Heating & Cooling Rebates and what to consider

Reverse-cycle air conditioning: the cheapest, greenest way to heat and cool your home

Is heating and cooling your home costing you a small fortune? Did you know that inefficient heating and cooling systems can account for up to 40 per cent of your annual power bill?

The cheapest way to heat and cool your home these days is with an efficient reverse-cycle air conditioning system, also known as a split system.

Team it with solar panels, and you’re on the way to super-low-cost heating and cooling throughout the year. Add a battery, and you can heat and cool your home for virtually nothing, day and night.

You’ll not only be saving money – you’ll be doing the environment a favour!

Heating and cooling rebates

The Victorian Government is providing $1,000 rebates to help eligible households replace old gas, electric or wood-fire heater with reverse-cycle air conditioning.

This $1,000 Home Heating and Cooling Upgrade Rebate is also available to households that don’t have a heating system.

In addition, the Victorian Government through the Victorian Energy Upgrade Program provides additional financial incentives – worth up to $1,920 – for switching to a reverse-cycle air conditioning system.

On this post:

  • Am I eligible for the $1,000 rebate?
  • Am I eligible for the Victorian Energy Upgrade rebate?
  • Why are reverse-cycle air conditioners so efficient?
  • Can I run my reverse-cycle air conditioner for free with solar?
  • What to consider when buying a reverse-cycle air conditioner?

Who is eligible for the $1,000 rebate?

Both owner-occupiers and rental providers can apply for the $1,000 Home Heating and Cooling Upgrade Rebate providing they meet these criteria:

Owner-occupiers:

  • must have a valid concession card, or
  • a combined household income below $180,000

Rental providers – must have a residential property:

  • Earning $500 weekly rent or less, or
  • That is occupied by renters holding a valid concession card or combined household income below $90,000, or
  • The property is unoccupied, with potential weekly rent of $500 or less

Note: This information is correct as of February 2022. Check with us or the program to see if eligibility criteria have altered.

Am I eligible for the Victorian Energy Upgrade rebate?

This rebate is not means-tested and is available for upgrades as well as new systems. To be eligible for a Victorian Energy Upgrade rebate you need to choose:

Specialized Solar & Electrical is an accredited provider for this program and installs approved reverse-cycle air conditioning systems. Contact us for a quote.

The value of rebate you can apply for, via your accredited provider, depends on:

  • The type of system you currently have installed
  • The upgrade system size

If you are upgrading, the types of system you are replacing that qualifies for the largest rebates include:

  • Refrigerative air conditioner (non-ducted)
  • Hard-wired electric room heater

Why are reverse-cycle air conditioners so efficient?

Reverse cycle air conditioners are so efficient because they use heat pump technology.

The heat pumps found in reverse-cycle air conditioners use ambient heat in the outside air to either cool or heat your home. Because heat pumps move heat – they don’t generate it – they don’t need as much energy to work.

Typically heat pumps produce 4 to 6 times more energy than they consume. In contrast, an old-style electric heater will require more energy to run, than the heat that it can generate. That’s why they are so expensive to use.

You can check out the efficiency rating of a reverse-cycle air conditioning unit by looking for the COP rating. Coefficient Of Performance (COP) is a performance rating that shows how effective a heat pump or air conditioner is at transferring heat versus the amount of electrical power it consumes.

The higher the COP number, the more efficient the system is.

Reverse-cycle air conditioners will typically have a COP of between 3 and 6. Hard-wired older electric heating and cooling systems will have a COP of less than 1.

Can I run my reverse-cycle air conditioner for free with solar?

Yes, you can!

What you need to run your reverse-cycle air conditioner is the right size solar panels system that matches your household’s electrical needs. This is something we can help you with.

It’s worth knowing that some modern reverse-cycle air conditioning systems come with built-in Wi-Fi so you can control it remotely. This allows you to switch on your heating or cooling when you are at work, using your solar panels to power your aircon for free. So you come back to a house that’s cool in summer and warm in winter.

If you want to go a step further, installing a battery means you can run your home heating and cooling for free through the night.

What to consider when buying a reverse-cycle air conditioner?

Here are eight tips for choosing the best reverse-cycle air conditioner for your needs – and the solar you’ll need to cut your bills even further.

  1. Make sure the system is correctly sized for the room or area it will be heating and cooling
  2. Make sure it has built-in Wi-Fi so you can switch it on or off remotely using an app
  3. Check it has motion sensors for reducing the heating or cooling in the room if no-one is there
  4. Check that it has an economy setting
  5. Ensure it is an approved product if you want to apply for a rebate
  6. Ensure the supplier is approved and fully accredited
  7. Get the right size solar panels system, if you haven’t already, so you can run your reverse-cycle air conditioner for free during the daytime
  8. Get battery storage if you want to heat and cool your home for free at night

Get in touch for a quote

If you’d like a quote for heating and cooling your home more effectively, get in touch.

As accredited solar installers and a Registered Electrical Contractor, Specialized Solar & Electrical is an approved supplier for the Victorian Home Heating and Cooling Upgrade Rebate and the Victorian Energy Upgrades Program.

We supply and install quality reverse-cycle air conditioning systems for residential and commercial customers. Plus, we have the solar skills and expertise to make sure you get the best solar panels and battery storage systems to power your home heating and cooling for free.

Request a quote today!