Important Notice to all solar hot water retailers, suppliers and manufacturers participating in the Victorian Solar Hot Water Rebate Program

In accordance with the Regional Solar Hot water Rebate Program guidelines and retailer agreements, Sustainability Victoria has recently undertaken a review of rebate levels in relation to the aims of the rebate program.

The rebate is designed to make it easy for regional Victorians when the time comes to replace an existing gas or electric system – they can buy a solar system for around $500 - $800, which is less than what they would pay for a new conventional system.

Changes to Heat Pump Rebates

The review has found that under the current rebate levels for heat pump installations many customers have been receiving installed system at no or close to zero cost. Investigation of invoices submitted with rebate application claims has shown that heat pumps have much lower installation costs than systems with roof mounted components.

As a consequence, from Midnight Sunday 18 January 2009 all heat pump rebates are to be reduced by $700, effective for all pre-approvals obtained as of that date.  For example, from 19 January 2009 a heat pump model that currently receives a rebate of $2500 will receive the reduced rebate of $1800 – at $1800 this rebate amount will remain the highest solar hot water rebate offered anywhere in Australia for these products.

Most solar hot water systems have roof mounted components and the change to the rebate will apply to only 17 models out of the more than 1000 individual solar water heaters which have been accredited to receive a rebate.

This change in rebate is not related to the new Victorian Energy Efficiency Target (VEET) scheme. Before the end of the VEET transitional arrangements there will be a further review of the solar hot water rebate to account for operation of VEET in the market.

Retailers and installers are reminded that Sustainability Victoria rebate pre-approval levels (funds) are guaranteed by the Agreement for 30 days from the pre-approval date. Therefore for heat pumps where pre-approval has been obtained for the higher rebate levels the date of installation (and decommissioning of removed system) must be by 17 February 2009 (which is 30 days after the change in rebate level comes into effect) in order to qualify for the higher rebates.

For pre-approvals with the higher rebate levels, where the installation is delayed and occurs after 17 February 2009, the pre-approval guarantee will have lapsed and the reduced Heat Pump rebate levels will apply. It is the responsibility of the retailer to manage installation schedules to fit within the 30 day pre-approval expiry; this especially critical when rebate levels change.