Heat Pump Rebates

Federal Scheme Rebates (STCs)

Small-scale Technology Certificates (STCs) are part of a federal initiative administered by the Clean Energy Regulator, aimed at lowering the cost of energy-efficient upgrades—including heat pumps. Much like the incentive for solar installations, STCs provide a financial benefit that accredited installers generally apply as a discount on your installation quote.

The exact number of STCs you can claim varies based on factors such as the heat pump’s size, efficiency rating, and your location, but discounts often range from $400 to over $1,000. Since the STC scheme is set to gradually phase out by 2030, installing earlier typically means a larger incentive. You will not need to lodge any paperwork yourself if your installer manages the STCs.

Solar Victoria Rebates

In addition to federal STCs, the Victorian Government offers a $1,000 rebate for approved heat pump systems through Solar Victoria. To qualify, you must have a combined household income under $210,000, your property must be worth less than $3 million, and you must live in the home you own.

This rebate specifically applies to replacing an existing hot water system with an eligible heat pump, and you can find details on how to apply at the Solar Victoria Heat Pump Rebates page. Make sure to check the latest program rules, as eligibility criteria and rebate amounts can shift over time.

Victorian Energy Upgrades (VEU) Scheme

For heat pump hot water systems, additional savings may be available through the Victorian Energy Upgrades (VEU) scheme. Depending on the existing system you’re replacing and the efficiency rating of your new heat pump, rebates can range from a few hundred dollars to over $1,000.

Some households replacing older electric-resistive systems with high-efficiency heat pumps have reported receiving $500 to $1,200 in VEU discounts. It is important to work with an accredited VEU provider, as they handle the discount process during installation. To learn more about eligibility, application procedures, and potential savings, visit the Victorian Energy Upgrades website.