Victorians struggling with rising living costs are about to get a welcome boost — a new $400 energy rebate will soon be available for households installing efficient, Australian-made hot water systems. Starting July 1, 2025, this rebate will help families reduce both upfront installation costs and ongoing energy bills.
Combined with an existing $1,000 rebate for heat pump or solar hot water systems, eligible households could receive up to $1,400 in total. The initiative is not only designed to help households take back control of their bills, but also to support local manufacturing and encourage a shift to more energy-efficient technology.
Here’s everything you need to know about this opportunity — including who’s eligible, how to apply, and how much you could save.
Why This $400 Rebate Is a Game-Changer
- Hot water heating accounts for about 30% of total household energy use in Victoria.
- Installing a modern heat pump hot water system can save a household up to $330 a year on electricity bills.
- The government is aiming to help thousands of households access energy-efficient technology and save money — while promoting local manufacturing jobs.
- The $400 rebate will be in addition to the existing up to $1,000 rebate already available to households replacing old systems with heat pump or solar hot water options.
With electricity prices also set to change on July 1 — ranging from minor drops to increases of up to $90 across different Victorian electricity zones — this new incentive is perfectly timed to help consumers reduce their reliance on grid energy and mitigate rising costs.
What’s Included in the Rebates
| Rebate Component | Amount Available | Notes |
|---|---|---|
| Standard Hot Water System Rebate | Up to $1,000 | 50% of purchase price, max $1,000 |
| Additional Rebate for Aussie-made System | $400 | New rebate starting July 1, 2025 |
| Total Rebate for Eligible Households | Up to $1,400 | Combined maximum savings |
| Annual Estimated Energy Bill Savings | Up to $330/year | Based on typical household use |
| Portion of Home Energy Used by Hot Water | Around 30% | Major area for potential efficiency gains |
Who Is Eligible?
Victorian households must meet the following criteria to qualify for the new rebates:
- Household taxable income must be under $210,000 per year.
- The property must be valued under $3 million.
- The current hot water system being replaced must be at least 3 years old.
- Installation must be completed by an authorised installer, using an approved product.
- The additional $400 rebate will apply only to Australian-made hot water systems. The exact definition of “local content” is being finalised in consultation with manufacturers and unions.
- Only one rebate per property applies (unless the homeowner moves to a new eligible property).
How to Apply
Applying for the rebate is a straightforward process, administered by Solar Victoria:
- Check your eligibility based on income, property value, and system age.
- Select an authorised retailer and obtain a written quote for your chosen system.
- Apply online via the Solar Victoria portal.
- Upload necessary documents, including proof of identity and income.
- Once approved, you’ll receive a QR code to confirm your eligibility with your installer.
- Installation must take place within 120 days of receiving your QR code.
- The rebate is paid directly to the installer, so you’ll only pay the remaining balance.
For emergency installations (such as when a system fails), applications can be submitted after installation.
Why Upgrade to a Heat Pump or Solar Hot Water System?
- Energy Savings: Switching from traditional electric resistance water heaters to heat pump or solar boosted systems can cut your energy costs by up to $330 per year.
- Environmental Benefits: More efficient systems reduce carbon emissions and overall energy use.
- Support for Local Industry: The new $400 rebate encourages Victorians to choose locally made products, helping keep manufacturing jobs in the state.
- Government Support: With $30 million set aside in this year’s budget to help an additional 27,000 households install electric heat pumps and solar hot water systems, now is the perfect time to make the switch.
Additional $100 Rebate for Concession Card Holders
In addition to the hot water system rebates, the government has also announced a new $100 energy bill rebate for eligible concession cardholders. This will further assist vulnerable households facing energy bill pressures this year.
Taking Back Control of Your Energy Bills
By combining energy-efficient upgrades with the latest rebates, Victorian households can take back control of their energy future:
- Slash energy bills by hundreds of dollars a year.
- Reduce reliance on grid electricity.
- Help cut household carbon emissions.
- Support local industry and jobs.
With electricity prices fluctuating and cost-of-living pressures rising, taking action now is a smart move for both your wallet and the planet.
Victoria’s new $400 energy rebate cash boost, launching from July 1, 2025, offers an exciting opportunity for households to upgrade to efficient, locally made hot water systems — and save money in the process.
With combined rebates of up to $1,400 and potential energy savings of $330 per year, this initiative empowers families to truly take back control of their energy bills.
If you’re considering a hot water system upgrade, now is the perfect time to act. Apply soon to maximise your savings and future-proof your home.
FAQs
Can I combine the $400 rebate with the existing $1,000 rebate?
Yes — if you choose an eligible Australian-made hot water system, you can receive both rebates for a total of up to $1,400.
How do I know if my hot water system is eligible?
Your current system must be at least 3 years old, and the new system must be chosen from Solar Victoria’s approved product list.
Can renters apply for this rebate?
The rebate applies to owner-occupied homes and certain other property types. Tenants should speak to their landlords about eligibility and upgrades.