Replacing Gas Ducted vs Wall Heater: Which One Gets the Heat Pump Rebate?

“If I replace my gas wall or ducted heater with a heat pump hot water system, will I get a rebate?”

It’s a fair question. With power prices rising and gas being phased out, rebates can make a big difference in your upgrade budget. But the truth is that not every gas heater is not eligible for the rebate.

As an accredited provider, it’s our responsibility to clear the confusion, to explain which system qualifies, how much rebate you can expect and what you need to keep in mind.

So this blog will guide you today and tell you about gas ducted heater vs gas wall heaters, which one gets more rebate and clear your confusion about the same.

Let’s get started!

Table of Contents

1. What’s the Difference Between Gas Ducted & Gas Wall Heaters?
2. Things to Consider When Switching to an Electric Heat Pump System
3. How Much Rebate Can You Actually Get?
4. Heat Pump Rebate Eligibility in Victoria
5. How to Claim Your Heat Pump Rebate in Victoria
6. Conclusion
7. FAQs

Before we get into rebates, let’s make sure we’re clear on the basics. In Victoria, homes typically have one of the following:

Gas Ducted Heaters

1. Installed in the ceiling or under the floor.
2. Push warm air through vents to heat the entire home.
3. Use a centralised gas unit.
4. Usually paired with a gas water heating system.

Gas Wall Water Heaters

1. Compact units are mounted on the wall, usually in bathrooms or laundry areas.
2. Provide hot water, not space heating.
3. Often older, low-efficiency models.
4. Used in flats, units or older homes with no ducting.

Now here’s the important distinction for rebates:

When the VEU program refers to 'gas ducted heaters’, they’re looking at gas-based water heating systems integrated with whole-house heating, not small wall-mounted water heaters.

So if you’re replacing a gas ducted water heating system with a heat pump hot water system, you’re eligible. You are also eligible for rebate if you are replacing your old electric hot water system with a heat pump hot water heater. Sadly there’s no rebate on gas wall heaters.

While the rebate is a great incentive, switching from a gas system to an electric heat pump comes with a few practical things to think about:

1. Electrical Capacity

Make sure your switchboard can handle the load of a new heat pump. In older homes, minor upgrades may be needed, your installer or provider should assess this beforehand.

2. Installation Time & Location

Heat pumps work best when placed in well-ventilated outdoor areas. If your current system is indoors or in a tight space, the setup might require some adjustments.

3. Sound & Operation

Modern heat pumps are relatively quiet, but they do produce a humming sound. Placing them away from bedroom windows or neighbours’ boundaries is a smart move.

4. Climate Considerations

Heat pumps are highly efficient in most Victorian weather, but some models perform better in colder regions. Choosing the right system matters, especially if you live in areas like Ballarat or the Dandenongs.

As we said earlier, you only get a rebate if you are replacing your gas ducted heater with a heat pump water heater. Now the question is, how much rebate do you get?

Here’s how much you can expect to save:

Most homeowners receive between $560 to $630 off when you replace your old gas ducted hot water system with a heat pump hot water heater.

The final rebate amount and cost of installation might vary depending on:

1. The installer
2. Your location ( Travel & transport costs depend on this factor) 
3. The brand and model you choose
4. Design of your home

Here’s the exact bifurcation :

To know the exact quote, Contact EcoOrigin.

You could be eligible for a rebate under the Victorian Energy Upgrades (VEU) program but only if your home or product meets certain criteria.

These criteria are

1. You Must Be Upgrading a Qualifying System

The rebate applies when replacing:

1. Gas or electric hot water systems
2. Some solar water heaters (if they meet certain efficiency standards)

2. You Must Install an Approved Product

To receive the rebate, the heat pump you choose must be listed on the VEU Product Register. Here's how to check:

1. Visit the VEU Product Register
2. Choose:
   
   1. ‘1D(18) & 3C - Water heater - Heat pump’ for residential heat pump systems
   2. ‘44(21) - Commercial and industrial heat pump water heater’ for larger properties

If it looks confusing, you can reach out to an accredited provider like EcoOrigin..

3. Your Property Must Be at Least 2 Years Old

The rebate is only available for upgrades made to existing buildings, homes or commercial spaces that are at least two years old.

If you’ve just moved into a brand-new build or are installing a hot water system for the first time, you won’t qualify under the VEU rebate scheme.

4. You Must Claim the Rebate Through an Accredited Provider

An accredited provider makes sure that you fulfil all the requirements. They help you choose the right product, assess your property, check your documents and so on.

Most importantly, only an accredited provider can claim a rebate for you. So always cross-check if your provider is actually accredited or not.

The process is really simple. You need to follow these steps and claim your heat pump hot water rebate vic and heat pump hot water nsw in Australia.

Engage a VEU-Accredited Provider

The very first step is choosing a VEU-accredited provider. Under the VEU program, only accredited providers are allowed to:

1. Generate energy efficiency certificates (VEECs)
2. Lodge the official rebate claim
3. Ensure full compliance with all program rules

You can’t claim the rebate directly as a homeowner and you can’t go through a standard plumber or contractor unless they are connected with an accredited provider.

Choose an Approved Heat Pump from the VEU Register

To qualify for the rebate, the heat pump system you install must be listed on the VEU product register. This ensures it meets the energy performance standards set by the government.

Using a non-listed product (even if it’s energy efficient) means you won't get any rebate. That’s why choosing the right system matters and why going through an accredited provider ensures you get a compliant model.

Request a Written Quote Before Installation

Before anything is installed, get a written quote from an accredited provider. This quote includes:

1. The name and model of the approved heat pump
2. Full supply and installation cost
3. The rebate amount is being applied
4. Your final out-of-pocket cost
5. Warranty and compliance details

Complete the Installation Within Program Guidelines

Once the quote is approved, you’ll book your installation. The system must be installed by qualified professionals registered under the VEU program.

Your old gas ducted unit will be safely removed and decommissioned and the heat pump installed in a compliant outdoor location.

Rebate Is Applied Instantly

Your rebate is not something you apply for after installation (In some exceptional cases, you can). In most cases, an upfront discount is applied.

You just need to collect the necessary documents and provide it to your accredited provider.

Customer Contribution & Warranty

The government has set some important protections to ensure transparency:

1. You must pay at least $200 out-of-pocket (including GST). This avoids “free system” scams.
2. Your system must include a minimum 5-year warranty, covering both the product and the installation workmanship.

Gas ducted water heater vs wall gas heater: Which one gets more rebate? Under the current Victorian Energy Upgrades (VEU) program, rebates are only available when you replace a gas ducted hot water system with a heat pump. Unfortunately, wall-mounted water heaters don’t fall under this category, which means they’re not eligible for this particular rebate, even though the upgrade itself might still be energy-efficient.

However, if you're replacing a gas ducted hot water system, you're in a great spot. Provided your home is over 2 years old and you choose an approved product, you could get a substantial rebate, often applied directly to your upfront cost. And when done right, the long-term savings on energy bills can be just as rewarding.

You need an accredited provider like EcoOrigin to claim your rebate. We’ll help you figure out whether your current setup qualifies, guide you in choosing a VEU-approved heat pump, ensure paperwork is correct and apply the rebate for you upfront.

1. What hot water systems are eligible for the rebate?

You must replace an existing gas or electric water heater with a VEU-approved hot water heat pump. The new system must be listed on the official VEU product register.

2. Is the heat pump hot water heater rebate available for rental properties?

Yes, rental properties are eligible. Landlords and tenants can work together to upgrade the system and still claim the rebate.

3. How do I know if my new hot water system qualifies for rebate?

The best way is to book a free eligibility check with an accredited provider. They’ll assess your current setup and tell you whether you're eligible or not. Additionally they will suggest a new system that is eligible under the VEU program.

4. Can I get a rebate for replacing my gas wall water heater with a heat pump?

No, unfortunately not. The rebate only applies if you’re replacing a gas ducted hot water system and not a wall-mounted water heater.

5. Who can install the system for me to get the rebate?

Only an accredited provider under the VEU program can manage the rebate process. They may work with licensed plumbers and electricians but the rebate itself must go through an accredited provider like EcoOrigin.

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