If you're replacing an old hot water system in Victoria, a heat pump can attract two separate government incentives. Here's how they work, who qualifies, and roughly what you can expect to save.
Hot water is one of the biggest energy users in a typical Victorian home. Switching from an old electric or gas system to an efficient heat pump can cut running costs significantly — and right now there's government money to help with the upfront cost. The catch is that the support comes from two different schemes with different rules, which is where most people get confused.
There are two distinct programs, and an eligible household can often use both:
This is a rebate of up to around $1,000 for eligible owner-occupiers replacing an existing hot water system. It's means-tested and has a few conditions (more below).
This is a separate, point-of-sale discount applied by an accredited provider when you install an efficient system. It has no income test and is available to a much broader range of Victorian households. The size of the discount varies with the system and what you're replacing.
Because they come from different schemes, an eligible owner-occupier can typically stack the Solar Victoria rebate on top of the VEU discount, which is what brings the out-of-pocket cost down the most.
Answer a few quick questions and see your likely eligibility in under a minute — free, no obligation.
Check my eligibility →As a rough guide, eligible households are often looking at a combined benefit in the range of $1,000 to $3,000 off a heat pump hot water installation, depending on the system, your circumstances and current market rates. The Solar Victoria portion is capped at around $1,000; the VEU portion makes up the rest and fluctuates.
Important: these figures move with market conditions and program settings, so treat any number as indicative until an accredited provider confirms it for your specific job.
For the Solar Victoria rebate, you generally need to:
For the VEU discount, the rules are broader: it's open to Victorian households generally, with no income test, as long as the work is done by an accredited provider.
If you rent, the standard owner-occupier rebate won't apply to you directly, but there are separate programs aimed at rental properties, and your landlord may be able to access support. If you own a rental, it's worth checking the landlord-specific pathways.
Properly's free checker matches your situation against the current Victorian rules and connects you with an accredited installer.
Start my free check →Generally yes, as long as it meets the age requirement. Many people upgrade proactively to cut running costs rather than waiting for a failure.
No — it reduces the cost but you'll still have an out-of-pocket amount. The combined incentives can take a meaningful chunk off, though.
Checking eligibility takes a minute. Installation timing depends on the provider, but heat pump hot water swaps are usually a straightforward one-day job.
Properly is an independent lead service, not a government body and not an accredited provider. The information here is general in nature and indicative only — it is not eligibility advice and amounts change with market conditions. Final eligibility is determined by Solar Victoria and the Victorian Energy Upgrades (VEU) program (administered by the Essential Services Commission), and by the accredited provider who completes your installation. Always confirm current details at solar.vic.gov.au.