In Victoria, homeowners can access several rebates and incentives to reduce the cost of upgrading to energy-efficient hot water systems, such as heat pumps and solar hot water units. These programs include Solar Victoria’s Hot Water Rebate, the Victorian Energy Upgrades (VEU) program, and the federal Small-scale Technology Certificates (STCs). Here’s an overview of each:

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1. Solar Victoria Hot Water Rebate

• What it is: A state government rebate offering up to $1,000 to assist with the purchase of an eligible heat pump or solar hot water system.

• Eligibility:

  • Owner-occupiers of existing properties.

  • Combined household taxable income under $210,000 per year.

  • Property valued under $3 million.

  • The hot water system to be replaced is at least 3 years old.

  • The property has not previously received a hot water or solar battery rebate under the Solar Homes Program. 

• How it works: The rebate covers 50% of the system’s cost, up to $1,000, after other incentives like STCs and VEECs have been applied. 

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2. Victorian Energy Upgrades (VEU) Program

• What it is: A state initiative providing discounts on energy-efficient products, including hot water systems, to help reduce energy consumption and greenhouse gas emissions.

• Eligibility:

  • All Victorian households and businesses.

  • Installation of an approved product by an accredited provider.

• How it works: Participants receive discounts when upgrading gas or electric hot water systems to more energy-efficient models, such as heat pumps. The value of the discount varies based on the type of system installed and the existing system being replaced.

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3. Small-scale Technology Certificates (STCs)

• What they are: A federal government scheme that provides financial incentives for installing eligible renewable energy systems, including solar and heat pump hot water systems. Rheem

• Eligibility:

  • Installation of an eligible system listed on the Clean Energy Regulator’s register.

  • System capacity limits apply (e.g., solar hot water systems up to 700 L, heat pump water heaters up to 425 L). 

• How it works: STCs are created based on the amount of electricity the system displaces over its lifetime. These certificates can be sold or assigned to installers in exchange for a discount on the system’s purchase price. 

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 Combining the Rebates

Homeowners can often combine these incentives to maximize savings:

1. STCs: Applied first as an upfront discount by the installer.

2. VEU Discount: Applied next, reducing the cost further.

3. Solar Victoria Rebate: Applied last, covering 50% of the remaining cost, up to $1,000.

For example, if a heat pump system costs $4,000:

• STCs: Reduce the cost by, say, $1,000.

• VEU Discount: Further reduce the cost by $500.

• Remaining Cost: $2,500.

• Solar Victoria Rebate: Covers 50% of this, i.e., $1,000.

• Final Out-of-Pocket Cost: $1,500

Note: The actual rebate amounts can vary based on system specifications and market conditions.

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How to Apply

• Solar Victoria Rebate:

  • Check eligibility and apply through the Solar Victoria website.

  • You’ll need to verify your identity and provide property and income details.

• VEU Program:

  • Contact an accredited provider listed on the Victorian Energy Upgrades website.

  • The provider will assess your eligibility and apply the discount directly.

• STCs:

  • Typically handled by the installer, who will factor the STC discount into the system’s purchase price.

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We are approved to access all these rebates to give you the best quote