Hot Water Heat Pump Rebate Changes from 1 July 2026: What Victorian Households Need to Know

Thinking about upgrading to an energy-efficient hot water heat pump? There's an important change to rebate eligibility coming on 1 July 2026 — and acting before 30 June could be the difference between qualifying and missing out.

Solar Victoria has announced new settings for the Solar Homes Program that change who can claim a rebate. The good news first: the rebates themselves aren't shrinking, and the program is continuing. What's changing is the household income limit that determines eligibility.

What's actually changing?

From 1 July 2026, the combined household income cap for both hot water and solar panel (PV) rebates is being lowered. If your (or your renters') combined household income sits above the new threshold, you'll no longer be eligible for these rebates.

The change is designed to target support toward the households feeling cost-of-living pressure most, including renters and lower-income families. According to Solar Victoria, more than 80% of existing program customers would still qualify under the new $150,000 cap — but if your household income falls between $150,000 and $210,000, this change affects you directly.

Are the rebate amounts changing?

No — the rebate amounts aren't changing. If you're eligible, the value of the rebate stays the same. Under the Solar Homes Program hot water rebate, households can access:

• Up to $1,400 towards a locally made (Australian-made) hot water product
• Up to $1,000 towards other eligible hot water products

Many of the heat pump systems we supply and install — including Australian-made stainless steel tank options — are designed to help you make the most of these incentives. Hot water rebates can also work alongside federal Small-scale Technology Certificates (STCs), further reducing your upfront cost.

Which heat pumps qualify for the rebate?

NewGen is an authorised supplier and accredited installer of Australia's leading heat pump brands for homes across Melbourne and Victoria. Our most popular hot water heat pump systems include:

• Panasonic CO₂ Heat Pumps — the ultimate for quietness, fast recovery rate and a high coefficient of performance, backed by a comprehensive 10-year parts & labour warranty.
• Sanden Eco Plus — proven CO₂ performance & reliability with a long Australian track record; a system we've trusted and installed since 2012.
• Aquatech — flexible, great-value R290 systems from an Australian hot water specialist with more than 20 years in the local market, engineered for Australian conditions.
• Reclaim Energy — a popular CO₂ choice with many tank options and a clever control system, all backed by the Reclaim team's responsive, Australian-based customer service and support.

All of these systems are eligible for Victorian and federal hot water rebates (subject to eligibility), so the change to the income cap applies regardless of which brand you choose.

What this means if you're considering a heat pump

Switching from gas or an old electric storage system to a modern CO₂ hot water heat pump is one of the most effective ways to cut your energy bills and lower your home's emissions. If your household income is between $150,000 and $210,000, the window to secure a rebate at the current cap is closing.

Because applications must be submitted in full by 5pm on 30 June 2026, it pays to get your system selected and your paperwork moving well before the deadline. Quotes, product selection and eligibility checks all take a little time — leaving it to the last week risks missing out.

A few things worth knowing

• Your install doesn't have to happen by 30 June. As long as your application is submitted in full by the deadline, installation can take place afterwards — you have up to 120 days from approval to complete it.
• Thousands of rebates remain available through to 30 June under the current $210,000 cap.
• An additional 27,000 hot water rebates are expected to be available in 2026–27 for those who remain eligible.

How to apply before 30 June

If your household income is between $150,000 and $210,000, here's how to secure your rebate under the current cap before the deadline:

1. Check your eligibility. Confirm your combined household income and that your property qualifies under the Solar Homes Program.
2. Choose your system. Select a hot water heat pump that suits your household — NewGen can help you compare brands and sizing.
3. Get a quote. Request a written quote from an accredited installer (that's us) so your paperwork is ready.
4. Submit your full application through Solar Victoria by 5pm on Tuesday 30 June 2026.
5. Install within 120 days of approval — your installation doesn't have to be finished by 30 June.

Frequently asked questions