Heat pump hot water rebate in Victoria – Up to $3,000 rebate

Attention Victorian home and business owners! Claim your heat pump hot water rebate in Victoria today and save up to $3,000 on your energy-efficient hot water upgrade under the VEU government rebate programs.

We supply and install heat pump hot water systems from top brands at lowest prices under the Victorian Energy Upgrades (VEU) rebate program.

Heat pump hot water upgrade: No more running out of hot water

The invention of heat pumps in the 1850s created a fork in the road of energy efficiency. This technology not only increased energy efficiency manifold, it also allowed the use of heat pump technology for different purposes like space heating and cooling and water heating.

Despite being more than half a century old, the tech only got popular in the first decade of the 21st century.

Use of heat pump technology in air-sourced heat pump water heating is particularly significant, as Australian homeowners and businesses pay about 25 percent of the total energy bills for water heating.

An energy-efficient air-source based heat pump water heating system can reduce the water heating cost by over 50 percent.

As the Australian government has pledged to reduce greenhouse gas emissions (GHGs) to zero by 2050, reducing emissions through energy efficiency upgrades, such as gas/conventional water heater to energy-efficient heat pump powered water heating system, is going to be a key piece in solving the net-zero jigsaw puzzle.

Are Heat Pump Water Heater Suitable For Your Needs?

Heat pump based water heaters are more efficient than traditional water heaters (gas and electric resistance) but they are not suitable for places where hot water demand is flexible. To maximize efficiency and flexibility, a heat pump with a resistance heating element can be installed. Here is a decision tree to help you pick a suitable water heater:

Is your hot water system old, outdated and inefficient?

Find out if you qualify to receive up to $3,000 in government incentives when you upgrade your gas, electric, solar or instantaneous hot water system to an energy-efficient heat pump hot water system.

Victorian households are eligible to have their gas, electric or solar hot water system upgraded to an energy efficient hot water heat pump at a discounted price. Thanks to the state and federal government rebates, such as the Victorian Energy Upgrades (VEU) program.

We supply and install a new hot water heat pump for a heavily discounted price (up to $3,000) to eligible households, saving thousands in long term costs and up to 70% off your electricity bills.

If you live in in Melbourne and any other Victorian cities, take advantage of the heat pump hot water rebates and say goodbye to your old gas or electric system.

What is heat pump hot water rebate in Victoria?

Rebates are on offer for heat pump based hot water system installation. The incentive amount is not fixed and depends on a host of factors. As per VEU program website, an estimate of rebate amount for household upgrade is mentioned. It is:

What rebates a Victorian household/business can get?

The rebate amount depends on the following factors:

Why pay more when you don’t have to?

The old electric hot water systems can drain your savings! Studies reveal that an average family household incurs thousands of dollars in energy bills every year. With an efficient heat pump hot ware system, most consumers report around 74% less in overall costs. So, don’t let the old technology dig a hole in your wallet – avail the benefits of government rebates in Victoria and replace your existing hot water system with the energy efficient heat pump hot water system to ensure future-proofing and huge savings.

Average annual cost estimates based on daily use of 150-200L for 4 people

Victorian Energy Upgrades (VEU) Program

VEU is a state government initiative to reduce carbon intensity through energy-efficiency upgrades. Under this flagship Victoria Energy Upgrade program of the state government of Victoria, households are entitled to rebates and the upgrades are done under:

And commercial upgrades are done under:

Activity 44A: Decommission a gas-fired hot water boiler and replace it by installing an air source heat pump water heater.
Activity 44B: Decommission conventional electric hot water heater and replace it with an air source heat pump water heater.
Activity 44C: Install a brand-new air source heat pump water heater.

Who is eligible for heat pump rebate?

For residential heat pump hot water upgrades:

You have an inefficient electric/gas/LPG hot water system
You are the owner-occupier for the applicable property
The hot water system to be replaced is more than 3 years old
The property has not had a solar battery or hot water rebate previously
The property is valued at less than $3 million
The combines household taxable income is less than $210,000

For commercial heat pump hot water upgrades:

The upgrade must take place at a commercial site or a common area of a multi-unit residential building.
The product must be listed in VEU program registry.
The installation must follow VEU program guidelines for “Commercial & Industrial Heat Pump Water Heater Activity”.
The installer must be accredited to take upgrades under VEU Program.

How to apply for heat pump hot water rebate in Victoria?

The rebate application and upgrade process is straightforward. Pick any of the accredited installers and share the required details with them. The installer will check the eligibility conditions, verify the details, and offer you a quote for the installation. If you agree, the installer will decommission your existing water heater and install a new heat pump water heater on a scheduled day and time. Here are the steps:

Step 1

Complete the online application form on our website

Step 2

Schedule a free assessment at your convenience

Step 3

A team of certified installers will install the system at your home/business

Step 4

Enjoy the benefits of improved energy efficiency and comfort

Benefits of heat pump water heaters

Energy efficiency: Heat pump based water heaters use about 60% less energy than their conventional counterparts.

Save money: The initial investment in heat pump water heaters are higher than the conventional water heaters. However, this disadvantage can be nullified if you apply for rebates under VEU program. The heat pump water heaters offers significantly lesser operating cost. It results in significant savings over time.

Lesser carbon footprint: As heat pumps use about 60 percent less energy, they will leave lesser carbon footprints than conventional water heaters.

Emission intensity of different water heating technologies — Emissions intensity (in gram CO2 -e/MJ)

Longer lifespan: Heat pump water heater lasts about 12-15 years, offering about 5-7 years of longer lifespan than the conventional water heaters.

Safety: LPG/Gas water heaters pose a risk of Carbon Monoxide (CO) leaking. As heat pump water heaters are fully electric, there is no risk of any leak of a poisonous gas.

Versatility: Heat pump water heaters can be installed in garages, basements, balcony or near a garden wall.

Property value: As heat pump offer significant energy savings and lesser carbon footprint, which increases property value.

Save money on electricity and contribute to a greener future

Transform your home

Seal the savings Installing a heat pump hot water system is a simple yet effective way to improve your home’s energy efficiency. Experience immediate benefits with reduced energy bills and a more comfortable living space.

Easy and efficient

The best of both worlds Say goodbye to drafts and high energy bills. Chimney seals provide a snug, warm atmosphere while enhancing your home’s energy efficiency. Enjoy the comfort without the cost.

A sustainable choice for your home/business

Making small changes can have a big impact. By sealing your chimney, you're not only saving on heating costs but also reducing your carbon footprint. It's a win-win for you and the environment.

Quick installation, long-term benefits

Our certified installers ensure a hassle-free installation process, allowing you to start reaping the benefits immediately. Enjoy long-term energy savings and enhanced comfort with your new chimney seals.

FAQs about heat pump hot water rebate in VIC

What is the Victorian Energy Upgrades (VEU) Program?

The Victorian Energy Upgrades (VEU) Program is a state government initiative aimed at reducing energy consumption and greenhouse gas emissions by providing energy-efficient products and services to homeowners.

What is the Victorian Energy Upgrades (VEU) Program?

What brands and products you install?

We install 215L, 260L and 290L models from brands like Ecogenica, Emerald Planet and Midea.

Do you service my area?

We currently service all areas in Victoria. Feel free to register your interest now and someone from our will be in touch to confirm appointment and assessment dates.

I currently have a gas hot water system; am I eligible for a new heat pump?

If you currently have an electric or gas hot water heater, you are eligible to replace it with a new heat-pump hot water heater. There are government rebates available to upgrade to a more efficient heat-pump hot water heater. Contact us for more information.

How does a heat pump hot water system help reduce my carbon footprint?

The new heat pumps are significantly highly energy efficient than traditional ones, so they will reduce your home’s carbon footprint. A heat pump takes heat from the air, increases that heat to a higher temperature and uses it to heat water. This will help reduce greenhouse gas emissions, taking the pressure off the grid.

I am eligible for government hot water rebate in Victoria?

Yes, if you are the owner-occupier of a property valued at under $3 million, with a combined household taxable income below $210,000 per year. The property address should not have received a rebate under this program before, and the heat pump water heater to be replaced must be older than two years (from the date of purchase).

How do I apply for heat pump hot water system rebate in Victoria?

All you need to do is fill up the form below to know your eligibility for the rebates. Our team will get back to you on the contact details provided by you to confirm details about your property and the existing hot water system. Once our team confirms your eligibility for the rebates, our team of installers (certified electricians and plumbers) will proceed with product supply and installation. Post installation, we handle all the paperwork on your behalf to claim the government rebates.

Is there a cost involved in the installation?

In some cases, homeowners may need to pay for the system and installation upfront and then claim the maximum rebate afterward.

What kinds of savings can I expect after the upgrade?

Heat pump hot water systems are 200-350% more energy-efficient and consume 60-75% less electricity than traditional water heaters. A typical 190L hot water system consumes about 2.5 kW/day. This could amount to an $182.50 energy bill for water heating in a year, @ 20c/kW. A conventional 190L electric resistance water heater consumes about 10KW/day and 3650 kW/year — which equates to $730/year, @20 cents/kW. Looking at this example, the heat pump can save you about $547/year.

Is heat pump hot water system suitable for my home?

Heat pump hot water systems are versatile and can be installed in various locations making them suitable for most homes. Moreover, the state and federal governments are offering huge rebates on swapping your old and inefficient hot water system with the new and energy-efficient one. Fill up the form to find out whether you qualify for the heat pump hot water system rebates.

How much space is needed for installation?

The heat pump hot water systems can typically be installed in the same location as your existing hot water. They are spacing saving, energy efficient and good to look at.

Can you install a heat pump hot water system for free?

No, currently there are not rebates or initiatives going on where we can install a heat pump hot water system for free. There is a client co-payment involved in all heat pump rebates. You need to pay for the product supplied and installed. However, the total cost is significantly reduced by the government rebate (over 50%).

If someone tries to offer you a heat pump for free under the rebate programs, be careful. It may be a scam.

Do I need to modify my plumbing or electric circuit for installation?

The installation may involve minor plumbing and electrical adjustments to ensure compatibility with your existing system. Our certified plumbers and electricians take care of it. They complete the job as per the government guidelines to ensure accurate and quality installation.

How long can my heat pump hot water system expect to last?

The lifespan of a heat pump hot water system is up to 20 years, offering a long-lasting and energy-efficient hot water solution for your home.

Do you provide a warranty on heat pump water heaters?

Yes. On Powerbay heat pumps, 8 years on water tank and 5 years warranty on compressor, evaporator, controller is provided. On Emerald Energy heat pumps, 5 years on the water tank and 5 years on the rest of the system, and 2 years on labour warranty is provided.

Heat Pump Rebate Victoria