Solar hot water system incentives

Solar hot water system incentives

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

  • Small-scale Technology Certificates (STCs)
  • Victorian Energy Efficiency Certificates (VEECs); also known as the Energy Saver Incentive

Summary of incentives

For private homes (owner-occupied or permanently tenanted) STCs VEECs
Replacing a natural gas or LPG water heater with a gas-boosted solar system Yes Yes
Adding a solar water heater to an existing natural gas or LPG water heater, as a preheater No Yes
Adding solar panels to an existing off-peak electric water heater either with a pump or by thermosiphon as a retrofit kit 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
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 discontinued Home Insulation Program (as this would make them ineligible for the Australian Government solar hot water rebate) 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 discontinued Home Insulation Program Yes Yes
New homes and buildings installing a gas-boosted or electric solar system Yes No
New or existing buildings installing a solar water heater Yes No

 

Small-scale Technology Certificates (formerly Renewable Energy Certificates)

The Australian Government's Small-scale Renewable Energy Scheme (SRES) provides financial incentives to promote renewable energy. Small-scale Technology Certificates (STCs) are created when customer installs a solar hot water system. For example, if the STC price is $35 and your installation attracts 30 STCs you could save $1050. For more information on how to access this incentive please contact your solar hot water supplier. For further information on STCs visit the website of the Clean Energy Regulator.

Victorian Energy Efficiency Certificates

The VEET (Victorian Energy Efficiency Target) scheme was introduced on 1 January 2009 and provides incentives to promote household energy efficiency. Certificates (VEECs) are created when customers replace their current hot water system for a solar hot water system. For more information on how to access this incentive please contact your solar hot water supplier. For further information on VEET please visit the Essential Services Commission website.