Cut Your Commercial Hot Water Bill by Up to 70%: Heat Pump Rebates, Costs & ROI for Australian Businesses
1. Why Australian Businesses Are Switching Now
Commercial gas and electric resistance hot water systems are among the largest energy cost centres in Australian businesses — and the most underestimated. Water heating accounts for between 15% and 30% of a building's total energy use,[1] and in high-demand sectors like hospitality, aged care, and healthcare, the figure can exceed 40% of total energy expenditure.
The convergence of four powerful forces is making 2025–2026 the optimal window to act:
The Four Drivers
- Rising gas prices: Commercial gas prices have increased significantly since 2021. East-coast spot prices remain volatile and structurally higher than pre-2022 levels, eroding the economic case for gas-fired hot water.
- Maturing rebate landscape: Federal STCs, Victoria's VEU Activity 44, and the NSW ESS can be stacked for maximum savings — but the STC scheme steps down every January and closes in 2030.[2]
- Regulatory and ESG pressure: Net-zero commitments, NABERS ratings, and supply-chain sustainability requirements are creating board-level urgency around operational emissions reduction.
- Technology maturity: Commercial heat pump units are now proven at scale, with operating temperatures suitable for healthcare and hospitality Legionella-safe requirements (60 °C storage / 45 °C delivery).[3]
📅 Program Update — July 2025: The ESC released VEU Specifications Version 20.0, introducing revised greenhouse gas abatement calculations for Activity 44 and increasing the minimum co-payment per Activity 44 product from $200 to $1,000 (incl. GST) for activities dated on or after 25 July 2025.[4] A new Salesforce-based VEU Registry system launched in June 2025.[5]
2. How Commercial Heat Pump Hot Water Systems Work
A heat pump hot water system operates on the same refrigerant cycle principle as an air conditioner — but in reverse. Instead of expelling heat, it captures ambient thermal energy from the surrounding air and transfers it to the water storage tank. Because it moves existing heat rather than generating it from scratch, it uses far less electricity per unit of heat delivered.
| Technology | Heat Source | Typical COP | Energy Use vs Heat Pump | Annual Operating Cost (Commercial, 1,000 L/day) |
|---|---|---|---|---|
| Gas Boiler | Combustion | ~0.9 | 3–4× more energy | $8,000 – $18,000 |
| Electric Resistance | Element heating | ~1.0 | 3× more energy | $12,000 – $22,000 |
| Air-Source Heat Pump | Ambient air | 3.0 – 4.5 | Baseline | $3,000 – $7,000 |
| Heat Pump + Solar PV | Solar + ambient air | Effective 5–8+ | 60–80% less than baseline | $600 – $2,500 |
| COP = Coefficient of Performance. Costs are indicative for a medium-demand commercial facility. Actual figures depend on energy tariff, climate zone and usage pattern. | ||||
Key Technical Specifications (Commercial Units)
| Specification | Standard Range | Relevance |
|---|---|---|
| Storage volume | 200 L – 10,000+ L (cascade systems) | Sized to peak demand |
| Heat pump thermal capacity | 5 kW – 100+ kW | VEU Activity 44 mid-range units require >20 kW |
| Minimum delivery temp | 45 °C (VEU requirement) | Legionella-safe setpoint 60 °C storage |
| Operating ambient range | −5 °C to +43 °C | Suitable for all Australian climate zones |
| Tank standard (<700 L) | AS/NZS 2712 certified | Mandatory for VEU eligibility |
| Tank standard (>700 L) | AS/NZS 2712 not required | ESC specification may vary |
| Refrigerant | R-134a, R-410A, R-744 (CO₂) | CO₂ models suit high-temp applications |
| Warranty (VEU requirement) | Minimum 5 years from installation | Mandatory from 31 March 2025[6] |
| Noise level (typical) | 45 – 60 dB(A) at 1 m | Site installation location planning required |
💡 Legionella Note: In healthcare, aged care, hospitality and other high-risk settings, hot water systems must comply with AS/NZS 3500.4 Plumbing and Drainage — Heated Water Services for Legionella control. This typically requires storage at ≥60 °C and delivery above 45 °C. Modern commercial heat pump units are designed to meet these requirements. State and territory health authorities may impose additional registration, maintenance and testing obligations for warm water systems in high-risk premises.[3]
3. Rebate Programs: Full 2025–2026 Breakdown
Australian commercial operators can access a stack of federal and state incentives simultaneously. The interaction of these programs is what makes commercial heat pump upgrades so financially compelling right now.
Program Overview by State
| Program | Scope | Certificate Type | Eligible Businesses | Stackable With | Administering Body |
|---|---|---|---|---|---|
| STCs — Federal SRES | National | Small-scale Technology Certificates | All businesses & households | All state schemes | Clean Energy Regulator |
| VEU — Activity 44 | Victoria | Victorian Energy Efficiency Certificates (VEECs) | All businesses with ABN | STCs | Essential Services Commission (ESC) |
| ESS — Activities D17 / D19 | NSW | Energy Savings Certificates (ESCs) | Households & businesses | STCs | IPART |
| REPS | South Australia | Retailer Energy Productivity Scheme credits | Households & businesses | STCs (~$1,150) | SA ESCOSA |
| QBEST | Queensland | QLD-based rebates | Eligible businesses | STCs | Queensland Government |
| Energy Saver Loan (TAS) | Tasmania | Interest-free loan $500–$10,000 | Small businesses | STCs | Tasmanian Government |
Federal STCs: How the Value Is Calculated
Small-scale Technology Certificates (STCs) are awarded based on the system’s projected lifetime energy displacement, your STC geographic zone (1–5) and the installation year. Your accredited installer trades the STCs on your behalf and deducts the value directly from your invoice — you never receive the rebate as cash. In 2025–2026, STC values are running at approximately $36 per certificate.[2]
| STC Zone | Coverage | Climate Intensity | Typical STCs (200 L unit, 2025) | Approx. STC Rebate Value |
|---|---|---|---|---|
| Zone 1 | Far North QLD, Darwin | Highest | ~32–40 | ~$1,150–$1,440 |
| Zone 2 | Northern QLD, northern WA | High | ~28–34 | ~$1,000–$1,220 |
| Zone 3 | Brisbane, Perth, mid-coast NSW | Medium-high | ~24–30 | ~$860–$1,080 |
| Zone 4 | Sydney, Adelaide, Hobart | Medium | ~22–27 | ~$790–$970 |
| Zone 5 | Melbourne, Canberra, alpine areas | Lower | ~18–24 | ~$650–$860 |
| Values are for a 200 L residential-scale system for reference. Commercial systems generate proportionally more STCs based on system capacity and rated efficiency. STC prices fluctuate daily; ~$36/certificate as of 2025–2026.[2] STCs must be created within 12 months of installation. | ||||
⏳ Deadline pressure: The number of STCs awarded decreases on 1 January each year as the SRES steps down toward its 2030 closure. Businesses that upgrade in 2025 receive more certificates than those who wait until 2026 or later.[2] All STCs must be created within 12 months of installation.
4. VEU Activity 44: Deep Dive (Victoria)
Victoria’s commercial heat pump rebate is governed by Activity 44 of the Victorian Energy Upgrades (VEU) program, which was originally introduced as Activity 44A in February 2022 and restructured into three sub-activities (44A, 44B, 44C) under the VEU Specifications 2018, Version 20.0, effective 25 July 2025.[4]
| Sub-Activity | Upgrade Scenario | Decommissioning Required? | Typical Target Sector |
|---|---|---|---|
| 44A | Decommission one or more gas-fired commercial/industrial hot water boilers → install air-source heat pump water heater | Yes — gas boiler(s) removed | Hotels, hospitals, aged care running gas boilers |
| 44B | Decommission one or more electric resistance commercial/industrial hot water boilers → install air-source heat pump water heater | Yes — electric boiler(s) removed | Schools, gyms, small commercial premises on electric storage |
| 44C | Install air-source heat pump water heater (new installation — no decommissioning) | No | New builds, additions, supplementary capacity |
| Source: ESC, Commercial and Industrial Heat Pump Water Heater Activities, updated 15 April 2026.[7] | |||
Product Requirements Under Activity 44 (from 25 July 2025)
| Requirement | Detail |
|---|---|
| Listed on ESC Register | Product must appear on the ESC Register of Approved Products for commercial/industrial heat pump water heaters (Category 44) at the time of VEEC creation |
| Insulated storage tank | Required. Tanks ≤700 L must be AS/NZS 2712 certified; tanks >700 L exempt from AS/NZS 2712 but must meet ESC modelling requirements |
| Minimum delivery temperature | 45 °C |
| Mid-range unit thermal capacity | Heat pump thermal capacity >20 kW AND average insulated storage volume between 425–700 L (new mid-range sub-category from 25 July 2025) |
| Minimum energy savings | Must achieve minimum annual energy savings as specified by the ESC; updated abatement calculations apply from 25 July 2025 |
| Minimum co-payment | $1,000 incl. GST per product installed (increased from $200, effective 25 July 2025)[4] |
| Warranty | Minimum 5-year warranty against defects required from 31 March 2025 (for units ≤700 L storage)[6] |
| Accredited installer | Installation must be conducted by a VEU-accredited person/business |
| Excluded building types | VBA Class A6 (Farming Buildings) and VBA Class 2 (apartments) are ineligible |
📅 Registry Update: A new Salesforce-based VEU Registry system launched on 3 June 2025, replacing the previous 15-year-old system. Activity 44 submissions for upgrades completed on or after 31 March 2026 are enabled under updated requirements. Accredited persons lodge, track and complete all VEEC creation through the new Registry portal.[5]
How VEECs Are Valued
Each VEEC represents one tonne of CO₂-equivalent greenhouse gas abatement. VEECs are traded on the open market and sold to energy retailers, who must surrender a legislated number of certificates to the ESC each year. The VEEC market price fluctuates and has historically delivered discounts ranging from hundreds to several thousands of dollars per commercial installation, depending on system size and market conditions at the time of lodgement.
| Year | VEU Certificate Target |
|---|---|
| 2022 | 6.7 million VEECs |
| 2023 | 6.9 million VEECs |
| 2024 | 7.1 million VEECs |
| 2025 | 7.3 million VEECs |
| Source: Glow Green, based on VEU program data. Targets set under the Victorian Energy Efficiency Target Act 2007. | |
5. Real Costs: What to Budget
Commercial heat pump hot water system costs vary with system capacity, configuration (single unit vs. cascade), site infrastructure, and whether existing plumbing and electrical feeds can be reused. The figures below are indicative total project costs (supply + installation) before rebates are applied.
| Application / Sector | Typical Capacity | Est. Project Cost (Before Rebates) | Est. Total Rebate Value* | Est. Net Cost |
|---|---|---|---|---|
| Small café / retail | 200–315 L | $4,000 – $8,000 | $1,000 – $2,500 | $3,000 – $6,000 |
| Restaurant / licensed venue | 315–600 L | $6,500 – $12,000 | $1,500 – $4,000 | $5,000 – $9,000 |
| Boutique hotel / motel (20–40 rooms) | 800 L – 1,500 L | $12,000 – $25,000 | $3,000 – $8,000 | $9,000 – $18,000 |
| Large hotel / resort (100+ rooms) | 3,000 – 8,000 L+ | $40,000 – $100,000 | $12,000 – $35,000 | $28,000 – $70,000 |
| Medical / dental clinic | 315–600 L | $6,000 – $12,000 | $1,500 – $4,000 | $4,500 – $9,000 |
| Aged care facility (60 beds) | 2,000 – 5,000 L | $25,000 – $60,000 | $8,000 – $20,000 | $17,000 – $44,000 |
| Hospital (100–200 beds) | 5,000 – 15,000 L+ | $60,000 – $180,000+ | $18,000 – $60,000+ | $42,000 – $130,000+ |
| Gym / fitness centre | 600 L – 1,500 L | $9,000 – $22,000 | $2,500 – $7,000 | $7,000 – $16,000 |
| Aquatic / leisure centre | 2,000 – 6,000 L | $22,000 – $70,000 | $7,000 – $24,000 | $15,000 – $50,000 |
| School / TAFE campus | 600 L – 2,000 L | $9,000 – $30,000 | $2,500 – $10,000 | $7,000 – $22,000 |
| Commercial laundry | 3,000 – 10,000 L+ | $35,000 – $120,000 | $10,000 – $40,000 | $25,000 – $85,000 |
| * Rebate estimates are indicative. Actual rebate values depend on current VEEC/ESC market prices, STC zone, system model and site-specific factors. All costs are GST exclusive. Contact Glow Green for a tailored assessment. | ||||
What’s Included in a Typical Commercial Installation
| Cost Component | Included? | Notes |
|---|---|---|
| Heat pump unit and storage tank(s) | ✓ Yes | ESC-listed, warranty-backed product |
| Plumbing connections & modifications | ✓ Yes | By VBA-licensed plumber |
| Electrical connection & safety certificate | ✓ Yes | A-grade electrician, Energy Safe Victoria |
| Decommissioning of old system | ✓ Yes | Responsible disposal / recycling |
| Commissioning & handover documentation | ✓ Yes | Including all compliance certificates |
| Rebate paperwork & VEEC/ESC lodgement | ✓ Yes | Handled end-to-end by Glow Green via Certify |
| Structural/building modifications | ⚠ Site-specific | May incur additional cost depending on access |
| Cascade manifolding (multi-unit sites) | ⚠ Site-specific | Quoted separately for large commercial sites |
6. ROI & Payback Period Analysis
The return on investment for a commercial heat pump upgrade is determined by how much hot water your business uses and what you currently pay to heat it. The formula is straightforward:
Simple Payback Period = Net Capital Cost (after rebates) ÷ Annual Energy Cost Savings
Example: A 40-room motel invests $16,000 net after rebates. Switching from gas saves $7,500 per year in water heating costs. Payback = 2.1 years. After that, $7,500 every year for the remaining 12+ year system life = $90,000+ in lifetime savings.
| Sector | Previous System | Net Capital Cost (After Rebates) | Est. Annual Energy Saving | Indicative Payback | 10-Year Net Saving |
|---|---|---|---|---|---|
| Boutique Hotel (30 rooms) | Gas boiler | $12,000 – $18,000 | $7,000 – $12,000 | 1.5 – 3 yrs | $52,000 – $102,000 |
| Aged Care (60 beds) | Gas / electric | $20,000 – $44,000 | $15,000 – $30,000 | 1.5 – 3.5 yrs | $106,000 – $256,000 |
| Large Gym & Aquatic Centre | Gas boiler | $15,000 – $50,000 | $8,000 – $22,000 | 2 – 3 yrs | $30,000 – $170,000 |
| Hospital (200 beds) | Gas boilers | $60,000 – $130,000 | $40,000 – $80,000 | 1.5 – 2.5 yrs | $270,000 – $670,000 |
| School / TAFE Campus | Electric storage | $8,000 – $22,000 | $3,000 – $8,000 | 3 – 5 yrs | $8,000 – $58,000 |
| Commercial Laundry | Gas boilers | $28,000 – $85,000 | $25,000 – $60,000 | 1.5 – 2.5 yrs | $165,000 – $515,000 |
| All figures are indicative estimates. Actual ROI depends on current energy tariffs, usage patterns, system configuration and rebate values at time of installation. Contact Glow Green for a site-specific financial model. | |||||
Beyond Direct Energy Savings: The Full Value Stack
| Value Driver | Description | Who Benefits Most |
|---|---|---|
| Reduced maintenance costs | Fewer moving parts, no combustion components, lower service frequency vs gas boilers | All commercial operators |
| Carbon emissions reduction | Scope 2 emissions reduction supports NABERS, ESG reporting & net-zero roadmaps | Listed companies, government, large commercial |
| Gas price risk hedging | Electrification removes exposure to gas spot price volatility | High gas-use operations |
| Asset & building value | Energy-efficient plant improves NABERS ratings and attracts premium tenants | Property owners, commercial landlords |
| Regulatory compliance | Proactive upgrade ahead of future gas phase-out regulations | All VIC/NSW commercial operators |
| Guest / client satisfaction | Consistent hot water supply; quieter operation than boiler rooms | Hospitality, healthcare, aged care |
7. Sector-by-Sector Spotlight
Hospitality
Hotels, motels, resorts, pubs and clubs are among the strongest ROI sectors. A typical hotel may spend $15,000–$50,000 per year on water heating. Heat pumps are 2–4× more efficient, and government rebates make the upfront cost far more manageable. Cascade systems handle peak-demand mornings. Commercial rebates available in all states.[9]
Healthcare
Hospitals and day surgeries require 24/7 Legionella-safe hot water delivery. Modern commercial heat pumps maintain 60 °C storage and 45 °C delivery as required by AS/NZS 3500.4. Large sites can achieve $40,000–$80,000+ in annual savings. VEU and ESS rebates available for eligible clinical premises.
Aged Care
Aged care and retirement villages run continuous, high-volume hot water demand. Legacy gas boilers are expensive to run and maintain. VEU Activity 44A covers direct gas boiler replacement. Facilities with 60+ beds regularly achieve five-figure annual savings. Non-residential premises with ABN are eligible.
Fitness & Aquatic
Gyms and pools run shower facilities at peak morning and evening load. Gas-to-heat-pump is among the fastest-payback upgrade types in this sector. Solar PV pairing can make daytime heating near-zero cost. VEU 44A and STCs apply.
Education
Schools, universities and TAFEs have defined operating schedules that suit off-peak and demand-managed heat pump operation. State education sustainability mandates are accelerating adoption. STCs and VEU/ESS rebates apply to non-residential educational premises.
Industrial & Laundries
Commercial laundries and food processing have high process heat demand. High-temperature heat pump units (up to 80 °C delivery) are now available. VEU Activity 44 specifically covers commercial and industrial boiler replacement, making the rebate case very strong.
Hot Water Demand Intensity by Sector
| Sector | Typical Daily Demand | Common Current System | Biggest Cost Driver | Rebate Priority |
|---|---|---|---|---|
| Hotel (per room) | 70–120 L/room/day | Gas boiler or electric storage | Gas / peak electricity tariffs | VEU 44A + STCs |
| Hospital (per bed) | 150–250 L/bed/day | Gas boiler system | Gas price + Legionella compliance costs | VEU 44A + STCs |
| Aged Care (per resident) | 100–180 L/resident/day | Gas or electric resistance | 24/7 operation, peak tariffs | VEU 44A/44B + STCs |
| Gym (per member visit) | 20–40 L/visit (peak) | Gas storage | Morning peak demand, gas | VEU 44A + STCs |
| Commercial laundry | 10,000–50,000 L/day | Large gas boiler | Volume × gas price | VEU 44A + STCs |
| School | 15–30 L/student/day | Electric storage | Off-peak kWh volume | VEU 44B + STCs |
8. Eligibility & Compliance Requirements
| Requirement | VEU (VIC) | ESS (NSW) | STCs (National) |
|---|---|---|---|
| Must hold active ABN | ✓ | ✓ | ✓ |
| Premises in eligible state | Victoria only | NSW only | All states |
| Non-residential / commercial building | ✓ (Classes 3–9 VBA) | ✓ | ✓ |
| Product on approved register | ESC Product Register (Cat. 44) | IPART approved product list | Clean Energy Regulator approved |
| Accredited installer required | VEU Accredited Person | ACP under ESS | Registered STC installer |
| Min. storage volume | No hard minimum (sizing to demand) | Per IPART specifications | Per Clean Energy Regulator |
| Min. delivery temperature | 45 °C | As per IPART | Per manufacturer specs |
| Warranty requirement | Min. 5 yrs (from 31 Mar 2025) | Per IPART | Not specified |
| Min. co-payment by business | $1,000 incl. GST (from 25 Jul 2025) | Varies | N/A |
| STC creation window | N/A | N/A | Within 12 months of installation |
| Excluded premises | Class A6 (Farming), Class 2 (Apartments) | Residential-only premises | None |
Compliance Standards Summary
| Standard | Applies To | Key Requirement |
|---|---|---|
| AS/NZS 2712:2007 (reconf. 2020) | Heat pump & solar hot water systems | Design and construction requirements; mandatory certification for commercial tanks ≤700 L under VEU[10] |
| AS/NZS 3500.4:2021 | All heated water services | Plumbing and drainage for heated water; Legionella control requirements[11] |
| AS 3498:2020 | Water heaters and storage tanks | Safety and public health requirements; cited alongside AS/NZS 2712[12] |
| NCC 2022 Volume 3, Part B2 | New and replacement commercial installations | Heated water services provisions including Legionella control, T&P relief[13] |
| State health regulations | Healthcare, aged care, hospitality, hotels | Additional warm water system registration, maintenance and testing obligations (state-specific) |
⚠ Not sure if your premises qualifies? Glow Green provides free eligibility assessments with no obligation. We verify building class, ABN status, existing equipment and VEU/ESS program requirements before you commit to anything.
9. The Glow Green Installation Process
As an Accredited Provider (AP) under the VEU program, Accredited Certificate Provider (ACP) under the NSW ESS, and national STC aggregator, Glow Green manages the entire commercial upgrade journey through our proprietary compliance platform, Certify. Over 100,000 upgrades completed since inception.
| Step | Activity | Who | Typical Timeframe |
|---|---|---|---|
| 1. Free Assessment | Virtual or on-site review of hot water system, consumption data, ABN/building eligibility, rebate entitlement calculation | Glow Green team | 1–3 business days |
| 2. Tailored Quote | Itemised proposal showing gross system cost, STC/VEEC/ESC deductions, net business investment and projected annual savings | Glow Green team | 2–4 business days |
| 3. Approval & Scheduling | Business signs agreement; installation scheduled to minimise operational disruption | Glow Green + install partner | 1–2 weeks from approval |
| 4. Installation | VBA-licensed plumber and Energy Safe Victoria A-grade electrician complete works. Compliance certificates (VBA + CoES) issued same day. | Licensed install partner | 1–2 days on site |
| 5. Rebate Lodgement | All documentation submitted through Certify platform. VEECs/ESCs created and sold to energy retailers. STC assignments lodged with Clean Energy Regulator. | Glow Green via Certify | Within 5–10 business days post-installation |
| 6. You Save | Lower energy bills from day one. All rebate value already deducted from your invoice — no waiting for a cheque. | Your business | Immediate |
10. Frequently Asked Questions
Following the VEU Specifications Version 20.0 update (effective 25 July 2025), the commercial heat pump activity was restructured into three sub-pathways:
44A covers the decommissioning of gas-fired commercial/industrial boilers and installation of an air-source heat pump water heater in their place. 44B covers the same upgrade but from electric resistance boilers. 44C covers new installations with no decommissioning involved (e.g., additional capacity or new builds).
The appropriate sub-activity is determined by your existing equipment type and the nature of the upgrade. Glow Green will identify the correct pathway during your free assessment.
Under the updated VEU Specifications (Version 20.0, effective 25 July 2025), the minimum business co-payment for an Activity 44 upgrade is $1,000 including GST per product installed. This was increased from the previous minimum of $200. The co-payment reflects the business’s own contribution to the upgrade cost — the rebate covers the remainder. For large commercial systems, the net cost to your business will typically far exceed this minimum.
Yes. Victorian businesses can combine VEECs (under the VEU program) with federal STCs (under the SRES) for the same installation, maximising the total rebate value. Similarly, NSW businesses can stack ESCs with STCs. SA operators can stack REPS credits with STCs. Glow Green will identify all applicable programs and apply them simultaneously, deducting the combined value from your invoice.
Yes. Under VEU Activity 44, the commercial heat pump unit must be listed on the ESC Register of Approved Products for Commercial and Industrial Heat Pump Water Heaters (Category 44) at the time of VEEC creation. Similarly, STC claims require the product to be approved by the Clean Energy Regulator. Glow Green only recommends and installs ESC-listed, approved products, so this is handled automatically as part of our service.
From 31 March 2025, all commercial and industrial heat pump water heating products with an insulated storage volume not exceeding 700 litres installed under VEU Activity 44 must carry a minimum 5-year warranty against defects from the date of installation, purchase or supply. The VEEC assignment form requires a warranty installer declaration. Products that did not meet this requirement were removed from the VEU Register of Approved Products on 31 March 2025.
Under Activity 44B and 44A (replacement pathways), the existing boiler(s) must be decommissioned. Under Activity 44C (new installation without decommissioning), an existing storage may be retained if it is less than 10 years old and meets specifications. In most commercial scenarios, replacing the complete system — heat pump plus new insulated storage tank — is the most cost-effective and rebate-eligible approach. Your Glow Green assessor will advise on the optimal configuration for your specific site.
Yes. Modern commercial heat pump units are fully compatible with Legionella-safe hot water requirements under AS/NZS 3500.4. Systems are configured to store water at ≥60 °C and deliver at ≥45 °C as required. In New South Wales, the Public Health Regulation 2022 sets registration, maintenance and testing obligations for warm water systems in higher-risk premises (healthcare, aged care, hotels), managed in accordance with relevant standards. State and territory health authorities should be consulted for jurisdiction-specific requirements beyond the plumbing standard. Glow Green’s licensed installers are experienced in compliant healthcare and aged care installations.
All Australian businesses can access federal STCs regardless of state. South Australian operators can combine STCs (up to approximately $1,150) with the Retailer Energy Productivity Scheme (REPS) (up to approximately $1,056). Queensland businesses can access STCs plus state-level rebates under the QBEST program for eligible installations. Glow Green operates as a national STC aggregator and can facilitate STC claims for commercial installations in any Australian state or territory. Contact us to discuss your state-specific options.
Most commercial heat pump hot water installations are completed in one to two business days on site, depending on system size, the number of units, and access complexity. Glow Green coordinates with your operations team to schedule during off-peak periods or overnight where required to minimise disruption to guests, patients, residents or students. After installation, plumbing and electrical compliance certificates are issued on the same day.
No — and this is a benefit. The rebate value (STCs, VEECs, ESCs) is deducted directly from your invoice upfront. You pay the net cost and never need to wait for a cheque or separate reimbursement. Glow Green handles all certificate creation, trading and lodgement through the Certify platform on your behalf.
Commercial heat pump hot water systems require significantly less maintenance than gas boilers because they have no combustion components. Recommended annual service checks include cleaning air inlet/outlet filters, inspecting refrigerant charge, checking anode rods, and verifying temperature and pressure relief valves. Most manufacturers provide 5–10 year warranties on commercial units. In healthcare and aged care settings, additional Legionella management testing and record-keeping is required under state health regulations.
Yes, and this is one of the most powerful combinations available to commercial operators. Configuring the heat pump to run primarily during solar generation hours (mid-morning to mid-afternoon) can reduce the effective electricity cost for water heating to near zero on sunny days. Smart controllers and timer settings make this straightforward to configure. For businesses already generating surplus solar, this can turn water heating into a near-free operational input.
The VEU Registry is the online platform through which accredited persons (like Glow Green) lodge installation data, create VEECs, and track certificate status. The ESC launched a new Salesforce-based Registry system on 3 June 2025, replacing the previous 15-year-old system. As a VEU Accredited Provider, Glow Green operates on the new Registry and all Activity 44 submissions for upgrades completed on or after 31 March 2026 are processed under the updated requirements. Your business has no need to interact with the Registry directly — Glow Green handles all lodgement through Certify.
Under the VEU program, two building classifications are excluded: VBA Class A6 (Farming Buildings) and VBA Class 2 (Apartment) buildings. All other commercial and non-residential building classes (Classes 3 through 9, which include hotels, hospitals, aged care, schools, offices, warehouses and more) are potentially eligible. Residential properties can access separate residential VEU rebates, but the commercial Activity 44 pathway is specifically designed for business premises.
The federal Small-scale Renewable Energy Scheme (SRES) was designed to gradually phase out between now and its closure on 31 December 2030. The number of STCs awarded for a given system decreases on 1 January each year. This means the rebate you receive in 2025 is higher than the rebate you would receive in 2026 for the identical installation. Installers can typically hold quote prices for around 30 days while a customer makes a decision, but structural deferral reduces your entitlement. The closer to 2030, the lower the STC rebate value.
The easiest first step is to request a free callback or assessment via the Glow Green website at glowgreen.com.au/commercial-heat-pump, or call 1300 077 972. Our team will conduct a virtual assessment of your existing hot water system and consumption, confirm your rebate eligibility, and provide a no-obligation itemised quote showing your net investment and projected savings before you make any commitment.
📚 Bibliography & References
- [1] Solar Victoria. Hot Water Rebate. Victorian Government. Updated March 2026. “Heating hot water is one of the biggest sources of energy use in the home [and commercial premises], accounting for 15% to 30% of household energy use.” Available at: solar.vic.gov.au/hot-water-rebate
- [2] Clean Energy Regulator. Small-scale Renewable Energy Scheme (SRES) — Small-scale Technology Certificates (STCs). Australian Government. The SRES steps down annually until closure on 31 December 2030. STC values approximately $36/certificate in 2025–2026. Available at: cleanenergyregulator.gov.au
- [3] Essential Services Commission (ESC). Changes to VEU Commercial and Industrial Heat Pump Water Heater Activities. VEU Specifications 2018, Version 20.0, effective 25 July 2025. Key changes include new mid-range sub-category (>20 kW, 425–700 L), updated abatement calculations, and minimum co-payment increase from $200 to $1,000 (incl. GST). Available at: esc.vic.gov.au
- [3] Essential Services Commission. Working with the VEU Registry System. New Salesforce-based VEU Registry launched 3 June 2025. Activity 44 submissions for upgrades completed on or after 31 March 2026 enabled under updated requirements. Available at: esc.vic.gov.au
- [5] Essential Services Commission. New Warranty Requirements for Water Heating and Space Heating and Cooling Activities Commence 31 March 2025. Minimum 5-year warranty against defects required for all commercial heat pump water heating products (Activity 44) with insulated storage ≤700 L. Available at: esc.vic.gov.au
- [6] Essential Services Commission. Commercial and Industrial Heat Pump Water Heater Activities. Activity Guide updated 15 April 2026. Describes Activity 44A (gas boiler decommission), 44B (electric boiler decommission) and 44C (new installation). Available at: esc.vic.gov.au
- [7] Standards Australia / Standards New Zealand. AS/NZS 2712:2007 (Reconfirmed 2020) — Solar and Heat Pump Water Heaters: Design and Construction. Incorporates Amendments 1 (2011), 2 (2011) and 3 (2014). Specifies performance-based design and construction requirements for heat pump water heaters including commercial and industrial installations. Available at: store.standards.org.au
- [8] Standards Australia / Standards New Zealand. AS/NZS 3500.4:2021 — Plumbing and Drainage, Part 4: Heated Water Services. Sets design, installation and commissioning requirements for heated water services; includes Legionella control provisions. Referenced in the NCC 2022 Volume 3 Part B2.
- [9] Standards Australia. AS 3498:2020 — Safety and Public Health Requirements for Plumbing Products — Water Heaters and Hot-Water Storage Tanks. Cited by AS/NZS 2712. Available at: codehub.building.govt.nz
- [10] Australian Building Codes Board. NCC 2022 Volume 3 — Part B2: Heated Water Services. Includes Legionella control for water heaters per AS/NZS 3500.4, temperature and pressure relief requirements, and heated water service design obligations. Available at: ncc.abcb.gov.au
- [11] Sustainability Victoria. Compare Water Heating Running Costs. Updated mid-2025 to reflect current electricity and gas prices. Available at: sustainability.vic.gov.au
- [12] Essential Services Commission. VEU Product Applicants — Commercial and Industrial Air Source Heat Pump Water Heater Product Application Guide. Updated 31 March 2026. Available at: esc.vic.gov.au
Disclaimer : All rebate values, certificate prices and program details are subject to change. This article is correct to the best of our knowledge as of May 2026. Always request a current quote from a VEU-accredited provider for up-to-date rebate figures. Glow Green is not a financial advisor; this content is for general information purposes.
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