What does a heat pump actually cost after the VEU rebate in 2026?

Every heat pump ad on the internet says "from $X" without ever telling you what the actual final number is. Here's the real maths on a typical Pakenham install, line by line.

The Reclaim R290 300 L all-in-one

This is our best-selling unit for 3-4 person households. Australian made, plug-in install, R290 refrigerant. Reclaim's 2026 RRP is $3,545 ex GST. Our ex-GST price to the customer is RRP minus $100, so $3,445. Plus GST, that's $3,789.50.

Then the install costs

For an all-in-one plug-in install where there's a power point within 50 cm of the current tank, the installation pack is:

• Labour: $700 ex GST ($770 inc)
• Sundry materials: $350 ex GST ($385 inc)
• VBA compliance certificate: $50 ex GST ($55 inc)
• Install pack total: $1,210 inc GST

Combined with the unit, subtotal is $4,999.50 inc GST before any rebates.

Rebates applied (Solar Homes eligible)

• VEEC rebate: -$576
• STC rebate: -$629
• Australian Made bonus (Reclaim qualifies): -$400
• Solar Homes hot water rebate: -$1,000
• Total rebates: -$2,605

Final price: $2,610 inc GST

That's it. Fully installed, old unit gone, compliance certificate emailed, warranty pack in your inbox within 24 hours. No hidden charges, no "actually the electrical is extra" surprise on the day.

If you don't have a power point within 50 cm of the current hot water, add about $450 for a licensed sparky to run one, so $3,060 all up.

If you're not Solar Homes eligible (rental, income over $150k, prior rebate at the address), drop the -$1,000 from the rebate stack. Final price becomes $3,610 inc GST.

Compared with a like-for-like gas tank replacement at around $2,200, the heat pump is about $410 more up front, and cuts your hot water running cost by ~73%. Payback is usually 2-3 years, depending on how much hot water you use.