Victoria Heat Pump Rebate Program
Helping Victorian Homes Save with Smarter Hot Water

What Is a Heat Pump Water Heater?
A heat pump water heater is a highly energy-efficient alternative to traditional electric or gas hot water systems. Instead of generating heat directly, it operates much like a reverse-cycle air conditioner — drawing warmth from the surrounding air and transferring it into the water tank.
This innovative approach allows households to achieve substantial energy savings while still enjoying consistent access to hot water. Heat pump systems are particularly suited to the Australian climate and are engineered to function effectively even during colder months.

Why Upgrade to a Heat Pump?
- Lower Energy Bills: Heat pumps use up to 70% less energy compared to conventional electric hot water systems.
- Eco-Friendly: Reduce your carbon footprint and help Victoria meet its energy efficiency targets.
- Reliable Performance: Designed to perform efficiently even in cold Victorian winters.
- Access Government Rebates: Victorian households can access generous rebates under the VEU program.
- Quiet Operation: Modern units operate as quietly as a refrigerator.
- Long Lifespan: Typically last 10-15 years with proper maintenance.
How Much Can You Save?
By switching from an electric storage hot water system to a high-efficiency heat pump, the average household can save between $300–$700 per year on energy bills. Over a typical 10-year system lifespan, that adds up to thousands in savings — plus environmental benefits.
System Type | Average Annual Energy Cost | Estimated Annual Savings |
---|---|---|
Electric Storage System | $1,000+ | – |
Gas Storage System | $800–$950 | Up to $350 |
Heat Pump System | $300–$500 | $300–$700 |
*Figures are indicative only and based on average household usage. Actual savings may vary depending on system size, usage patterns, and energy tariffs. Source: Sustainability Victoria, 2024.