Victorian households now have more reasons than ever to make the switch to energy-efficient hot water. As of 1 July 2025, Solar Victoria has increased the hot water rebate to $1,400 for approved locally made heat pump hot water systems — a $400 boost on top of the existing rebate.
This exciting change supports local manufacturing while helping households reduce energy bills and their carbon footprint.
What Is the Locally Made Incentive?
Solar Victoria’s Locally Made Incentive is part of the Local Jobs First policy, encouraging Victorians to support Australian manufacturing. The goal is twofold: to give households better value and to strengthen Australia's economy by backing locally made products.
Under this scheme, eligible hot water systems that meet the local content criteria can receive a rebate of up to $1,400, compared to the standard $1,000 rebate available for other systems.
This initiative represents a strong step toward building a more resilient local supply chain, developing skilled jobs, and accelerating the shift to electric, climate-friendly technology in homes across Victoria.
Which Products Are Eligible?
To qualify for the higher $1,400 rebate, a hot water system must meet three key criteria:
- It must be listed on Solar Victoria’s hot water product list.
- It must be tagged as meeting the local content requirements, meaning at least 50% of the system’s components or assembly is local.
- The system must be quoted and installed from 1 July 2025 onwards.
Eligible systems can be easily identified by looking for the “Local Content” column on Solar Victoria’s product list. If the system is marked “Yes,” it qualifies for the locally made rebate.
Customers don’t need to take any extra steps in the application process — simply choose an eligible product and the rebate will be automatically assigned through the retailer portal.
Which Brands Are Currently Eligible?
Solar Victoria has already approved several well-known Australian brands for the higher rebate. As of July 2025, these include:
- Dux – One of Australia’s most established hot water system manufacturers, Dux offers a wide range of heat pump options now tagged as locally made.
- Reclaim Energy – Known for its high-performance CO₂ heat pumps, Reclaim’s local manufacturing and innovation make it a strong choice for eco-conscious households.
- Thermann – Widely available across plumbing stores in Australia, Thermann’s Australian-assembled units now qualify for the boosted rebate.
🛠️ More brands are expected to join the list in the coming months as manufacturers apply and receive approval — so it’s worth checking back frequently or asking your installer about the latest options.
What Counts as “Local Content”?
To be considered “locally made,” a heat pump does not need to be entirely manufactured in Australia. Instead, it must include at least 50% local content — either in components or final assembly.
For heat pump hot water systems, components considered in the assessment include:
- Storage tank
- Compressor
- Evaporator
- Condenser
- Expansion valve
- Water heat exchanger
- Controller
- Thermostat
- Valves
If the majority of these components are made or assembled in Australia, the product can qualify under the Locally Made Incentive. This definition helps balance affordability with support for Australian industry, ensuring a wide range of eligible products for customers.
What If My Product Isn’t Locally Made?
If you choose a product that isn’t locally made or doesn’t meet the 50% local content threshold, you’re still eligible for the standard $1,000 Solar Victoria hot water rebate — as long as the product is on the approved list.
There’s no penalty or extra paperwork for choosing a non-local product — the difference is simply the rebate value. This ensures every household has access to generous support, while rewarding those who choose to support Australian manufacturing with even greater savings.
Find & Compare Heat Pumps Online
At GoGetAHeatPump, we make it easy to compare all eligible heat pump systems — including those that qualify for the $1,400 rebate.
Our platform helps you:
- ✅ Filter by Local Content eligibility, size, brand, or price
- 📦 Understand exactly what’s included in each package
- 🔧 Get up to 3 free quotes from vetted local installers
👉 Browse Heat Pumps Now
Support Aussie Jobs. Save More.
Choosing a locally made heat pump doesn’t just save you an extra $400 — it actively supports Australian workers, manufacturers, and innovation.
Every system purchased under the Locally Made Incentive contributes to:
- Boosting employment in Australia’s manufacturing sector
- Reducing reliance on imported components
- Strengthening domestic supply chains
- Helping Victoria reach its clean energy targets
It’s smart, sustainable, and supports the future of our local economy.
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