NSW Hot Water System Upgrades & Heat Pump Rebates

Which Heat Pump is Right for Your Home?

Haier — From $2,000 Installed

Haier is a globally recognised appliance brand with a strong track record in energy-efficient heat pump technology. Their NSW-eligible heat pump range delivers reliable performance in a compact footprint — ideal for smaller outdoor spaces and households of 1–3 people. Every Haier system includes a backup heating element, meaning you’ll never run out of hot water if the heat pump needs servicing. The most affordable quality heat pump option available in NSW after government rebates.

• Compact footprint — suits most standard outdoor installations
• Backup electric heating element included
• Quiet operation
• Reduces hot water energy costs by up to 70%
• Eligible for NSW government rebates

Rinnai Enviroflo — From $2,349 Installed

Rinnai is one of Australia’s most trusted hot water brands. Their Enviroflo heat pump range is Australian designed and built, featuring whisper-quiet operation and built-in Wi-Fi timer — allowing you to schedule heating during solar generation hours for maximum savings. Defrost control ensures reliable winter operation. Auto disinfection maintains water safety year-round.

• Australian designed and built
• Built-in Wi-Fi timer — schedule to run during solar hours
• Defrost control for reliable NSW winter performance
• Auto disinfection for ongoing water safety
• Whisper-quiet — suitable near bedrooms and living areas
• 5-year warranty

Rheem Ambiheat — From $2,849 Installed

Rheem is Australia’s most recognised hot water brand with the country’s widest service and parts network — qualified technicians and spare parts always available when you need them. The Rheem Ambiheat is engineered specifically for Australian conditions and integrates seamlessly with rooftop solar, making it the smart choice for households that already have solar panels.

• Australia’s widest hot water service and parts network
• Engineered specifically for Australian climate conditions
• Maximises value of existing rooftop solar investment
• Multiple operation modes — Economy, Boost and Timer
• Smart control and user-friendly operation
• 5-year warranty

Reclaim Energy CO2 Heat Pump — From $5,749 Installed

Reclaim Energy is Australia’s premium heat pump — Australian made with an industry-leading 15-year tank warranty and 7-year controller warranty. Using CO2 refrigerant (R744) with zero ozone depletion potential, the Reclaim generates more than five units of heat energy for every unit of electricity used. The Japanese-made Panasonic compressor is paired with your choice of glass-lined enamel or stainless steel Australian-made tank.

• Australian made tank and controller
• CO2 refrigerant (R744) — zero ozone depletion, highest efficiency
• 15-year tank warranty, 7-year controller warranty
• Japanese-made Panasonic compressor
• Choice of glass-lined enamel or stainless steel tank
• Wi-Fi smart controller included as standard
• Operates efficiently down to -10°C

How Much Will You Save?

Hot water heating typically accounts for 20–25% of a household electricity bill. Switching from a standard electric storage system to a heat pump cuts that cost by up to 70%.

At $450–$650 per year in savings, most NSW households recover the cost of a Haier or Rinnai heat pump within 3–5 years.

Heat Pumps and Solar Panels — Better Together

Feed-in tariff rates in NSW have dropped to 5–8c/kWh — meaning you earn very little by exporting excess solar to the grid. A heat pump draws around 1kW to operate, meaning even a modest 3kW solar system can power your hot water heating during peak generation hours at effectively zero cost. We programme your heat pump timer to run during solar generation hours — typically 9am to 3pm — at no extra charge. NSW households with solar who add a heat pump typically see hot water running costs drop from $700–$1,000 per year to under $100 per year.

How Does a Heat Pump Hot Water System Work?

A heat pump doesn’t generate heat — it moves heat from the surrounding air into the water tank using a refrigeration cycle. The electricity only powers the fan and compressor — the actual water heating is done by ambient air temperature. For every 1kW of electricity used, a heat pump delivers 3–5kW of heating energy. Here’s the process step by step:

• Step 1: A fan draws warm air across an evaporator coil containing liquid refrigerant
• Step 2: The refrigerant absorbs warmth from the air and evaporates into a gas
• Step 3: A compressor pressurises the gas, raising its temperature significantly
• Step 4: The hot gas passes through a heat exchanger in the water tank, transferring heat to the stored water
• Step 5: The refrigerant cools back to liquid and the cycle begins again

Heat pumps work effectively in temperatures as low as -10°C — reliable year-round across all of NSW including alpine areas.

Who Is Eligible for the NSW Rebate?

• Property located in New South Wales
• Existing electric or gas hot water system to replace
• New system must be an approved heat pump model on the NSW ESS approved product register
• Installation by an accredited provider — Efficient Energy Group is accredited
• A minimum co-payment applies — exact amount confirmed at free assessment

The rebate is not income tested. Available to owner-occupiers, landlords, and eligible small businesses. Renters can access the rebate with landlord consent.

Frequently Asked Questions — NSW Heat Pump Hot Water 2026

Is the NSW heat pump hot water rebate still available in 2026?

Yes — the NSW Household Energy Saving Upgrades scheme continues in 2026. The rebate is applied as an upfront discount at installation — you don’t lodge a claim or wait for a refund. Efficient Energy Group handles all ESS and STC paperwork as your accredited provider.

How much is the rebate worth in 2026?

NSW households can access two rebates: federal STCs worth approximately $640–$860 depending on system size and postcode, plus the NSW HEER discount of up to $640 for replacing an electric system or up to $330 for replacing gas. Both are deducted from your installation quote upfront.

How much does a heat pump cost in NSW after rebates?

After all government rebates: Haier from $2,000, Rinnai from $2,349, Rheem from $2,849, and Reclaim Energy CO2 from $5,749. All prices include supply, installation by a licensed plumber, and removal of your old system.

What size heat pump do I need?

As a general guide: 200–250L suits 1–3 people, 270–280L suits 3–4 people, and 300–315L suits 4–6 people. We confirm the right size for your household as part of your free assessment.

Can a heat pump be installed indoors?

Heat pumps need access to ambient air and are generally installed outdoors or in a large well-ventilated space such as a garage. We confirm the best location during your free site assessment.

How long does installation take?

Most installations are completed in a single day. Our licensed plumbers and electricians handle everything — removal of your old system, installation, electrical work, timer programming for solar integration, and compliance certification.

Will a heat pump work through winter in NSW?

Yes — all systems we install operate down to -10°C. NSW winters don’t get cold enough to impact performance significantly. All systems also include a backup electric heating element that activates automatically if needed.

Can I get a heat pump as a renter?

Yes — renters can access the NSW rebate with landlord consent. The upgrade doesn’t structurally alter the property and most leases permit energy efficiency upgrades.

What happens to my solar feed-in tariff?

Adding a heat pump improves your solar economics. Instead of exporting excess solar at 5–8c/kWh, you use it to heat water — saving the 30–40c/kWh cost of grid electricity for hot water. We programme your timer to run during solar hours automatically.

Why Choose Efficient Energy Group?

• Accredited NSW provider — we handle all ESS and STC paperwork on your behalf
• Licensed plumbers and electricians — fully insured, qualified installers across NSW
• Rebates applied upfront — no paperwork for you, no waiting for refunds
• Free eligibility assessment — we confirm your exact rebate amount before you commit
• Quality brands only — Haier, Rinnai, Rheem and Reclaim Energy
• Solar programming included — timer set to solar hours at no extra charge
• Serving all of NSW — metropolitan Sydney and regional NSW

How the Two NSW Rebates Work Together

NSW is one of the best states in Australia for heat pump hot water rebates because you can stack two incentives. The federal STC scheme awards certificates based on energy displaced by your heat pump over its rated lifetime. In NSW (STC Zone 3), a 270–280L heat pump earns approximately 24 STCs — worth around $860 at current market rates — deducted directly from your quote. On top of this, the NSW HEER discount adds up to $640 for electric replacements or $330 for gas. Combined, eligible NSW households replacing an electric system with a Rinnai or Rheem can receive over $1,200 in combined rebate value applied directly to their installation price. Efficient Energy Group is accredited under both programs and handles all certificate creation and paperwork — you simply pay the rebate-adjusted price on installation day.

Fill in the eligibility form at the top of this page and one of our hot water specialists will confirm your rebate entitlement, recommend the right system for your household, and provide a firm installation date. No obligation and no pressure.