Hot water system discounts 

Discount amount

Certain hot water systems attract an STC discount under the Australian Government’s Small-scale Renewable Energy Scheme.

The discount amount varies depending on your location, the size of your system and the value of STCs when you install – but it can be from around $450 to $600.

STCs are typically claimed by the installer, who will pass this discount on to you. You’ll see the discount on your invoice.

The STC value reduces each year.

Eligibility criteria

To be eligible for STC discounts, you need to install:

• a solar water heater with less than 700 L storage (if your model stores over 700 L, you’ll need to supply extra documentation to be eligible for certificates), or
• an air source heat pump with less than 425 L storage (many heat pump hot water systems use air source technology).

Eligible water heater systems

The hot water system you choose must be on the Clean Energy Regulator’s Register of solar water heaters.

Installation requirements

The installation must meet installer licensing requirements set by relevant state or territory governments.

Rebate amount

You may also be able to claim the Solar Homes hot water rebate of up to 50% of the purchase price (capped at $1,000) of an efficient electric hot water system. This amount is calculated after all other discounts have been applied. A further rebate of up to $400 is available if you install a locally made product.

How to get the rebate

To get the rebate:

• you’ll need to meet eligibility criteria
• you’ll need to ask for a written quote for an approved product from an authorised Solar Homes Program retailer
• your installer will upload it into the Solar Victoria portal, which generates an email confirming your quote is uploaded
• you’ll use the link in your confirmation email or go to the Solar Victoria website to apply for the rebate.
  

Government rebates can change. Visit Solar Victoria’s hot water rebates for the latest information.

Emergency exceptions

An exception applies for emergency installations. If your hot water system breaks down is or unsafe, you don’t have to prove you’re eligible before installing a replacement system. You must still get the installation done by an authorised retailer and install an eligible product. Then, as soon as possible after the installation, you must prove you’re eligible for the rebate. And if you don’t meet eligibility criteria, you may not receive a rebate.

Eligibility criteria

To be eligible for the Solar Homes Program rebate:

• you must be the owner-occupier of the existing property where you plan to install the hot water system
• the household taxable income of all owners combined must be less than $210,000 per year
• the value of the property must be under $3 million
• you must not have already received a hot water discount or solar battery rebate at the installation address
• the hot water system you’re replacing must be at least 3 years old from the date of purchase.

If you did receive a Solar Homes Program rebate and/or loan but you’ve moved house, the good news is you can apply for another incentive at your new address – as long as you are the owner-occupier and if the new address has not received these rebates before.

Some exemptions apply to Solstice Energy Customers. Call Solar Victoria on 1300 376 393 from 9am to 5pm weekdays (except on public holidays) for more information.

Approved product list

The Solar Victoria website publishes a list of approved products, and a list of locally made hot water systems.

This approved product list consolidates the Clean Energy Regulator's Register of approved solar providers and the Essential Services Commission’s register of products.

Authorised Solar Homes Program retailer list

You must use an authorised Solar Homes Program retailer to be eligible for a Solar Homes rebate. (Where applicable, SEC-endorsed installers are authorised retailers under the Solar Homes Program.)

The Solar Victoria website publishes a list of authorised Solar Homes Program retailers.