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) through the Victorian Government's Energy Saver Incentive Scheme 

In both cases the installation of a solar or heat pump water heater can generate certificates, and the value of these certificates can be provided as a discount on the cost of installation. The value of these certificates, and therefore the level of incentive provided, varies from time to time.

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 a solar retrofit kit (solar collector, pump and controller) to an existing electric water heater No Yes
Replacing an existing solar, wood, briquette or oil fuelled water heater with gas-boosted or electric solar system. Ictorian buildings regulations require the system to be natural gas boosted if gas is 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-boosted solar system or a heat pump system Yes Yes
New homes and buildings installing a gas-boosted or electric-boosted solar system or a heat pump system 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 or heat pump hot water system. The size of the incentive depends on the value of the certificates at the time. For example, if the STC price is $35 and your installation attracts 30 STCs you could receive a discount on the installation cost of $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 - also known as the Energy Saver Incentive provides incentives to promote household energy efficiency. Certificates (VEECs) are created when households have their current electric or gas hot water system replaced with or upgraded to a solar hot water system. As with STCs the size of the incentive depends on the number of certificates created and the value of the certificates at the time. For more information on how to access this incentive please contact your solar hot water supplier. For further information on VEET please visit the  VEET website.

For more information visit the Victorian Government's Energy and Resources website.