Heat Pump Hot Water Rebates in Victoria (2026)

By PumpSwap. Checked against the official sources on 21 September 2026. How we check

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.

Total rebates and discounts: up to $2,830. PumpSwap's modelled installed price after rebates in Victoria: $2,200 - $4,500.

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Victoria gas rules

142 days

From 1 March 2027, if the gas hot water system in an existing owner-occupied home breaks and cannot be repaired, it must be replaced with an electric alternative; in a rental it must be replaced with a heat pump water heater. Repairs are still allowed and exemptions exist. From 1 January 2027, new homes must be built all-electric.

Read the complete 2027 guide

Victoria heat pump rebates at a glance

Scheme	What you get	How it reaches you	Source
Small-scale Technology Certificates (STCs)	$500 to $800	Taken off the installer's quote	Official page
Solar Victoria Hot Water Rebate	Up to $1,400	Approved first, then deducted from the invoice	Official page
Victorian Energy Upgrades (VEU) Certificates	Up to $630	Taken off the installer's quote	Official page

Who qualifies for each scheme is set out on its official page and in the steps below. Loans are listed but not counted as savings.

How to claim in Victoria

Check the Solar Victoria rules first, because they are the strictest: you must own and live in the home, your combined household taxable income must be under $150,000, the property must be worth under $3 million, the system you are replacing must be at least 3 years old, and the address cannot have had a Solar Homes hot water or battery rebate before.
Use an authorised hot water retailer and a product on Solar Victoria's list. Eligibility is confirmed before the install and a QR code is issued; the install must happen within 120 days of that QR code. In an emergency the install can go ahead before eligibility is confirmed.
The VEU discount is applied in the quote by an accredited provider. You pay at least $200 towards the upgrade, the building must be at least 2 years old, and a household can upgrade up to 2 systems.
Choose a heat pump on the Clean Energy Regulator's register, because only registered models earn STCs. The installer or their agent takes the STC discount off the quote when you assign the certificates to them.
Ask for each discount to appear as its own line on the quote, so you can see nothing has been missed.

What has changed in Victoria, and what is coming

Rebates move several times a year. Each entry below links to the official source, and every scheme on this page was last checked against its source on 21 September 2026.

1 March 2027VICComing
Gas hot water replacement rule. For existing owner-occupied homes, a gas hot water appliance that breaks and cannot be repaired must be replaced with an electric alternative. Exemptions apply, so check the official page for your situation. Victorian Government, building electrification standards
1 January 2027FederalComing
Small-scale Technology Certificates (STCs). The deeming period drops from 5 years to 4, so the same heat pump earns about one fifth fewer certificates than a 2026 install and the upfront discount falls with it. It drops again every 1 January until the scheme ends in 2030. Clean Energy Regulator, calculating STC entitlements
18 October 2026VICComing
Victorian Energy Upgrades, water heating review. The Victorian Government is reviewing the household water heating activities under Victorian Energy Upgrades, and public consultation closes on this date. Nothing changes for households until final rules are published. Engage Victoria, VEU water heating activities
1 July 2026VICIn effect
Solar Homes hot water rebate. The combined household taxable income cap fell from $210,000 to $150,000. The rebate itself is unchanged: 50% of the purchase price up to $1,000, or up to $1,400 for an eligible locally made product. Solar Victoria, program changes from 1 July 2026
1 January 2026FederalIn effect
Small-scale Technology Certificates (STCs). The deeming period dropped from 6 years to 5, reducing the certificates each system earns compared with a 2025 install. Clean Energy Regulator, calculating STC entitlements
1 July 2025VICIn effect
Solar Homes hot water rebate. An extra $400 became available for eligible locally made hot water products, lifting the maximum rebate from $1,000 to $1,400. Solar Victoria announcement, 8 June 2025

Official sources for every scheme

Federal: Small-scale Technology Certificates, Clean Energy Regulator (checked 21 September 2026)
VIC: Solar Homes hot water rebate, Solar Victoria (checked 21 September 2026)
VIC: Victorian Energy Upgrades hot water discounts, Victorian Government (checked 21 September 2026)

What a heat pump costs in Victoria after rebates

PumpSwap's modelled installed price after rebates, for Victoria's largest centres. It is a guide, not a quote: the real price depends on the system, your home and the installer.

Area	Modelled price after rebates
Geelong	$2,200 - $4,300
Ballarat	$2,300 - $4,500
Bendigo	$2,200 - $4,400
Tarneit	$2,000 - $4,000
Point Cook	$2,100 - $4,100
Craigieburn	$2,100 - $4,000
Shepparton	$2,300 - $4,500
Clyde North	$2,100 - $4,000

Victoria heat pump rebate questions

How much can I save on a heat pump in Victoria?

The Victorian Government says the Solar Homes rebate combined with a VEU discount comes to up to $1,560, or up to $1,960 for a locally made product. The federal STC discount (typically $500 to $800) comes on top. The exact amounts depend on the product, what you are replacing and certificate prices on the day.

Who qualifies for the Solar Victoria hot water rebate?

Owner-occupiers of an existing home with a combined household taxable income under $150,000 (it was $210,000 until 30 June 2026), a property worth under $3 million, a system at least 3 years old, and no previous Solar Homes hot water or battery rebate at the address. You must use an authorised retailer and an eligible product.

Can I get the rebates if I am replacing gas hot water?

Yes. The VEU discount for replacing gas is up to $560, and the Solar Victoria rebate can be combined with a VEU discount whether you are replacing electric or gas.

What does the 1 March 2027 gas rule mean for my home?

From 1 March 2027, if the gas hot water system in an existing owner-occupied home breaks and cannot be repaired, it must be replaced with an electric alternative; in a rental it must be replaced with a heat pump water heater. Exemptions exist, so check the official page for your situation. The Victorian Government lists the VEU discount and the Solar Homes rebate as the support available.

Are the VEU discounts about to change?

The Victorian Government is reviewing the household water heating activities, and public consultation closes on 18 October 2026. Nothing changes until final rules are published, and the government's published timeline shows its response in early 2027.

What changes on 1 January 2027?

The federal STC discount steps down every 1 January until the scheme ends in 2030. A heat pump installed in 2027 earns about one fifth fewer certificates than the same model installed in 2026, so the upfront discount falls with it.

Sources

Solar Victoria, hot water rebate (checked 21 September 2026)
Victorian Government, VEU hot water system discounts (checked 21 September 2026)
Victorian Government, electric and efficiency standards for buildings (checked 21 September 2026)
Engage Victoria, VEU water heating review (checked 21 September 2026)
Clean Energy Regulator, calculating STC entitlements (checked 21 September 2026)

Heat pump guides for Victoria

Popular regional areas in Victoria

Most-searched heat pump hot water costs across Victoria's major regional centres.

Heat pump hot water cost in Geelong Heat pump hot water cost in Ballarat Heat pump hot water cost in Bendigo Heat pump hot water cost in Shepparton Heat pump hot water cost in Wodonga Heat pump hot water cost in Warrnambool

Cost by Suburb

Modelled installed costs after all available rebates. Click a suburb for a detailed breakdown including brand options and installer quotes.