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All You Need To Know About Gas Hot Water to Heat Pump Rebates NSW

The New South Wales government has some great rebates for homeowners looking to install sustainability-friendly heat pumps instead of gas hot water systems in their homes. If you haven’t considered taking advantage of this support, now is the perfect time to do so.

Thanks to the Energy Saving Scheme (ESS), which has recently become more popular thanks to the ban on gas in new builds, homeowners and business users can receive a discount on new heat pumps.

To find out more about how this scheme works and how Efficient Energy Group can help, keep on reading.

Eligibility criteria for the Energy Saving Scheme

The rebate program is available to both homeowners and businesses in NSW. However, there’s a crucial requirement: you must have an existing electric or gas hot water system to qualify.

There are no specific income requirements for the ESS rebate. As long as you meet the criteria above and install an approved heat pump system, you can participate.

Types of discounts and rebates on offer

The exact rebate amount depends on the size and efficiency of the heat pump system you choose. However, you can expect to receive a significant portion of the installation cost back.

For example, replacing a 200L electric hot water system with a 4-star or higher heat pump could generate a rebate of around $970, whereas upgrading from a gas system might result in a rebate closer to $485.

Just make sure that you’re installing an approved heat pump system that meets specific energy efficiency standards (usually 4 stars or higher) to ensure you qualify for the scheme.

The rebate application process

Making the switch to a heat pump can feel daunting, but the rebate process doesn’t have to be! Here’s a quick five-step guide to how you can redeem your discount:

  1. Use the Government portal to find an accredited installer in your area.
  2. Start reaching out to these installers for quotes and to double-check they can carry out the rebate claim process.
  3. Choose an installer and organise a day for the installation of your new hot water system.
  4. Your installer should take care of submitting the claim on your behalf. The rebate amount will then be deducted from the total installation cost you pay.
  5. Meanwhile, make sure you keep a hold of any quotes, paperwork, and receipts you have for the installation in case you are asked to provide it later.


Participating brands and installations

Some brands of heat pumps are better than others, and there are numerous different models eligible for the NSW rebate program, but whether or not a particular model qualifies for the incentive depends on its efficiency rating.

We suggest a variety of heat pump options, including Midea models like the 280L and 200L. These models are available from our network of reputable installers across NSW who can provide you with a free consultation and quote for your specific needs.

The environmental impact and efficiency of hot water pumps

Heat pumps are not just about hot water – they can save you a lot of money and make your home much more environmentally friendly:

  • Lower carbon footprint: While a gas hot water cylinder burns fossil fuels, heat pumps use renewable electricity to generate heat, resulting in much lower greenhouse gas emissions.
  • Energy savings: Heat pumps are extremely efficient. For every unit of electrical energy that they consume, they can extract up to three units of heat energy from the environment.

These benefits sound great, but in order to reap the full rewards of a new heat pump, make sure to consider the following:

  • The location of your heat pump: To keep everything running smoothly, you should install your heat pump somewhere with good airflow and good ventilation to help it operate efficiently, and away from direct sunlight or anything that might obstruct the airflow from your intake and exhaust vents.
  • Routine maintenance: Schedule your unit for regular maintenance checks to help keep it efficient and maintain its lifespan.
  • Smart scheduling. If possible, program your heat pump to run on off-peak electricity hours when rates are lowest.


What are the benefits of the rebate?

The NSW rebate program offers several advantages:

  • Reduced installation costs: The rebate significantly lowers the upfront cost of installing a heat pump system.
  • Lower Energy Bills: Heat pumps are renowned for their efficiency, leading to substantial savings on your hot water bills over time.
  • Environmental Sustainability: Switching to a heat pump minimizes your carbon footprint and contributes to a cleaner environment.


A reliable hot water supply is essential for everyday comfort and hygiene. Heat pumps offer a dependable solution while also being cost-effective and eco-friendly.

Check your eligibility today

Wondering if you’re eligible for the scheme? We can provide you with a free assessment of your eligibility and give recommendations on the right size of heat pump for your home’s heating and cooling needs.

Book an appointment with us today to speak to one of our expert advisors.

Choose EEG for professional energy efficiency services

EEG partners with Chromagen Aust, a network of accredited and licensed installers across NSW. Together, we provide seamless installation and post-installation support to ensure every customer is satisfied.

With EEG by your side, navigating the transition to a heat pump system is a smooth and rewarding experience. Contact us today to schedule your free consultation and embark on a journey towards a more sustainable and cost-effective hot water future!

Tags: hot water heat pump, sustainability, hot water pump, NSW rebate program, Energy Saving Scheme, ESS

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