Under Victoria's Energy Upgrade Program

Are you Eligible for Hot Water Heat Pump?

Rebates are now available through the program to upgrade/install your Hot Water Heat Pump!


Please check your eligibility by filling out the form below and we'll reach out with more details. You can specify the details so we have an idea.

Are you eligible for rebates in Hot Water Heat Pump under VEU?

Hot Water Heat Pump

A hot water heat pump system is an energy-efficient way to heat water using electricity rather than gas and the VEU program aims to reduce greenhouse gas emissions by making energy efficiency improvements more accessible to households and businesses. Under this program, installing a hot water heat pump can significantly lower your energy consumption, reduce greenhouse gas emissions, and qualify for government rebates, making it a cost-effective and environmentally friendly choice.

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Hot Water Heat Pump - Residential

For residential houses

How Hot Water Heat Pump Systems Work?

A hot water heat pump system in Australia works by using heat from the surrounding air to heat water. It is an energy-efficient way to heat water because it transfers heat instead of generating it directly. Here's how the system works step by step:

  • Air Extraction

    • The heat pump system extracts heat from the surrounding air using a fan. Even at relatively low air temperatures, there is still some heat energy that the system can utilize.
  • Heat Transfer

    • The extracted air is passed through an evaporator containing a refrigerant, which absorbs the heat from the air. This refrigerant changes from liquid to gas as it heats up.
  • Compressor Operation

    • The extracted air is passed through an evaporator containing a refrigerant, which absorbs the heat from the air. This refrigerant changes from liquid to gas as it heats up.
  • Heating Water

    • The extracted air is passed through an evaporator containing a refrigerant, which absorbs the heat from the air. This refrigerant changes from liquid to gas as it heats up.
  • Refrigerant Cycle Repeats

    • The refrigerant then flows back to the evaporator to absorb more heat from the surrounding air, and the cycle repeats. This process continues until the water in the tank reaches the desired temperature.
  • Water Storage and Use

    • The hot water is stored in an insulated tank, ready to be used for showers, washing, and other household purposes.
  • Energy Efficiency

    • Because a heat pump system extracts heat from the air rather than generating it from electricity or gas, it is highly energy efficient. Typically, for every unit of electricity used, the system can produce three to four units of heat.
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Statistics Reveal...

By switching to a hot water heat pump, you can significantly reduce energy consumption.


Households using heat pumps see up to 75% savings compared to traditional systems.


You can check out the source here.

Benefits Over Gas Hot Water Systems:
  • Energy Efficiency

    • Hot Water Heat Pumps: They are highly energy-efficient, using electricity to move heat rather than generate it, and can be up to four times more efficient than traditional electric or gas water heaters.
    • Gas Hot Water Systems: They burn fossil fuels, which is less efficient and contributes to greenhouse gas emissions.
  • Lower Operating Costs

    • Hot Water Heat Pumps: Due to their efficiency, they consume less electricity, leading to lower energy bills, especially when combined with renewable energy sources like solar power.
    • Gas Hot Water Systems: Gas prices can be volatile, and gas systems are generally more expensive to run.
  • Environmental Impact

    • Hot Water Heat Pumps: They have a lower carbon footprint, especially when powered by renewable energy, as they don't rely on burning fossil fuels.
    • Gas Hot Water Systems: They emit greenhouse gases and contribute to climate change.
  • Eligibility for Rebates

    • Hot Water Heat Pumps: Under the Victorian Energy Upgrades (VEU) program, homeowners may be eligible for rebates and incentives to install energy-efficient heat pumps, reducing the upfront cost.
    • Gas Hot Water Systems: They generally do not qualify for such incentives, making them a less attractive option financially.
  • Durability and Maintenance

    • Hot Water Heat Pumps: They have a long lifespan and require less maintenance than gas systems.
    • Gas Hot Water Systems: They may require more frequent servicing and have a shorter lifespan.

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