The Victorian state government has offered a new $400 discount for Australian-made efficient electric hot water systems.

In a move to help boost local manufacturers, the Allan Government announced the $400 cashback scheme, which will be available from July 1.

The $400 payout would be on top of the pre-existing rebate, worth 50 per cent of the purchase price of a new unit up to $1,000, for households which upgrade or replace old hot water systems with solar or electric systems.

Solar experts claimed the cost of buying and installing mid-size units was typically between $3,000 and $4,000. 

The government claimed the initiative would help shield Australian manufacturers from cheap imports and help Victorians by lowering their power bills.

‘We’re on the side of Victorians – helping families cut energy costs and take back control of their bills,’ Energy Minister Lily 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.’

Manufacturers and unions will advise the government on what defines a product as Australian-made as many locally-manufactured systems use components made overseas.

Solar Victoria runs the state’s current rebate scheme which is available to households with taxable incomes of less than $210,000 a year residing in properties worth less than $3million.

Up to 27,000 households will be able to access the new $400 payout under the $30million state budget scheme.

Solar Victoria has handed out some 400,000 rebates and loans since 2018 under current government incentives.

Further policies discussed included forcing customers to switch to electric systems once their gas appliances give out.