Replacing a hot water system is a significant expense — but there are Victorian and federal government rebates that can significantly reduce the cost. Here’s what Melbourne homeowners should know about available assistance in 2025.
Victorian Energy Upgrades (VEU) Program
The Victorian Energy Upgrades (VEU) program — formerly the Energy Efficient Homes package — provides point-of-sale rebates for switching to more energy-efficient hot water systems. The rebate is applied at the time of installation by accredited providers and reduces the upfront cost directly.
Eligible products include:
- Heat pump hot water systems — typically attract the highest rebates under VEU
- Solar hot water systems — eligible when replacing electric storage systems
The rebate amount varies based on your current system and the replacement product. Contact your installer or check the VEU registry for current values.
Small-scale Technology Certificates (STCs) — Federal Rebate
Under the federal Renewable Energy Target, solar hot water systems and heat pumps generate Small-scale Technology Certificates (STCs), which can be traded in for a discount on the purchase price. This federal rebate is separate from the VEU state rebate — you may be eligible for both.
The STC value changes quarterly and is based on your location’s solar zone (Melbourne is Zone 4). Reputable installers will apply the STC discount upfront rather than making you claim it separately.
Which Hot Water Systems Attract Rebates?
| System Type | VEU Rebate | STC Rebate |
|---|---|---|
| Gas storage → heat pump | ✓ | ✓ |
| Electric storage → heat pump | ✓ | ✓ |
| Any → solar hot water | ✓ | ✓ |
| Gas → gas continuous flow | Partial | ✗ |
| Gas → gas storage (same) | ✗ | ✗ |
How to Access Rebates in Melbourne
- Choose an accredited installer registered under the VEU program
- Select an eligible heat pump or solar hot water product
- The rebate is applied at point of sale — you pay the reduced price
- The installer handles the certificate paperwork
Sedcon Plumbing can advise on the best hot water system for your household and whether you’re eligible for available rebates. Call 0468 013 012 or see our Melbourne hot water system cost guide.