Upgrading to an energy-efficient hot water system isn’t just good for the environment—it’s good for your wallet too. With various government rebates available, now’s the perfect time to make the switch.
Federal rebates: Small-scale Technology Certificates (STCs)
The federal government offers Small-scale Technology Certificates (STCs) under the Small-scale Renewable Energy Scheme (SRES). These certificates can be traded for cash or used to reduce the upfront cost of installing eligible renewable energy systems, including heat pump water heaters. The number of STCs you can claim depends on the system’s size and location. To find out how many STCs your system is eligible for, check out the Clean Energy Regulator’s STC calculator.
State-specific rebates
Victoria
- Standard rebate: Victorian households can receive up to $1,000 for installing eligible heat pump or solar hot water systems.
- Locally made incentive: If you choose an eligible hot water system made in Australia, you could be eligible for a higher rebate of up to $1,400.
- Victorian Energy Upgrades (VEU): Additional discounts may apply if your retailer is an approved VEU provider.
New South Wales
Households and businesses in New South Wales can receive rebates for replacing existing electric or gas water heaters with energy-efficient air source heat pump water heaters. The rebate amount varies based on factors such as the installer chosen and the specific model of the new hot water system.
South Australia
- Retailer Energy Productivity Scheme (REPS): Homeowners who have completely disconnected from gas (or are doing so on the same day they install a heat pump) can receive a rebate of $847 plus GST on their heat pump purchase. Households that remain connected to gas are eligible for a rebate of $245 plus GST. Additionally, those classified under the priority group can get an extra $113 plus GST.
- City of Adelaide: Residents replacing gas or wood-burning appliances with electric or solar-powered alternatives, including hot water heat pumps, can receive a 50% rebate, up to $2,000.
Australian Capital Territory
If you’re with ActewAGL and upgrading your gas or electric hot water system, you can receive $1,250 off the cost of a new heat pump plus a $250 credit on your next electricity bill.
Tasmania
While there are no state-level rebates for heat pumps in Tasmania currently, the Tasmanian Government offers the Energy Saver Loan Scheme, providing interest-free loans up to $10,000 for purchasing energy-efficient upgrades, including heat pumps.
How to apply for rebates
The application process varies by state and territory but generally involves:
- Choosing an eligible system: Select a heat pump or solar hot water system that meets your state’s criteria.
- Obtaining a quote: Get a written quote from an authorised retailer or installer.
- Submitting an application: Apply online through your state’s rebate portal, providing necessary documentation such as proof of income and property ownership.
- Installation: Once approved, proceed with the installation of the system.
- Claiming the rebate: After installation, submit any required final documentation to claim your rebate.
Why choose energy-efficient hot water systems?
Upgrading to an energy-efficient hot water system, such as a heat pump or solar hot water system, offers several benefits:
- Lower energy bills: These systems use less energy, reducing your household’s energy costs.
- Environmental impact: By using renewable energy sources, these systems help reduce greenhouse gas emissions.
- Increased property value: Energy-efficient homes are often more attractive to buyers and can have higher resale values.
- Government incentives: Rebates and incentives make the initial investment more affordable.
