Heat Pump Rebates in Victoria: What You Need to Know
Rebate
3 minutes
2 Oct 2025
Written by Jake Deppeler — Plumber & Founder of Trust Trade
Introduction
Making the switch to a heat pump hot water system is one of the smartest upgrades a Victorian household can make. Not only are heat pumps energy efficient, but right now there are multiple rebates and incentives available that make them surprisingly affordable. With support from both state and federal programs, many households are saving thousands on upfront costs and even more on their energy bills in the long run.
This guide breaks down each rebate, how they work, how much you can save, and what to watch out for before applying.
How the Rebates Work
There are three major rebates or discounts you can claim in Victoria when installing a new heat pump:
Solar Victoria Hot Water Rebate
Up to $1,000 off approved heat pump and solar hot water systems.
From July 2025, an additional $400 rebate will be available if the unit contains verified Australian-made content — bringing the total Solar Victoria rebate to as much as $1,400.
Eligibility:
• Household income under $210,000 combined taxable per year
• Property valued under $3 million
• Replacing an existing hot water system at least 3 years old
• Property hasn’t already received a Solar Victoria hot water or battery rebate
Victorian Energy Upgrades (VEU) Discounts
Offers direct discounts when you replace inefficient hot water systems with approved heat pumps.
Typical savings:
• Replacing electric → heat pump: about $630 discount
• Replacing gas → heat pump: about $560 discountRules:
• Minimum customer contribution of $200 (you can’t get it completely free)
• Must be an approved system installed by an accredited provider
• Limit of 2 upgrades per residential property
Federal Small-scale Technology Certificates (STCs)
Heat pumps also qualify for STCs under the national Renewable Energy Target.
STCs are essentially “carbon credits” that installers claim on your behalf to discount the system.
The amount depends on system size, efficiency, and location — but typically reduces costs by hundreds of dollars more.
Key Benefits
Lower upfront cost – Rebates and incentives can bring a $4,500 install down closer to $2,000–$2,500.
Reduced running costs – Heat pumps use up to 65% less electricity than traditional electric systems.
Support for Australian manufacturing – From July 2025, you’ll save an extra $400 by choosing systems with Australian-made components. like DUX, Thermann & Reclaim.
Stackable savings – Rebates combine, so you don’t have to choose between them.
Pricing Examples (Before & After Rebates)
Here’s a breakdown of what the real numbers could look like for a typical household:
Example 1 – Heat Pump Hot Water System (Standard Electric Replacement)
Unit + materials: $3,000
Labour & electrical works: $1,500
Total cost: $4,500
Rebates applied:
Solar Victoria: –$1,000
VEU Electric Replacement: –$630
STCs: approx. –$600
Total rebates: –$2,230
Final out-of-pocket: $2,270
What to Do Next
If you’re considering upgrading to a heat pump, here’s the process:
Check eligibility – Confirm you meet the income, property, and system age rules.
Choose an approved product – Pick from the Solar Victoria and VEU approved lists.
Find an accredited installer – Only accredited providers can unlock the rebates for you.
Apply for rebates – Usually your installer will help with the paperwork, but you’ll need to supply income and property documents.
By stacking the Solar Victoria rebate, VEU discount, and federal STCs, you could save thousands and enjoy a more efficient, future-proof hot water system.