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What you need to know about Hot Water Rebates
In Australia there are a number of Rebates available as an incentive to change to renewable or energy efficient hot water systems these typically include solar and heat pump hot water systems
There are a number of government incentives still available. Often these incentives can be different depending on your geographical location (including state) and may only apply to certain household statuses (ie. Owner, Landlord, Renter etc).
Some of the current rebates are listed below. For all of the current national rebates, check out the Government’s Energy Savings site for the most up to date information.
Hot Water Systems – All States
Households across Australia that install a small scale renewable energy system or eligible hot water system may be able to receive a benefit under the Small-scale Renewable Energy Scheme (SRES) to help with the purchase cost.
Installing an eligible system allows the creation of Small-scale Technology Certificates (STCs), an electronic form of currency with a value that can be redeemed by selling or assigning them.
When installing a solar hot water system or Heat pump, you’re eligible for two types of rebates.
1) STC’s (Small-scale Technology Certificates)
Your new heat pump hot water system is eligible for this type of rebate if it is listed in the Register of Solar Water Heaters. You may claim a set number of STC‘s (Small-scale Technology Certificates).
This number is based on the amount of electricity in megawatt hours (MWh) displaced by your heat pump over the course of its lifetime, up to ten years. (where one MWh equals one STC).
The amount of cash that you receive, will depend on a number of varying factors. These include:
Where you live in Australia.
The efficiency of your Heat pump.
What kind of system is being installed.
The current price of STC‘s on the market.
You can expect to receive approximately $300 – $1000 for your STC‘s, taking into account the factors above.
The Australian federal government has administired the Small-Scale Renewable Energy Scheme (SRES) since 2001, achieved through creating Small-scale Technology Certificates (STCs). The SRES has seen millions of Australians save thousands on the cost of their small-scale solar PV systems, heat pumps, wind, hydro, and solar hot water systems.
An STC is a measure of renewable energy that can be traded for cash, or a discount, on the purchase price of a hot water system. Each STC represents a megawatt hour (MWh) per year of electricity displaced by an eligible system. To ensure STCs are valid, they must be created within 12 months of the system being installed. Australia is divided into five STC rebate zones based on how much renewable energy can be generated by a heat pump system in a given area.
2) State Rebates (current as at Jan 2024)
Queensland
QLD Gov Climate Smart Energy Savers Rebate
Climate Smart Energy Saver rebates are now available for eligible Queenslanders who replace old appliances with 4 star-rated (or higher) appliances and energy efficient hot water systems. This includes a standard rebate of $800 available to all eligible Queensland households or a low-income rebate of $1,000 for households with lower annual income, for heat pump hot water systems.
QLD Business Energy Saving and Transformation Rebate
Queensland Business Energy Saving and Transformation (QBEST) Rebates scheme provides rebates to eligible small and medium-sized Queensland businesses to install energy-efficient equipment which includes a heat pump hot water system, if the installation is to replace an electric or gas storage hot water system. Rebates of up to $12,500 are available for eligible businesses which purchase (and install if required) eligible energy-efficient equipment.
The Energex Hot Water Rewards scheme provides a rebate of up to $200 to eligible South East Queensland households that connect an electric hot water system to an off-peak electricity tariff. Households benefit by accessing the savings of a cheaper electricity rate as well as helping to reduce peak electricity demand
New South Wales
The NSW state government offers a rebate on the installation of hot water systems, which can help reduce your energy costs. The NSW Heat Pump Hot Water Rebate is available to eligible households and businesses that have an existing electric and gas hot water systems to replace.
What is the Energy Savings Scheme (ESS)?
The ESS is a NSW government scheme designed to reduce electricity and/or gas use by creating financial incentives for households and organisations to invest in upgrades to save energy.
Home Energy Efficiency Retrofit (HEER) activities can be delivered under the ESS by Accredited Certificate Providers (ACPs) to help NSW households and small businesses save energy by supporting a range of energy efficiency upgrades, including lighting, draught proofing and equipment upgrades.
No, the ESS is a certificate trading scheme which does not give direct rebates. However, under the ESS, ACPs may create ESCs for the energy savings that arise from the upgrades they deliver. ACPs can then sell those ESCs and use some of the revenue they get from that sale to offer either rebates or discounted products to their customers. The original energy saver must nominate an ACP to be the energy saver for the purposes of implementing the upgrade and creating ESCs. A nomination cannot be made more than once for the same upgrade and it must be made before the equipment is installed. All equipment must be installed by the ACP or their representative. This is to ensure that licensed and trained technicians install the equipment correctly and safely. Oz heat pumps' rebate service can handle these ESCs for you or your installer.
Yes! Currently, both STCs & ESCs can be created for eligible solar water or heat pump installations in New South Wales. You can significantly reduce the purchase price by combining the existing STC with the newer ESC. [There are also STC-only incentives if you have older heat pumps or solar (electric or gas boosted) – to decommission them and replace them with newer heat pumps or solar (electric or gas boosted).]
Your participation is voluntary. If you would like to participate, you will need to work with an ACP to arrange an upgrade at your property. The ACP or its representatives may ask you to enter into a contract for the upgrade works. You should carefully consider any such agreement in the same way you would consider any other contract for work being conducted at your property. If you choose to participate, you should: Check the installer’s credentials. They should have clear photo identification and provide detailed information about the proposed upgrade and the ACP they are working with.
Discuss the equipment they propose to install and confirm it will meet your needs. If you are a tenant, you may require the landlord’s permission to install or change equipment. Understand any commitments you are asked to make regarding the upgrade. For instance, you may be asked to agree to not go back to using the old equipment that was in place.
Complete the necessary paperwork. At a minimum, you will be asked to sign a Nomination Form to nominate the ACP as the energy saver for the upgrade to enable them to create Energy Savings Certificates (ESCs) from the energy savings that will be made.
You will have to pay at least $30 (excluding GST) towards the cost of products, installation of the products, the site assessment and other associated works carried out at your property.2 The ACP or its representatives should not complete the upgrade unless you have made the payment. The payment cannot be reimbursed to you. The ACP or its representatives may charge additional costs depending on the type and size of the upgrade. The ACP will advise you of any additional charges.
The ESS is currently legislated to finish in 2025. It is the decision of individual ACPs whether they continue their programs while the ESS is in operation
Australian Capital Territory
If you live in the ACT, have a gas or electric hot water system and have an electricity plan with ActewAGL, you may be eligible for rebates of $750 off the purchase price of a heat pump system under the Energy-efficient Electric Water Heater Upgrade.
In addition, the sustainable home upgrade rebate of $2500 is also available to eligible pension and concession card holders to help with the cost of upgrading to a heat pump system in the home.
Another scheme operating in the ACT is the Sustainable Household Scheme, which provides residents with no interest loans of $2000 to $15,000 to buy energy efficient products including heat pumps.
ActewAGL Energy-efficient electric heat pump water heater upgrade program
Upgrading to an energy-efficient electric water heater can save Canberrians money in three ways:
$500* off the cost and installation of your new water heater.
A total of $250* is credited on your quarterly electricity bill over three years, paid at the rate of $20.84 per quarter.
Ongoing energy savings.
You live in the ACT.
You have an electricity plan with ActewAGL.
You have a gas or electric hot water heater.
Victoria
In Victoria only, set by the Victorian Energy Upgrades (VEU) program, VEECs are available as rebates, where a VEEC is awarded for installing a heat pump to replace less efficient electric water heater. Each VEEC represents one tonne of carbon dioxide equivalent abated by the eligible system carrying out a specified energy saving activity.
Solar Victoria provides a 50% rebate of up to $1,000 on eligible heat pump hot water systems.
The VEEC’s scheme means that eligible households across Victoria that have gas hot water systems can transition to an approved Heat Pump Hot Water System and claim VEECs. The VEECs program is designed to support Victoria to reduce its green house emissions whilst saving households money over the life of the system.
All sorts of organisations can participate in the initiative, including energy retailers and local appliance stores, as well as plumbers, builders and other tradespeople.
Discounts and special offers are only available from participating businesses. Make sure you ask your retailer or tradesperson if they’re registered as a participating business under the Energy Saver Incentive program or view the register of participating businesses online.
they are the owner-occupier of the property
the owners have a combined household taxable income of less than $180,000 per year (based on their Australian Tax Office Notice of Assessment)
they have not already received a solar battery rebate or a solar hot water rebate under the Solar Homes Program
it is an existing property, valued at under $3 million
the hot water system to be replaced is at least three years old from the date of purchase
the property address has not already received a solar battery rebate or a solar hot water rebate under the Solar Homes Program
the solar (or heat pump) hot water system is on the Solar Homes program approved products list
The program mandates the installation of an approved product listed on the Victorian Essential Services Commission (ESC) Registered Products list and the Clean Energy Regulator (CER) Register of Approved Products list.
Victorian Energy Upgrade (VEU) Scheme
All Victorian households and businesses that have an inefficient electric or gas hot water system are eligible to participate in this scheme. To receive a discount or rebate on an upgrade to your hot water system, you must engage with an accredited provider. The accredited providers can use their tradesperson (if they have any available) to install the hot water system and work with a tradesperson of your choice to install the hot water system.
be a Victorian household or business
have an inefficient electric or gas hot water system.
certificate price
type of LED
the number of products replaced
location,
installation costs and administrative costs by accredited providers.
South Australia
South Australia Rebate
The City of Adelaide provides financial incentives for installing sustainable technology in apartments, commercial buildings and houses to enhance energy and water efficiency. This includes up to $1,000 for solar hot water systems.
Solar hot water rebates in Adelaide – Sustainability Incentives Scheme
Homes (owner-occupant or tenanted)
Apartment buildings
Small businesses
Multistorey commercial
Buildings used by community, not-for-profit organisations and sporting groups
replacing an inefficient electric instantaneous hot water system with a solar hot water or heat pump system.
installing a new solar or heat-pump hot water system on a new development.
50% up to $1,000Residential replacement of gas or wood burning appliance with electric or solar powered (e.g. hot water).
50% up to $5,000Commercial replacement of gas or wood burning appliance with electric or solar powered (e.g. hot water).
Western Australia
Currently, there are no state government rebates available in Western Australia for heat pump hot water systems, but eligible residents and small businesses can apply for the national Small-scale Renewable Energy Scheme.
Tasmania & Northern Territory
If you’re a resident of Tasmania, you can register your interest in the upcoming Energy Saver Loan Scheme which will provide no-interest loans to eligible households to offset the cost of purchasing energy efficient upgrades. In the meantime, residents can also apply for STCs under the federal Small-scale Renewable Energy Scheme.
There are currently no state government rebates available to residents of the Northern Territory for heat pump hot water systems, but they can apply for STCs via the Small-scale Renewable Energy Scheme discussed above.