Government Rebates for Hot Water in NSW — What You’re Eligible For
— Northern Beaches Hot Water
NSW homeowners can access rebates when upgrading to an energy-efficient hot water system. Here’s what’s available, who’s eligible, and how to claim.
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.
Here’s a plain-English guide to what’s available in NSW as of 2025-26.
Small-Scale Technology Certificates (STCs)
STCs are the main rebate mechanism for hot water in Australia. They’re part of the federal Small-Scale Renewable Energy Scheme. When you install an eligible system (heat pump or solar hot water), you earn a number of STCs based on the system’s energy savings over its expected lifetime.
In practical terms, STCs translate to a point-of-sale discount. You don’t have to apply and wait — we handle the STC paperwork, and the discount comes straight off your installation quote.
How Much Are STCs Worth?
The number of STCs you earn depends on the system type, its efficiency rating, and your climate zone. Those certificates have a market value that fluctuates (they’re traded like a commodity), so the exact dollar discount changes over time.
We always apply the current certificate value at the time of your installation. During your free on-site quote, we’ll calculate the exact rebate for your specific system so there are no surprises.
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
- Must be replacing an existing electric storage system (in most cases) to qualify for the full STC allocation
- 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.
When you combine STCs and ESCs, the total rebate can make a real dent in the upfront cost of a heat pump or solar system. The exact amount depends on the system you choose and the current certificate prices at the time of installation.
We handle all the rebate paperwork for you. The discount comes straight off your quote — no forms to fill in, no waiting for reimbursement.
What About the Federal Government?
The STC scheme IS the federal mechanism — it applies across Australia. There are no additional separate federal rebates for hot water at the time of writing. However, the federal government periodically announces energy efficiency initiatives, so it’s worth checking with us when you’re ready to proceed.
Common Questions About Rebates
Do I have to apply for the rebate myself?
No. We handle the STC and ESC paperwork as part of the installation process. The rebate value is applied as a discount on your quote before you pay.
Can I claim rebates if I’m replacing a gas system?
It depends. The full STC allocation is typically available when replacing an electric storage system. Replacing gas with a heat pump may attract fewer STCs, but it’s still worth checking — the rules have been evolving as the government pushes electrification. We’ll give you the accurate picture for your specific situation.
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?
No. The STC scheme is legislated to run until 2030, and the number of STCs available per installation reduces each year. That means the rebate value will decrease over time. The sooner you upgrade, the more you save.
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.
Need hot water help? Call Northern Beaches Hot Water on 0448 581 325.