Hot Water System Upgrade · VIC
Hot Water System Upgrade under VIC Govt. Rebate Program in 2026 .
- Accredited installers
- We handle the rebate paperwork
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30-second form · real human follow-up · no obligation.
Love it, definitely a great investment 🙏
Lily
Starting from
$3,000 after rebate
Fully installed · eligibility applies
Government hot water replacement scheme for Vic homeowners & businesses
Significantly reduce their water heating bills
Make environmentally-friendly choices
Help in meeting the goals of the VEU rebate program and the state’s climate action targets.
Replace old water heater with air-source heat pump
Who is eligible for hot water system upgrade in Victoria?
All homeowners and businesses in Victoria with electric and gas water heaters are eligible for the government-sponsored heat pump-driven hot water system upgrade. To be eligible, the upgrade must be undertaken at:
A residential/business premises
Heat pump is 10 years or older (applicable for businesses only)
Class 2 building (i.e., common area of a multi-residential building, applicable for businesses entities)
Choose Your Heat Pump Hot Water System
Upgrade your hot water system with an energy-efficient heat pump and take advantage of available Victorian government incentives.
Midea
- High-efficiency heat pump technology
- Eco-friendly R290 refrigerant
- Wi-Fi enabled smart control
- Solar PV compatible
- Low operating noise
- Wide operating temperature range
Emerald Energy
- High-efficiency DC inverter technology
- Wi-Fi enabled app control & monitoring
- Low global warming potential
- Silent & boost operating modes
- Compact all-in-one design
- Ideal for medium-sized households
Emerald Energy
All-In-One 320L Heat Pump
- High-efficiency DC inverter technology
- Wi-Fi enabled app control & monitoring
- Low global warming potential
- Silent & boost operating modes
- Large 320L storage capacity
- Ideal for larger households
Which hot water systems are eligible for government rebates?
The heat pump water heating unit must be listed in the product registry of the ESC (Essential Services Commission).
The unit must have an insulated water storage of volume less than 700 liters
It is capable of achieving at least 60 percent of the annual energy savings.
It has a refrigerant of global warming potential (GWP) of less than 700.
It meets minimum energy efficiency and performance requirement as listed in the VEU program.
Is the replacement free?
No. There is a minimum customer co-payment of just $200 for hot water heat pump upgrade in businesses. However, homeowners can get up to $3,000 in government rebates if they install it under the VEU scheme, which is a carbon emission reduction scheme legislated by the Victorian government.
How to claim the rebate?
Get in touch with us
Start your heat pump upgrade journey by getting in touch with our team.
Share your business address & property ownership document
Provide your business address and property ownership documentation.
Site assessment & consultation
We will send a licensed plumber to assess the site and discuss the process and the upgrade timeline.
Install the new heat pump
Once the assessment is done, we will install the new heat pump.
Licensed installation team
Installation by a team of VBA (Victoria Building Authority) licensed plumbers and A-grade electricians licensed by Energy Safe Victoria.
Old water heater decommissioned
Your old water heater is sent away for responsible decommissioning.
We will claim the rebate on your behalf
We take care of the rebate claim process, helping make the upgrade easier for you.
Start saving on your electricity bills!
Which hot water systems are eligible for government rebates?
The government rebate under VEU program are available for heat pump hot water units that meet the following prerequisites:
The heat pump water heating unit must be listed in the product registry of the ESC (Essential Services Commission).
The unit must have an insulated water storage of volume less than 700 liters
It is capable of achieving at least 60 percent of the annual energy savings.
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What is an air source heat pump driven hot water heater?
An air source heat pump uses electricity to extract ambient heat and utilize it to heat the water. Unlike conventional gas and electric water heaters that heat water by using electricity or burning gas, heat pumps don’t generate heat per se. They simply move it from one place to another.
A heat pump water heater works by extracting heat from the air and transferring it to the water in the tank. An air-sourced water heater system consist of:
Types of heat pump driven water heaters
We can classify heat pumps into three major groups:
Air source heat pumps (ASHPs)
Absorption heat pumps
Ground source (or Geothermal) heat pumps (GSHPs)
Air source heat pumps
ASHPs work by using a refrigeration cycle to transfer heat from the air outside the building to the inside of the building. These pumps are much more efficient than typical electric resistance water heaters.
Ground source heat pumps (GSHPs)
Geothermal (ground-source or water-source) heat pumps use soil as the source of heat. Loop pipes are dug into the ground about six feet deep, where the temperature stays constant throughout the year and becomes an efficient heat source.
Absorption heat) pumps (AHPs
An air source heat pump uses electricity to extract ambient heat and utilize it to heat the water. Unlike conventional gas and electric water heaters that heat water by using electricity or burning gas, heat pumps don’t generate heat per se. They simply move it from one place to another.
Advantages of heat pumps over conventional water heaters
Upgrades are done under the VEU rebate program
Heat pump water heaters are more efficient than conventional electric resistance and natural gas water heaters
Environment-friendly: heat pumps are more environmentally friendly than conventional water heaters, which can emit greenhouse gases and contribute to air pollution.
Low maintenance cost
These heaters last longer
Safer than conventional heaters
How to choose a heat pump water heater?
Here are some major factors that you need to consider when switching from a gas/electric water heater to a heat pump:
- ✓ Size
- ✓ Types of water heaters
- ✓ Energy-efficiency
- ✓ COP (Coefficient Of Performance)
- ✓ Heating capacity
- ✓ Smooth functioning
- ✓ Flow rate in case of tankless ASHP water heater
- ✓ First hour rating
Can heat pumps work in cold climates?
These systems are capable enough for performing in bone-freezing conditions, even if the temperature drops to 25 °C degrees thanks to advanced refrigeration technology.
These heat pump uses lower boiling point refrigerant liquid, and such refrigerants draw heat from sub-zero ambient temperatures and continue to flow through the evaporator coils of the heat pump.
AS/NZS
The product meets the AS/NZS 2712 standard.
Achievment
It achieves ≥60% annual energy savings
Dffers
It offers minimum water delivery temperature of ≥45 degree Celsius.
Factors that affect the performance of heat pumps
Things to consider before installing heat pump hot water systems
Before INstallation
An installer should consider following factors before the installation:
Check the space and location: Make sure it has sufficient volume of space and the surface is firm.
Exhaust fan positioning: Before the installation, should check the interior of your place and where you plan to position the exhaust fan.
Tank size: Another important factor you need to consider is the size of the heat pump tank. Make sure your tank has sufficient water storage capacity.
Air circulation surrounding the unit
Keep the heat pump system upright even during the installation.
After INstallation
After the installation:
Your system is working fine.
Make sure there are no exposed wires.
How to choose among different sizes of heat pumps?
If your hot water usage is more than that, then you should opt higher tank size heat pump. Because, if you pick a small size tank, you’ll run out of hot water. We suggest that you upgrade the size of your tank over the current tank.
Heat pump size selection
Small (Tank size of 170-200 litres)
Medium (Tank size of 215-250 litres)
Large (Tank size of >300 litres)
Frequently Asked Questions
Heat pump water heaters can save you money on your energy bills, reduce your greenhouse gas emissions, and improve the energy efficiency of your home. They are also quieter and more reliable than traditional water heaters.
All Victorians that have an existing gas or electric water heater are eligible to apply for the upgrade under the VEU program.
Savings vary based on usage and climate, but most households can expect significant reductions in water heating costs, often up to 60% or more.
Savings vary based on usage and climate, but most households can expect significant reductions in water heating costs, often up to 60% or more.
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Let's Talk Efficiency
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