Hot Water Rebates in Victoria (2026): What You Can Actually Claim

Quick answer: In 2026 Victorian households can get up to $1,000 off an eligible heat pump or solar hot water system through the Victorian Energy Upgrades (VEU) program — up to $1,400 for an eligible locally made product — plus a further $300–$600 federal discount via Small-scale Technology Certificates. Important: from 1 July 2026 the household income cap drops from $210,000 to $150,000, so if you are over that, apply before 30 June.

If your old electric or gas hot water unit is on its last legs, 2026 is a good year to switch to a heat pump, because the rebates are genuinely worth claiming. Here is how they work, without the jargon.

The two rebates you can stack

There are two separate schemes, and you can usually get both on the same system:

1. Victorian Energy Upgrades (VEU). A state discount based on the energy your new system saves compared with your old one. It is applied straight to your installation invoice, so you do not wait for a cheque.
2. Federal Small-scale Technology Certificates (STCs). A Commonwealth discount for eligible heat pump and solar hot water systems, typically worth $300–$600 off, also applied upfront.

How much can you get?

The Victorian hot water rebate is worth up to $1,000, or up to $1,400 if you choose an eligible locally made product. The exact VEU amount moves with the certificate market and depends on which system you are replacing, so treat these as the upper end.

Combined with the federal STC discount, many households end up paying a fraction of the sticker price for a heat pump.

Who is eligible?

To claim the Victorian hot water rebate you generally need to:

• Be the owner-occupier of an existing property where the system is installed
• Replace an existing system (not a brand-new build, in most cases)
• Use an authorised retailer and an eligible product
• Meet the household income test

The income change to watch

Right now the combined household taxable income cap is $210,000 per year. From 1 July 2026 it drops to $150,000. If your income is between $150,000 and $210,000, you need to submit a complete application before 5pm on 30 June 2026 to lock in eligibility under the current rules.

Which systems qualify?

Heat pump and solar hot water systems are the focus, because they cut energy use the most. If you are weighing up your options, our guides on heat pump hot water in Melbourne and gas vs electric hot water walk through the trade-offs, and the hot water system guide covers sizing.

How the process works

The rebate has to be processed through an authorised hot water retailer using approved products — that is a program rule, not an optional step. As a licensed installer I can fit the right heat pump for your household, advise on which models are eligible, and point you to the authorised retailer path so the paperwork is done correctly. I will always be upfront about what I can and cannot administer myself.

Is it worth it?

For most households replacing an old electric storage unit: yes. A heat pump uses roughly a third of the electricity, and with the rebates the upfront cost is far lower than it looks. The payback is usually measured in a few years of lower power bills.

I install hot water systems across Melbourne’s south-eastern suburbs — Cranbourne, Berwick, Dandenong, Frankston, Pakenham and nearby.

Thinking about a hot water upgrade? Call 0407 756 172 for honest advice on the right system and the rebates you can claim.