If you move to Australian-made efficient electric hot water ­systems, you could get $400 back. Here is how

A new $400 discount is set to be added to rebates available for Australian-made efficient electric hot water ­systems in a matter of weeks. Here’s how it will work.

A new $400 discount will be added to rebates available for efficient electric hot water ­systems if households choose an Australian-made product. Picture: Supplied

A new $400 discount will be added to rebates available for efficient electric hot water ­systems if households choose an Australian-made product, in a major boost for local ­manufacturers.

The Allan government ­initiative, to begin on July 1, is designed to shield the industry from cheap imports as well as encourage Victorians to install appliances that can save them hundreds of dollars a year through lower power bills.

The $400 cash back would come on top of the current ­rebate, worth up to $1000, for eligible households that ­upgrade or replace hot water systems to heat pumps or solar systems.

Manufacturers and unions will be consulted about how to define local content ahead of the July 1 rollout of the rebate, available to up to 27,000 properties as part of a $30m state budget splurge.

Many hot water systems have components made overseas, with the local industry to help determine appropriate thresholds for the new rebates. Picture: NCA NewsWire / Brenton Edwards

The new incentive comes after the Herald Sun recently revealed a company part-owned by a member of popular comedy group Sooshi Mango was under fire for falsely ­labelling its heat pumps as “Australian-made”.

Carlo Salanitri has since ­distanced himself from the ­operations of Ecogenica, which has said the error was due to a website designer fault and “not wilful representation”.

Many hot water systems have components made overseas, with the local industry to help determine appropriate thresholds for the new rebates.

Energy Minister Lily D’Ambrosio said the Aussie-made discount was about making it cheaper to install “quality local products while supporting local jobs”.

“We’re on the side of Victorians – helping families cut ­energy costs and take back control of their bills,” Ms D’Ambrosio said.

“We know there is a strong history of locally manufactured hot water products.

“We want to make sure local jobs are supported and that money spent in Victoria stays in Victoria.”

Energy Minister Lily D’Ambrosio said the Aussie-made discount was about making it cheaper to install “quality local products while supporting local jobs”. Picture: NewsWire / Diego Fedele

Solar Victoria runs the state’s hot water system rebate scheme, available to households with taxable incomes of less than $210,000 a year, in properties worth under $3m.

The current rebate for installing an efficient heat pump or solar hot water system is a 50 per cent rebate on the purchase price of the unit, up to the value of $1000.

Solar experts say the cost of buying and installing mid-size units typically ranges from $3000-$4000, which would be reduced by up to $1400 with Victorian rebates.

Since 2018, Solar Victoria has dished out 400,000 rebates and loans, as the government has incentivised rooftop solar and electrification as part of a net zero policy.

Further policies to try to shift Victorians off gas have drawn a heated industry response, ­including a plan to force consumers to switch to electric hot water and heating when gas appliances expire.

This year’s state budget included almost $30m to help more households install electric appliances in their homes, which the government says will lower bills.

Originally published as If you move to Australian-made efficient electric hot water ­systems, you could get $400 back. Here is how