Victorian households can get up to $3,720 in rebates for upgrading an inefficient electric hot water system to an energy-efficient heat pump hot water system.
Ditching your old electric hot water system and switching to a heat pump gets you more rebates than if you were switching from gas hot water to a heat pump.
Why?
Quite simply, it’s because conventional electric hot water systems are the most expensive way to heat your water – and they’re bad for the environment. That’s why the government rebates are set so high to encourage anyone with an older electric hot water system to make the switch.
The typical 4-person Victorian household spends around $900 a year on hot water heating if they have an electric hot water storage system on a peak tariff. That cost can be reduced by around $680 by upgrading to a heat pump; even more if the heat pump runs off your solar panel system.
The CO2 emissions savings by getting rid of your electric hot water system are impressive too – at around 4 tonnes annually. In contrast, heat pumps release only 1.6 tonnes of greenhouse gases a year.
On this blog:
- What hot water rebates can I get?
- Am I eligible for these rebates?
- How can I apply?
What hot water rebates can I get?
There are three different government rebates you may be eligible for if you live in Victoria, and you upgrade from an inefficient electric hot water system to a heat pump:
- Federal Government Small-scale Technology Certificates (STCs)
- Victorian Energy Efficiency Certificates (VEECs)
- Victorian Solar Hot Water Rebate
Federal Government STCs
Worth around $1,040, this form of rebate is deducted from the upfront purchase price of your hot water heat pump system. If you purchase a heat pump from the approved list as set out by the Clean Energy Council and it is installed by an approved provider such as Specialized Solar, you shouldn’t have any problems getting this rebate.
VEECs
Worth up to $1,680, the VEECs rebate is deducted from the purchase price of your heat pump system. To get this level of subsidy, you must be upgrading from an inefficient electric hot water system to an approved heat pump.
Victorian Solar Hot Water Rebate
Worth up to $1,000, the solar hot water rebate is from the Victorian Government and is available through the Solar Homes Program. You must be upgrading from a hot water system that’s at least three years old.
Am I eligible for these hot water rebates?
STCs
- If you purchase your heat pump system from an accredited provider like Specialized Solar, you will qualify for the STCs.
- STCs are not means-tested.
VEECs
- If you are upgrading from an inefficient electric hot water system and you purchase an approved heat pump from an accredited provider like Specialized Solar, you will qualify for VEECs.
- VEECs are not means-tested.
Solar Homes hot water rebate
There are a number of eligibility criteria for the hot water rebate available from the Solar Homes Program including:
- Your annual household income must be less than $180,000
- You must be the owner-occupier
- Your home must be worth less than $3 million
- If you’ve already received a solar panels rebate from the Solar Homes Program, you can still apply (they’ve recently changed the rules to allow this).
- If you’ve received a solar battery rebate from the Solar Homes Program, you will not be eligible.
- The hot water system you are replacing is at least three years old.
- The heat pump you are purchasing is on the Solar Homes approved product list and will be installed by an approved provider such as Specialized Solar
How can I apply?
You will need to apply for the Solar Homes hot water rebate. However, you don’t need to apply for the VEECs and STCs as we handle all the paperwork on your behalf.
The application process for the Solar Homes hot water rebate is straightforward and the people at the Solar Homes Program are very efficient and helpful. However, if you’d like a hand with any aspect of the application for the hot water rebate, get in touch and we’ll be happy to help.
As you’ll see when you look at the Solar Homes application process, the first thing you need to do is to get a quote from an approved provider.
So why not take the step towards cheaper hot water for your home and contact us today. Your hip pocket will happier – and you’ll be doing the environment a favour too!
