ENERGY POWERED BY NATURE
ENERGY POWERED BY NATURE
Victoria is the best state in Australia for heat pump hot water incentives — and most homeowners don’t even know it.
Between the federal government scheme that applies to all Australians and two separate Victorian state programs, eligible households can stack rebates that together knock a significant amount off the upfront cost of upgrading. Here’s the full picture.
Rebate #1: The Federal Government Scheme
The Australian Government’s **Small-scale Renewable Energy Scheme (SRES)** applies nationwide. When you install an eligible heat pump hot water system, your installer generates **Small-scale Technology Certificates (STCs)** on your behalf and passes the value to you as an **upfront discount at the point of sale**. No forms, no waiting.
The federal STC rebate on a heat pump hot water system typically ranges from **$300 to $700**, depending on the system’s efficiency rating, tank size, and your postcode zone.
Rebate #2: Solar Victoria Hot Water Rebate
On top of the federal STCs, eligible Victorian homeowners can access the **Solar Victoria Hot Water Rebate** — one of the most generous state-level incentives in the country.
The rebate covers **50% of the purchase price** of your heat pump system, up to:
– **$1,000** for standard eligible products
– **$1,400** for locally manufactured products
This is applied after any STCs and Victorian Energy Efficiency Certificates (VEECs) have been factored in. Your installer handles the paperwork — the rebate comes directly off your quote.
Eligibility
– Owner-occupier of an existing property
– Combined household income under **$210,000** (dropping to **$150,000 from 1 July 2026** — see below)
– Property value under $3 million
– Hot water system being replaced is at least 3 years old
– Property has not previously received a Solar Homes hot water rebate
Rebate #3: Victorian Energy Upgrades (VEU) Program
There’s also the **Victorian Energy Upgrades (VEU) program**, which provides an additional discount of around **$600** when you replace a gas or electric hot water system with a heat pump. This is applied through your accredited installer and is also available to small businesses — not just households.
The Combined Saving
Stack all three programs and a Victorian homeowner could access:
| Incentive | Approximate Value |
|---|---|
| Federal STCs | $300 – $700 |
| Solar Victoria rebate | Up to $1,000 – $1,400 |
| VEU program discount | ~$600 |
| Total potential saving | $1,900 – $2,700 |
That’s a substantial reduction on what is typically a $3,500 to $6,000 installed system.
Act Before 1 July 2026 If Your Income Is Between $150k–$210k
Solar Victoria is tightening its income eligibility cap from **$210,000 to $150,000** per year from 1 July 2026. If your combined household income sits between $150,000 and $210,000, you must have your application **fully submitted by 5pm on 30 June 2026** to secure the rebate under the current cap.
Partially completed applications don’t count — it must be submitted in full.
If your income is under $150,000, nothing changes after 1 July.
Why Act Now
Beyond the deadline pressure, the federal SRES scheme also reduces every January 1st as the deeming period winds down. The scheme ends entirely in 2031. Every year you delay, the federal portion of your saving shrinks.
Add in the long-term energy savings — a heat pump uses up to **75% less electricity** than a standard electric storage tank, saving most Victorian households up to **$400 per year** on hot water energy costs — and the case for acting now is clear.
Is Your System Eligible?
– System must be on the Clean Energy Regulator’s approved products register
– Tank capacity must be 425 litres or under
– Must be installed by a licensed plumber
– Must be a replacement of an existing system at the same address
– You must use an authorised Solar Victoria hot water retailer for the state rebate
**Talk to a PowerBay-accredited installer near you to confirm your eligibility and lock in all available rebates before the 30 June deadline.**
*PowerBay is a proud Australian renewable energy brand, available exclusively at Bunnings Warehouse. Our range of solar panels, home batteries, EV chargers, and hot water solutions is designed to make renewable energy simple and accessible for every Australian home.*