Introduction
Hot water accounts for roughly 18–25% of an Australian household’s energy use. If you’re currently using a gas hot water system, switching to an electric heat pump—especially under Victoria’s VEU program—can significantly lower your bills and environmental impact.
Why a Heat Pump Wins
- Efficiency: Heat pumps operate at 300–500% efficiency, while gas systems average 60–80%.
- Annual Cost Comparison:
- Gas: $1,200–$1,800/year
- Heat Pump: $300–$500/year
That’s a $700–$1,500+ annual saving.
- Lifespan & Emissions: Heat pumps last 15–20 years and emit up to 80% less CO₂ than gas systems.
Heat Pump Criteria
- Property must be in Victoria
- Product must be VEU-approved and energy efficient
- Installed by certified professionals
- Existing system must be 5 years old.
- Household Income should be less than 210k.
- Property value – less than 3 million.
Government Rebates: VEU Program
Victorian Energy Upgrades (VEU)
- Rebates available via VEECs: typically $300–$1,000+
- Combine with Solar Victoria Hot Water Rebate (up to $1,000) and STCs to reduce upfront costs even further.
💸 Cost & Payback
| System Type | Typical Cost | Final Cost After Rebates |
|---|---|---|
| Heat Pump Hot Water | $3,000–$7,000 | $0–$2,500 |
| Gas Hot Water | $2,000–$4,000 | No rebates |
*Assumes annual savings of $700–$1,500.
Real-World Customer Insights
“Installed a heat pump for $2,400 after rebates—saving $500–$1,000 per year ever since.”
This aligns with typical savings of 60–75% on hot water costs.
Why Customers Love Heat Pumps
- No more daily gas supply charges
- Work well with solar PV to heat during the day
- Environmentally responsible: lower your carbon footprint
- Long-term savings that pay back within 2–4 years
Things to Consider Before Switching
- Upfront cost is higher, but largely offset by rebates
- Requires outdoor installation (heat pumps make mild noise)
Final Word
Switching to a heat pump hot water system is one of the smartest choices for Australian homeowners:
- Save $700–$1,500+ annually
- Cut your carbon footprint by up to 80%
- Use VEU rebates to reduce upfront costs
- Enjoy lower bills for 15+ years
At GreenEnv, we assist with selection, government rebates, and professional installation. Get in touch today to start saving!
Ready to Make the Switch?
- Contact GreenEnv for a free consultation
- Ask about your eligibility for VEU rebates
- Book a qualified installer and start saving
Let us help you save money, cut emissions, and future-proof your home.
