Top 17 FAQs by Victorians on Heat Pump Hot Water Upgrades

We receive all sorts of questions from Victorian homeowners and businesses, primarily about the ongoing heat pump rebate – brands and quality of products installed, the rebate process, the feasibility of heat pumps in their area, and concerns about noise. Here are 17 frequently asked questions our team has compiled to clear the fog around heat pump hot water rebate Victoria, units and the government rebate process.

Why should I bother upgrading to a heat pump-powered hot water system? What's the benefit?

Quality heat pump water heaters from established brands like Chromagen, Midea, Stiebel Eltron, Sanden, and Rinnai typically cost between $2,000 to $4,000. However, with the Victorian Energy Upgrades (VEU) program, the cost can be reduced by over 50%. Beyond the rebate, heat pumps offer significantly lower running costs and a reduced carbon footprint. For instance, a household of four using a heat pump water heater on an off-peak tariff, consuming 150 litres of hot water daily, will pay around $215 annually. In contrast, the same household using an electric storage water heater would pay $900—a 318.6% increase. Plus, the carbon emissions with a heat pump are over four times lower.

How much of a discount can I expect to get under the Vic government scheme?

We offer rebates of up to $3,000 on heat pump hot water systems under the VEU program.

What heat pump hot water systems are available through this Vic government program?

We offer heat pump systems of various sizes and types from brands like Ecogenica, Emerald Planet, and Midea under the rebate program.

What’s the process for upgrading? How does it work from start to finish?

The process is straightforward. Fill out the required details on our website and provide property ownership documents. Our team will visit your home for an assessment and recommend a suitable heat pump unit. Once the installation timeline is set, our licensed plumbers and electricians will decommission your existing unit and install the new heat pump water heater.

How do I apply for the hot water rebate? Is it a straightforward process?

You don’t need to apply for the rebate yourself—we’ll handle it for you. Only accredited businesses can apply for rebates under the VEU program. As an accredited business, we’ll take care of the paperwork to get the rebate approved. The rebate amount is deducted from the product cost upfront, so you won’t have to worry about the rebate process.

Who’s eligible for this hot water rebate scheme?

To be eligible for the rebate, you must:

Be a Victorian household or business.
Not have previously claimed the rebate.
Be the owner or occupier of the property.
Have an existing hot water unit that is over 3 years old, or if it’s a business, the existing heat pump must be over 10 years old.
Have a property that is valued less than $3000K at the time of rebate application.
Fall under Class 2 (residential apartments) of the Victorian Building Authority’s classification.
Have a total household taxable income of less than $210,000.

My home already has a heat pump water heater. Am I still eligible for an upgrade?

No, residential properties are not eligible for an upgrade if they already have a heat pump water heater. For commercial buildings or businesses, eligibility is only if the existing system is over 10 years old.

How much money can I expect to save after the upgrade?

Heat pump are use over 75% less electricity than the electric resistance water heaters. You can expect a substantial savings on hot water system running costs after the upgrade. The energy/money savings will depend on:

Consumption of hot water
Your energy tariff
Local climate
Efficiency of newly-installed heat pump unit
Insulation of water pipes
And quality of installation & maintenance of the hot water system.

After the upgrade, will I see a reduction in my home’s carbon emissions?

Absolutely. A household of four using a heat pump on an off-peak tariff would generate about 4 tonnes of GHG emissions over 10 years. The same household using an electric water heater would produce 17 tonnes—over four times more emissions.

Who’s responsible for decommissioning my current hot water heater?

Our team will handle the decommissioning of your existing water heater. According to VEU program guidelines, the accredited business (us) is responsible for removing the old unit and replacing it with a new, compliant heat pump system.

Besides heat pumps, are there any better options for heating water?

Heat pumps are the most energy-efficient and environmentally friendly technology for heating water in both residential and commercial settings. In colder climates, we recommend installing a heat pump with an integrated booster heating element to enhance efficiency.

Should I consider upgrading my switchboard when installing the heat pump water heater?

If your existing switchboard and outlet are compatible with the heat pump’s power cord, no upgrade is necessary. Our team will assess the installation site, including the switchboard and electrical setup. If an upgrade is required, we’ll inform you beforehand.

What’s the lifespan of these heat pump water heaters? How long will it last me?

A well-maintained heat pump water heater can last between 15 and 20 years. The lifespan depends on regular servicing, maintenance, and your hot water demand.

Will the heat pump be enough to cover all my hot water needs?

Our team will assess your current and future hot water consumption patterns. Based on this assessment, we’ll recommend a heat pump system that will adequately meet your hot water needs.

Can I power the heat pump unit with my rooftop solar panels?

Yes, and we highly recommend powering the heat pump with solar panels to further reduce running costs and GHG emissions.

How’s the quality of the installation work done by your team?

Our team consists of experienced, licensed electricians and plumbers accredited by Energy Safe Victoria and the Victorian Building Authority (VBA). We strictly follow VEU program guidelines to ensure top-quality installations.

What sort of warranty comes with these heat pump water heaters?

Powerbay heat pumps: Water tank warranty: 8 Years and 5 years warranty on compressor, evaporator, controller.
Emerald Energy heat pumps: 5 years on the water tank and 5 years on the rest of the system, and 2 years on labour.