Heard about this $400 payout for hot water? Here’s who actually gets it
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Rising household bills have left many Australians looking for smarter ways to save, especially when it comes to essential services like hot water.
Now, a new government-backed incentive is aiming to reward those who make the switch to a more efficient system—while also backing local industry.
But questions remain over who qualifies, how much support is really on offer, and what this could mean for the future of gas appliances.
Victorian households were set to benefit from a new incentive designed to cut power bills and protect local manufacturing jobs—but the full picture was more complex than it first appeared.
From 1 July, eligible residents upgrading to efficient electric hot water systems could receive a $400 cashback, but this new payout was only part of a broader push by the state government.
As it turned out, this latest offer sat on top of an existing rebate scheme that had already helped thousands of households make the switch.
The Allan Government framed the initiative as a win for both the environment and the economy, aiming to bolster demand for locally made units and push back against cheap imports. However, not all systems stamped ‘Australian-made’ were created equal.
With many units relying on overseas components, the government said it would rely on input from unions and manufacturers to properly define what qualifies as local.
‘We’re on the side of Victorians—helping families cut energy costs and take back control of their bills,’ said Energy Minister Lily D’Ambrosio.
The program, run by Solar Victoria, promised more than just a discount. For households already eligible for the existing rebate—worth up to 50 per cent of the unit’s cost, capped at $1,000—the extra $400 cashback meant a sizeable reduction in the upfront cost of going electric. But there were strings attached.
Only households with a taxable income under $210,000 per year and living in properties valued at less than $3 million could qualify. And while the rebate scheme had supported over 400,000 homes since its launch in 2018, the new cashback would only be available to 27,000 households under the $30 million state budget package.
Typical installation costs for mid-size electric or solar systems hovered between $3,000 and $4,000, according to solar industry insiders. For many, that initial expense remained a barrier—even with rebates in play.
Still, the government saw the scheme as part of a bigger shift.
‘We know there is a strong history of locally manufactured hot water products,’ D’Ambrosio added. ‘We want to make sure local jobs are supported and that money spent in Victoria stays in Victoria.’
There were even murmurs of future policies that could phase out gas entirely—potentially mandating electric replacements when older systems failed.
As debate continued over the future of household energy, one thing remained clear: the state’s energy transition wasn’t just about saving money—it was about shaping the market for years to come.
Before you make the switch, it helps to see exactly how these systems work—and why more Aussies are choosing them over gas.
Watch this short video to see how it all comes together and decide if it’s the right fit for your home.
Source: Youtube/SolarQuotes
As the push toward electric systems gains momentum, would you consider making the switch if it meant saving money and supporting Aussie jobs? Let us know your thoughts in the comments.
In a previous story, we explored the pros and cons of gas, electric and solar hot water systems—because let’s face it, the choice isn’t always straightforward.
For seniors managing household budgets and long-term comfort, knowing which system truly delivers value can make all the difference.
If you’re weighing up your options, it’s worth giving that one a read too.
Read more: Gas, electric or solar: Which one is really best for your hot water system?
Now, a new government-backed incentive is aiming to reward those who make the switch to a more efficient system—while also backing local industry.
But questions remain over who qualifies, how much support is really on offer, and what this could mean for the future of gas appliances.
Victorian households were set to benefit from a new incentive designed to cut power bills and protect local manufacturing jobs—but the full picture was more complex than it first appeared.
From 1 July, eligible residents upgrading to efficient electric hot water systems could receive a $400 cashback, but this new payout was only part of a broader push by the state government.
As it turned out, this latest offer sat on top of an existing rebate scheme that had already helped thousands of households make the switch.
New rebate stacks on existing scheme. Image source: Pexels/Nataliya Vaitkevich
The Allan Government framed the initiative as a win for both the environment and the economy, aiming to bolster demand for locally made units and push back against cheap imports. However, not all systems stamped ‘Australian-made’ were created equal.
With many units relying on overseas components, the government said it would rely on input from unions and manufacturers to properly define what qualifies as local.
‘We’re on the side of Victorians—helping families cut energy costs and take back control of their bills,’ said Energy Minister Lily D’Ambrosio.
The program, run by Solar Victoria, promised more than just a discount. For households already eligible for the existing rebate—worth up to 50 per cent of the unit’s cost, capped at $1,000—the extra $400 cashback meant a sizeable reduction in the upfront cost of going electric. But there were strings attached.
Only households with a taxable income under $210,000 per year and living in properties valued at less than $3 million could qualify. And while the rebate scheme had supported over 400,000 homes since its launch in 2018, the new cashback would only be available to 27,000 households under the $30 million state budget package.
Typical installation costs for mid-size electric or solar systems hovered between $3,000 and $4,000, according to solar industry insiders. For many, that initial expense remained a barrier—even with rebates in play.
Still, the government saw the scheme as part of a bigger shift.
‘We know there is a strong history of locally manufactured hot water products,’ D’Ambrosio added. ‘We want to make sure local jobs are supported and that money spent in Victoria stays in Victoria.’
There were even murmurs of future policies that could phase out gas entirely—potentially mandating electric replacements when older systems failed.
As debate continued over the future of household energy, one thing remained clear: the state’s energy transition wasn’t just about saving money—it was about shaping the market for years to come.
Before you make the switch, it helps to see exactly how these systems work—and why more Aussies are choosing them over gas.
Watch this short video to see how it all comes together and decide if it’s the right fit for your home.
Source: Youtube/SolarQuotes
As the push toward electric systems gains momentum, would you consider making the switch if it meant saving money and supporting Aussie jobs? Let us know your thoughts in the comments.
In a previous story, we explored the pros and cons of gas, electric and solar hot water systems—because let’s face it, the choice isn’t always straightforward.
For seniors managing household budgets and long-term comfort, knowing which system truly delivers value can make all the difference.
If you’re weighing up your options, it’s worth giving that one a read too.
Read more: Gas, electric or solar: Which one is really best for your hot water system?
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