Heat pump rebates in “huge demand” as households get rid of gas hot water

Applications to Victoria’s hot water upgrade scheme are coming in at a rate of 700 a week, prompting the state government to add a further 8,000 rebates to cater to the “huge demand.”

Victoria’s Labor government, which from January this year has intoruduced a ban on gas connections in new homes and government businesses, says the offer of $1,000 off the cost of installing a heat pump hot water system is being snapped up at a record rate across the state.

Victorian energy minister Lily D’Ambrosio says there has been 16,132 applications for the rebate so far this financial year – already marking a 224 per cent increase on the financial previous year.

To meet the booming demand, D’Ambrosio announced an expansion of the program, with 8,000 additional rebates on offer.

“Heat pump hot water systems have never been more popular – with more than 700 Victorians applying for the hot water rebate every week and 20,000 systems installed to date,” a statement said on Wednesday.

Solar Victoria, which runs the Solar Homes rebate scheme for the government, says installing a heat pump hot water system can save a household up to $400 a year on energy bills and when combined with rooftop solar, savings can be up to $1,400 a year.

The organisation says uptake of the hot water rebate has been particularly high in the City of Casey, in the outer south-eastern suburbs of Melbourne with 1193 households taking up the offer. It has also been popular in the outer south-west, with 968 households in Wyndham applying, and in Greater Geelong with 975 households.

“These residents join more than 350,000 Victorian households who have received a rebate or loan to take up rooftop solar, home batteries, heat pump hot water systems, and other energy efficient appliances since 2018,” Solar Victoria says.

D’Ambrosio says the Allan government is also offering free training to upskill plumbers through an $11 million workforce development program, as part of efforts to meet demand for new electric hot water systems..

“More Victorians than ever before are taking advantage of our rebates and switching to efficient electric technology – saving thousands of dollars and driving down emissions,” the minister said this week.

“We’re helping more Victorians save on the upfront cost of installation of heat pump or solar hot water systems and slash their energy bills every year after.”