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A significant amount of energy is required to heat water. Approximately 36% of commercial building energy is for water heating that serves space heating and hot water. This proportion of energy is even greater for industrial facilities that have process heating requirements.

Improving the efficiency of your gas steam boilers, hot water boilers, or electric resistance water heaters is one of the best ways to reduce your business's energy bills.


To be eligible to upgrade your hot water system and get a discount, you must:

  • be a Victorian business
  • have an inefficient electric or gas hot water system.

Your participation is voluntary.

Key steps when organising a hot water system installation

To get a discount on the installation of a hot water system you must:

  1. install an approved product.Under the products register, you can use the ‘Product’ drop-down menu to search for the product you intend to install, including:
    • water heater – heat pump
    • water heater – electric boosted solar.
      Hint: research these products for their suitability and quality. There are a lot of products approved for installation as part of VEU. Not all products are of the same quality or suitable for every environment.
  2. work with an accredited provider
    Hint: get quotes from several providers. Accredited providers offer different types of products, services, expertise, and costs. Make sure to get a quote from several accredited providers on the final installed price of the appliance, which includes the discount.
  3. decommission an inefficient electric or gas hot water system.

Working with accredited providers

An accredited provider is:

  • any business that is approved to deliver or facilitate installations in the VEU program
  • responsible for helping you get a discount on an installed appliance through the VEU program.

When doing an installation through the VEU program, accredited providers can either:

  • use their own tradesperson, or
  • work with a tradesperson of your choice.

Accredited providers will be able to explain:

  • the steps to take part in the program
  • the types of products can you install to get a discount
  • the necessary qualifications of the tradesperson who installs the hot water system.

Remember: you must work with an accredited provider to get a discount on an installed appliance through the VEU program.

How to check if a person or business is accredited under the VEU program

The Essential Services Commission’s VEU Registry of Accredited Persons:

  • select the 'Business Name' drop-down menu
  • scroll until you see the accredited provider you are searching for.

Note: accredited providers often work with installers who are not listed on the registry.

Additional information for installing a heat pump water heater

To minimise costs when installing hot water heat pumps, it is important to size them to meet your business needs.

DEECA has engaged the Australian Alliance for Energy Productivity (A2EP) to develop a range of guidance materials to support:

  • best practice design
  • optimisation and installation of commercial and industrial heat pump water heaters.

These guideline resources support the design and installation of heat pumps water heaters in commercial and industrial applications account. They include technical design considerations and case studies to highlight applications of these principles.

Design considerations and guidelines

Case studies

How much discount you can expect

Incentives of up to the following amounts are available for the average business:

Removing an inefficient electric water heater

To be installed

Indicative discount*

Electric boosted solar water heater


Heat pump water heater


Removing an inefficient gas water heater

To be installed

Indicative discount*

Heat pump water heater


Efficient electric boosted solar water heater


*This figure is based on a certificate price of $70.

The final installed price of the appliance, which includes the discount, is up to the accredited provider and will depend on several factors, including:

  • certificate price (which fluctuates)
  • location
  • installation costs
  • the accredited provider’s administrative costs.

For more information on the certificate price under the VEU program, please see Victorian Energy Efficiency Certificates (VEECs).

Find an accredited provider in your area

Can't find an accredited provider in your area?

Please note that as VEU is a market-based program:

  • not all accredited providers listed below will necessarily be offering hot water system upgrades at present
  • accredited providers can choose when and where they undertake upgrades.

Page last updated: 14/02/24