Considering installing a heat pump hot water system? You may be eligible for a rebate to offset the cost.
Making the switch to a heat pump hot water system is a great way to reduce your environmental footprint and your energy bills. What’s more, there are currently a wide range of rebates, schemes and interest-free loans available across Australia to help you pay for the cost of your new heat pump system.
With governments at both the state and federal levels keen to increase the uptake of energy-efficient appliances in homes, there are currently some excellent incentives available which make buying a heat pump hot water system accessible to more households. However, as we’ve seen in the past with similar incentive schemes, these offers will only be available for a limited time, so if a heat pump system is on your radar, now is the time to make it happen.
So to help you understand what is available and learn if you are eligible, in this article we’re sharing the current hot water heat pump rebates on offer, state by state.
Important information on current hot water heat pump rebates
While the information in this article is correct at the time of writing, as things can and do change over time, we recommend you check with the relevant authority in your state or use the rebates and assistance page on the Australian Government Department of Climate Change, Energy, the Environment and Water website to find out about the current financial incentives on offer.
It’s also worth keeping in mind that some rebates are only available to households upgrading their existing electric hot water unit to a heat pump system, so if your home is currently running on gas hot water, please mention this when checking your eligibility. In addition, rebate schemes such as those described below do tend to decrease over time, so be sure to act fast to maximise your savings.
Federal government hot water heat pump rebates
The Small-scale Renewable Energy Scheme is a federal government scheme available to both individuals and small businesses to assist with the cost of installing eligible renewable energy systems such as solar panels and air source heat pumps.
The aim of the scheme is to boost the number of energy-efficient appliances in use across Australia to support the Renewable Energy Target. It operates via the creation of Small Scale Technology Certificates (STCs). The value of STCs you can receive depends on the type, size and model of your system and on your Geographical Zone of Residence. While this means the rebate amount you can expect to receive does vary, in our experience, when you install an eligible heat pump hot water system the benefit can be into the thousands.
Heat pump rebates in Victoria
If you live in Victoria, there are two separate state government incentives that apply to energy efficient hot water systems.
Firstly, the solar and heat pump hot water system rebate provides eligible Victorian households with $1000 to put towards the initial costs of a heat pump or solar hot water system. Eligibility criteria includes:
- household income of below $180,000 (combined)
- you must be an owner-occupier of a home valued under $3 million; and
- the system you are replacing must be at least 3 years old.
Alternatively, the Victorian Energy Upgrades program provides special offers and discounts on selected heat pump hot water systems. At the time of writing, when you replace an inefficient electric water heater with a heat pump, you can expect to receive a rebate of between $840–$1260, depending on the size of the unit.
Heat pump rebates in New South Wales
Currently, there are no state government rebates available in New South Wales for heat pump hot water systems, but NSW residents can apply for national STCs discussed above as part of the federal Small-scale Renewable Energy Scheme.
Heat pump rebates in the ACT
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.
Heat pump rebates in Queensland
Queensland residents do not have access to any state government rebates for heat pump hot water systems at present, however, they can apply for STCs as part of the federal Small-scale Renewable Energy Scheme detailed above.
Heat pump rebates in South Australia
In addition to the federal STCs scheme, South Australian residents (particularly those in a low income bracket) may be eligible for the Retailer Energy Productivity Scheme (REPS) which provides incentives for households and businesses to use less energy. To access the scheme, residents are encouraged to contact participating energy retailers.
Find out how much it would cost to upgrade your home to a hot water water heat pump.
Heat pump rebates in 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.
Heat pump rebates in Tasmania
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.
Heat pump rebates in Northern Territory
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.
Maximise the cost-savings on your heat pump system
With generous incentives and rebates currently available across Australia, there has never been a better time to upgrade your hot water to a heat pump system. To learn about your options, contact us to find your local registered heat pump installers or get a free online quote today.
