The Victorian State Government is helping Victorian families reduce their energy bills and boosting local manufacturing jobs by offering larger rebates for Australian-made products.
Minister for Energy and Resources Lily D’Ambrosio announced that Solar Victoria customers who choose an Australian-made hot water system will receive an extra $400 on their rebate, making it more affordable to install quality, locally made products while supporting local jobs.
From 1 July, households that choose an eligible hot water system made in Australia will receive a higher rebate of $1,400. The $1,000 rebate is still available for customers who prefer 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.
“We’re on the side of Victorians, helping families cut energy costs and take back control of their bills,” D’Ambrosio said. “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.”
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 component of the Solar Home Program, which saw a 151 per cent increase in installations from the previous year.
Customers still have a choice when deciding which product is right for their home, while ensuring Australian businesses and workers benefit from the State Government’s investment in hot water rebates.
Solar Victoria will consult with industry and unions ahead of its 1 July implementation, including developing the requirements to demonstrate local content.
This investment builds on over 400,000 rebates and loans approved as part of the Solar Victoria program since its inception in 2018. This led to the installation of more than 310,000 rooftop solar systems on Victorian homes, generating a total of 2.3 gigawatts of power capacity.
Victoria is home to a $39.2 billion manufacturing sector, supporting over 275,000 jobs and playing a vital role in driving the state’s economic growth and resilience.
To apply for a hot water rebate, visit solar.vic.gov.au/hot-water-rebate.
