Up to $1,400 Rebate Available Cut Hot Water Bills 75% CEC-Accredited Installers

Heat Pump Hot Water Systems
in Melbourne & Regional Victoria

Supply Solar installs heat pump hot water systems across Melbourne and Victoria — cutting hot water energy costs by up to 75%. With the Solar Homes rebate and VEU discount, your out-of-pocket cost is far less than you'd expect.

Check Your Rebates Call 0484 372 744

75%

Less energy than electric storage systems

$1,400

Max Solar Homes rebate + VEU discount

3–5yr

Typical payback period after rebates

Get Your Free Heat Pump Quote

Rebates confirmed, all paperwork handled

Solar Homes & VEU rebates handled

CEC-Accredited Installers

Gas & electric switchover specialists

2024 EUPD Installer Award

Call back within 2 hours

Straight answer

How Does a Heat Pump Hot Water System Work?

A heat pump hot water system works like a reverse refrigerator — it extracts heat energy from the surrounding air and transfers it into your water tank, rather than generating heat directly. Because it moves heat instead of creating it, it uses approximately 75% less electricity than a conventional electric element. It runs on electricity (not gas), works in Melbourne's climate year-round, and can be timed to run during peak solar generation for near-zero running cost.

Air absorbs heat

The fan draws in ambient air from outside. Even at 10°C, air contains significant heat energy — enough for the system to extract efficiently year-round in Melbourne's climate.

Refrigerant compresses the heat

The extracted heat is transferred to a refrigerant, which is then compressed to raise its temperature. This is the same process used in reverse-cycle air conditioners — proven, reliable technology.

Hot water stored, ready to use

The compressed heat is transferred into your insulated storage tank, heating your water to 55–65°C. One cycle heats a full tank — typically in 1–3 hours — using a fraction of the energy of a standard element.

Full heat pump installation guide →

Side by side

Heat Pump vs Gas vs Electric — Running Cost Comparison

Melbourne households spend $600–$1,400 per year on hot water. Here's how each system type compares on annual running cost and upfront investment.

System type	Annual running cost	Energy use	Upfront cost	Rebate available VIC	CO₂ emissions
⭐ Heat Pump	~$200–350/yr	~800–1,200 kWh/yr	$2,500–$4,500 installed	✅ Up to $1,400 + VEU	Lowest (electric)
Solar Thermal + Boost	~$100–250/yr	~300–600 kWh/yr	$3,500–$6,000 installed	✅ Solar Homes rebate	Very low
Natural Gas Storage	~$400–700/yr	~15–22 GJ/yr gas	$1,200–$2,200 installed	❌ No VIC rebate	High (gas combustion)
Electric Storage (standard)	~$900–1,400/yr	~3,500–5,000 kWh/yr	$800–$1,500 installed	❌ No VIC rebate	Highest (grid electric)

Running costs based on Melbourne grid tariffs and average 4-person household usage. Actual costs vary. Heat pump costs can fall to near-zero when paired with solar and timed to run during generation hours.

Full comparison: most energy-efficient hot water systems →

Why switch to a heat pump

Six Reasons Melbourne Homes Are Switching

Cut hot water bills by up to 75%

A heat pump moves heat instead of generating it — using roughly 3–4 kWh of energy for every 10 kWh of heat produced. Most families save $400–$800 per year on hot water alone.

Run it free from solar

Set your heat pump to run during the middle of the day — when your solar panels are generating surplus electricity — and your hot water costs nothing. Zero energy in, hot water out.

Up to $1,400 rebate + VEU discount

The Solar Homes Program offers up to $1,400 for eligible owner-occupiers upgrading their hot water system. The Victorian Energy Upgrades program adds a further point-of-sale discount. Supply Solar handles both.

Get off gas — permanently

With gas prices rising every year, replacing your gas hot water system with a heat pump locks in a lower, more stable running cost. Most Melbourne homes can fully electrify hot water with a single unit.

Works year-round in Melbourne

Heat pumps extract energy from air as cold as -10°C. Melbourne rarely gets close — so your system runs efficiently in every season, including winter, without backup element reliance.

Fully installed by our electrical team

Supply Solar's CEC-accredited electricians handle the full installation — including gas isolation, electrical work, and rebate paperwork. You deal with one team, start to finish.

Victoria · 2026

Heat Pump Rebates We Apply for You

Two Victorian incentives reduce the installed cost of a heat pump hot water system — and Supply Solar confirms your eligibility and lodges both at the time of installation.

Solar Homes Program

Up to $1,400

Solar Victoria's hot water rebate is available to eligible owner-occupiers replacing an electric or gas storage system with a heat pump. Income limits apply: the cap drops from $210,000 to $150,000 on 1 July 2026.

Full rebate eligibility guide →

Victorian Energy Upgrades (VEU)

Additional discount

The VEU program provides a point-of-sale discount on heat pump hot water systems installed by accredited providers like Supply Solar. The exact discount varies by product and is applied directly to your invoice — no claim required from you.

Can I combine both rebates? →

The Solar Homes income cap drops from $210,000 to $150,000 on 1 July 2026. If your household income is between $150k–$210k, you need to apply before 30 June 2026 to qualify under the current rules. Contact us today.

Electrify your home

Switching from Gas to Heat Pump

Gas prices in Victoria have risen significantly and are expected to keep climbing. A heat pump replacement locks in a dramatically lower running cost — and the Solar Homes rebate helps cover the switch.

Supply Solar manages the full gas-to-electric switchover: gas isolation, new electrical circuit, and rebate paperwork all done by our team in a single installation day.

Gas Switchover Guide

Free assessment & quote

We inspect your current system, confirm rebate eligibility, and provide a fixed-price quote for the full switchover.

Gas isolation

Our licensed team safely disconnects and caps the existing gas line — compliant with Victorian regulations.

Heat pump installed

The new unit is installed in the same location (or a new ventilated position), connected to your existing hot water plumbing.

Rebates lodged, paperwork done

We lodge the Solar Homes rebate and VEU discount on your behalf — you receive them at the point of installation.

The smartest combination

Pair Your Heat Pump With Solar — and Run It for Free

Set and forget: hot water from sunshine

A heat pump can be programmed to run between 10am and 3pm — when a typical solar system is generating peak surplus electricity. Your panels power the heat pump, which heats your water, at effectively zero cost.

Add a home battery and the heat pump can run from stored solar in the evening too — giving you near-complete energy independence for hot water, year-round.

Add Solar to Your Quote

Standard electric storage ~$1,100/yr

Heat pump (grid power) ~$280/yr

Heat pump timed to solar ~$30–60/yr

Your potential annual saving Up to $1,050

Estimates based on Melbourne tariffs and average 4-person household. Actual results vary.

From quote to hot water

Your Heat Pump Installation — Step by Step

Free assessment

We check your current system, location, and electrical setup, and confirm which rebates you qualify for — at no cost.

Fixed-price quote

One clear price covering the unit, installation, electrical work, gas isolation (if needed), and rebate lodgement. No surprises.

Installation day

Most heat pump installations take 3–5 hours. We remove the old system, install the new unit, and connect to your existing plumbing and electrics.

Rebates applied, hot water on

We lodge the Solar Homes rebate and VEU discount at installation. You start saving from the first cycle — that day.

Why Melbourne chooses us

Accredited, Award-Winning & Fully In-House

CEC-accredited & NETCC approved

Every heat pump installation is completed by our own CEC-accredited electrical team — not a subcontractor. Your rebates, warranties and compliance are protected.

Award-winning installer

Winners of the 2023 CEC Collaboration Award and 2024 EUPD Australian Installer Award — independent recognition of installation quality and customer experience.

Solar + heat pump in one team

We design your heat pump to work with your solar from day one — no separate trades, no awkward handoffs. One quote covers everything.

Rebates handled, not just mentioned

Many installers list rebates but leave the paperwork to you. Supply Solar confirms eligibility upfront and lodges the Solar Homes rebate and VEU discount at installation — you receive them on the day.

Across Melbourne & Regional Victoria

Heat Pump Installation Near You

We install heat pump hot water systems right across greater Melbourne and regional Victoria.

South East Melbourne Eastern Melbourne Northern Melbourne Western Melbourne Bayside Melbourne Mornington Peninsula Melbourne CBD Regional Victoria

4.9★ · 312 reviews

What Melbourne Homeowners Say

"Replaced our old gas hot water system with a heat pump. Supply Solar handled the gas isolation, the electrical work, and the Solar Homes rebate — all in one day. First electricity bill was noticeably lower."

Karen D.Berwick · Gas → heat pump switchover

"We got solar and a heat pump at the same time. They set the heat pump to run at midday from our panels. Our hot water is basically free now — and the $1,400 rebate came off the install price on the day."

Paul L.Frankston · 10kW solar + heat pump

"Electric storage was costing us a fortune. Supply Solar replaced it with a heat pump — VEU discount applied on the day, job done in 4 hours. Very professional, explained everything clearly."

Natalie R.Ringwood · Electric → heat pump

Straight answers

Heat Pump Hot Water FAQs

Is a heat pump hot water system worth it?

Yes, for most Melbourne homes. A heat pump uses roughly 75% less electricity than a conventional electric storage system, and 30–50% less energy than gas (factoring in rising gas prices). With the Solar Homes rebate of up to $1,400 and the VEU discount, the payback period is typically 3–5 years — after which the savings continue indefinitely. Homes with solar and an EV tend to see the fastest return. Get a free quote →

How much does a heat pump hot water system cost in Melbourne?

The fully installed cost of a heat pump hot water system in Melbourne typically ranges from $2,500 to $4,500, depending on the brand, tank capacity (e.g. 200L vs 315L), and whether electrical work is required. After the Solar Homes rebate (up to $1,400) and the VEU discount, the out-of-pocket cost is significantly lower. Supply Solar provides a free, no-obligation quote with all rebates already applied. Get your exact price →

How much can a heat pump save on power bills?

Most Melbourne families save $400–$800 per year on hot water compared to electric storage, and $200–$400 compared to gas. If you have solar and time the heat pump to run during peak generation (10am–3pm), hot water costs can drop to near zero — saving over $1,000 per year compared to a standard electric system.

How much is the heat pump rebate in Victoria in 2026?

Victorian homeowners can access two incentives. The Solar Homes Program provides up to $1,400 for eligible owner-occupiers replacing an electric or gas storage system. The Victorian Energy Upgrades (VEU) program provides an additional point-of-sale discount applied through accredited retailers like Supply Solar. Income limits apply — the Solar Homes cap drops from $210,000 to $150,000 on 1 July 2026. Full rebate eligibility guide →

Can I replace a gas hot water system with a heat pump?

Yes. Switching from gas to a heat pump is one of the most effective ways to reduce household energy bills and cut gas dependency. Supply Solar manages the full process: gas line isolation and capping, new electrical circuit, heat pump installation, and rebate lodgement — all in a single day. The Solar Homes rebate applies to gas-to-heat-pump replacements.

What is the best heat pump hot water system in Australia in 2026?

Popular and well-regarded models in Australia include Reclaim Energy CO2 (highly efficient in cold climates), Stiebel Eltron (German engineering, quiet operation), Rheem Ambiheat, and iStore. The best choice depends on your household size, available installation space, and noise sensitivity. Supply Solar recommends the right model for your home — and installs only models eligible for Victorian rebates.

What is the most energy efficient hot water system?

Heat pump hot water systems are the most energy efficient electric hot water option in Australia, with a COP (Coefficient of Performance) of 3–5 — meaning they produce 3–5 kWh of heat for every 1 kWh of electricity consumed. Solar thermal systems can achieve similar or better efficiency in ideal conditions, but require roof collectors and a separate installation. For most Melbourne homes, a heat pump paired with existing solar panels is the optimal choice. Full comparison →

How long does heat pump hot water installation take?

A standard installation takes 3–5 hours for a straightforward replacement of an existing electric system. Gas-to-heat-pump switchovers, which include gas isolation and a new electrical circuit, typically take 5–7 hours or a full day. Supply Solar schedules a clear time window and completes the installation in a single visit in most cases. Installation guide →

Keep exploring

Heat Pump & Hot Water Pages

Heat Pump Installation Heat Pump Rebates VIC Energy Efficient Hot Water Systems Hot Water System Replacement

Ready to Cut Your Hot Water Bill for Good?

Get a free, no-obligation quote with your rebate eligibility confirmed. A Supply Solar specialist will call within 2 business hours to walk you through your options.

Get My Free Heat Pump Quote Call 0484 372 744

No obligation · Up to $1,400 rebate + VEU · CEC-accredited · Melbourne & Regional Victoria

Heat Pump Hot Water Systemsin Melbourne & Regional Victoria