Free Heat Pump Hot Water Systems under VIC Government Program

Air-sourced heat pumps are 2 to 3 times more energy-efficient than conventional electric and gas-fired water heaters, making the switch to heat pumps an evident (and earth-friendly) choice. This upgrade is also a financially prudent (and feasible) choice for homeowners and businesses in Victoria.

For example, a case study conducted by the Australia Renewable Energy Agency (ARENA) in August 2022 found that a business in Kyneton, located in central Victoria, slashed their energy costs on water heating and saved over $500,000 in a year by replacing their water heater with a heat pump powered water heating system, coupled with a high voltage power supply upgrade.

The Victoria state government recently introduced heat pump activities (44A, 44B, 44C) as a part of the Victorian Energy Upgrades (VEU) program. This initiative allows homeowners and businesses in Victoria to replace their electric or gas-fired water heaters with exceptionally energy-efficient air source based heat pump water heating systems for free.

By participating in this voluntary activity, Victorians can:

• Significantly reduce their water heating bills
• Make environmentally-friendly choices in line with the goals of the VEU rebate program and the state climate action targets.

Who are eligible for free hot water system upgrade?

Businesses in Victoria with electric or natural gas-powered water heaters are eligible for a government-sponsored free upgrade to a heat pump-driven hot water system. To be eligible, the upgrade must be undertaken at:

• A business/non-residential premises
• The common areas of a building that is classified under Part A6 of Volume One of the Building
• Class 2 building (i.e., common area of a multi-residential building)

Is the replacement completely free?

Yes. The hot water heat pump upgrade is free in Victoria if it is done under the VEU scheme — which is a carbon emission reduction scheme legislated by the Victorian government.

How to claim the rebate?

To claim the rebate on a hot water system upgrade or replacement in Victoria, follow these steps:

• Get in touch with us
• Share your business address and property ownership document
• We will send a licensed plumber to assess the site and discuss the process and timeline of the upgrade
• Once the assessment is done, the old water heater will be decommissioned
• Installation by a team of VBA (Victoria Building Authority) licensed plumbers and A Grade licensed (by Energy Safe Victoria) electricians of a new integrated heat pump water heater
• We will claim the rebate on your behalf
• Start saving!