As at October 2026, Solar Victoria’s hot water rebate pays up to $1,000 towards an eligible heat pump or solar hot water system, or up to $1,400 for an eligible locally made product, for owner-occupiers who meet its income and property conditions. From 1 March 2027, an owner-occupier whose gas hot water appliance breaks and cannot be repaired must replace it with an electric alternative, with some exemptions.
General information, not financial advice. Rebates change: check the current terms on Solar Victoria’s hot water rebate page before you commit. Its page was last updated 1 July 2026.
How long a system lasts
Solar Victoria says hot water systems typically last between 8 and 10 years, and that you can find a system’s age on the manufacturer’s sticker, usually on the upper part of the unit. Its advice is to know that date and replace a system before it fails, and it points out that a replacement does not have to be the same kind as the old one.
Knowing the date matters more from 2027. If a gas hot water appliance in an owner-occupied home breaks after 1 March 2027 and cannot be repaired, it must be replaced with an electric alternative.
The main kinds of system
| System | How it heats water | What the official sources say |
|---|---|---|
| Heat pump | Takes heat from the air and pumps it into a storage tank, with an outdoor unit like a split-system air conditioner’s. | Uses 60 to 75% less electricity than a conventional electric water heater; good units work even in freezing weather. Eligible products qualify for the rebate. |
| Solar hot water | Uses the sun. In Victoria, most systems have an electric booster for times of year when the sun is not enough on its own. | Solar Victoria calls it the option with the lowest running costs. Eligible products qualify for the rebate. |
| Gas | Uses gas. | From 1 March 2027, existing owner-occupied homes must replace a broken, unrepairable gas hot water appliance with an electric one. |
Solar Victoria suggests heat pumps suit households that want to move away from gas and do not have the roof space for solar. Replacing gas hot water with a quality heat pump can save a household around $400 a year, by its estimate.
Who can get the rebate, as at October 2026
Solar Victoria lists these conditions for a householder:
- You are the owner-occupier of an existing property where the system will be installed.
- The combined household taxable income of all owners is less than $150,000 a year.
- The property is valued under $3 million.
- The address has not already had a hot water or solar battery rebate under the Solar Homes Program.
- The system being replaced is at least 3 years old from its date of purchase.
- You use an authorised hot water retailer and a product on the eligible list.
The higher rebate of up to $1,400 applies to products on Solar Victoria’s locally made list, which it updates regularly; “locally made” means at least 50% locally made or assembled parts, not 100% Australian made.
The steps, in order
- Read Solar Victoria’s Hot Water Buyers Guide, then talk with an authorised retailer.
- Choose a system from the eligible products list and ask for a written quote. The retailer uploads it to the Solar Victoria portal, and you get an email when it is there.
- Apply for pre-approval by uploading your eligibility paperwork.
- Wait for Solar Victoria to confirm you are eligible and send your QR code.
- Have the system installed within 120 days.
- Pay the retailer the difference: the total cost minus the rebate.
If your hot water system breaks down or is unsafe, you do not have to wait for eligibility to be confirmed before installing a replacement. You must still prove eligibility as soon as possible afterwards, tick the emergency installation box when entering the quote, and accept that you may not receive a rebate if you do not meet the criteria.
Discounts that sit alongside it
If your retailer is also an approved Victorian Energy Upgrades (VEU) provider, a VEU hot water discount can apply as well. Solar Victoria says the rebate and a VEU discount can cut the upfront cost by up to $2,030 for an eligible locally made system, or up to $1,630 for other eligible systems.
Solar Victoria’s phone line, for help with its rebates and exemptions, is 1300 376 393, 9am to 5pm Monday to Friday, except public holidays.
If you rent, or rent a place out
The rebate above is for owner-occupiers. For rental homes, from 1 March 2027, when a hot water appliance breaks and cannot be repaired, the rental provider must replace it with a heat pump water heater.
The plumbing side of the job
- The BPC lists a restricted plumbing class for split system heat pump water heaters, under refrigerated air-conditioning, alongside the main classes such as water supply and gasfitting. Sheet 02 shows how to check a plumber’s classes.
- If the total value of the work, appliance included, is over $750, the licensed plumber must issue a compliance certificate within five days of finishing. Sheet 03 has the detail.
- Since 1 May 2026, copper alloy plumbing products in contact with drinking water in Victoria, water heaters among them, must meet the new lead-free requirements.