Australia's hot water rebate program explained - Discover state-specific incentives for upgrading to energy-efficient heat pumps, saving money and reducing carbon emissions
Discover Hot Water Rebates and Incentives Available in Your State

Australia Hot Water Rebates By State

Want to save on energy bills and help the environment at the same time? 

Australia’s residents can do both with the help of various government programs.

One of the best options to save on utility bills and minimize environmental impact is to switch over to an energy-efficient hot water system. 

There are state and federal programs across Australia that offer rebates to make it more affordable. They support household and business investments in sustainable technology – with lower upfront costs.

Whether you’re considering a heat pump or solar hot water system, you’ll want to learn about your eligibility and the benefits of switching to more energy-efficient solutions. 

Thanks to these programs, you can save money. Plus it’s a worthwhile contribution to a greener future.

Australia Federal Government Incentives

The Australian government’s Small-scale Renewable Energy Scheme helps residents and businesses upgrade to renewable energy systems. That includes solar water heaters and heat pumps

The financial incentives are offered through a system of Small-scale Technology Certificates. One STC is created for one megawatt-hour of renewable electricity produced or displaced by an eligible system. 

The number of STCs that are created depends on the system’s installation date, location, and deeming. 

They reduce the upfront cost of installing the energy-efficient systems. A register of the eligible systems is kept by the Clean Energy Regulator. It also provides calculators to estimate STC entitlements.

The STCs can be sold in the open market or via the STC Clearing House. The system owner directly  benefits from them. Most installers will also trade an upfront discount for the rights to trade the STC, making participation simple. 

State-by-State Hot Water Rebates

Most states offer some sort of hot water rebate program. What is available in your region?

New South Wales Heat Pump Rebate

Hot water rebates NSW include ESC PRC and stc

The NSW government offers a heat pump hot water rebate through the NSW Energy Savings Scheme. Rebates are available to those replacing existing electric or gas water heaters with approved heat pump systems. 

How much is the rebate in NSW?

The amount can vary depending on how much energy is saved. Typically, rebates are about $500 for gas replacements and $950 for electric replacements. 

To qualify for the hot water rebate, NSW residents and businesses must use an approved supplier. They also must select products from the state’s Approved Product List. 

A minimum co-pay of $200 is required.

Victoria Hot Water Rebate 

Those living in Victoria can save on hot water systems through a couple of different programs: the Solar Victoria Rebate and the Victorian Energy Upgrades program.

This Solar Victoria program offers residents up to a $1,000 rebate to cover up to 50% of the installation costs for heat pump hot water units. 

The rebate is means-tested, so applications can be submitted prior to installation. The installer starts the application, then the customer finalizes it. Once approved, the installation can begin.

Another option for Victoria residents is the VEU Program. It offers incentives ranging from $300 to more than $1,000 in the form of Victorian Energy Efficiency Certificates. 

VEECs can be used toward the cost of eligible heat pump installations that replace inefficient systems.

Good news! Both the Solar Victoria rebate and VEECs can be claimed at the same time.

Queensland

There are currently no energy-saving rebates available in Queensland. The previous program, which offered between $300 and $1,000 for heat pump hot water systems, has closed.

Fortunately, Queensland residents can apply for the federal Small-scale Renewable Energy Scheme.

South Australia

While South Australia doesn’t currently have a statewide initiative to promote efficient hot water systems, residents can apply for the federal program. 

Meanwhile, the city of Adelaide offers its own program. Residents can apply for a 50% rebate – up to $1,000 for residential and $5,000 for commercial – for heat pump hot water installation within the city’s municipal area. 

Western Australia

Western Australia does not currently offer its own hot water rebate program. However, WA residents can enjoy rebates and savings from the federal program and STCs.

Tasmania

Although Tasmania doesn’t offer a hot water rebate program, its residents can take advantage of federal STCs.

While not a rebate, the state does offer a no interest loan scheme. These interest-free loans help Tasmanian residents and small businesses purchase a variety of energy-efficient products.

Northern Territory

There currently is no rebate program specifically for the Northern Territory, but residents can take advantage of Australia’s Small-scale Renewable Energy Scheme.

Australian Capital Territory

A variety of programs are available to ACT residents and businesses. The Small-scale Renewable Energy Scheme is available in the ACT, as are discounts available from Canberra’s local electricity supplier. 

When ACT residents upgrade to an energy-efficient hot water heater, they can get up to $1,250 off the purchase price. They are also eligible for a $250 credit on their ActewAGL electricity bill. 

At the same time, the Home Energy Support Rebate offers $5,000 to eligible homeowners. It’s designed to help with the cost of upgrading to a heat pump system in their homes.

The ACT also sponsors the Sustainable Household Scheme. It offers residents interest-free loans between $2,000 and $15,000 to purchase energy efficient products. 

Tips for Applications and Maximizing Rebates

A few simple steps will help ensure a smooth process in your rebate application.

  • Consult with an accredited provider to assess your eligibility and discuss what rebates are available to you.
  • Gather all necessary documentation. This might include proof of property ownership and details about your existing hot water system.
  • Only submit applications through appropriate channels and adhere to each program’s guidelines.

You also can take steps to maximise the benefits you will receive. First and foremost, don’t wait too long. You should act promptly to take advantage of rebates before they hit their funding caps or program deadlines.

Likewise, check and see if you can combine multiple rebates to increase your savings. You’ll also want to stay up-to-date about program changes and new incentives.

Hot Water Rebate FAQs

What are the benefits of upgrading to a heat pump water heater?

There are good reasons to install a heat pump. In addition to the financial incentives, heat pumps are 2-3 times more energy efficient than their traditional counterparts. 

That means they provide significant cost savings, while also reducing greenhouse gas emissions. Heat pumps have a longer lifespan, and they are even safer to operate. 

Can I install an electric heat pump water heater myself, or do I need to hire a professional?

Professional installation is required to qualify for a rebate. This helps ensure safety, compliance, and rebate eligibility. 

How long will it take to remove the existing system and install a heat pump water heater?

It doesn’t take long to replace a hot water system. For a standard hot water heating system, expect it to take around 3-6 hours to remove the old system and install the new heat pump hot water heater.

Get the Most From Your Hot Water Rebate

When you switch to an energy-efficient hot water system, you save money while reducing your environmental impact. Thanks to various rebate programs across Australia, upgrading has never been more affordable. 

Contact Efficient Energy Group today to learn how you can take advantage of these rebates and start saving.

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