The options
For most rentals the replacement is a heat pump water heater: a storage tank with a fan, compressor and refrigerant circuit that heats the water using warmth from the air. An electric-boosted solar water heater also meets the definition. Products have to meet the requirements set out in the standard, so have the model checked against Consumer Affairs Victoria's guidance before it's ordered.
The rules list limited exceptions, such as hot water supplied by a centralised building system, which is common in apartments, and some cases involving heritage controls, owners corporation rules or a lack of space. A rental on bottled LPG can be replaced with an efficient system or another LPG system. Check the details for your property with Consumer Affairs Victoria.
The electrical checks involved
A gas water heater needs very little power. A heat pump needs its own circuit from the switchboard, with safety switch protection and an isolator near the unit. That means checking the switchboard has space and capacity, deciding whether the unit runs on a timer, off-peak or solar, and finding a spot with airflow and a drain, away from bedroom windows. Our team handles that side, and the electrical work ends with a Certificate of Electrical Safety.
The water connection is done by a licensed plumber, and the gas to the old unit is disconnected and made safe by a licensed gasfitter.
Plan before it fails
Hot water failures don't wait for a convenient week, and a hot water appliance that has stopped working is an urgent repair. If the gas unit is ageing, have the switchboard and the site assessed now, so a failure becomes a planned swap rather than days of cold showers for the renter.
Services that can help
Read more in our guides
- Gas hot water after March 2027: what changes for homeownersWhat Victoria's rules mean when your gas hot water fails from 1 March 2027, the electric options, the switchboard and location checks, and how to plan.
- Rental energy efficiency standards from 2027: a landlord's planning guideA phase-by-phase walk through Victoria's new rental heating, cooling, hot water, insulation and draughtproofing standards, and how to plan each one.
Related questions
- What happens if the heater in my rental breaks after March 2027?If it can be repaired, it's repaired as an urgent repair, as it is now.
- Does a rental have to meet minimum standards before it's advertised?Yes.
- Should my heat pump hot water run during the day or overnight?If you can choose, run it during the day.
- Why does my hot water smell like rotten eggs?A rotten egg smell that comes only from the hot tap usually starts inside the storage tank.
Sources for this answer
6 sources, with the date each was checked
- 1.Consumer Affairs Victoria: From 1 March 2027, when an existing hot water system permanently fails and can't be repaired, rental providers must replace it with an energy-efficient electric hot water system. Accessed 30 September 2026.
- 2.Consumer Affairs Victoria: It cannot be replaced with another gas system after 1 March 2027. Accessed 30 September 2026.
- 3.Department of Energy, Environment and Climate Action (Victoria): From 1 March 2027, when a hot water or heating appliance breaks and cannot be repaired, it must be replaced with a heat pump water heater or an efficient electric reverse cycle air-conditioner (RCAC) in the main living… Accessed 30 September 2026.
- 4.Consumer Affairs Victoria: Anything on this list is legally defined as an urgent repair: burst water service blocked or broken toilet system serious roof leak gas leak dangerous electrical fault flooding or serious flood damage serious… Accessed 30 September 2026.
- 5.Energy Safe Victoria: Clause 2.6.3.2.2 requires all final sub-circuits in a domestic installation be protected by a residual current device (RCD). A hot water service is included in this requirement Accessed 30 September 2026.
- 6.Energy Safe Victoria: Whenever a licensed electrician completes any electrical installation work, they must provide a Certificate of Electrical Safety (COES). Accessed 30 September 2026.
General information for homes in Victoria. Every installation is different, so treat this as a starting point. Where this answer refers to Victorian safety or rental rules, the sources above have the current requirements.