Buying the right heat pump could give you a $1,400 rebate. In this post, we’ll explain the state of Victoria’s new hot water rebate and answer any questions you might have about it.
What is Victoria’s Hot Water Rebate?
Victoria’s Solar Homes rebate covers half of your heat pump or solar hot water system’s invoice up to $1,400 when you install an energy efficient product from specific brands like Sanden or iStore. You may also be eligible for additional STC and VEEC rebates of up to $1,000 under the Victoria Energy Upgrades scheme.
This rebate applies to most major heat pump brands, including Sanden. However, you can only reach the $1,400 maximum if you buy a locally made product, or the rebate is capped at $1,000. Before July 2025, $1,000 was the maximum no matter what products you purchased.
How the Rebate Works
If you buy a heat pump that costs $2,800, you’ll only pay a maximum of $1,800. However, if your system was at least 50% made in Australia, you’ll pay $1,400.
A $3,000 heat pump will set you back either $2,000 or $1,600, while a $2,000 pump will always cost $1,000. The rebate can only fund half of the unit at most.
Who is Eligible?
The state can’t afford to partially subsidise everyone’s heat pumps, especially not for homes that don’t need the help. Here’s a quick rundown of the hot water rebate’s eligibility criteria:
- You must own and occupy the property
- The water system you’re replacing must be 3+ years old
- All owners must have a combined taxable income below $210,000
- The property’s value should be below $3 million
- Your home must not have previously had a Solar Homes rebate
However, you can get a second rebate if you move house.
In addition, you’ll need to provide the following:
- A heat pump quote (from an approved retailer)
- Two forms of official government ID
- Proof of income (usually a tax NOA or Centrelink summary)
Which Products?
This rebate includes any solar hot water system or heat pump that fits the state’s standards; the complete list is available here. Some of these products are made in Australia, letting you unlock higher rebates and support local jobs.
Buying the right systems and pumps from these brands gives you the full $1,400 rebate:
- Dux
- Earthworker Energy
- Everhot
- Reclaim Energy
- Rheem
- Rinnai
- Sanden
- Solahart
- Thermann
- Wilson Hot Water
However, check the specific model numbers that are eligible.
The Rebate’s Payment
Once you get a quote and confirm your eligibility, you’ll receive a QR code from Solar Victoria. A qualified installer will scan this to apply your discount.
The rebate is valid only if the installation is completed within 120 days. Solar Victoria will add up the total you’re eligible for and pay their share to the retailer.
Get a Rebate-Ready Heat Pump Installation
Contact Solar Flow today if you’re a Melbourne homeowner needing an efficient heat pump. Our Sanden products are not only rebate-eligible but can also save you up to 80% on your energy bill when compared to traditional gas or electric hot water systems.