Guide · last reviewed 3 July 2026
Every hot water rebate in Australia, state by state
Heat pump hot water is the most heavily incentivised home upgrade in the country right now. Here's what each state offers in 2026, who qualifies, and how the money actually flows — it's almost never a cheque in the mail.
Federal: STCs (everywhere)
Small-scale technology certificates come off eligible systems at the point of sale — typically worth several hundred to over a thousand dollars depending on the system and your climate zone. Every state stack below sits on top of this.
Victoria — the strongest stack
Two schemes combine: VEU (Victorian Energy Upgrades) discounts applied by accredited providers, and the Solar Victoria hot water rebate of up to $1,000. Together they commonly knock roughly $1,500 or more off, before STCs. Result: well-priced heat pump systems in Melbourne can land near or under $1,000 installed. Eligibility rules apply to each scheme (income caps, property value, existing system type) — a VEU-accredited installer will confirm your combination.
New South Wales — upfront ESS discounts
NSW works through the Energy Savings Scheme: accredited suppliers apply the incentive as an upfront discount on your quote — larger when replacing electric storage than gas. You'll see heavily discounted packages advertised; the discount is real, but final installed prices still vary a lot between suppliers, so compare three.
Queensland — Climate Smart Energy Saver
A straightforward rebate: $800 standard or $1,000 for low-income households toward an eligible heat pump hot water system, plus STCs. Installation must be by a licensed plumber.
South Australia — REPS, biggest if you ditch gas
The Retailer Energy Productivity Scheme pays roughly $850 (ex GST) when the home has no gas connection — or disconnects it at installation — and around $245if gas stays on. If you're weighing up going all-electric, SA's scheme is explicitly designed to reward it.
Western Australia — STCs only (for now)
No state scheme currently runs in WA, but federal STCs still apply, and Perth's climate is ideal for heat pump efficiency — the running-cost savings versus electric storage (typically 70–75% less energy for hot water) carry the economics.
ACT, Tasmania, NT
STCs apply everywhere; additional support varies (the ACT runs means-tested home energy programs). Check your territory's energy website, then confirm with a local accredited installer.
How to actually claim
- Check your state's support — the calculator takes 60 seconds.
- Get quotes from at least three installers (find local ones here) — ask each to itemise the rebates and discounts on the quote.
- The accredited installer applies the incentives; you pay the net price. Keep the paperwork.
Quick answers
How do federal STCs work on hot water systems?
Small-scale technology certificates (STCs) are a federal incentive on eligible heat pump and solar hot water systems, usually applied as a point-of-sale discount by the installer. The value varies by system and climate zone — commonly several hundred to over a thousand dollars.
Can I stack state rebates with STCs?
Yes — federal STCs apply on top of state schemes. In Victoria, VEU discounts and the Solar Victoria hot water rebate can also combine with each other, commonly reaching roughly $1,500 or more before STCs. Each scheme has its own eligibility rules, so confirm the exact stack with an accredited installer.
Do I get the rebate paid to me?
Usually not — most schemes work as upfront discounts applied to your quote by accredited providers, so you just pay the reduced price. That's also why quotes for the same unit can differ: always compare at least three.
Do rentals qualify?
Several schemes cover rental properties, but the owner generally needs to arrange the upgrade. If you rent, the practical step is sending your landlord the numbers — the after-rebate cost is often lower than a like-for-like replacement of a failing system.
Sources: energy.gov.au, energy.vic.gov.au, solar.vic.gov.au, energy.nsw.gov.au and state scheme administrators, as at 3 July 2026. Schemes change and administrators decide eligibility — confirm current terms before committing. General information, not advice.