Hot water systems are one of the biggest energy users in the home, accounting for around 21 per cent of total energy use (on average, according to YourHome) This can have a significant impact on household energy bills, but one way to keep these costs under control is to install an efficient hot water system such as a heat pump or solar hot water system.

Solar hot water and heat pump hot water systems use less energy to heat water at home, and can be run from renewable energy. Installing a more efficient solar hot water or heat pump hot water system can help reduce greenhouse emissions and energy bills. On average, households that install solar hot water systems can expect to save between $140-$400 per year on their electricity bills.

This is a great option for households where solar panels might not be suitable, or for households that already have solar panels installed.

Lower energy costs with both solar PV and hot water rebates

The Solar Homes Program is supporting eligible Victorian households to save even more. New and existing hot water customers can now apply for a solar panel PV rebate and loan, and interest-free solar battery loan to save even more with solar.

Start your research and learn more about what solar products best suit your home. Our hot water Buyers Guide have information to help you learn more about solar products so you can start talking to retailers and start saving more with solar.

More incentives for existing customers when they move house

Solar Victoria is making it easier for existing customers to access incentives when they move house.

If you received a hot water rebate at your old address and have moved house, you can now apply for multiple incentives for the property you have moved to.

This includes a solar PV rebate and loan, hot water rebate and battery loan, if you meet the eligibility criteria below.

You must be living in the property as your primary place of residence to apply.

Am I eligible?

As a Victorian householder, you could receive a hot water rebate if you meet the following criteria:

• you are the owner-occupier of an existing property where the system is to be installed
• the combined household taxable income of all owners is less than $210,000 per year
• the property is valued at under $3 million
• the property address has not previously received a hot water rebate or a solar battery rebate under the Solar Homes Program
• the hot water system to be replaced is at least three years old from the date of purchase.

Householders cannot receive the same Solar Homes rebate more than once. For example, if a householder has previously received a hot water rebate, they cannot receive another hot water rebate for the same property.

Once you're confident that you and your property meet the eligibility criteria, you can start the application process.

You should contact an authorised hot water retailer for a quote. To be eligible for a rebate, products must be on our products list.

Process for hot water installations

There are three easy steps to apply for a hot water rebate.

You should not install a solar hot water or heat pump hot water system until your eligibility has been approved by Solar Victoria – with the exception of emergency installations. If you install your hot water system before your eligibility is approved, you will not receive a rebate.

Step 1 - Obtain a quote

Contact an authorised hot water retailer to get a quote for your hot water system installation. You should advise your retailer you intend to apply for the rebate. A list of authorised hot water retailers is listed on our authorised hot water retailer page.

Obtaining a quote is necessary to apply for an eligibility number, which your installer will use to confirm that they can go ahead with your installation.

Solar Victoria does not recommend signing a quote acceptance or paying a deposit prior to receiving your rebate eligibility confirmation. As a minimum you should confirm with your retailer that any deposit is fully refundable.

Step 2 - Apply for the rebate

Applying for the rebate is easy through the hot water rebate portal. The process is different for existing customers and new customers, to learn more please refer to the guides below.

As a new Solar Victoria customer, you will need to provide the following to complete your application:

• your quote number from an authorised hot water retailer
• Two forms of ID. These can be a:

  • Driver’s licence or a learner permit
  • Medicare card
  • Australian passport
  • Australian birth certificate
  • Australian citizenship certificate
  • Foreign passport. This should be a foreign passport with a valid Australian Visa.
  • Immicard;
  • Proof of income - if there is more than one owner of the property, we require proof of income for all listed owners. If there is more than one listed owner, you will need to provide proof of income documents for each person from the same financial year.

Depending on your financial situation, see options for proof of income documents here.

You’ll need to make sure the names on both documents are the same. You can find out more about your Australian citizenship by visiting the Australian Government Department of Home Affairs (citizenship website).

Once you’ve submitted your application you’ll automatically receive an email to confirm we received your application. If we have all the information we need, your eligibility will be confirmed immediately. If not, we’ll need to review some of the details or ask for additional information.

Step 3 - Get the system installed

Once you have received confirmation of approval by Solar Victoria, you will be able to arrange the installation of the system by an authorised hot water retailer.

Please note that the product installed must be on our hot water product list.

The rebate will be paid directly to your retailer and deducted from your invoice – ensuring you only pay any outstanding balance once the system is installed.

Please note: The hot water rebate is calculated after any other discounts have been applied (including STC and VEEC) and is a 50% rebate on the purchase price of the system up to the value of $1000.

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