Solar hot water rebate - Metropolitan Melbourne

Conventional water heating systems account for around 20% of a household's greenhouse gas emissions in Victoria. Install a solar water heater and you will reduce these emissions and also save up to 75% of your water heating costs.

There are currently four different incentives available to Victorians replacing an existing hot water system with a solar hot water system. Each incentive has varying eligibility requirements:

• Victorian Government Solar Hot Water Rebate - Regional and Metropolitan
• Australian Government Solar Hot Water Rebate
• Renewable Energy Certificates (RECs)
• Victorian Energy Efficiency Certificates (VEECs); also known as the Energy Saver Incentive.

Victorian Government Metropolitan Melbourne rebate

The Victorian Government Metropolitan Melbourne rebate of between $300 and $1500 is available to assist households in Metropolitan Melbourne to switch their existing gas hot water system or solar hot water system to solar.  A rebate is also available to applicants replacing an electric water heater and have installed ceiling insulation under the Australian Government's Energy Efficient Home Package.  For further information on the Victorian Government rebate's eligibility requirements see below.

The Victorian Government rebate is provided as a point-of-sale discount off the supply and installation costs to householders and is only available through participating manufacturers, suppliers and plumbers. Participating suppliers are responsible for both the supply and installation of the solar hot water system.

To find a Participating supplier, or a list of Solar hot water manufacturers, see the bottom of the page.

Australian Government rebate

The Australian Government's Solar Hot Water rebate of $1600 to install a solar hot water system or $1000 to install a heat pump hot water system is available to households replacing electric water heating.  For further information visit the rebates page at the website of the Department of the Environment, Water, Heritage and the Arts (link at bottom of this page).

Renewable Energy Certificates

The Commonwealth Government's Renewable Energy Certificates (RECs) scheme provides financial incentives to promote renewable energy. Certificates (RECs) are created when customer installs a solar hot water system.  For example, if the REC price is $45 and your installation attracts 30 RECs you could save $1350.

For more information please contact the solar hot water system manufacturer or visit the website of the Office of the Renewable Energy Regulator (ORER) at the link at the bottom of the page.

Victorian Energy Efficiency Certificates

The VEET (Victorian Energy Efficiency Target) scheme was introduced on 1 January 2009 and provides incentives to promote household energy efficiency. Certificates (VEECs) are created when customers replace their current hot water system for a solar hot water system.

Be aware that all metropolitan solar hot water installations completed from 1 January 2009 to 30 April 2009 or applications which receive preapproval by the 30 April 2009 are required to assign their VEECs to Sustainability Victoria.  Rebates will only be paid for installations during this period where evidence that the replaced system has been decommissioned is provided to Sustainability Victoria with the rebate application.  Installations completed after the 30 April 2009 may be eligible for VEECs.  For further information please visit the Essential Services Commission website (see link at bottom of page).

To check what rebates and incentives you may be eligible for please see the summary of incentives table below. The incentive is dependent on what is being replaced, your location and the solar system being installed.

Summary of incentives

1. Victorian Government Rebate
2. Commonwealth Government Rebate*
3. Renewable Energy Certificates (REC) eligible**
4. Victorian Energy Efficiency Certificates (VEEC) eligible***

Installation situation	1	2	3	4
For private homes (owner-occupied or permanently tenanted)
Replacing a natural gas or LPG water heater with a gas-boosted solar system	Yes	No	Yes	Yes
Adding a solar water heater to an existing natural gas or LPG water heater, as a preheater	Yes	No	No	Yes
Adding solar panels to an existing off-peak electric water heater either with a pump or by thermosiphon as a retrofit kit	Yes	No	No	Yes
Replacing an existing solar, wood, briquette or oil fuelled water heater with gas-boosted or electric solar system. Must be natural gas boosted if available in the street. Existing LPG boosted solar water heaters can only be replaced with gas boosted systems.	Yes	No	Yes	No
Replacing an electric water heater with gas-boosted or electric solar system (if natural gas is not available in the street) where the applicant has installed ceiling insulation under the Australian Government's Homeowner Insulation Program	Yes	No	Yes	Yes
Replacing an electric water heater with gas-boosted or electric solar system where applicant has not installed ceiling insulation under the Australian Government's Homeowner Insulation Program	No	Yes*	Yes	Yes
New homes and buildings installing a gas-boosted or electric solar system	No	No	Yes	No
For commercial buildings
New or existing buildings installing a solar water heater	No	No	Yes	No

* Conditions apply, refer to www.environment.gov.au/rebates or telephone 1800 808 571.

** Indicates whether a situation is eligible for a financial incentive through the Commonwealth Government's Renewable Energy Certificates (RECs) scheme. For example, if the REC price is $45 and your installation attracts 30 RECs you could save $1350. Your manufacturer can advise on RECs eligibility or visit www.orer.gov.au/swh

***Indicates whether a situation is eligible for a financial incentive through the Victorian Government's Victorian Energy Efficiency Certificates (VEECs) scheme.  For further information please visit the Essential Services Commission's website at www.esc.vic.gov.au/

Victorian Government Metropolitan Melbourne Rebate

Eligibility criteria

To qualify for this rebate, your residence must be located in Metropolitan Melbourne. If your residence is located outside of Melbourne, you may be eligible for the Regional Victoria Solar Hot Water Rebate.

To check what area you are in, see the Region checker link at the bottom of the page.

The rebate is available for your principal place of residence only (or a residence where there is a permanent tenant and the electricity/gas bills are in the name of the tenant). The installation must be in an existing home where the current water heater has been operating at that address for at least 12 months (or 5 years if replacing solar). Only one rebate per dwelling is allowed.

Rebates are not available to commercial and non-commercial entities; only individuals that are owner-occupiers or landlords may apply.

You are eligible for a rebate if you:

• Replace a natural gas or LPG water heater with a gas-boosted solar system
• Add solar to an existing natural gas or LPG water heater by installing a solar system as a preheater
• Add solar to an existing conventional off-peak electric water heater by installing a retrofit kit
• Replace an existing solar, solid fuel or oil fired water heater with a solar system. Must be natural gas boosted if available in the street. Existing LPG boosted solar water heaters can only be replaced with gas boosted systems
• Replace an electric water heater with gas-boosted or electric solar system (if natural gas is not available in the street) where the applicant has installed ceiling insulation under the Australian Government's Homeowner Insulation Program

Back to top

Rebate amounts

Rebates for complete systems will vary depending on the size of a system (amount of water produced), performance (its solar contribution) and its relative cost of installation. Better performing systems, or the ones that make the most effective use of the sun's energy, attract a higher rebate.

To find out how much rebate each accredited system is eligible for please see Rebate amounts for solar hot water systems in Metropolitan Melbourne at the bottom of the page.

An additional rebate of $200 is available where you live in a reticulated (mains) gas area and this is the first gas connection to the property. This rebate is only available if you are receiving the Victorian Government Solar Hot Water Rebate and cannot be claimed separately.

Rebate amounts are subject to change in response to availability of new incentives, adjustments to existing incentives or other market conditions.

Back to top

How to get the rebate

The Victorian Solar Hot Water Rebate takes the form of a point-of-sale discount to eligible households on the supply and installation of a solar hot water system and is only available through participating manufacturers, retailers and plumbers.

A participating supplier will check your eligibility, can pre-approve you for a rebate and provide a quotation for installation. Your pre-approval for a rebate will remain valid for 30 days.

To find a Participating supplier, or a list of Solar hot water manufacturers, see the bottom of the page.

Back to top

More information

For more information download the guidelines below, or call 1300 366 195, or contact us.

If you are a manufacturer, retailer or plumber and would like to join the Solar Hot Water Rebate Program please email us at rebates@sustainability.vic.gov.au.

Back to top