What is the Solar Victoria rebate for solar hot water and hot water heat pumps?

What is the Solar Victoria rebate for solar hot water and hot water heat pumps?



The Victorian State Government, though Solar Victoria and the Solar Homes Program, offers a range of rebates for hot water, solar PhotoVoltaic (PV) systems and batteries for homeowners.
 
Homeowners can access both a solar hot water (and hot water heat pump), and solar PV rebates through the Solar Homes program.
 
However, homeowners cannot access both the solar PV and battery rebates . This means a homeowner can select to receive the rebate for:
  1. A hot water system and/or solar PV system, or
  2. A battery.

 

Rebates

Hot water

Solar PV

Battery

Option 1

✅

 

 

Option 2

 

✅

 

Option 3

 

 

✅

Option 4

✅

✅

 

The current scheme for solar PV and batteries will end June 2023. The solar hot water (and heat pump) rebate is ongoing.
The Solar Homes Program rebates will not impact the federal Small Technology Certificate scheme (STC). The STC rebate will be applied for through your supplier.
 In this article, we cover the solar hot water rebate.

Solar Victoria solar hot water rebate

The solar hot water rebate through Solar Victoria is available to assist in covering the upfront costs of installing a new hot water system.
 
The solar hot water rebates covers:
  1. A solar hot water system or,
  2. A heat pump hot water system
This rebate is available for existing homes replacing a hot water system that is at least three years old from the date of purchase.
This rebate is not available for new builds.

How much are the rebates?

The maximum rebate is $1,000.
 
The rebate will cover 50% of your system cost. So the amount you receive is dependent on the cost of your system.
 
Here are some examples of rebate amounts.

Hot water system

Rebate

$1,000

$500

$2,000

$1,000

$3,000

$1,00


The current rebate values will remain until June 2023.

How many rebates are available?

There are no current restrictions on the number of rebates available. There is also no end date for the scheme, so these rebates are ongoing.

Is there a loan option?

Currently, Solar Victoria does not offer a loan option for solar hot water.

Are there system size constraints on the rebate?

There are no system size requirements for the rebate. However, there are constraints on what products are approved.

Can I apply for both a solar PV system rebate and a solar hot water rebate?

The Victorian Government allows homeowners to apply for both the solar PV system rebate and the solar hot water rebate.
 
The solar hot water rebate also includes heat pumps.
 
The maximum amount for the solar PV rebate is $1,400.
The maximum amount for the solar hot water rebate is $1,000.
The maximum total for both rebates is $2,400.

Can I apply for both a solar PV system rebate and a solar battery rebate?

The Victorian Government only allows homeowners to apply for one of the rebate schemes.
 
Homeowners are only eligible for the solar hot water rebate or the solar battery rebate.
The solar hot water rebate has a maximum value of $1,000. If you apply for the solar hot water rebate and the solar PV rebate the total is $2,400. The solar battery rebate has a maximum value of $2,950.
The solar battery rebate is only available for existing homes not homes under construction. If you are constructing a home, we advise that you plan for the battery but wait until completion to install a battery.

An example costing case for the solar hot water rebate and the solar PV rebate

Solar hot water system cost

Solar hot water rebate

Solar PV system cost*

Solar PV rebate

Upfront cost for homeowner

$1,000

$500

$2,000

$1,000

$1,500

$2,000

$1,000

$2,800

$1,400

$2,400

$2,500

$1,000

$3,400

$1,400

$3,500


*The upfront cost of the solar PV system can be reduced by applying for an interest-free loan through Solar Victoria.

Can anyone access the rebate?

Residents in Victoria can access the rebate.
 
There are some eligibility criteria. For homeowners:
  1. Owners of an existing property
  2. Have a combined household taxable income of less than $210,000 per year
  3. The homeowner and/or property have not already received a solar battery rebate or a solar hot water rebate under the Solar Homes Program
  4. The property value of the existing home is under $3 million
  5. The hot water system to be replaced is at least three years old from the date of purchase
 
There are some eligibility criteria for the products:
  1. The products must be on the approved Solar Homes program products list.
The solar (heat pump) products that Energy Freedom Homes use are all authorised. If you are installing on your own, you can check the eligibility of your potential products here.

What is the process?

Unless it is an emergency, if you install a solar hot water or heat pump before your eligibility is approved, you will not receive a rebate.
There are two ways to apply for a rebate:
  1. Through your supplier
  2. You apply

Through your supplier

If you want to get a retailer to take care of the process they will need to be approved by Solar Victoria.
Our Trusted Tradies can all complete this process for you. Join an Energy Freedom Homes Masterclass and learn to identify your needs, gain expert installation advice, and meet trustworthy tradespeople. Check your Masterclass readiness now!
1. Seek a quote for your solar hot water or heat pump. You should advise the retailer that you intend to apply for the Solar Homes rebate and check if they can complete this process for you.
2. Once you have approved the quote they will submit the required information to Solar Victoria. Solar Victoria will contact you directly for any eligibility information they require.
3. Once approved (in approximately 5-10 days), the rebate will be provided directly to the retailer. Your retailer will then charge you the outstanding balance once your solar is installed. 

You apply

1. Seek a quote for your solar hot water or heat pump. You should advise the retailer that you intend to apply for the Solar Homes rebate.
It is recommended that you do not sign an acceptance for the quote or pay the quote until you have your eligibility confirmed.
2. You will need to get an eligibility pack from Solar Victoria. This can be done by contacting Solar Victoria or filling in this form. Once you have received your eligibility pack, complete and return to Solar Victoria via the secure link provided to you in the eligibility pack.
3. Solar Victoria will assess your application and inform you and your solar or heat pump hot water provider of the outcome of your application. Currently, this can take up to 8 weeks. 
4. You can organise for the hot water system to be installed. The rebate will be provided directly to the retailer. Your retailer will then charge you the outstanding balance once your solar is installed.
 
In this process your responsibility is:
  1. Agree to the quote
  2. Contact Solar Victoria for eligibility pack
  3. Complete eligibility pack and submit
  4. Check that the hot water system is on the approved list
The retailer's responsibility is:
  1. Provide a quote
  2. Claim the rebate amount
  3. Charge you the remaining balance once the rebate has been applied to the quote
Does this seem too confusing? Not to worry. Join an Energy Freedom Homes Masterclass and learn to identify your needs, gain expert installation advice, and meet trustworthy tradespeople. Check your Masterclass readiness now!

Next steps 

Ready to get a new hot water system, solar PV system or battery? Join an Energy Freedom Homes Masterclass and learn to identify your needs, gain expert installation advice, and meet trustworthy tradespeople. Check your Masterclass readiness now!
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Read to check your eligibility? Go to Solar Victoria's homepage here.

Reference

Solar Victoria. (2022). Solar hot water rebate. Retrieved  2023, from  https://www.solar.vic.gov.au/solar-hot-water-rebate