Victorians to Get Extra $400 Rebate for Aussie-Made Hot Water Systems

Starting July 1, Victorian households can receive a new $400 rebate when they install an Australian-made, energy-efficient hot water system. This cost-of-living initiative is designed to support local manufacturing and help reduce household energy costs.

The new rebate is in addition to the existing rebate of up to $1,000 for replacing old systems with electric or solar models, allowing households to claim up to $1,400 in total.

Energy Savings

Hot water systems account for around 30% of a home’s energy use. Upgrading to a heat pump system can save households up to $330 a year on electricity bills.

Support for Local Manufacturing

The rebate is intended to boost demand for locally produced systems, making it more affordable for households to choose Australian-made products and encouraging spending within the state.

Manufacturers and unions will be consulted ahead of the rebate’s launch to help define what qualifies as locally made. The typical cost to buy and install a mid-size hot water system ranges from $3,000 to $4,000.

Additional Support Measures

The initiative comes just before changes to electricity pricing on July 1, which could see bills rise or fall slightly depending on the electricity zone. The Victorian government has allocated $30 million in the budget to support an additional 27,000 households installing electric heat pumps and solar hot water systems. A $100 energy rebate will also be available to concession cardholders.

Rebate Eligibility

The hot water rebate is run by Solar Victoria and offers 50% off the system’s purchase price, up to $1,000. To qualify, households must:

• Have a taxable income under $210,000 per year
• Own a property valued under $3 million
• Be replacing a hot water system that is at least three years old

The extra $400 rebate for Australian-made systems begins on July 1.

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