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Vic rebates now for solar panels and heat pumps

Vic rebates now for solar panels and heat pumps

Victorian homeowners can now access rebates and an interest-free loan worth up to $3,800 for solar panels and a hot water heat pump system through the Victorian Government’s Solar Homes Program.

Before this state government announcement, homeowners could only get a solar panels rebate or a solar hot water or heat pump rebate – not both.  Now, it is possible to apply for both, and it doesn’t matter the order you get the systems installed.

Already got a solar panels rebate?  No worries!

If you’ve already received a solar panels rebate via the Victorian Government’s Solar Homes Program, the good news is that you can now apply for a solar hot water rebate as well.

The Victorian Government says that already around 190,000 Victorian households have installed solar panels with the support of the solar panels rebate. Now, these households can also apply for a rebate to upgrade their hot water system to one that’s cheaper to run and environmentally friendly.

What’s the Victorian hot water rebate worth?

The Victorian hot water rebate – available through the Solar Homes Program – is a 50 per cent rebate worth up to $1,000 for eligible solar hot water and heat pump hot water systems.

The hot water rebate works as a point-of-sale discount reducing the purchase cost of an eligible hot water system.

Can I get the hot water rebate at the same time as the solar panels rebate?

The answer is yes, you can apply for both the solar hot water and solar panels rebate at the same time. In addition, you can also apply for an interest-free loan – also through the Solar Homes Program – to further reduce the upfront cost of your solar panel system.  The value of the solar panels rebate is up to $1,400 and the interest-free loan is up the same amount as the panels rebate.

Is a heat pump system cheaper to run than solar hot water?

In short, heat pump hot water systems are cheaper to run than solar hot water.  The Australian Energy Foundations says:

“Our research has shown that while both heat pumps and solar thermal systems will give your household hot water at a lower cost to you and the planet, heat pumps are the more convenient and budget-friendly choice for most Australian homes.”

A big advantage of heat pumps is they work in all weathers – hot or cold (down to around -5 degrees Celsius) – and at night.

The same can’t be said for solar hot water systems which require sunlight to operate.  If it’s overcast or shady, a solar hot water system will need an electric or gas booster.  And when the sun goes down, the electric or gas booster will need to run to generate more hot water for your home.

The great thing about hot water heat pumps is they are incredibly efficient.  On average, heat pumps generate 3.5 to 4 times more energy – in the form of hot water – than the electricity they consume.  That’s because they use ambient heat in the outside air and send that heat – by pumping it – into water in the storage tank.

And if the heat pump is set up to work with your solar power system, they can run off your free solar electricity rather than grid power – reducing your energy bills still further.

How much could I save with a hot water heat pump system?

Victorian households can save between $200 and $600 a year on their hot water costs by installing an energy efficient heat pump hot water system.  These savings are based on running the heat pump using grid electricity.  If you connect the heat pump system to a solar panels system, the savings will be even greater – potentially even $0 hot water.

Hot water systems estimated running costs

hot water running costs

What are the eligibility criteria for the solar hot water rebate?

Victorian homeowners are eligible to receive a solar hot water rebate for an approved solar hot water or heat pump hot water system through the Victorian Government’s Solar Homes Program if:

  • You have a combined household taxable income of less than $180,000 per year
  • Your property is valued at under $3 million
  • You have not already received a solar battery rebate under the Solar Homes Program
  • You are the owner-occupier of the property
  • the hot water system to be replaced is at least three years old from the date of purchase
  • the property address has not already received a solar battery rebate under the Solar Homes Program
  • the heat pump or solar hot water system is on the Solar Homes program approved products list

How do I apply for the solar hot water rebate?

There are three steps to follow to apply for a solar hot water or heat pump rebate:

1/ Request a quote

You first need to obtain a quote for a suitable solar hot water or heat pump system. You also need to check that the system is on the approved products list for this program.

  1. Apply for eligibility

Contact Solar Victoria to request the documents that need to be completed. If you would like help with any aspect of the application process, contact SolarRun.

  1. Get the system installed

You can arrange for your system to be installed once Solar Victoria has sent you confirmation that you are approved for the rebate. The rebate is paid directly to your provider who deducts the value of the rebate from your invoice.


Are there any other rebates for hot water heat pumps?

Yes, hot water heat pumps also qualify for a federal government rebate called Small-scale Technology Certificates or STCs.  STCs are worth around $1000 off the purchase price of your heat pump in Victoria.

STCs for heat pumps are in addition to the Solar Homes hot water rebate, and they aren’t means-tested.  So that means that by combining the STCs and Solar Homes hot water rebate, you can get up to $2,000 off the cost of your heat pump system.

What’s more, if you’re upgrading from an inefficient older electric hot water system, you may also be eligible for another type of rebate called VEECs, or Victorian Energy Efficiency Certificates.

VEECs are worth around $1,500 and are in addition to STCs and the Solar Homes hot water rebate.

At SolarRun, we handle the STC and VEECs for you, so there are no forms to fill in.

As you can see from the table below, the total value of rebates for hot water heat pump systems for Victorian homeowners ranges from around $2,000 to $3,500.

Value of hot water rebates for Victorian homeowners

Inefficient older electric hot water systemOther hot water system that’s at least 3 years old
Solar Vic hot water rebate$1,000$1,000
Total rebates$3,500$2,000


What’s the best hot water heat pump?

At SolarRun, we supply and install leading hot water heat pump systems for customers throughout Victoria and the rest of Australia. Our heat pump systems have amongst the highest efficiency ratings and provide outstanding electricity savings.

With a heat pump from SolarRun, you’ll have plenty of hot water, both day and night. Our all-in-one heat pumps come in sizes to meet the needs of both small and large households.

All heat pumps supplied and installed by SolarRun are on the approved products list for the Victorian Solar Homes Program, VEECs Program and for the STC federal government program.

And because we’re also a Clean Energy Council Accredited Solar Retailer and Installer, we can also design and install a solar panel system to power your heat pump and the rest of your home.  Plus, we can set up the heat pump correctly to ensure that it’s powered by your solar during the daytime – and overnight if you also get a solar battery.

Get in touch

If you’d like advice and/or a quote for heat pump hot water system, get in touch.  And if you’re keen to know more about how it works with solar panels – or would like to request a quote for solar panels or battery storage – we can help with that too.

Why Choose SolarRun?  Check out this post.

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