Heat pump hot water
Up to $1,000
Covers 50% of the price after other discounts are applied, up to the cap, for systems on Solar Victoria's approved list.
Hot water heat pump rebate
The Victorian heat pump hot water rebate in 2026.
Eligible Victorian homes get up to $1,000 off a heat pump hot water system, or up to $1,400 for eligible locally made products, through the Solar Homes Program. It stacks with VEU discounts and federal STCs, and Solar Victoria quotes combined savings of up to $2,030 on a locally made system. Figures checked against solar.vic.gov.au on 24 August 2026.
Here for heating? Reverse-cycle air conditioners are heat pumps too. See air conditioning discounts.
What you get
Two rebate tiers. One program.
Locally made products
Up to $1,400
The higher tier applies to eligible hot water products with at least 50% locally made or assembled parts.
The rebate is calculated after other discounts are applied, including federal STCs and VEU certificates. Stacked together, Solar Victoria quotes up to $2,030 in combined savings on an eligible locally made system.
Who's eligible
The 2026 rules, per solar.vic.gov.au.
- Combined household taxable income under $150,000 per year (the cap dropped from $210,000 on 1 July 2026)
- Property value under $3 million, owner-occupier, existing home (not a new build)
- Your existing hot water system is at least 3 years old from its date of purchase
- The address hasn't already received a Solar Homes hot water or battery rebate
- Product on the approved products list, installed by an authorised installer
- Installation finalised within 120 days of receiving your eligibility confirmation
Full detail: solar.vic.gov.au/hot-water-rebate.
How the stack works
Three discounts, applied in order.
- Federal STCs come off first. Air-source heat pumps up to 425 litres on the Clean Energy Regulator's register create certificates that discount the price at point of sale.
- VEU discounts apply next, where the product and provider qualify under the Victorian Energy Upgrades program.
- The Solar Homes rebate then covers 50% of what's left, up to $1,000 (or up to $1,400 locally made).
Your quote itemises each discount as its own line. The installer-side paperwork is handled for you; for the Solar Homes rebate you complete a short eligibility application on the Solar Victoria portal (proof of income and your rates notice), and we walk you through exactly what to upload.
Common questions
Heat pump rebate FAQ.
How much is the heat pump hot water rebate in Victoria?
Up to $1,000 for an eligible heat pump hot water system, or up to $1,400 if the product is an eligible locally made hot water product. The rebate covers 50% of the price after STC and VEU certificate discounts are applied, up to those caps, delivered through the Solar Homes Program. Figures checked against solar.vic.gov.au on 24 August 2026.
Who is eligible for the Victorian hot water rebate in 2026?
Owner-occupiers of an existing home with a combined household taxable income under $150,000 a year and a property value under $3 million. Your existing hot water system must be at least 3 years old from its date of purchase, and the address can't have already received a Solar Homes hot water or battery rebate. The install must use an authorised installer and a product on Solar Victoria's approved list.
Can I combine the hot water rebate with VEU discounts and federal STCs?
Yes. Solar Victoria calculates the hot water rebate after other discounts are applied, including federal Small-scale Technology Certificates and Victorian Energy Upgrades certificates. Solar Victoria quotes combined savings of up to $2,030 for an eligible locally made hot water system once the programs are stacked.
What hot water systems qualify?
The product must be on the Solar Homes Program approved products list. For the federal STC side, the Clean Energy Regulator's register covers air-source heat pumps with a capacity up to 425 litres. Your quote names the exact system and shows each discount as a line item.
How much does the federal STC discount add?
It varies with the system model and the certificate price at the time of install, so we don't quote a fixed number here. The STC value is itemised in your written quote so you can see exactly what it contributes before you commit.
Is the rebate available in regional Victoria?
Yes. The Solar Homes hot water rebate applies statewide, from Melbourne to Mildura. Tidy Energy services 100+ Victorian towns with the same rebate stack and the same itemised quoting.
How does a heat pump hot water system actually work?
Like a fridge running in reverse. Instead of making heat directly the way an electric element or gas burner does, a heat pump pulls warmth out of the surrounding air and moves it into the water tank. Moving heat takes far less energy than creating it, which is why a heat pump heats the same tank of water on roughly a quarter of the electricity of an old resistance unit. It works in cold weather too; the units sold for Victorian conditions keep operating well below freezing.
Why replace a working hot water system at all?
Old electric resistance hot water is one of the biggest single loads in a Victorian home, and the eligibility rules reward acting before your current unit dies: it must still be at least 3 years old, and you get to choose your replacement calmly instead of in a cold-shower emergency. A heat pump uses a fraction of the electricity, and with the rebate stack cutting the upfront cost, payback can be quick. Your quote shows the maths for your actual usage.
Related pages
Go deeper.
- air conditioning discounts: the heating and cooling side of getting off gas
- Every Vic rebate stacked: solar, battery, hot water and VEU in one view
- Rebate calculator: estimate your stack for your postcode
- Solar Homes Program: the program that delivers this rebate
- Tidy Home HVAC: heating and cooling done properly
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