Victorian households that choose locally made electric hot water systems will be rewarded with a larger rebate, with the State Government aiming to boost local manufacturing jobs and reduce energy bills for families.
Victorian Minister for Energy and Resources, Lily D’Ambrosio, announced that Solar Victoria customers that choose an Australian made hot water system will receive an extra $400 on their rebate, making it cheaper to install quality local products while supporting local jobs.
From 1 July 2025, households that choose an eligible hot water system made in Australia will receive a higher rebate of $1400. The $1000 rebate will still be available for customers that choose to install other hot water systems.
This is backed by a $29.7 million investment in the Victorian Budget 2025–26 to help more Victorian households lower their energy bills by installing electric appliances in their homes.
The State Government said installing a heat pump hot water system alone can save a household up to $330 a year on electricity bills, accounting for as much as 30 per cent of total energy use – making them one of the largest contributors to energy consumption in the home.
Heat pumps are the most popular part of the Solar Homes Program, which experienced a 151 per cent increase in the number of installations from the previous year.
The Victorian Government said customers still have a choice when deciding which product is right for their home, while ensuring Australian businesses and workers benefit from the government’s investment in hot water rebates.
Solar Victoria will consult with industry and unions ahead of its implementation, including developing the requirements to demonstrate local content.
The State Government said the investment builds on more than 400,000 rebates and loans approved as part of the Solar Victoria program since 2018, which has led to the installation of more than 310,000 rooftop solar systems on Victorian homes – generating a total of 2.3GW of power capacity.
Victoria is home to a $39.2 billion manufacturing sector, which the State Government said supports more than 275,000 jobs and plays a vital role in driving the state’s economic growth and resilience.
Ms D’Ambrosio said the State Government is on the side of Victorians, helping families cut energy costs and take back control of their bills.
“We know there is a strong history of locally manufactured hot water products. We want to make sure local jobs are supported and that money spent in Victoria stays in Victoria.”
