One of the most common questions we get is: “Are there any rebates for hot water systems?” The short answer is yes — and they can take money off the upfront cost, especially for heat pumps.
This guide distinguishes federal STCs from NSW incentives. Requirements and offers were reviewed on 10 September 2026; eligibility must be confirmed for the actual installation.
Small-Scale Technology Certificates (STCs)
STCs are certificates under the federal Small-scale Renewable Energy Scheme. Certain registered heat-pump and solar hot water models can qualify when the model, capacity and installation requirements are met.
You may create eligible STCs yourself or assign the right to a registered agent in exchange for an agreed discount. The assignment and quote need to be reviewed and signed; the certificate discount is not an automatic government cash payment.
How Much Are STCs Worth?
The certificate allocation depends on the eligible model, installation year and location. The value offered by an agent is contractual and can change. Check the current register and calculator when choosing the system.
During the on-site quote, ask for the proposed system, eligible scheme, certificate assignment and agreed discount to be shown clearly. Any offer is subject to the applicable requirements.
Which Systems Are Eligible?
- Heat pump hot water systems — must meet minimum efficiency requirements
- Solar hot water systems — both flat plate and evacuated tube collectors
- Check the installed model, capacity and installation requirements; do not assume federal STCs require replacement of electric storage
- Must be installed by a licensed plumber (that’s us)
Gas hot water systems and traditional electric storage systems are NOT eligible for STCs.
NSW Energy Savings Scheme (ESS)
On top of STCs, the NSW Energy Savings Scheme can provide additional rebates for energy-efficient upgrades. The ESS creates Energy Savings Certificates (ESCs) which work similarly to STCs — they translate to a point-of-sale discount.
Federal STCs and NSW Energy Savings Scheme discounts are separate. Whether both apply depends on the installation and scheme rules; do not assume every heat pump or solar replacement receives both.
For the NSW incentive, the installer must work with an Accredited Certificate Provider. You must sign the nomination before work begins, agree to the quote and provide any required eligibility evidence. A post-installation declaration is also required.
What About the Federal Government?
Federal STCs and NSW schemes have different requirements. Check current government information and the installer arrangement before committing; a general programme announcement is not confirmation that your household or installer qualifies.
Common Questions About Rebates
Do I have to apply for the rebate myself?
An installer or registered agent can assist with administration, but you still need to review and sign the relevant paperwork. NSW nomination must happen before installation. Agree the discount and remaining amount in the quote.
Can I claim rebates if I’m replacing a gas system?
Replacing gas with an eligible heat pump can qualify under applicable schemes. Federal STCs depend on the installed model and requirements, rather than a general rule that gas replacements receive fewer certificates. NSW upgrade rules separately distinguish the existing system and eligible activity.
Are rebates available for rental properties?
Yes. Landlords can claim STCs when upgrading the hot water system in a rental property. It’s a good investment — lower running costs make the property more attractive to tenants, and the rebate reduces your outlay.
Will the rebates last forever?
The federal scheme is scheduled to end in 2030 and certificate allocations change with the installation year. The eventual discount also depends on certificate value and eligibility, so do not assume a fixed future amount or rush a purchase without checking the system suits your home.
How to Get Started
The easiest first step is a free on-site quote. We’ll assess your current system, recommend the best replacement option, calculate the exact rebate value for your situation, and give you a clear bottom-line price with rebates already applied.
No obligation, no pressure — just the numbers so you can make an informed decision.
Ready to find out how much you could save with rebates? Call us on 0448 581 325 or request a free on-site quote.
Request a Free Quote