Big Win for Heat Pump Hot Water: What Victoria’s Latest Energy Reforms Mean for You
Victoria is switching off gas—and heat pump hot water is stepping into the spotlight.
The Allan Labor Government has announced game-changing reforms that will reshape how Victorians heat their water. From 2027, gas hot water systems will be phased out at end-of-life and replaced with efficient electric options like heat pumps. For manufacturers, trades, and homeowners alike, this is a huge shift—and a massive opportunity.
Hot Water at the Heart of Victoria’s Energy Plan
The headline reform?
From 1 March 2027, when a gas hot water system reaches the end of its life, it must be replaced with an efficient electric system—like a heat pump.
This puts hot water systems front and centre in Victoria’s all-electric future.
Why? Because hot water typically accounts for 20–30% of a household’s energy use, and switching to a heat pump can dramatically reduce that load.
Triple Rebates Available Right Now
The Victorian Government isn’t just mandating the change—it’s making the switch affordable. Right now, households can access combined rebates totalling $2,400 to over $3,100 when upgrading to a heat pump hot water system.
1. Small-scale Technology Certificates (STCs) – Federal Rebate
- Applied instantly as a discount
- Based on your climate zone and system performance
- Usually worth $800–$1,100
2. Solar Victoria Rebate – State Rebate
- Up to $1,000 for eligible households
- Income and property value criteria apply
- Requires use of an authorised installer and application via Solar Victoria
3. Victorian Energy Upgrades (VEU) Program
- Often handled directly by approved providers
- May add another $600–$1000 in discounts
These rebates can be stacked—meaning many households are now paying significantly less for a premium heat pump hot water system.
How Much Can You Save?
According to the Victorian Government, switching from a gas hot water system to an electric heat pump could save:
- $330 per year on your energy bills
- $520 per year if your home also has rooftop solar
These are conservative estimates based on average usage and pricing. In our experience, many households—especially larger families or those using off-peak tariffs or solar optimisation—can achieve even greater savings.
Over the life of the unit, this adds up to thousands of dollars saved, all while reducing emissions and future-proofing your home against rising gas prices.
Key Changes Coming in 2027
Here’s what to expect as the reforms roll out:
- Gas Hot Water Replacements: From 1 March 2027, gas hot water systems at end-of-life must be replaced with a heat pump or efficient electric system.
- Rental Properties: Landlords must comply with the same heat pump requirement and also upgrade heaters, insulation, and draught sealing at lease start.
New Homes: From 1 January 2027, all new homes in Victoria must be all-electric—no gas plumbing.
Are You an Installer? Get Ahead of the Curve
Victoria’s heat pump transition is creating a wave of opportunity for installers, builders, and solar retailers.
Become an ætherPro Certified Installer
Join our growing installer network and get access to:
- Exclusive pricing
- Smart, efficient heat pump units
- Full rebate support
- Marketing tools and lead referrals
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We support our ætherPro Certified Installers with training, materials, and leads to help you grow as demand for electric hot water explodes across the state.
Why Heat Pumps Are the Future of Hot Water
Heat pumps are 4 to 5 times more efficient than gas or electric storage heaters. They absorb heat from the air and transfer it into the water tank using minimal electricity.
They are:
- Quiet and space-saving
- Ideal for pairing with solar
- Low maintenance
- Eligible for all major rebates
As gas becomes more expensive and less available, heat pumps are simply the smarter way to heat your water.
For Homeowners: Act Now, Save More
Get a Quote from an ætherPro Certified Installer
Take advantage of generous rebates and future-proof your home. All installations through our network meet the highest standards.
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Whether you’re replacing an old gas system, planning a renovation, or building new, the time to act is now.
Final Word
Victoria’s energy reforms have put hot water—and especially heat pumps—at the centre of the state’s low-emissions future. For households, renters, and trades, this is a win-win: lower bills, cleaner energy, and stronger long-term compliance.
At æther, we’re proud to be part of the solution.