If you’re a homeowner, there’s a fresh reason to smile when it comes to your next hot water bill—and it could mean a cool $400 back in your pocket.
A new government-backed cashback initiative has just been launched, offering $400 for upgrading to Australian energy-efficient equipment at home. So what does this mean for you, and how can you take advantage of it? Let’s break it down.
From 1 July, eligible Victorians can claim a $400 discount when they upgrade or replace their old hot water system with a new, efficient electric or solar unit in Australia.
This isn’t just a one-off sweetener, either—it’s on top of the existing rebate, which already covers up to 50 per cent of the purchase price (capped at $1,000) for new systems.
So, if you’re considering making the switch, you could consider a combined saving of up to $1,400.
It is not too shabby, especially considering the average cost of buying and installing a mid-size electric or solar hot water system is between $3,000 and $4,000.
Why is the government doing this?
There are a couple of reasons. First, the Allan Government wants to boost local manufacturers and protect them from a flood of cheap imports.
Second, it’s about helping Victorians cut their energy bills and take control of their household expenses—something we can all support, especially with the cost of living on everyone’s mind.
Energy Minister Lily D’Ambrosio said, ‘We’re on the side of Victorians—helping families cut energy costs and take back control of their bills.’
She highlighted the tradition of locally made hot water products and the importance of keeping jobs and money in Victoria.
Who’s eligible for the rebate?
The scheme is open to households with a taxable income of less than $210,000 per year, living in properties under $3 million.
If you tick those boxes and are ready to upgrade your hot water system, you could be one of up to 27,000 households to benefit from the $30 million state budget scheme.
Solar Victoria, which runs the current rebate program, has helped more than 400,000 households with rebates and loans since 2018. This new initiative is set to build on that success.
What counts as ‘Australian-made’?
Here’s where things get a little tricky. Many hot water systems assembled in Australia still use some components made overseas.
To ensure the scheme genuinely supports local industry, the government will work with manufacturers and unions to define precisely what qualifies as ‘Australian-made’.
So, if you’re shopping for a new system, watch for updates on what brands and models are eligible.
The government is also considering policies requiring households to switch to electric systems once their old gas appliances reach the end of their life.
This is part of a broader push to electrify homes, reduce emissions, and future-proof Victoria’s energy grid.
If you’re interested, the process is straightforward. Head to the Solar Victoria website, check your eligibility, and follow the steps to apply for the existing rebate and the new $400 cashback.
Make sure you choose a system that meets the Australian-made criteria (once finalised) and keep your receipts handy.
Is it worth making the switch? Absolutely. You will save upfront with the rebates, but efficient electric and solar hot water systems can slash your ongoing energy bills. Plus, you’ll do your bit for the environment and support local jobs.
Are you considering upgrading your hot water system? Have you already switched to electric or solar? We’d love to hear your experiences—the good, the bad, and the steamy! Share your thoughts in the comments below.
Also read: These 5 roadblocks are standing in the way of energy-efficient homes
