Up to $1,400 off a heat pump, after two other discounts come off first.
A Victorian heat pump hot water system can carry three discounts: federal certificates (STCs), the Victorian Energy Upgrades (VEU) discount, and Solar Victoria’s rebate of up to $1,000, or $1,400 for an eligible locally made product. The order matters, and so does a rule that starts on 1 March 2027.
Written by Juan Flinn, Content Editor · Reviewed by the Mission Green Energy Team · Updated October 2026
Three discounts,
one order.
The Solar Victoria rebate is calculated last, on what is left.
STCs
Small-scale technology certificates, taken off the price by the installer. They shrink each 1 January as the deeming period shortens.
VEU discount
Victorian Energy Upgrades certificates, applied by an accredited provider. Open to all Victorian households; the value moves with the certificate price.
Up to $1,000
50% of what is left after the first two, capped at $1,000, or $1,400 for an eligible locally made product.
Solar Victoria pays its rebate as 50% of the purchase price after STCs and VEU certificates have been taken off. On a cheaper system, half of what is left can be less than the cap, so a $1,000 rebate is a maximum, not a promise.
How the stack
plays out on a quote.
Illustrative round numbers. Your quote decides the real ones.
| Line on the quote | Imported heat pump | Eligible locally made heat pump |
|---|---|---|
| Installed price | $4,000 | $4,400 |
| Less STCs and VEU discount (illustrative) | −$1,200 | −$1,200 |
| Left after both | $2,800 | $3,200 |
| Solar Victoria rebate (50%, capped) | −$1,000 (cap) | −$1,400 (cap) |
| You pay | $1,800 | $1,800 |
The certificate values change with the market and with the product, so ask for STCs, the VEU discount and the Solar Victoria rebate as three separate lines. A quote that folds them into one “rebate” figure makes it impossible to check what you were given.
Who can claim
the Solar Victoria rebate.
Each test is yes or no.
- The combined taxable income of all owners is under $150,000 a year.
- The property is valued under $3 million.
- The hot water system you are replacing is at least 3 years old from its purchase date.
- The new system is an eligible heat pump or solar hot water product, installed by a Solar Victoria authorised retailer.
- The install is finished within 120 days of approval.
Solar Victoria says another 27,000 hot water rebates are available in 2026–27, and that it will keep administering hot water rebates after its solar panel rebate moves into the VEU program on 1 July 2027.
When your gas unit dies
after 1 March 2027.
The rule is about replacements, not working systems.
From 1 March 2027, a gas hot water system in an existing Victorian home that breaks and cannot be repaired must be replaced with an electric one, usually a heat pump. A gas system that still works can stay, and gas heating and cooktops are not affected. From 1 January 2027, new homes must be built all-electric.
Victoria votes on 28 November 2026. The Liberal–Nationals Coalition has pledged to reverse the ban on gas connections in new homes. As at 29 October 2026 we found no published position from either major party on the 1 March 2027 hot water rule. Our guide to Victoria’s 2027 gas rules tracks it.
If your gas unit is ten years old or more, replacing it on your terms, with the rebate and a planned install, beats an emergency swap on a cold morning.
Heat pump rebates in Victoria:
your questions, answered.
Solar Victoria pays 50% of the purchase price after STCs and VEU certificates are taken off, capped at $1,000, or at $1,400 for an eligible locally made product. A cheaper system can return less than the cap.
Owners whose combined taxable household income is under $150,000, with a property valued under $3 million, replacing a hot water system at least 3 years old. The new system must be an eligible product installed by an authorised retailer, within 120 days of approval.
Yes. The VEU discount and federal STCs come off the price first, and the Solar Victoria rebate is 50% of what is left, up to its cap. Ask for each one as a separate line on the quote.
Only when it fails. From 1 March 2027 a gas hot water system in an existing Victorian home that breaks and cannot be repaired must be replaced with an electric one. A working gas system can stay.
No. Solar Victoria says it will continue to administer hot water rebates after its solar panel rebate moves into the Victorian Energy Upgrades program on 1 July 2027.
Usually the VEU discount and STCs can cover most of a basic heat pump, so "free" often means a small unit with a large co-payment hidden elsewhere, or a unit too small for the household. Compare the installed price, tank size and warranty, not the headline.
Where these
figures come from.
Eligibility and amounts are taken from Solar Victoria’s hot water rebate page (updated 20 October 2026), the Essential Services Commission’s VEU program page and the Victorian Government’s building standards page. General information only.
- Solar Victoria — Hot water rebate
- Solar Victoria — 2026–27 hot water rebates
- Solar Victoria — Solar support moving to the VEU program
- Essential Services Commission — About the VEU program
- Victorian Government — Electric and efficiency standards for buildings
- Solar Victoria — Supporting Solstice customers