Commercial Heat Pump Free Hot Water Systems for Business in VIC

Upgrade to an energy efficient commercial heat pump and save up to 60% off your water heating bill!


Thanks to the Victorian Energy Upgrade Scheme, you can reduce your business water heating bill, by up to 60%, simply by upgrading to an energy efficient commercial heat pump hot water system.

Check Your Eligibility Now


Enter your details and business suburb to check your eligibility.


    Free Hot Water Systems for VIC Businesses, Commercial Hot Water Systems VIC, Commercial Heat Pump, VIC Government Rebate

    If you are a Victorian business owner, there is great news about hot water system upgrades for you too!

    Under the Victorian Government’s VEU (Victorian Energy Upgrade) scheme, qualifying Victorian businesses are eligible for a government-sponsored solar or heat pump hot water system upgrade. This means the purchase price of your new hot water system is CURRENTLY FREE after the rebate is applied.

    Heat pumps are a great choice for commercial applications as they reduce power consumption during peak times, while also providing extra savings through reduced peak demand charges under the Victorian Energy Upgrade Scheme. Plus they require less maintenance than traditional systems, resulting in fewer service calls, extending their lifespan and improving overall cost efficiency.

    Don’t miss out on the chance to get a free hot water system for your business with this great VIC Heat Pump Hot Water upgrade! Get started today and make sure you don’t miss out on any available rebates from both state and federal governments.

    What Will You Pay For A Hot Water System Upgrade Under The VEU?

    The total installation price, including the rebate, will depend on your approved or accredited provider (AP).

    It will be determined by: 

    • The current Victorian Efficient Energy Certificate price (this fluctuates depending on how much the upgrade will reduce greenhouse gas emissions), 
    • The location of your business – country installations may incur travel costs, 
    • Installation costs, 
    • Your AP’s administration costs  


    NB: Although you don’t have to participate in the VEU to upgrade your hot water system, it will help with cost-saving and reduced upgrade expenses. 

    VEU Eligibility Requirements

    To be eligible for this upgrade, your business must meet certain criteria.

    Business Location:
    Your business premise must be located in Victoria. It can be either a metropolitan/urban area business, or a rural enterprise such as a dairy farm, cattle property, market garden etc.

    Existing Hot Water System:
    Your business must have an old or energy inefficient gas or electric hot water system currently installed. The rebate is specifically targeting hot water systems that use a lot of energy and cost a lot to run.

    Decommission Old Hot Water System:
    When installing your new hot water system, your old system must be decommissioned at the same time. You can’t simply install a new one to run alongside your old system.

    Once the eligibility of your business or commercial enterprise has been established, you can then take advantage of the VEU rebate to help offset the purchase and installation costs of an approved hot water system.

    This offer is valid for commercial businesses located in VIC.

    free commercial hot water system hot water pumps technical details

    Understanding the Victorian Energy Upgrades Program for Hot Water

    The VEU program is designed to improve energy efficiency across the state across a range of metrics. Upgrading old energy efficient hot water systems is one of the initiatives covered under the program.

    Understanding the VEU upgrades program for hot water is key to making the most of this incentive, and maximising the benefits and cost savings it provides. Once you’ve established your business is eligible for the rebate, the key components to know about the rebate include:

    Use of Accredited Provider
    To qualify for the rebate, you must work through an accredited provider to supply and install your new hot water system. Not doing this will void your eligibility for the rebate.

    Using an accredited provider will help ensure you complete the rebate application process correctly and select the right hot water system to suit your business.

    Selection of Approved Product
    All equipment installed under the VEU, including hot water systems, must be on the list of approved products. The equipment on this list has undergone rigorous testing and selection to ensure it meets the required standards in terms of quality, reliability, and energy efficiency. However, we do recommend doing your research first, or enlisting the help of your chosen provider, because there are a lot of hot water heaters on the list! Not all will suit your particular circumstances.

    In particularly, knowing what you require in terms of capacity, quality, performance, and suitability for your location will help you select an appropriate system. This will maximise your energy savings and ensure your hot water system performs correctly.

    Significant Discount
    As the rebate program provides you with a free solar or heat pump hot water system, the total installation cost of your upgrade is significantly discounted. You only pay for your AP’s installation and administration costs.

    Again, we highly recommend getting multiple quotes and comparing offers because the VEU does not mandate or control what accredited providers charge for their administrative and installation services. Doing this will help you receive competitive pricing and good bang for your buck.

    Availability of Free Hot Water Upgrades from the Victorian Government

    Under the Victorian Energy Upgrades program, hot water system upgrades for eligible Victorian businesses is CURRENTLY free.

    To access a free VEU hot water upgrade, your business must:

    • Be located in Victoria.
    • Have an old inefficient hot water system. (gas or electric)
    • Choose a solar or heat pump hot water system on the approved list of products.
    • Use an accredited provider to supply and install the system.
    • Decommission their old hot water system

    Details on Victoria Government Rebates for Hot Water

    To assist with understanding the key details on the VEU government rebates for hot water systems, we’ve compiled the following information: Your Approved Provider As mentioned above, you must go through an approved provider to qualify for the rebate.

    Approved Providers can advise you about:

    • The necessary steps required to participate in the VEU hot water system upgrade program,
    • The approved hot water systems you can install to qualify for the rebate,
    • The required qualifications of the tradesperson used to install your new hot water system. Some APs work with their own installers. Others will use a tradesperson of your choosing so long as s/he is appropriately qualified.
    Your Rebate Amount

    Your final rebate amounts will depend on the:

    • Type of old hot water system you are upgrading. (gas or electric)
    • Type of new system you choose. (solar or heat pump)
    • Price of VEECs. (Victorian Energy Efficiency Certificates)
    • Efficiency rating and potential energy savings of your new system.
    • The installation and administration costs charged by your approved provider.

    There is more information about these price variations on the VEU website.

    The VEU Hot Water System Upgrade Application Process

    Prior to entering into a contract with an approved provider, make sure you have official confirmation that your business is eligible for the rebate. You can do this by contacting us and supplying:

    • A document that verifies you own the property where the business is located and the new system is to be installed.
    • Details of the current water heating system on the premises / business.
    • An estimate of the current daily hot water consumption at the business.

    If your business is eligible, we will arrange for a licensed plumber to visit the premises, assess the site, discuss your upgrade and new hot water system, and outline the installation process with you. We will then provide a quote for the upgrade, which will include the rebate deduction.

    Once you accept the quote, we then arrange the installation of your new hot water system, sign off upon completion of all works, and apply for the rebate on your behalf. You can then sit back and enjoy your new energy efficient hot water supply.

    Contact us for more information about Victoria’s Government Free Hot Water System, or VEU hot water system upgrade rebate.

    Energy efficient hot water systems are up to 60% cheaper to operate

    Energy efficient hot water systems are up to 60% cheaper to operate compared to traditional systems due to their ability to use outside air to heat up the water. Heat pumps only have one moving part, the compressor, meaning there is less wear and tear on the system and fewer service calls are required. The energy efficiency of a heat pump also means that businesses can save money by reducing their electricity costs, making them more cost-efficient in the long run. In addition, with the NSW Heat Pump Hot Water Rebate businesses can get their installation fees refunded, allowing them to get an energy efficient hot water system for free.

    What are the benefits of upgrading a commercial hot water system to a commercial heat pump?

    Upgrading to a commercial heat pump from a traditional hot water system can provide businesses with several significant benefits. The most notable benefit is the cost savings associated with heating up large volumes of water. Heat pumps are much more efficient at using energy, requiring less power to heat the required water, which in turn leads to lower electricity bills. In addition, they are also easier to maintain and require fewer service calls than traditional hot water systems. Additionally, depending on where businesses are located, they may qualify for additional rebates or incentives when switching to a heat pump system, further reducing the costs associated with their upgrade.

    How does a commercial heat pump work?

    A commercial heat pump hot water system works by using the heat from the ambient air to heat up the water, making it an efficient and cost-effective way to heat up large volumes of water. The system includes an outdoor unit, which contains a compressor and a fan that draws in the outside air. The hot air then circulates in the pipes and is directed into a heat exchanger, where it heats up the water and transfers it into a storage tank. This heated water can then be used for various applications like washing dishes, doing laundry or other tasks that require hot water. The system is designed to be energy efficient as well as cost effective, helping businesses save money on their electricity bills while providing them with ample hot water.

    What's Included?

    free hot water heat pumps

    (AVAILABLE IN 2 SIZES 200L & 300L)

    Emerald Energy’s hot water heat pumps provide energy-efficient hot water
    all year round. Our refrigerant cycling heat pumps are available with an
    optional built-in electric heater to boost hot water supply when needed.
    The refrigerant cycling heat pump’s heat exchanger is in the water tank
    resulting in less energy use due to heat loss. It can also operate under
    lower outdoor temperature conditions.

    Energy Generated



    Annual Capacity



    Money Saved



    Site Installations



    Latest Customer Reviews​


                                                     Most frequent questions and answers

    A heat pump hot water system is a type of water heater that uses heat pump technology to generate hot water. According to the Australian Government Department Of Industry Heat pump water heaters use over 60 percent less electricity than traditional electric water heaters and can be used to generate hot water for both residential and commercial applications.

    The government-free hot water system rebate is a federal and state initiative that provides a subsidy for the installation of an eligible 4-star or higher energy-rated Heat Pump Hot Water System to be installed in NSW.

    A heat pump hot water system uses a refrigerant to absorb heat from the surrounding air and transfer it to the water. The water is then circulated through a heat exchanger to transfer the heat to the water. The refrigerant is then cooled and returned to the unit to start the process over again.

    Heat pump hot water systems are more energy efficient than traditional electric water heaters and can save you money on your energy bill. Heat pump systems are also quieter and can be used in both residential and commercial applications.

    Yes, It doesn’t matter if you have multiple systems on your property you can use all old electric hot water systems under the scheme.

    The cost of a heat pump hot water system varies depending on the size and capacity of the unit. Our 170L unit is $33 after rebates and our 280L is $499 installed

    When choosing a heat pump hot water system, it is important to consider the size of your home and the number of people who live there. You will also want to consider your budget and the climate in your area. According to Chromagen Australia it is recommended that the 170 Chromagen Heat pump System can cater a household up to 3-4 people and the 280L Chromagen Heat Pump Hot Water System will service 6 people

    Heat pump systems require access to the outside air to function properly. As a result, your hot water system may need to be located in an outdoor area.

    Yes, you are still eligible for the rebate, but unfortunately, we do not offer installation services for apartments with hot water systems inside.

    The installation process usually takes around 1-2 hours. However, this can vary depending on the size and complexity of the installation.

    The best way to find out if your home is suitable for a heat pump system is to speak to a licenced installer. They will be able to assess your home and advise you on the best option for your situation.

    No, a licenced installer must install heat pump systems. Attempting to install a heat pump system yourself could result in serious injury or damage to your home.

     In most cases, you will not need planning permission to install a heat pump system. However, we recommend checking with your local authority before proceeding with the installation.

     If your heat pump system isn’t working, we recommend speaking to our licenced installers. They will be able to diagnose the problem and advise you on the best course of action. We do have emergency rates if you are located in one of our service areas. Contact us

    While we do service a large part of NSW please Check Your Eligibility to see if we can service your town/suburb.

    Yes, you can! We recommend speaking to our licenced installers if you’re looking to install solar panels and a heat pump system. They will be able to advise you on the best option for your situation.

    We handle everything for you all you need to do is check your eligibility and one of our expert staff members will walk you through the process.

    Unfortunately we can’t offer our larger systems for $33 but we can still install the Chromagen 280L for customers for $499 installed which is a huge $2000 discount!

    Once we check that you are eligible one of our team will reach out and book your install in. The wait can be anywhere between 1-4 weeks.

    We charge a $100 removal fee to take the old hot water tank with us.