melbourne (Olympic Park) station, and in January a maximum of 26.8°C. That station's record runs from 2013, so it is a 13-year average. Most winter nights stay well above freezing, where a heat pump keeps most of its efficiency.

Water quality. Melbourne's water is soft. Melbourne Water reports hardness of 9 to 38 mg/L across its storage reservoirs, so scale is rarely a problem for tanks here. Melbourne Water, water quality testing

Space. Most units are a single tank with the heat pump on top, taller than the gas or electric tank they replace; split systems put the compressor beside the tank and need a little more room.

Who can install a heat pump in Victoria

In Victoria a heated water service is water supply work under the Plumbing Regulations 2018, so it must be done by a licensed or registered plumber. Disconnecting and reconnecting the electrical supply needs either a licensed electrician or a plumber holding a Restricted Electrical Worker's licence, and a Certificate of Electrical Safety is issued for that work. Building and Plumbing Commission Victoria, water supply work and Energy Safe Victoria, restricted electrical workers licence

Victoria heat pump questions

Is a heat pump hot water system worth it in Victoria?

How much does a heat pump cost installed in Victoria?

PumpSwap's modelled installed price after rebates in Victoria is $2,200 - $4,250, and across 360 Victoria suburbs it runs from $1,900 - $4,900. The brands sold here start from $2,500 installed before rebates. The exact price depends on the model, your home and the installer, which is why we show quotes rather than one number.

What heat pump rebates are available in Victoria?

Does a heat pump hot water system work through winter in Victoria?

Yes. In cold weather a heat pump draws less heat from the air and works harder, and many models switch on an electric boost element on the coldest nights, so winter running costs sit above the annual average. In July, usually the coldest month, Melbourne averages a minimum of 7.5°C at the Bureau of Meteorology's Melbourne (Olympic Park) station, and in January a maximum of 26.8°C. That station's record runs from 2013, so it is a 13-year average. Most winter nights stay well above freezing, where a heat pump keeps most of its efficiency. Heat pumps also earn more federal certificates in colder climate zones, because they displace more electric heating there.

How noisy is a heat pump hot water system?

Across the brands sold in Victoria, each brand's quietest model is rated between 37 dB and 50 dB, on the makers' own figures. Makers measure at different distances, so treat the numbers as a guide rather than a like-for-like ranking. The outdoor unit runs in bursts, mostly when hot water is being reheated, so where it sits and when it runs matter more than the number. Victoria's Environment Protection Regulations 2021 put hot water systems and heat pumps in a group that must not be heard inside a habitable room of a neighbour's home before 7am or after 10pm on weekdays, or before 9am or after 10pm on weekends and public holidays.