Heat pump hot water in 2026: rebates, running costs and Victoria's gas rule
Reviewed 22 October 2026. General information and illustrative estimates, not a quote or a guarantee of savings.
A heat pump hot water system is one of the cheapest electrification upgrades available to Australian households right now. It heats water using warmth from the air, using up to 75% less electricity than a standard electric storage system. Between federal certificates and state programs, the upfront discount can be well over $1,000 in some states.
We've published a full guide covering the 2026 rebates state by state, what a heat pump costs to run, and what Victoria's gas hot water rule means for your home.
Read the guide: Heat pump hot water in Australia →
In short:
- Federal STCs apply nationally as an upfront discount in your quote; your installer handles the paperwork.
- Victoria stacks a Solar Homes hot water rebate of up to $1,000 (up to $1,400 for eligible locally made products) with a VEU discount of up to around $560 when replacing gas. From 1 March 2027, an end-of-life gas system must be replaced with an electric one.
- New South Wales offers an Energy Savings Scheme discount, with a boosted rate in eligible postcodes until June 2027.
- South Australia's REPS supports efficient hot water upgrades; other states rely on the federal discount for now.
Run your own numbers in our heat pump running cost calculator, and when you're ready, get a quote from one verified, accredited installer who can confirm exactly which incentives your home qualifies for. Green, please.
Green Please writes plain-English guides to help Australian households compare solar panels, batteries, and eco-friendly home energy systems.