While talking to hundreds of customers we found out that 90% homes in Melbourne, Victoria use old and energy-inefficient gas or electric heat pumps. Since the Victorian government hot water replacement scheme rollout, more and more businesses and homeowners in Victoria are going fully electric with the help of our high quality electric heat pumps. The upgrade is done under the VEU rebate program.

What is Victorian government hot water replacement scheme 2024?

Under the Victorian Energy Upgrades (VEU) program, the VIC government is offering rebates to households and businesses for replacing existing gas or electric resistance hot water systems with energy-efficient heat pump hot water systems.

30% of your electricity consumption is from your hot water system

Water heaters are the second largest users of energy amongst all appliances, accounting for up to 30% of the total energy usage in households. Using a heat pump can reduce this by up to two-thirds.

Heat pumps are more energy efficient than conventional electric water heaters which can save households 60-80% on running costs. with a lifespan of up to 20 years, they are not only energy efficient but also a wise long-term investment.

Additionally, with the ongoing Victorian government hot water replacement scheme, there’s never been a better time to replace your old hot water system with the new one at a highly discounted price.

hot water system electricity usage comparison

Install hot water system under the Victorian government replacement scheme

We replace and install hot water systems under the VEU government rebate program in Victoria. And we use well-known brands such as Midea, Ecogenica, Emerald Energy, etc. These brands and models are approved under the VEU program.

Up to $3,000 available in government rebates on hot water system replacement

If you’re replacing your electric or gas water heater with a heat pump hot water system, you are eligible for a rebate of up to $3,000 under the following government incentive programs:

  • Victorian Energy Upgrades (VEU) program
  • Solar Victoria rebate
  • Clean Energy Homes program

Each incentive program has different eligibility requirements. Talk to ones of our experts to find out what rebates and amount you are eligible for.

What is Victorian government hot water replacement scheme cost?

The hot water heat pump replacement is free for businesses. However, homeowners can avail up to $3,000 in government rebates if installed under the VEU scheme – which is a carbon emission reduction scheme legislated by the Victorian state government.

The eligible households are eligible for up to 50% of the total product and installation cost. The installation work – be it plumbing or electrical work – everything is done by certified installers.

We remove and decommission the old system. This is mandatory as per the Essential Services Commission (ESC) guidelines.

Who is eligible for Victorian government hot water replacement scheme?

To be eligible for Victorian government hot water replacement scheme, you need to fulfil the following eligibility requirements:

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

How to apply for Victorian government hot water rebate?

To claim the rebate on your hot water system replacement in Victoria, follow these steps:

  • Get in touch with a company that replaces heat pump hot water system under the government rebate program
  • Share your contact details, address and property ownership document(s)
  • Get your property assessed to determine which rebates you qualify for
  • Discuss the upgrade process and timeline
  • Once the assessment is done, get the new heat pump installed
  • Installation is done by VBA licensed plumbers and A-grade electricians
  • Old water heater shall be sent for decommissioning
  • Installation company claims the rebate on your behalf
  • Start saving on your electricity bills!

How does a heat pump hot water system work?

A heat pump hot water system may sound complex, but it operates quite simply. Picture it as a device that efficiently uses a method to heat water.

Inside the heat pump compressor, there’s a refrigerant – a special liquid that easily transitions between liquid and gas states. It’s similar to how water changes to steam during boiling, but with different substances.

When you need hot water, the heat pump swings into action. It draws in outside air, even if it’s cold, capturing the latent heat from it to convert the refrigerant into a gas. This gas is then pumped through condenser coils within the system.

The coils heat up and directly transfer that heat to the water in your storage tank through a component known as a heat exchanger. This process is highly efficient, requiring negligible electricity to heat up the water.

The refrigerant then returns to its liquid state, ready to repeat the cycle. This continuous heat recycling is what makes heat pump hot water systems highly energy efficient and environmentally friendly.

In other words, heat pumps function by harnessing ambient warmth from air to heat water indoors, saving money and the environment.

how heat pump hot water system works - Victorian government hot water replacement scheme

What are the benefits of heat pump hot water system?

There are several benefits of switching to a heat pump hot water system for your home or business. Some of them being:

Energy efficiency: Heat pump hot water systems are highly energy efficient. These systems typically use around 60 to 75% less electricity than a conventional electric hot water system. You’ll see a noticeable difference in your annual energy cost.

Consistent hot water: These systems provide a consistent supply of hot water. You won’t run out of hot water mid-shower, and you won’t have to wait for the water tank to heat up again as you do with traditional water heaters.

Environmental friendliness: Heat pump systems are eco-friendly. By relying on renewable heat sources, they use less energy and help reduce greenhouse gas emissions.

Longevity: They tend to have a longer lifespan compared to traditional water heaters. A heat pump hot water system can last up to 20 years.

Space-saving: They are compact and often easier to install, requiring less space than traditional tank-based systems.

Government rebates: There are government rebates to upgrade to energy-efficient hot water systems. This can further offset the upfront costs.

Heat pump hot water systems vs traditional water heaters

Let’s compare heat pump hot water systems to conventional electric hot water systems to help you decide which is the better choice for your needs.

Description Heat pump hot water Traditional water heaters
Energy efficiency High Low
Operating costs Low High
Environmental impact Low High
Hot water consistency Yes No
Space-saving Yes No
Lifespan Up to 20 years Up to 10 years
Smart/app control Yes No
Government rebates Up to $3,000 $0

Heat pump hot water systems offer superior energy efficiency, cost savings, and environmental benefits compared to old water heaters.

These water heating systems work efficiently irrespective of air temperature. Other notable benefits include huge government rebates.

FAQs about Victorian government hot water replacement scheme

Are heat pump systems noisy?

Modern day heat pump systems are very quiet. Older systems have been known to produce noise. But the ones installed under the VEU rebate program operate quietly.

How long does a heat pump take to heat up water?

Hot water systems heat up in 60-80 minutes, when in high-demand mode.

I currently have a gas hot water system. Can I upgrade to a new heat pump?

Yes.

What government rebates are eligible?

  • Victorian Energy Upgrades (VEU) program
  • Solar Victoria rebate
  • Clean Energy Homes program

Who is eligible for government hot water rebates in Victoria?

Here’s a list you can check to see if you are eligible for 3 Victorian government hot water rebates:

For VEU rebate program:

  • Property must be located in Victoria and over 24 months of age.
  • Existing hot water system must be inefficient electric or gas.

For VEU rebate program:

  • Property must be located in Victoria and over 24 months of age.
  • Existing hot water system must be inefficient electric or gas.

For Solar Victoria rebate:

  • Household annual income must be less than $210,000
  • Applicant must be an owner-occupier of a home valued at under $3 million
  • Replacement hot water system must be older than 3 years

For Clean Energy Homes program:

The new heat pumps installed must be:

  • Listed on the register of solar water heaters
  • Capacity up to 425L

What’s the average lifespan of a heat pump hot water system?

The average lifespan of a heat pump water heater is up to 20 years.

Will you take away the old tank?

According to the VEU rebate guidelines, it’s mandatory for us to decommission the old tank. This service is free of costs to the customer.

This sounds great, what’s the next step?

Fill in the form below to book and appointment and ask a free quote.

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