Water heating

Did you know that water heating can account for 16 per cent of the average Victorian energy bill and that it may be possible to reduce these costs by upgrading to more efficient technology?

Households and businesses often have old water heating appliances which are inefficient.

The Victorian Government is committed to helping households and businesses reduce their bills by offering financial incentives for replacing an old inefficient hot water system for a more efficient one, or simply installing a new system.

All Victorian households and businesses that either want to replace an old inefficient hot water system for a more efficient one or purchase a new system, are eligible to participate.

By participating, you can save money on the initial upgrade costs, reduce your energy bill and help the environment.

Am I eligible to participate?

All Victorian households and businesses that either want to replace an old inefficient hot water system or simply purchase a new efficient one, are eligible to participate.

What are the benefits of an energy efficient hot water heater?

An energy efficient water heater has the potential to reduce energy bills significantly.

The table below shows the estimated average annual savings from replacing an existing water heater with a high efficiency water heater in a study of 60 existing (pre-2005) houses.

Existing Replacement Annual Savings
Gas instantaneous High efficiency gas instantaneous $46
Gas boosted solar $120
Gas storage High efficiency gas $60
Gas boosted solar water heater $190
Electric storage system High efficiency gas instantaneous $356
Gas boosted solar water heater $510

(Source: Sustainability Victoria 2017)

What discounts are available?

Existing electric system

You could be eligible for an upgrade to your water system by:

  • adding a solar retrofit kit to your existing electric hot water system
  • replacing your system with a high-efficiency gas/LPG hot water system
  • replacing your system with an electric-boosted solar hot water system or heat pump water heater
  • replacing your system with a gas/LPG solar-boosted hot water system

To compare the monthly cost of operating different hot water systems visit our appliance calculator.

Existing gas system

If you have gas hot water at home or work, you could be eligible if you:

  • add a solar pre-heater to your existing gas/LPG hot water system
  • replace your old system with a solar-boosted hot water system.

Further information about hot water systems and savings is available from Sustainability Victoria.

How to participate?

You need to use the services of an accredited provider which must use Victorian Energy Upgrades products. To be approved, each product must be registered by the administrator of the program, the Essential Services Commission, and meet minimum efficiency, quality and safety benchmarks. These products can be purchased directly from the accredited provider or from a third party. Make sure to ask your accredited provider for more information about how this works.

How to choose an accredited provider?

As with any market, it's worth shopping around and working out the right fit for your needs. Check the table below to find an accredited provider in your area but, when searching, remember to find the best deal by following these tips:

Check out accredited providers

There is a range of businesses accredited under the Victorian Energy Upgrades program offering different types of products, services, expertise and costs. 

Ensure the product's suitability

There are a lot of products approved for installation as part of the Victorian Energy Upgrades program. Not all products are of the same quality or suitability for all working environments.

Check the level of incentive

The amount of incentive an accredited provider gives to its customers for participating in Victorian Energy Upgrades can vary.