As Australians continue to navigate rising living costs, the Victorian government has announced a new energy rebate program aimed at easing the financial strain on households. Beginning on July 1, a $400 cash rebate will be available to Victorian households that install Australian-made, energy-efficient hot water systems. This initiative is part of a broader effort to encourage more sustainable practices while boosting local manufacturing. The rebate is designed to help households reduce bills while supporting Victoria’s local economy.
The new rebate will be in addition to the existing $1,000 rebate offered for upgrading to electric or solar water systems, meaning households could receive up to $1,400 for replacing outdated systems with more efficient models. The program also aligns with broader goals of reducing consumption and helping families regain control of their rising utility costs.
New Rebate Aims to Reduce Energy Costs
Hot water systems represent a significant portion of a household’s energy usage, accounting for up to 30% of total consumption. By switching to more efficient systems, households can reduce their electricity bills significantly. According to the Victorian government, installing a heat pump hot water system alone could save up to $330 per year on costs.
The introduction of the new $400 rebate for Australian-made products not only makes energy-efficient systems more affordable, but also supports local manufacturers. Lily D’Ambrosio, Minister for Energy and Resources, emphasized that this initiative would benefit both households and the local economy, stating, “We’re on the side of Victorians — helping families cut energy costs and take back control of their bills.”
Supporting Local Manufacturing and Jobs
In addition to providing savings for households, the new rebate scheme aims to boost local manufacturing. By encouraging the use of Australian-made hot water systems, the Victorian government hopes to sustain local industries and create jobs within the state. This initiative is designed to ensure that money spent on efficient products stays within Victoria, supporting workers and businesses across the region.
The rebate scheme is part of the government’s ongoing efforts to reduce energy costs for households while stimulating local economic growth. Local manufacturers and unions will be consulted ahead of the scheme’s launch on July 1, including discussions about defining what qualifies as “local content” in these products.
Energy Price Changes Ahead of Rebate Launch
The announcement of the $400 rebate comes just before expected electricity price rises set to take effect on July 1. Victoria’s electricity price changes will range from a $26 decrease to an increase of $90 across the five electricity zones operating within the state. As prices continue to fluctuate, the new rebate offers families an opportunity to mitigate the impact of rising energy costs by investing in more efficient systems.
The state government has allocated $30 million to support an additional 27,000 households who will install electric heat pumps and solar hot water systems under this scheme. Additionally, the government has introduced a $100 energy bill rebate for concession cardholders, further enhancing financial relief for vulnerable residents.
Eligibility and Application Process
To be eligible for the rebate, households must meet specific criteria. The $1,000 rebate for energy-efficient hot water systems is available to those with taxable incomes under $210,000 per year, and for homes valued under $3 million. The existing rebate covers 50% of the purchase price of the system, while the new $400 rebate is available specifically for Australian-made systems.
The new rebate will be administered by Solar Victoria, which manages the state’s hot water system rebate program. Homeowners will need to replace their old systems with more efficient models that are at least three years old. Households can apply for the rebate through the Solar Victoria website starting on July 1, when the program officially launches.
