Commercial Hot Water Rebate Victoria
Fully Installed from $200 Per heat pump
Request a Callback!
Commercial Heat Pump Hot Water System Rebate for Businesses in Victoria
You may qualify for more than one Hot Water System
Check if your business qualifies for a rebate to replace your old water heater with a new and Energy-Saving heat pump hot water system!
Get a rebate when you switch to a heat pump hot water system
Water heating in commercial and industrial premises is a highly energy-intensive process with significant carbon footprints.
To reduce the carbon emissions in commercial and industrial sectors and help Victoria businesses reduce escalating energy costs, the state government is offering substantial rebates on the replacement of traditional gas and electric resistance water heaters with heat pump technology-based water heaters under the Victorian Energy Upgrades (VEU) program.
The state government is also committed to being a net-zero emission state by 2050 and cutting carbon emissions by 45-50% below 2005 levels.
To reach these targets, an incentive/rebate program for the replacement of the traditional water heaters and installation of heat pump-powered hot water systems was rolled out in February 2022 as an activity under the VEU Program.
Happy Customers
Darren had four commercial hot water systems installed at his dairy farm for only $800 out of pocket — thanks to the amazing team at iPromise Australia!
Heat Pump Water Heater Upgrade For VIC Businesses
Decommissioning of commercial and industrial gas or electric resistance water heaters and replacing them with heat pump-based water heaters is now done under the VEU program.
This upgrade activity began on February 1, 2022, under Part 44A of the Victorian Energy Efficiency Target (VEET) Regulations 2018 of the VEU scheme.
This scheme specifically incentivises:
- Activity 44A (i): Decommissioning of gas-fired commercial & industrial boilers and installation of air-source heat pump technology-based water heaters in place of the decommissioned water heaters.
- Activity 44A (ii): Decommissioning of electric resistance commercial and industrial boilers and switching them with air-source heat pump water heaters.
- Activity 44A (iii): Installation of commercial/industrial air-source heat pump water heaters (no decommissioning and replacement involved).
Is Your Business Eligible for Commercial & Industrial Heat Pump Water Heater Rebate?
The following entities qualify for rebates under the VEU Program:
- All Victorian businesses (with an active ABN) can apply.
- Buildings classified under Part A6 of Volume One (Farming Buildings) by the Victorian Building Authority (VBA).
- Class 2 (Apartment) buildings, as defined by the VBA.
In addition to the above criteria, the following conditions must be met:
- The upgrade activity (including decommissioning and installation of a new heat pump water heating system) must occur at one of the above-listed sites.
- The new heat pump water heating unit must be listed in ESC (Essential Service Commission) Register of Products for commercial and industrial heat pump water heating systems at the time of VEEC (Victorian Energy Upgrades Certificate) creation.
- The replacement and installation/upgrade must be undertaken by VEU Program accredited installers.
Which Water Heaters Are Eligible for Commercial Heat Pump Rebates?
In addition to getting listed in the Register of Products of Victoria Energy Upgrades scheme, the new heat pump unit must meet the following specs:
- The commercial heat pump must have an insulated water storage tank.
- If the storage tank has less than 700 litres volume, it must be certified to AS/NZS 2712 standard. If the storage tank has more than 700 litres volume, certification by AS/NZS 2712 standard is not necessary.
- It must offer a minimum water delivery of 45 degree Celsius temperature.
- It achieves minimum annual energy savings as specified by the Essential Services Commission.
- The unit meets the ESC-specified modelling requirements.
- There is no decommissioning of the existing water storage tank involved, the existing storage must be manufactured less than 10 years ago, and it should be insulated. The volume of the existing storage tank must be greater than or equal to the volume mentioned in the product manual.
Requirements For Commercial Heat Pump Installation & Decommissioning of existing Tank
In addition to getting listed in the Register of Products of Victoria Energy Upgrades scheme, the new heat pump unit must meet the following specs:
- The commercial heat pump must have an insulated water storage tank.
- If the storage tank has less than 700 litres volume, it must be certified to AS/NZS 2712 standard. If the storage tank has more than 700 litres volume, certification by AS/NZS 2712 standard is not necessary.
- It must offer a minimum water delivery of 45 degree Celsius temperature.
- It achieves minimum annual energy savings as specified by the Essential Services Commission.
- The unit meets the ESC-specified modelling requirements.
- There is no decommissioning of the existing water storage tank involved, the existing storage must be manufactured less than 10 years ago, and it should be insulated. The volume of the existing storage tank must be greater than or equal to the volume mentioned in the product manual.
