Victorian Heat Pump & Hot Water Rebates Guide (2026)
Save up to $2,400 on heat pump hot water in Geelong, the Bellarine and the Surf Coast
Checked against Solar Victoria and Victorian Government sources: 24 September 2026
Heat Pump Rebates in Victoria: The Short Answer
Victorian homeowners can cut the cost of a heat pump hot water system with up to three incentives that stack: the Solar Victoria hot water rebate, a Victorian Energy Upgrades (VEU) discount, and the federal STC discount.
For an eligible Geelong household, that typically takes $1,900 to $2,400 off the installed price. A heat pump then uses up to 75% less electricity than a standard electric tank.
The Three Heat Pump Rebates, Explained
Each incentive comes from a different program with its own rules. You don’t apply for the VEU or STC discounts yourself, because they’re built into your quote. The Solar Victoria rebate needs a short online application, which we walk you through.
Solar Victoria hot water rebate
A rebate of 50% of the purchase price, worked out after the other discounts are taken off, capped at $1,000. If you choose an Australian-made product, the cap rises to $1,400. All Reclaim products are eligible for the full $1,400.
Victorian Energy Upgrades (VEU) discount
An upfront discount funded by Victorian Energy Efficiency Certificates (VEECs), created when an inefficient electric or gas system is replaced with an approved heat pump that carries at least a 5-year warranty.
Federal STC discount
Small-scale Technology Certificates are created for eligible heat pumps listed on the national register. The number of certificates shrinks each year as the scheme winds down to its end in 2030, so the discount is gradually getting smaller.
The brand you choose can be worth an extra $400
Solar Victoria pays up to $1,400, instead of $1,000, for Australian-made products. All Reclaim Energy heat pumps, including the Reclaim all-in-one units, are eligible for the full $1,400. iStore heat pumps on the approved list attract the standard rebate of up to $1,000, and can still be the better fit for smaller spaces or budgets.
How the Rebates Stack, and Why the Order Matters
The discounts are applied in a set order. The STC and VEU discounts come off the price first. The Solar Victoria rebate is then calculated on what’s left: 50% of that amount, up to the cap.
For most heat pumps the cap is what limits you, because half the remaining price is more than $1,000 (or $1,400). On a lower-cost system it can work the other way: if the price after discounts is $1,600, the rebate would be $800, not $1,000.
Running costs matter too. The Victorian Government estimates many households switching from gas save around $400 a year. If you have solar panels, setting the heat pump to run in the middle of the day lets it use your own solar power instead of grid electricity.
Are You Eligible for a Heat Pump Rebate?
The Solar Victoria rebate has the strictest rules. The VEU and STC discounts are much broader, so most Geelong homes qualify for at least part of the savings.
Solar Victoria hot water rebate
- You own and live in the home where the system will be installed
- Combined taxable income of all owners is under $150,000 a year
- The property is valued under $3 million
- The system being replaced is at least 3 years old from its purchase date
- The address hasn’t already received a Solar Homes hot water or battery rebate
- It isn’t a new build
- You use an approved product and a Solar Victoria authorised retailer
VEU discount and federal STCs
- You’re replacing an existing electric or gas hot water system (VEU)
- For VEU, the building is at least 2 years old
- Owner-occupied homes and rental properties both qualify
- No income or property-value test
- The heat pump is an approved model with at least a 5-year warranty (VEU)
- Up to two hot water systems per household (VEU)
Earn over $150,000, or renting the home out? You can’t get the Solar Victoria rebate, but the VEU and STC discounts still apply, which together are usually worth about $900 to $1,000.
Planning solar panels as well? Solar Victoria lets eligible households claim both a solar panel rebate and a hot water rebate. The catch is batteries: if the address has already received a Solar Homes battery rebate, it can’t also get the hot water rebate.
How to Claim the Rebate, Step by Step
Velocity Solar is a Solar Victoria authorised retailer, so we handle the quote upload and paperwork. Here’s what the process looks like from your side.
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Book a free on-site assessment
We check the age and type of your current system, your switchboard and the best position for the unit, then confirm which rebates you’re likely to qualify for.
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Get your written quote
Your quote already includes the STC and VEU discounts. We upload it to the Solar Victoria portal and you’ll get an email once it’s there.
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Apply for pre-approval
In the portal, upload two forms of ID and proof of income. If more than one owner is on the title or rates notice, you’ll need proof of income for each of them.
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Receive your QR code
Once Solar Victoria confirms you’re eligible, it emails you a unique QR code. This is your eligibility number.
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Installation day
Our installer scans your QR code on site before any work starts. Installation needs to happen within 120 days of the QR code being issued.
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Pay the difference
The rebate is paid directly to us and taken off your invoice, so you only pay the balance once the system is installed.
Hot water already gone cold?
You don’t have to wait for approval. Solar Victoria allows emergency installations: we can install a replacement heat pump first, and you prove your eligibility afterwards. If it turns out you aren’t eligible, the rebate won’t be paid, so we’ll run through the criteria with you before we start.
Five mistakes that can cost you the rebate
- Paying a non-refundable deposit early. Solar Victoria advises against it until your eligibility is confirmed.
- Choosing a model that isn’t on the approved list. Unlisted products don’t qualify.
- Starting installation before the QR code is scanned, unless it’s a genuine emergency replacement.
- Replacing a system under 3 years old. It won’t meet the Solar Victoria age rule.
- Using a retailer that isn’t authorised. Only Solar Victoria authorised retailers can install rebated systems.
Replacing Gas Hot Water Before the 2027 Rule
From 1 March 2027
When a gas hot water system in an existing Victorian home breaks and can’t be repaired, it will in most cases need to be replaced with an electric alternative, such as a heat pump. Your gas system doesn’t have to be removed before then.
Switching on your own timeline, rather than the morning your tank fails, means you can compare options, go through pre-approval properly, and claim the rebates while they’re available.
Heat Pump Rebate FAQs
How much is the heat pump rebate in Victoria in 2026?
Eligible owner-occupiers can get a Solar Victoria hot water rebate of up to $1,000, or up to $1,400 for Australian-made products such as Reclaim. This stacks with a Victorian Energy Upgrades (VEU) discount of about $350 to $400 and the federal STC discount, which together typically take $1,900 to $2,400 off the installed price of a heat pump.
Can I get the Solar Victoria rebate and the VEU discount together?
Yes. The two programs are designed to stack. The STC and VEU discounts come off first, then the Solar Victoria rebate is calculated as 50% of the remaining purchase price, capped at $1,000 (or $1,400 for Australian-made products such as Reclaim).
What is the income limit for the Victorian hot water rebate?
From 1 July 2026, the combined taxable income of all owners must be less than $150,000 a year. The limit was previously $210,000. The home must also be valued under $3 million.
Can landlords or renters get a heat pump rebate?
The Solar Victoria hot water rebate is for owner-occupiers only. Rental properties can still receive the VEU discount and the federal STC discount, which together are usually worth about $900 to $1,000.
Does my hot water system need to be broken to qualify?
No. For the Solar Victoria rebate, the system you replace must be at least 3 years old from its purchase date, but it does not need to have failed. For the VEU discount, you need an existing system in a building that is at least 2 years old.
My hot water has stopped working. Can I still get the rebate?
Yes. Solar Victoria allows emergency installations, so you can have a replacement installed before your eligibility is confirmed. You then prove eligibility as soon as possible afterwards. If you turn out not to be eligible, you won’t receive the rebate.
Do iStore or Reclaim heat pumps qualify for the $1,400 rebate?
All Reclaim Energy products, including the Reclaim all-in-one units, are eligible for the full $1,400 rebate. iStore models on the approved product list attract the standard rebate of up to $1,000, because the higher amount is for Australian-made products.
Can I get a hot water rebate on a new home?
No. The Solar Victoria hot water rebate is not available for new builds, and the VEU discount requires the building to be at least 2 years old. The federal STC discount can still apply to eligible systems.
Could these rebates change or run out?
Yes. Solar Victoria releases rebates in allocations, eligibility rules change (the income limit dropped on 1 July 2026), and the value of STCs falls each year until the federal scheme ends in 2030. We confirm your exact entitlement in writing before you commit.
Find Out Exactly What You’ll Pay
Book a free on-site assessment with our local team. We’ll recommend the right heat pump for your home and confirm which rebates you qualify for, in writing.
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