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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 can significantly reduce your initial investment thanks to generous government rebates. Visit our Solar hot water – How it works page to learn more about solar hot water.
Avoid confusion and maximise your rebates
The situation with solar hot water 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 solar rebates or incentives available to Australians.
Federal Government financial incentives
Small-scale Technology Certificates (STCs)
The Australian federal government has administired 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. This is achieved through creating Small-scale Technology Certificates (STCs). Each STC has a monetary value which can be either 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
| 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 |
State-specific solar hot water rebates
Victoria
Solar Homes Program – Solar Hot Water Rebate
The Victorian Government’s Solar Homes Program provides eligible households a 50% rebate of up to $1,000 on eligible solar hot water.
Heat pump hot water rebate
Victoria’s Solar Homes Program offers qualified homeowners 50% hot water subsidies up to $1,000 for heat pump hot water rebates. The federal incentive may be used in addition to this money.
Eligibility criteria include:
- they are the owner-occupier of the property
- the owners have a combined household taxable income of less than $180,000 per year (based on their Australian Tax Office Notice of Assessment)
- they have not already received a solar battery rebate or a solar hot water rebate under the Solar Homes Program
- it is an existing property, valued at under $3 million
- the hot water system to be replaced is at least three years old from the date of purchase
- the property address has not already received a solar battery rebate or a solar hot water rebate under the Solar Homes Program
- the solar (or heat pump) hot water system is on the Solar Homes program approved products list
Approved products list
The program mandates the installation of an approved product listed on the Victorian Essential Services Commission (ESC) Registered Products list and the Clean Energy Regulator (CER) Register of Approved Products list.
For more information, click here.
This rebate is available in addition to the federal government’s STC financial incentives and feed in tariff on solar hot water systems and heat pumps, as well as the Victorian Energy Upgrade Scheme for upgrading inefficient electric or gas water heaters, details below.
Check out our page to learn more about Victoria’s rebate and incentives.
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 Efficiency Scheme (REES), which ran from 1 January 2009 to 31 December 2020, has been replaced by the Retailer Energy Productivity Scheme (REPS).
The South Australian government’s REPS energy productivity scheme commenced on 1 January 2021 and creates incentives for households and businesses to save more energy.
You can contact any REPS obliged retailers or third-party contractors, not just the retailer currently supplying your energy services, to find out what energy savings activities may be available for your home or business. There are 31 eligible productivity activities under the REPS that retailers may choose to provide. Typical activities include installing energy-efficient lighting, or installing water-efficient shower heads, and helping save water heating costs.
For more information, click here.
Solar hot water rebates in Adelaide – Sustainability Incentives Scheme
The City of Adelaide is offering a rebate for the installation of solar hot water systems and heat pump hot water systems on properties within the City of Adelaide municipal areas.
The rebate is worth 25% of the out-of-pocket installation cost – up to $1,000 – of a solar hot water system or heat pump. Eligible properties include:
- Homes (owner-occupant or tenanted)
- Apartment buildings
- Small businesses
- Multistorey commercial
- Buildings used by community, not-for-profit organisations and sporting groups
The rebate is available for:
- replacing an inefficient electric instantaneous hot water system with a solar hot water or heat pump system.
- installing a new solar or heat-pump hot water system on a new development.
This rebate is available in addition to the REPS rebate and federal government STC rebates for solar hot water systems and heat pumps.
For more information, click here.
Australian Capital Territory
ActewAGL Energy-efficient electric heat pump water heater upgrade program
Upgrading to an energy-efficient electric water heater can save Canberrians money in three ways:
- $500* off the cost and installation of your new water heater.
- A total of $250* is credited on your quarterly electricity bill over three years, paid at the rate of $20.84 per quarter.
- Ongoing energy savings.
You’re eligible for the upgrade if:
- You live in the ACT.
- You have an electricity plan with ActewAGL.
- You have a gas or electric hot water heater.
For more information, click here.
The following states and territories currently have NO solar hot water rebates or incentives:
Tasmania
Hot water rebate QLD
Solar hot water and heat pump hot water rebate NSW
Western Australia
Northern Territory
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 hot water system quotes from our network of trusted, local solar installers in Brisbane. Complete our quick quiz and begin your solar journey today!
Updated December 2023
