Heat pump hot water — Melbourne’s rebate, done properly
At Outright Plumbing, we have decades of combined experience delivering quality plumbing solutions. Our expert team of Melbourne plumbers is well informed on all the latest Victorian government regulations, will handle all the rebate paperwork, and install a heat pump hot water system that suits your household's needs.
What is the Victorian hot water rebate?
The Victorian Energy Upgrades (VEU) program offers significant rebates to Victorian households replacing old, inefficient hot water systems with heat pumps. Combined with federal Small-scale Technology Certificates (STCs), most SE Melbourne homeowners save between $500 and $1,000+ off the upfront cost. These rebates typically cover 50% of the purchase price of eligible systems.
The catch? The paperwork. VEU registration, STC assignment, and compliance documentation can be confusing - and some installers leave it entirely in your hands.
As accredited providers, Outright handles all of it. We are registered to manage the full rebate process. Your quote arrives with the rebate already applied, so you see exactly what you pay before we start. Not after.
Continuous Flow Electric
Electric continuous flow water units don't have a tank and only heat water when it runs through. This model prevents heat loss and is the most energy efficient
Electric Hot Water Tank Systems
Electric tank systems are a practical option for households that have no gas access. They feature a storage tank with an internal heating mechanism. These units heat up a large body of water for use throughout the day.
Continuous Flow Gas
Gas continuous-flow systems only heat water as it runs through it. With a faster flow rate than their electric counterpart, this unit is recommended for households with higher water requirements. As this is a gas hot water system, you have until March 2027 to get it installed.
Gas Hot Water Tank Systems
Gas storage tank hot water systems have a gas burner beneath their tanks, heating and storing large bodies of water for continual use throughout the day. You can currently still buy or service a gas hot water system, but as of 1st March 2027, you'll need to replace them with an electric unit at their end-of-life service.
Heat Pump Water Heater
Heat pump systems are three times more efficient than conventional electric systems. They extract heat from the surrounding air to produce hot water in the same way that a reverse cycle air conditioner does. These models can come in either a split or an integrated system, catering for all different budgets, space requirements and water demands.
Solar Hot Water Units
Solar hot water systems depend on the sun to generate energy, which they then store in a battery to heat water. They require an electric or gas booster to deliver hot water when it's cloudy outside.
FAQs about heat pump hot water and rebates
Left scratching your head about heat pump hot water systems or the rebates? We've answered the questions we hear most from Melbourne homeowners.
Are electric heat pump hot water systems suitable for Melbourne's climate?
Yes, electric heat pump hot water systems are extremely suitable for Melbourne's climate. These units work most efficiently in mild climates, but can sustain the frosty winters, performing well past -10°C. In fact, we've installed electric hot water systems right across the Bayside area!
These systems can be integrated with solar panels for extra energy efficiency, so you can make the most of the sunny days in Melbourne's unpredictable weather. An experienced plumber will be able to help you choose a suitable system for your home.
How long will my heat pump hot water system last?
Heat pumps usually last 10-15 years, but with correct installation and regular maintenance, you can extend its lifespan to 20 years. That's a lot of savings when you consider the reduced month-to-month energy bills!
Routine maintenance checks are the best way to ensure your heat pump is working optimally and extend its lifespan. Services that check the airflow and clear the filters keep everything running like a well-oiled machine! Our experts can replace filters, check component quality, and flush the storage tank; Simply book a maintenance service today.
Are the rebates really saving me that much?
Yes! Especially when you consider the reduction of upfront costs as well as your ongoing savings. Eligible Victorians could get up to $1,960 back when you combine the Solar Homes hot water rebate with a VEU discount, and choose a locally made product.
Here is a breakdown of your potential upfront savings from the VEU alone:
- If you're removing an inefficient hot water system and replacing it with a heat pump hot water heater, you could save $630.
- If you're removing an inefficient hot water system and replacing it with a solar-boosted hot water system, you could save $910.
- If you're removing an inefficient gas hot water heater and replacing it with a heat pump system, you could save $560.
- If you're removing an inefficient gas hot water heater and replacing it with a solar-boosted hot water system, you could save $700.
These upfront savings make switching to electric a lot more affordable. When you book a replacement with Outright Plumbing, the rebates will automatically be deducted from your quote so you know exactly what you'll be paying.
What are the eligibility criteria for the Victorian government rebate scheme?
In order to receive the rebate, you need to meet the following criteria:
- Have an existing hot water system to be replaced that's at least 2 years old.
- Are looking to install an approved product through the VEU program
- The chosen heat pump system has at least a 5-year warranty
Households can upgrade up to 2 hot water systems under the program. Businesses can upgrade up to 5.
Licensed, insured and trusted by the plumbing industry
Heat pump brands we install
We install Rheem, Dux, Thermann, and Rinnai — established brands with proven track records in Australian conditions, full service networks, and manufacturer warranties. Seek comfort in the fact that we do not install lower-grade alternatives.
Rheem
Rheem is a leading hot water systems brand in Australia, with most of their products being manufactured in Sydney or Melbourne. Their systems come with quality assurance, designed with safety and performance in mind.
Dux
Dux is proudly Australian-owned and leads innovation in hot water systems. Both their electric and gas hot water systems operate reliably, having been designed for Australia's climate. They appreciate that customers are looking for units that are both energy efficient and economical to run, which has translated into the production of premium hot water systems.
Thermann
Thermann is 100% Aussie-owned! They use state-of-the-art technology to make innovative models that plumbers trust. With more than a million hot water systems installed across Australia, their products have been tried and tested by people just like you.
Rinnai
Rinnai is a Japanese brand known for its dependability and longevity. They've become a household name in Australia over the last 50 years. They offer electronic gas, electric, solar, and heat pump systems, so they have options for every household.
Why the quality of your installer matters
Some operators enter the market specifically to capitalise on government rebate programs — prioritising volume over workmanship. They source lower-grade units, complete installations quickly, and move on. When a system underperforms or fails a few years later, those businesses are often no longer operating.A substandard installation can void manufacturer warranties and lead to repeat costs: repairs, replacement parts, or a full reinstall. The rebate savings erode quickly when the underlying work has not been done to a proper standard.Outright has been operating in SE Melbourne for more than 25 years. We stand behind our work and the brands we install. That accountability is what separates a business built for the long term from one built around a rebate opportunity.
Why Melbourne homeowners choose Outright for heat pumps
Qualified plumbers who know what they're doing
Our licensed team ensures your heat pump is installed the first time correctly — so your rebate isn't wasted fixing up a bad job.
Reputable brands, not rebate chasers
We only install quality systems built to last — not cheap units chosen to maximise a rebate margin and disappear.
We handle all the rebate paperwork
From VEU registration to STC assignment — we manage every form. You don't fill in a thing.
Clear pricing with rebates included
We include rebate deductions into your quote, so you know exactly what it'll cost to set up your heat pump.
Ready to get your heat pump and your rebate sorted?
Most SE Melbourne homeowners save $500-$1,000+ with the VEU rebate. Rest assured, we'll handle all the paperwork.
What locals are saying about Outright Plumbing
Outright Plumbing is proud to be the plumber many households depend on for both emergency repairs and general maintenance. Locals love our work because we know the area well and offer tailored solutions.
Locals are all raving about the work we do! Have a look
Take a look at some of our past projects. Impressive, right?
Outright is never far away! Here are the suburbs we service
Our utes are on the road every day! We offer services in and around the Bayside area. If you can't find your neighbourhood, give us a call, and we will see what we can do.
Suburbs we service
Meet the faces behind the plumbing
We put people first and prioritise delivering friendly services. With local roots in Melbourne, we all care deeply about the work we do. Meet the faces behind our operations.
Ben
Ben started plumbing at just 16 and founded Outright Plumbing at 22, building it into a trusted name in Melbourne’s Bayside. He leads with hands-on experience, high standards, and a genuine focus on long-term client relationships.
Danielle
Danielle co-founded Outright Plumbing from her parents’ garage and now manages the company’s financial heartbeat. Her background in construction and detail-driven approach keeps the business growing strong.
Ben
Ben brings years of hands-on experience and precision to every project he estimates. As Senior Estimator, his deep understanding of plumbing systems and commitment to accuracy ensure each job starts with clarity, confidence, and value.
Courtney
Courtney is the friendly voice on the phone and the organiser behind every maintenance booking. She makes sure plumbers arrive on time, customers are kept in the loop, and everything runs without a hitch.
Josh
Josh leads on-site operations with a steady hand and a sharp eye for quality. As Supervisor, he ensures every plumbing project runs smoothly, safely, and to the highest standard — keeping teams coordinated and clients confident.
Kai
Kai brings a can-do attitude and a knack for solving tricky plumbing problems. He’s all about getting it right the first time, with a smile to match.
Tom
Tom prides himself on work that not only meets but exceeds expectations. He makes sure every customer feels valued and looked after from start to finish.
Alex
Alex is friendly, thorough, and focused on finding the best fix for each customer’s needs. He never leaves a job without making sure it’s up to his high standards.
Callum
Callum’s attention to detail shows in every tap, pipe, and fitting he installs. He takes pride in both the function and the finish of his work.
Aron
Aron oversees day-to-day site operations with a focus on efficiency and craftsmanship. As Supervisor, he brings practical experience and clear communication to every project, ensuring work is completed safely, on time, and to exceptional standards.
Hayley
Hayley keeps projects moving with precision and care. As Project Coordinator, she bridges the gap between office and site, ensuring schedules, communication, and documentation all flow seamlessly from start to finish.
Book a call-out for your heat pump
Not sure which heat pump is right for your home? We will come out, assess your setup, and give you an upfront quote with the VEU rebate already applied. No forms for you to fill in.