According to YourHome, hot water systems are one of the biggest energy users in the home, using 21% of all energy consumption on average. This can greatly impact household energy bills, but installing an effective hot water system, like a heat pump or solar hot water system, can help keep costs down.
In addition to long-term water heating cost benefits, solar hot water and heat pumps can significantly reduce your initial investment thanks to generous government rebates. Learn more about solar hot water and heat pumps.
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Avoid confusion and maximise your rebates
The situation with solar hot water and heat pump rebates in Australia has been confusing, with chopping and changing state and federal government incentives. There are currently valuable rebates available Australia-wide, as well as in many states. There are three primary sources of hot water rebates or incentives available to Australians.
Federal Government financial incentives
Small-scale Technology Certificates (STCs)
The Australian federal government has administered the Small-Scale Renewable Energy Scheme (SRES) since 2001, whereby households and small businesses benefit from point-of-sale subsidies for small-scale renewable energy systems, such as solar hot water and heat pump hot water systems. This is achieved through creating Small-scale Technology Certificates (STCs). Each STC has a monetary value which can be credited to your installer in exchange for a point-of-sale solar rebate.
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.
State-by-state overview
There are rebates available in some Australian states for solar hot water and heat pumps.
| State | Small-scale Technology Certificates | State Hot Water System Rebate (Solar Hot Water and Heat Pump System) | Other Rebate/Incentive |
|---|---|---|---|
| VIC | Yes | Solar Homes Program: up to $1,000 rebate for Solar Hot Water and Heat Pump Systems | Victorian Energy Upgrade Scheme: Up to $1,860 rebate to replace inefficient electric system |
| SA | Yes | REPS Scheme (Retailer Energy Productivity Scheme) | City of Adelaide Council: Up to $1,000 (homes and businesses) rebate for residents of Adelaide City. |
| ACT | Yes | No | ActewAGL Energy-efficient electric heat pump water heater upgrade program: |
| NSW | Yes | No | No |
| QLD | Yes | No | No |
| WA | Yes | No | No |
| TAS | Yes | No | No |
| NT | Yes | No | No |
New South Wales
Home Energy Saver Program
The NSW Home Energy Saver Program is a government initiative aimed at helping households reduce their energy bills by upgrading to more energy-efficient appliances. Here are some key details about the program:
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Financial support: The program offers financial incentives to replace old appliances with energy-efficient models. For example, upgrading an electric water system to an air source heat pump water system can provide incentives between $405 and $675.
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Accredited suppliers: The upgrades are provided by accredited suppliers, known as Accredited Certificate Providers (ACPs), who are approved by the NSW Government. These suppliers offer services eligible for incentives and pass on an upfront discount to the customer.
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Eligible appliances: The program covers a range of appliances, including hot water systems, air conditioners, lighting, and pool pumps. Upgrading these appliances can lead to long-term savings on energy bills.
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Application process: To take advantage of the incentives, households must use an accredited supplier. The supplier will guide the application process and ensure the upgrades meet the program’s requirements.
The NSW Home Energy Saver Program is part of a broader strategy to help households save money and reduce their environmental impact by adopting energy-saving technologies
Victoria
Solar Homes Program
Victoria offers rebates for both solar hot water and heat pump hot water systems under the Solar Homes Program.
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Solar hot water systems: Households can receive rebates of up to $1,000 for installing eligible solar hot water systems. The rebate is available for owner-occupiers of existing properties with a combined household taxable income of less than $210,000 per year and a property value under $3 million.
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Heat pump hot Water systems: Similar to solar hot water systems, rebates of up to $1,000 are available for installing eligible heat pump hot water systems. These systems are also part of the Victorian Energy Upgrades (VEU) program, which aims to encourage homeowners to adopt more energy-efficient and environmentally friendly upgrades.
To apply for these rebates, you’ll need to work with an authorised retailer and follow the application process outlined by Solar Victoria
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.
To be eligible to upgrade your hot water system and get a discount/rebate, you must:
- be a Victorian household or business
- have an inefficient electric or gas hot water system.
Discounts or rebates are based on a certificate price and the average efficiency of products improved under the program. Its factors include:
- certificate price
- type of LED
- the number of products replaced
- location,
- installation costs and administrative costs by accredited providers.
For more information, please click here.
South Australia
Retailer Energy Productivity Scheme (REPS)
The Retailer Energy Productivity Scheme (REPS) is a South Australian government initiative designed to help households and businesses save on energy use and costs, while also reducing greenhouse gas emissions. Here are some key points about the scheme:
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Eligible activities: REPS covers a range of energy-saving activities, including installing energy-efficient lighting, water-efficient showerheads, and upgrading to more efficient water heaters, such as heat pump systems.
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Rebates: Households can receive rebates of $300 to $450 for gas-connected premises and $1,000 to $1,300 for premises not connected to gas. These rebates can significantly offset the cost of energy-efficient upgrades.
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Priority groups: Certain groups, such as members of the South Australian Financial Counsellors Association, may be eligible for additional discounts or offers.
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Application process: To access the rebates, you need to work with an authorised retailer who participates in the scheme. The retailer will guide you through the application process and ensure that the energy-saving activities meet the scheme’s requirements.
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Quality assurance: After the installation, the retailer will provide a written information statement detailing the activity and confirming that it meets the scheme’s obligations.
Adelaide City Council's Sustainability Incentives Scheme
The Adelaide City Council’s Sustainability Incentives Scheme offers rebates to encourage residents to adopt more sustainable practices and technologies. Here are some key details about the rebates available for hot water systems:
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Eligible systems: Rebates are available for replacing electric instantaneous and storage systems with gas-boosted solar, heat pump-boosted solar, or heat pump hot water systems. Additionally, adding solar thermal to existing systems or installing new solar or heat pump hot water systems in new developments is also eligible.
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Rebate amount: The rebate covers 25% of the installed cost up to a maximum of $1,000.
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Additional rebates: If you live within Adelaide city limits, you may be eligible for an additional rebate of up to $800 on top of the Small-Scale Technology Certificates (STCs) rebate, potentially bringing the total rebate to $2,000.
To apply for these rebates, you’ll need to check the eligibility criteria and submit an application through the Adelaide City Council’s SmartyGrants portal.
Tasmania
Energy Saver Loan Scheme
The Tasmania Energy Saver Loan Scheme is a program designed to help households, small businesses, and not-for-profit organisations reduce their energy consumption and save on energy bills by providing interest-free loans for purchasing and installing energy-efficient products. Here are some key details about the scheme:
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Loan amount: Eligible applicants can receive loans ranging from $500 to $10,000.
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Repayment terms: Loans can be repaid over a period of 1 to 3 years with fortnightly repayments.
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Eligible products: The scheme covers a variety of energy-efficient products, including solar PV systems, battery storage systems, reverse cycle air conditioning, hot water systems (heat pump and solar), induction and ceramic stove tops, energy-efficient white goods, double glazing, and insulation.
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Application process: To apply, you need to find an accredited supplier through the Brighte Marketplace, get a quote, and then apply for the loan through Brighte. The loan funds are paid directly to the chosen supplier, and repayments are made to Brighte.
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Eligibility: The scheme is open to residential households, landlords of residential properties, small businesses, and not-for-profit organizations. Eligibility criteria apply, and you can check your eligibility on the Brighte website.
The Energy Saver Loan Scheme aims to make it easier for Tasmanians to invest in energy-efficient upgrades, ultimately leading to lower energy bills and a more sustainable future.
Australian Capital Territory
Home Energy Support Program
In the Australian Capital Territory (ACT), there are rebates available for solar hot water and heat pump hot water systems through the Home Energy Support Program. Here are the details:
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Solar hot water systems: Households can receive rebates of 50% of the total cost, up to $2,500, for installing eligible solar hot water systems.
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Heat pump hot Water systems: Similar rebates are available for heat pump hot water systems, covering 50% of the total cost, up to $2,500.
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Additional rebates: If you’re eligible for other rebates, such as the Household Energy Upgrades Fund, you can combine these with the Home Energy Support Program rebates to further reduce costs.
To be eligible, you must be a resident of the ACT, hold an eligible concession card, and attend a free online workshop. You can also combine these rebates with a zero-interest loan of up to $10,000 to help with the remaining cost.
Queensland
There are currently NO state rebates or incentives for Queensland.
Northern Territory
There are currently NO state rebates or incentives for the Northern Territory.
Western Australia
There are currently NO state rebates or incentives for Western Australia.
Contact us and let us discuss the hot water system rebates, subsidies, and incentives available to you. Use our free solar quote system to get up to 3 free heat pumps and solar hot water system quotes from our network of trusted, local installers. Complete our quick quiz and begin your solar journey today!
