Which home energy upgrade should you do first?

You've got money set aside and four upgrades pitched at you, each with a rebate figure you can't check. Here's the order that usually pays (solar first if the roof is clear, because the certificates cover about a fifth of a 6.6 kW system and everything else runs on it), what each costs after the incentive, and the five checks to run before you sign. Checked 23 September 2026.

  1. Solar

    $5,000 to $8,500 installed for a quality 6.6 kW after the federal certificates. Everything else runs on it.

    first if the roof is clear
  2. Hot water

    Heat pump swap: up to $1,000 Victorian rebate ($1,400 locally made) plus federal certificates. The simplest job in the house.

    shortest payback
  3. Battery

    $7,000 to $11,000 for 10 kWh after the federal discount. Worth it when most of your use is after 4 pm.

    before the 1 January 2027 step-down if you're buying anyway
  4. Heating and cooling

    Up to $5,530 through Victorian Energy Upgrades at the largest ducted sizes, with a minimum co-payment.

    only if the old unit is over 2 years old

Solar plus battery together: about $12,000 to $19,500 after incentives. Already have solar? Start at step 2.

Why the order matters more than the rebate.

  1. Solar pays for everything after it. A battery bought before there's enough solar to fill it is the most common regret we hear.
  2. Each incentive has its own rule: Solar Homes has an income test, the VEU heating discount needs a heater over 2 years old, the battery discount steps down on 1 January 2027.
  3. The wrong order means paying twice: a hot water system sized before solar, or a battery sized before the new heater changed the evening load.

Which upgrade first: four upgrades, the order that usually pays.

New solar panels on a corrugated tin roof

1. Solar

A quality 6.6 kW system runs $5,000 to $8,500 installed in Victoria after the federal certificates, and $3,500 to $7,000 for households that get the full $1,400 Solar Homes rebate. Everything below runs on it. The installer claims the certificates on the invoice; STC values by zone and size shows what they're worth for your postcode.

Rule: approved installer and products; Solar Homes needs income of $150,000 or less and no solar at the address in 10 years.

Heat pump hot water system beside a weatherboard house

2. Hot water heat pump

Replacing an electric tank is the simplest swap in the house: the Victorian hot water rebate is up to $1,000 ($1,400 locally made) and the federal certificates apply too. Solar Victoria pays the rebate through an authorised retailer.

Rule: replaces an existing system; same income and property limits as Solar Homes.

Home battery mounted on a garage wall

3. Battery

A 10 kWh battery runs $7,000 to $11,000 after the federal discount in Victoria. Worth it when you use most of your power after 4 pm; simple payback is around 12 years on a single-rate plan and around 8 with heavy evening load on a time-of-use plan. If you already have solar, this is your step 1. The battery rebate calculator gives the discount for your usable kWh, now and after 1 January 2027.

Rule: factor 6.8 per usable kWh until 31 December 2026, 5.7 from 1 January 2027; approved battery and installer.

Reverse-cycle air conditioning outdoor unit on a brick wall

4. Heating and cooling

Replacing ducted gas with efficient reverse-cycle attracts up to $5,530 through the Victorian Energy Upgrades program at the largest sizes, with a minimum co-payment. An Accredited Provider delivers it and claims the discount. Published running-cost savings are up to $1,140 a year.

Rule: the old heater is over 2 years old, still connected, and decommissioned after the swap.

The five checks that take five minutes.

  1. The installer is accredited. Solar Accreditation Australia (SAA) runs the installer register that replaced the old Clean Energy Council accreditation. Ask for the accreditation number and look it up on saaustralia.com.au.
  2. The retailer is on the Solar Victoria list. The Solar Homes rebate is only paid through an authorised retailer, listed on solar.vic.gov.au.
  3. The seller has signed the New Energy Tech Consumer Code (NETCC). Signatories agree to a sales and complaints standard; the list is on newenergytech.org.au.
  4. The electrician is licensed. Energy Safe Victoria (ESV) keeps the register at energysafe.vic.gov.au, and a Certificate of Electrical Safety comes with the job.
  5. Every product is on the Clean Energy Council (CEC) approved lists at cleanenergycouncil.org.au, which the federal certificates require.

A retailer that won't hand over the numbers is the clearest warning there is.

Three steps before you sign anything.

  1. Pick your step on the route. Solar, hot water, battery, heating. If you already have solar, start at step 2.
  2. Read the cost after incentives and the rule. Each step below shows the installed price after every incentive, the rebate by name, and the condition that decides eligibility. For your own postcode and size, run the STC calculator before you compare quotes.
  3. Run the five checks, then get one quote. Accreditation, authorised retailer, NETCC, licensed electrician, approved products: how to run each check. The eligibility rules cover the edge cases. Then send the job for one vetted quote, or ask us by email.

Which upgrade are you looking at?

Pick one, answer four short questions, and the next page shows the published figures for your postcode, what waiting costs on your bill, and the checks to run on any quote. No email, no phone number.

No email, no phone number. The figures appear on the next page, and the only thing we ask after that is whether you'd like to call.

If you sign without checking

Skip the order and you buy the loudest upgrade first, with the rebate the salesman quoted.

If you check first

Follow it and each upgrade runs on the one before it, with a rebate you can point to.

Questions people ask.

Is it worth getting a heat pump hot water system?

Usually yes when you're replacing an electric tank. The Victorian hot water rebate is up to $1,000 ($1,400 locally made), the federal certificates apply as well, and a heat pump uses far less electricity than the tank it replaces. Size it after solar if solar is on your list, so the two are matched.

What is cheaper to run, a reverse cycle or a gas heater?

Reverse-cycle. The Victorian government publishes running-cost savings of up to $1,140 a year for swapping ducted gas for ducted reverse-cycle and up to $460 for a gas space heater, on top of the upfront Victorian Energy Upgrades discount.

How do I check if a solar company is legit?

Five checks: the installer's accreditation number on the Solar Accreditation Australia register, the retailer on Solar Victoria's authorised list, the seller as a New Energy Tech Consumer Code signatory, the electrician on the Energy Safe Victoria register, and every product on the Clean Energy Council approved lists. A company that won't hand over those numbers is the warning.

What are the Victorian rebates for 2026?

Solar Homes: up to $1,400 for solar panels plus a $1,400 interest-free loan. Hot water: up to $1,000, or $1,400 locally made. Victorian Energy Upgrades: up to $5,530 for replacing ducted gas heating with reverse-cycle at the largest sizes. The federal certificates and the federal battery discount sit on top of all of them. The Solar Victoria battery loan is closed.

Is a home battery worth it in Victoria in 2026?

It depends on when you use power. With most of your use after 4 pm on a time-of-use plan, a 10 kWh battery at about $9,000 net pays back in around 8 years. On a single-rate plan with an average household it's closer to 12 years. The federal discount drops from about $2,520 to about $2,110 on a 10 kWh battery on 1 January 2027, which is the only real deadline.

Should I replace ducted gas heating with reverse-cycle air conditioning?

Usually yes if the ducted gas unit is more than 2 years old and you're paying a gas supply charge for heating alone. The Victorian Energy Upgrades program publishes up to $5,530 at 22.4 kW ($2,520 at 10 kW), delivered by an Accredited Provider, with a minimum co-payment. Running-cost savings are published at up to $1,140 a year.

Is this a government website?

No. It's an independent reference published by Timeless Energy Pty Ltd. It doesn't administer any rebate and doesn't decide eligibility. Every figure links to the government body that does.

How current are the figures?

Every figure carries the date it was last checked against the source. The current check date is 23 September 2026. When a program changes, the figure, the date and the note change together.

Why does every amount say 'up to'?

Because that's how the programs work. The published figure is a maximum. What you receive depends on your system size, postcode zone, install date and eligibility, and the installer's paperwork.

How does the site make money?

If you ask a question or request a call, we may refer you to a partner business that can quote the work, and that partner may pay a referral fee. The figures on the site don't change based on who you're referred to.

What this site is, and isn't.

Who publishes it

Timeless Energy Pty Ltd (ABN 22 647 048 520), Suite 101, 68-72 York Street, South Melbourne VIC 3205. Contact hello@rebateindex.com.au.

What it isn't

A government website, a rebate administrator, or an installer. We don't decide eligibility and we can't promise any amount.

How figures are checked

Each figure is read from the body that runs the program (the Clean Energy Regulator, Solar Victoria, the Essential Services Commission and their equivalents in each state) and stamped with the check date. When a source changes, the figure and the date change together.

How we make money

Energy Upgrade Guide is a referral service. If you send your details through the check or ask a question, we match you with accredited installer partners who can quote the work, and we may receive compensation from them. The figures on this site don't depend on it.

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