Changes to Solar Hot Water Rebate Amounts

Solar hot water rebate amounts for Regional Victoria changed from a maximum of $2,350 to $1,600 effective from 4th September, 2009.

Solar Hot Water Rebate - Regional Victoria

Conventional hot water systems account for around 20% of a households greenhouse gas emissions in Victoria. Install a solar water heater and you will increase your household's energy efficiency and also save up to 75% of your water heating costs.

There are currently four different incentives available to Victorians replacing an existing hot water system with a solar hot water system. Each incentive has varying eligibility requirements:-

Victorian Government Solar Hot Water Rebate - Regional & Metropolitan
Australian Government Solar Hot Water Rebate
Renewable Energy Certificates (RECs)
Victorian Energy Efficiency Certificates (VEECs); also known as the Energy Saver Incentive.

The Victorian Government Regional Rebate of between $400 and $1,600 is available to assist regional Victorian households to switch their existing gas hot water systems to solar. A rebate is also available to those replacing an electrical water heater and have installed ceiling insulation under the Australian Government's Homeowner Insulation Program.

The Victorian Government Rebate is provided as a point-of-sale discount off the supply and installation costs to householders and is only available through participating manufacturers, suppliers and plumbers.

The Australian Government Rebate

The Australian Government's $1,600 Solar Hot Water Rebate is available to households replacing electric water heating.

Renewable Energy Certificates

The Commonwealth Government's Renewable Energy Certificates (RECs) scheme provides financial incentives to promote renewable energy. Certificates (RECs) are created when a customer installs a solar hot water system. For example, if the REC price is $45 and your installation attracts 30 RECs, you could save $1,350.

Victorian Energy Efficiency Certificates (VEECs)

The VEET (Victorian Energy Efficiency Target) scheme was introduced 1st January, 2009 and provides incentives to promote household energy efficiency. Certificates (VEECs) are created when customers replace their current hot water systems for solar hot water systems.

All regional solar hot water installations completed from 1st January, 2009 to 30th April, 2009 or applications which receive pre-approval by the 30th April, 2009, are required to assign their VEECs to Sustainability Victoria. Rebates will only be paid for installations during the period where evidence that the replaced system has been decommissioned is provided to Sustainability Victoria with the rebate application. Installation completed after the 30th April, 2009 may be eligible for VEECs.

Summary of Incentives

Victorian Government Rebate
Commonwealth Government $1,600 Rebate *
Renewable Energy Certificates (REC) eligible **
Victorian Energy Efficiency Certificates (VEEC) eligible ***

Installation situation	1	2	3	4
For private homes (owner-occupied or permanently tenanted)
Replacing a natural gas or LPG water heater with a gas-boosted solar system	Yes	No	Yes	Yes
Adding a solar water heater to an existing natural gas or LPG water heater, as a *preheater*	Yes	No	No	Yes
Adding solar panels to an existing off-peak electric water heater either with a pump or by thermosiphon as a retrofit kit	Yes	No	No	Yes
Replacing an existing solar, wood, briquette or oil fuelled water heater with gas-boosted or electric solar system. Must be natural gas boosted if available in the street. Existing LPG boosted solar water heaters can only be replaced with gas boosted systems.	Yes	No	Yes	No
Replacing an electric water heater with gas-boosted or electric solar system (if natural gas is not available in the street) where the applicant has installed ceiling insulation under the Australian Government's Homeowner Insulation Program	Yes	No	Yes	Yes
Replacing an electric water heater with gas-boosted or electric solar system where applicant has not installed ceiling insulation under the Australian Government's Homeowner Insulation Program	No	Yes*	Yes	Yes
New homes and buildings installing a gas-boosted or electric solar system	No	No	Yes	No
For commercial buildings
New or existing buildings installing a solar water heater	No	No	Yes	No

* Conditions apply, refer to www.environment.gov.au/rebates or telephone 1800 808 571.

Indicates whether a situation is eligible for a financial incentive through the Commonwealth Government's Renewable Energy Certificates (RECs) scheme. For example, if the REC price is $45 and your installation attracts 30 RECs you could save $1350. Your manufacturer can advise on RECs eligibility or visit www.orer.gov.au/swh**

*Indicates whether a situation is eligible for a financial incentive through the Victorian Government's Victorian Energy Efficiency Certificates (VEECs) scheme. For further information please visit the Essential Services Commission's website at www.esc.vic.gov.au/**

Victorian Government Regional Rebate

To qualify, your property must be located in regional Victoria.

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