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Thinking about replacing an old hot water system in Burwood? Before choosing your next unit, it’s worth checking whether you’re eligible for Victoria’s hot water rebate.
Through the Solar Homes Program, eligible Victorian owner-occupiers can receive a rebate of up to $1,000 towards an approved heat pump or solar hot water system. Choose a product that qualifies for Solar Victoria’s locally made incentive, and the rebate can increase to up to $1,400.
There are a few rules to know before getting started, though. The rebate is administered by Solar Victoria, and installations under the program need to go through an authorised hot water retailer using an eligible product.
If your current system is getting old or unreliable, Moz Plumbing provides hot water services in Melbourne and can help with the plumbing side of repairing or replacing your system.
Here’s what Burwood homeowners need to know about the rebate, eligibility requirements and upgrading an ageing hot water system.
The hot water rebate is part of the Victorian Government’s Solar Homes Program. It’s designed to help eligible households reduce the upfront cost of replacing an existing hot water system with an energy-efficient heat pump or solar hot water system.
The rebate is calculated at 50% of the purchase price after other eligible discounts have been applied, up to a maximum of:
Not every heat pump or solar hot water system qualifies. You’ll need to choose an approved product and meet the program’s eligibility and installation requirements.
You can check the latest eligibility criteria, rebate amounts and application requirements on the official Solar Victoria hot water rebate page.
As of September 2026, you may be eligible for the hot water rebate if:
The household income threshold changed from $210,000 to $150,000 on 1 July 2026, so be careful with older rebate information you may find online.
Solar Victoria can also apply exemptions in certain circumstances. Because eligibility criteria can change, it’s always worth checking your circumstances directly with Solar Victoria before committing to a new system.
The rebate applies to eligible heat pump and solar hot water systems.
However, simply buying a heat pump doesn’t automatically make the installation eligible. The product needs to appear on Solar Victoria’s current eligible hot water product list and the other program requirements need to be met.
There’s also a higher rebate available for selected locally made products.
Under Solar Victoria’s definition, a qualifying locally made product doesn’t necessarily need to be 100% manufactured in Australia. Products need to meet Solar Victoria’s specific local-content requirements.
That’s why it’s better to check the current Solar Victoria product list rather than assuming a system qualifies because it’s marketed as Australian made.
If you’re comparing manufacturers before choosing a replacement, our guide to the best hot water system brands in Australia covers some of the better-known options and what to consider when choosing between them.
The immediate saving is the rebate itself: up to $1,000 for an eligible hot water system or up to $1,400 for a qualifying locally made product.
There may also be other incentives available.
Eligible households may be able to combine the Solar Homes hot water rebate with a Victorian Energy Upgrades (VEU) hot water discount, potentially reducing the upfront cost further.
The savings don’t necessarily stop once the new unit is installed.
According to Victorian Government guidance, switching from gas to an efficient electric hot water system can reduce household energy costs. The actual amount you save will depend on factors such as:
There’s also the installation price to consider. If you’re working out your overall budget, have a look at our guide to hot water system installation costs for a better idea of the costs involved in replacing a system.
For a Burwood household with an ageing gas or electric storage system, it can be worth comparing the long-term running costs rather than simply choosing the cheapest replacement unit.
Heat pump hot water systems work differently from traditional electric resistance systems.
Rather than generating all their heat directly from electricity, they collect heat from the surrounding air and use it to heat the water in the tank. This can make them considerably more energy efficient than conventional electric resistance hot water systems.
They can be particularly attractive for homes with rooftop solar, where the system may be programmed to heat water during the day while the solar panels are producing electricity.
Of course, heat pumps aren’t automatically the right answer for every property.
Available space, household size, hot water demand, noise considerations, electrical requirements and the location of the unit should all be considered before choosing a system.
A good hot water upgrade is about finding the right system for the house, not simply buying whichever model has the biggest rebate attached to it.
Eligible solar hot water systems can also qualify for the Solar Homes hot water rebate.
These systems generally use roof-mounted solar collectors to heat water, with a booster available when there isn’t enough solar energy to meet the household’s needs.
Whether solar hot water or a heat pump makes more sense will depend on the property.
Roof orientation and available roof space, existing solar PV, household usage and installation costs can all affect the decision.
If you’re already considering replacing your hot water system, it’s worth looking at the overall installation and running costs rather than comparing purchase prices alone.
There’s an important point here: the rebate is administered by Solar Victoria, not by your local plumber.
To access the Solar Homes hot water rebate, you need to follow Solar Victoria’s application process and work with an authorised hot water retailer.
The general process involves:
For an approved installation, the rebate is paid to the authorised retailer and deducted from the amount you need to pay.
Because program requirements can change, always check the current process directly with Solar Victoria before paying a deposit or arranging an installation.
Anyone who has woken up to a cold shower knows a failed hot water system isn’t something you want to spend two weeks thinking about.
Solar Victoria has provisions for emergency hot water installations where an existing system has failed. However, specific conditions apply.
Don’t assume you can install any replacement system and simply claim the rebate afterwards. If accessing the rebate is important to you, check Solar Victoria’s current emergency installation requirements before proceeding.
If getting your hot water running again is the immediate priority, Moz Plumbing provides emergency plumbing services as well as hot water plumbing.
Not sure whether your problem needs urgent attention? Our guide to what is considered a plumbing emergency explains some of the situations where it’s better not to wait.
This is another good reason for Burwood homeowners with older gas hot water systems to start thinking ahead.
From 1 March 2027, when a gas hot water appliance in an existing owner-occupied Victorian home reaches the end of its life and can’t be repaired, it will generally need to be replaced with an electric alternative, subject to applicable rules and exemptions.
That doesn’t mean you need to remove a perfectly good gas hot water system before March 2027.
Existing systems can continue to be used, serviced and repaired. The change becomes relevant when an existing gas hot water appliance reaches the end of its life and needs replacing.
If you have other gas appliances or concerns about existing gas pipework, Moz Plumbing also provides gas line installation and repair and gas appliance installation.
So, if your gas hot water unit is already getting on in years, now is a sensible time to understand the options rather than waiting until it fails on a cold Melbourne morning.
Potentially, yes.
Eligible households may be able to combine the Solar Homes hot water rebate with other applicable incentives, including Victorian Energy Upgrades hot water discounts.
Exactly what you’re entitled to will depend on your circumstances, the system being installed, the retailer and the program rules in place at the time.
Rather than assuming several incentives can automatically be stacked together, check the current requirements before committing to an installation.
The Solar Homes hot water rebate covered in this article is currently aimed at eligible owner-occupiers, so it shouldn’t be confused with other Victorian energy programs available for rental properties.
Rental providers may have access to other incentives and energy-efficiency programs.
There are also changes coming for Victorian rental properties. From 1 March 2027, gas hot water systems in rental properties that reach the end of their life will generally need to be replaced with efficient electric systems, subject to the applicable rules and exemptions.
Landlords should check the latest Victorian Government requirements before arranging an upgrade.
The rebate can certainly make an energy-efficient system more attractive, but it shouldn’t be the only thing you consider.
Before replacing your hot water system, think about:
The cheapest unit upfront isn’t necessarily the cheapest system to own over the next decade.
It’s also worth thinking about recovery time and tank capacity. If running out of hot water is one of the reasons you’re replacing your existing unit, our guide to how long a hot water system takes to heat up explains how system type and tank size can affect the wait.
Moz Plumbing provides hot water and general plumbing services throughout Burwood and surrounding Melbourne suburbs.
Whether your existing unit has stopped working, you’re planning a replacement or you simply want to understand your plumbing options before choosing a new system, we can help you work out what makes sense for your property.
It’s important to remember that Solar Victoria manages the rebate program, eligibility and authorised retailer requirements. If you’re specifically looking to claim the Solar Homes hot water rebate, check the current Solar Victoria requirements before arranging your installation.
If you need help with the plumbing side, learn more about our plumbing services in Burwood.
Have a question about your existing hot water system? Contact Moz Plumbing and have a chat with the team about what’s happening with your system and what your next step might be.
Yes. As of September 2026, the Solar Homes hot water rebate is available to eligible Victorian households.
The maximum rebate is generally up to $1,000, increasing to up to $1,400 for eligible products that meet Solar Victoria’s locally made incentive requirements.
Program availability and eligibility requirements can change, so confirm the latest information with Solar Victoria before purchasing a system.
For applications from 1 July 2026, the combined taxable income of all property owners must generally be less than $150,000 per year.
The previous $210,000 threshold no longer applies to new applications.
No. The system needs to meet Solar Victoria’s requirements and appear on its eligible hot water product list. The homeowner and installation also need to meet the applicable program requirements.
The higher rebate is available to eligible households choosing a product that meets Solar Victoria’s locally made incentive requirements.
Check the current eligible product list and rebate conditions before choosing your system.
No. The Solar Homes hot water rebate is a Victorian Government program administered by Solar Victoria.
Eligibility, approved products and rebate payments are handled under that program. Moz Plumbing can assist with your plumbing and hot water needs, but homeowners wanting to claim the rebate should confirm the current Solar Victoria requirements before arranging their installation.
Solar Victoria has an emergency installation process for situations where a hot water system has broken down.
Specific conditions apply, so check the current emergency installation requirements before proceeding rather than assuming the rebate can automatically be claimed afterwards.
No. Under the Solar Homes hot water rebate process, the approved rebate is paid to the authorised retailer and deducted from the amount payable by the customer.
No. You don’t have to remove a functioning gas hot water system simply because the new rules begin.
From 1 March 2027, when an existing gas hot water appliance reaches the end of its life and can’t be repaired, it will generally need to be replaced with an electric alternative, subject to applicable rules and exemptions.
If your hot water system is getting old, becoming unreliable or costing more to run, it’s worth looking at your options before you’re left without hot water.
The Solar Homes rebate may make an eligible heat pump or solar hot water system more affordable, but eligibility and product requirements matter. Check the latest information with Solar Victoria first, then make sure the system you choose is suitable for your home and hot water needs.
For more information about the plumbing side of replacing a system, visit our hot water plumbing service or learn more about Moz Plumbing in Burwood.
And if you’re still not sure what you need, give Moz Plumbing a call. We’re happy to talk through the problem and help you work out the next step.



