Starting July 1, thousands of Victorian households will be eligible for a new $400 cash rebate, as part of a state initiative aimed at reducing energy costs and supporting local manufacturing.
This new energy rebate is part of a broader effort to make energy-efficient products more accessible to residents while also benefiting the Australian economy.
Overview of the $400 Energy Rebate
Victorian households will now have the opportunity to receive a $400 energy rebate if they install an Australian-made efficient hot water system.
This initiative is designed to help families reduce their energy bills and encourage them to switch to more energy-efficient systems.
This measure is part of the ongoing efforts to combat the rising cost of living, giving residents an incentive to invest in sustainable, locally manufactured hot water products.
This new rebate is in addition to the existing energy rebate of up to $1,000 that is available for residents upgrading or replacing their old water systems with electric or solar systems.
The combined rebates could give eligible households up to $1,400 to help offset the cost of a new hot water system.
Benefits of Energy-Efficient Hot Water Systems
The Victorian government states that installing a heat pump hot water system alone can save households up to $330 per year on their electricity bills.
Hot water systems account for up to 30% of total household energy use, so switching to an energy-efficient system could significantly reduce overall energy consumption.
By encouraging residents to install Australian-made hot water systems, the state government aims to boost the local manufacturing sector, creating more jobs and keeping money within the local economy.
Key Benefits of the New Rebate:
| Benefit | Details |
|---|---|
| Rebate Amount | $400 for Australian-made hot water systems |
| Eligible Households | Victorian households with taxable incomes below $210,000, for properties valued under $3 million |
| System Savings | Up to $330 per year on electricity bills |
| Existing Rebate Available | Up to $1,000 rebate for upgrading or replacing old water systems with electric or solar hot water systems |
| Rebate Total Potential | Up to $1,400 in rebates when combining the new $400 energy rebate with the existing $1,000 rebate |
| Installation Costs | Mid-size unit installations typically cost between $3,000 and $4,000 |
| Program Duration | The program begins on July 1, 2025, and is set to support an additional 27,000 households |
Eligibility Criteria for the Rebate
The hot water system rebate program is run by Solar Victoria and is available to eligible households in Victoria. To qualify, the following conditions apply:
- Taxable Income Limit: The household must have a taxable income of less than $210,000 annually.
- Property Value: The property value must be under $3 million.
- System Age: The hot water system being replaced must be at least three years old from the date of purchase.
The additional $400 rebate for Australian-made products will be available starting July 1, 2025, as long as the conditions are met.
The Impact on Local Jobs and Manufacturing
Minister for Energy and Resources, Lily D’Ambrosio, emphasized that the initiative would support local jobs by promoting Australian-made products.
She stated, “We’re on the side of Victorians — helping families cut energy costs and take back control of their bills.” This initiative not only helps reduce household energy costs but also ensures that money spent on energy-efficient hot water systems stays within the state, benefiting local manufacturers and workers.
Manufacturers and unions will be consulted ahead of the program’s launch to determine how to define local content for the rebate.
Additional Energy Support Measures
In addition to the $400 hot water rebate, the Victorian government has allocated $30 million in the state budget to assist an additional 27,000 households.
This funding will support the installation of electric heat pumps and solar hot water systems. Moreover, a new $100 energy bill rebate will also be available for concession cardholders, providing further support for low-income households.
The new $400 rebate for Australian-made hot water systems is a valuable initiative for Victorian households, offering financial relief amid rising energy costs.
By supporting local manufacturing and encouraging energy-efficient upgrades, the program not only helps reduce household bills but also boosts local economies.
FAQs
How much can I save with the new energy rebate on hot water systems?
You could save up to $330 annually on your electricity bills by switching to an efficient hot water system.
What is the total amount I can receive from the energy rebates?
Households can receive up to $1,400 by combining the $400 rebate for Australian-made products with the existing $1,000 rebate for upgrading to electric or solar systems.
When will the rebates be available?
The new $400 rebate will be available from July 1, 2025.