Victorians have another great reason to switch to energy-efficient hot water. As of 1 July 2025, Solar Victoria is offering a larger rebate of up to $1,400 for approved heat pump systems that meet local manufacturing criteria. That’s a $400 increase on the standard rebate — rewarding households that choose Australian-made solutions.
This new incentive not only reduces the upfront cost of going electric but also strengthens local industry and supports jobs right here in Australia.

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 “Locally Made”?

A product doesn’t need to be entirely made in Australia to qualify. Under the rebate rules, at least 50% of the system's components or final assembly must be locally sourced or completed.

Common components that count toward the local content percentage include:

• Storage tanks
• Compressors
• Evaporators and condensers
• Expansion valves
• Heat exchangers
• Thermostats and controllers
• Key plumbing valves and parts
  
  This balanced definition ensures that customers can still access a wide range of products while backing local production and reducing reliance on overseas supply chains.

What If My Heat Pump Isn’t Locally Made?

Even if a system doesn’t meet the local content threshold, homeowners can still claim the standard $1,000 rebate, as long as it’s listed on Solar Victoria’s approved product list.

There’s no disadvantage to choosing a non-local product — the rebate is simply lower. The program ensures that every household has access to support, while offering extra savings to those who opt for locally made systems.

A Win for Households and Australian Jobs

By choosing a locally made heat pump, you’re not just cutting your energy bills — you’re also helping:

• Create and sustain Australian jobs
• Reduce our dependence on imported equipment
• Strengthen local supply chains
• Accelerate the transition to clean, electric homes
  
  It’s a smart move for your home — and a meaningful step toward a more resilient, sustainable future for Victoria.
  
  At Sunline Energy, we’re proud to help homeowners make the switch to cleaner, more efficient hot water. If you're considering an upgrade, now is the perfect time to explore heat pump options that qualify for these enhanced rebates. Reach out to learn more about eligible products and next steps.