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New Rebate for Australian-Made Hot Water Systems
Victorian households are set to benefit from a new rebate scheme aimed at encouraging the installation of locally manufactured, energy-efficient hot water systems. Beginning July 1, this initiative will offer a $400 rebate to those who choose to upgrade to an Australian-made hot water system, as part of the government’s efforts to alleviate the cost of living and support local manufacturing.
Incentives for Households
The new $400 rebate is in addition to an existing program that provides up to $1,000 for residents upgrading or replacing outdated hot water systems with electric or solar alternatives. This means Victorian households could potentially receive rebates amounting to $1,400 for making environmentally friendly choices.
The Victorian government reports that installing a heat pump hot water system could lead to savings of up to $330 annually on electricity bills. Given that hot water systems can account for as much as 30% of a household’s total energy consumption, transitioning to more efficient systems is a significant step towards reducing energy expenses.
Supporting Local Industry
Minister for Energy and Resources, Lily D’Ambrosio, highlighted the importance of supporting local businesses and jobs through this initiative. She stated, “We’re on the side of Victorians — helping families cut energy costs and take back control of their bills.” By promoting the installation of locally manufactured products, the government is not only catering to immediate household needs but also reinforcing the local economy.
D’Ambrosio emphasised the historical production of hot water systems in Victoria, aiming to ensure that economic benefits remain within the state. The initiative is also designed to consult with manufacturers and unions regarding standards for local content prior to the rebate’s rollout.
Financial Overview
The expected cost of purchasing and installing mid-size hot water units ranges from $3,000 to $4,000, meaning that the vast majority of households may significantly benefit from the rebate. The forthcoming implementation of the rebate coincides with expected increases in electricity prices on July 1, with adjustments across different zones in Victoria showing a range of changes from a decrease of $26 to an increase of $90.
In the state budget, the government allocated $30 million to assist an additional 27,000 households in installing electric heat pumps and solar water systems. Additionally, a new $100 rebate on energy bills specifically targeted at concession cardholders was announced, broadening the support network for low-income families.
Eligibility for Rebates
This rebate initiative is overseen by Solar Victoria, which manages the hot water system rebate scheme. The existing rebate for electric heat pumps or solar systems constitutes 50% of the purchase price of the unit, capping at $1,000. To be eligible for the program, households must have a taxable income of less than $210,000 per annum, and properties valued at under $3 million.
It’s important to note that any hot water system being replaced must be at least three years old from its purchase date. The additional rebate of $400 for Australian-made systems will be accessible from July 1, aligning with the broader efforts to reduce energy costs and stimulate the local economy.
Summary
The introduction of a $400 rebate for Australian-made hot water systems represents a strategic move by the Victorian government to support local manufacturers while providing financial relief to households struggling with rising energy costs. With comprehensive savings through rebates, increased efficiency, and a focus on local industry, this initiative promises to have a positive impact on both the economy and the environment.
