Every Australian home can claim the federal heat pump hot water rebate, which is a discount from Small-scale Technology Certificates (STCs) worth roughly $380 to $800 on most models as at November 2026, according to an installer’s estimate (the Clean Energy Regulator does not publish a typical dollar figure). Victoria adds up to $1,630 (or $2,030 for locally made models) and NSW adds up to $640. South Australia has a retailer-run scheme with no published amount, and Queensland, WA, Tasmania and the NT have no state rebate.
Key facts
- As at November 2026, every eligible heat pump hot water system earns federal STCs, with the count set per model on the Clean Energy Regulator register.
- The Clean Energy Regulator lists the deeming period for heat pump and solar water heater installations as 5 years in 2026, falling to 4 years on 1 January 2027, so the same model earns fewer certificates next year.
- Solar Victoria’s Solar Homes hot water rebate pays 50 per cent of the price after other discounts, up to $1,000, or up to $1,400 for listed locally made heat pumps, for owner-occupiers with household taxable income under $150,000.
- The NSW Hot Water Upgrade Incentive, through the Energy Savings Scheme, offers indicative discounts of up to $640 when replacing an electric water heater and up to $330 when replacing a gas one, with no income test.
- South Australia’s Retailer Energy Productivity Scheme (REPS) covers hot water replacement, but ESCOSA publishes no dollar amount and providers set their own discounts.
- As at November 2026, we found no state rebate for heat pump hot water in Queensland, Western Australia, Tasmania or the Northern Territory.
How much is the heat pump hot water rebate in each state?
Every state gets the federal STC discount, and Victoria, NSW and South Australia add a state discount on top. The table shows each program, what it pays, who can claim and its status, as checked in November 2026.
| State or territory | Program | Amount | Eligibility | Status | Source |
|---|---|---|---|---|---|
| All states | Federal STCs (Small-scale Renewable Energy Scheme) | Roughly $380 to $800 (installer estimate, Aussie Solar Tech, May 2026) | Listed model, licensed installer, under 425 L | Open, shrinking each 1 January | Clean Energy Regulator |
| Victoria | Solar Homes hot water rebate | Up to $1,000, or $1,400 locally made | Owner-occupier, income under $150,000, home under $3 million | Open | Solar Victoria |
| Victoria | Victorian Energy Upgrades | $630 (from electric) or $560 (from gas) | Any household | Open | Victorian Energy Upgrades |
| NSW | Energy Savings Scheme hot water incentive | Up to $640 (from electric) or $330 (from gas) | All households and small businesses | Open | NSW Government |
| South Australia | REPS water heating (WH1 to WH4) | Not published | Home in SA | Open | ESCOSA |
| ACT | Sustainable Household Scheme loan; concession scheme | 3% loan; 50% up to $2,500 for concession holders | Varies | Open | ACT rebate guide |
| Queensland | None found | Nil | Not applicable | No scheme | Queensland guide |
| Western Australia | None found | Nil | Not applicable | No scheme | WA guide |
| Tasmania | None for hot water (loan closed) | Nil | Not applicable | Loan closed Sept 2025 | Tasmania guide |
| Northern Territory | None found | Nil | Not applicable | No scheme | NT guide |
How do heat pump STCs work, and what are they worth?
A heat pump STC discount is a one-off block of certificates, usually assigned to your installer, that comes off the quote. Only models on the Clean Energy Regulator register qualify, the tank must be under 425 litres, and the installer must meet state licensing rules.
A Small-scale Technology Certificate (STC) is a tradable certificate that represents a quantity of renewable energy or energy saved. The number your heat pump earns is not a single national figure. The regulator publishes it per model, and your postcode zone changes it. The regulator’s deeming table shows how fast the value is eroding: the deeming period is 6 years for 2025 installs, 5 years for 2026, 4 years for 2027, and 1 year by 2030, when the scheme ends.
The Clean Energy Regulator does not publish a typical dollar value for heat pump STCs, so for a dollar figure we rely on an installer estimate from Aussie Solar Tech, whose May 2026 guide estimates 10 to 20 certificates for most heat pumps and values STCs at about $38 to $40 each. That gives roughly $380 to $800, and its own example is 15 certificates worth about $600 on a Sydney install. That is not a regulator figure, so check your model with the REC Registry calculator.
STCs traded at about $38 to $40 in 2026, with the government clearing house price fixed at $40 excluding GST, according to Demand Manager as cited in our Victoria guide.
Is there a heat pump rebate in Victoria?
Yes. Victoria has the largest heat pump hot water rebate in Australia, with two state programs that stack with federal STCs.
Solar Homes hot water rebate. As at 9 November 2026, Solar Victoria pays 50 per cent of the purchase price, calculated after other discounts, up to $1,000, or up to $1,400 for listed products with at least 50 per cent local parts. You must be an owner-occupier of an existing home, with combined household taxable income under $150,000 and a property under $3 million. The system being replaced must be at least 3 years old, and the address cannot have had a Solar Homes hot water or battery rebate before. Installation must finish within 120 days of receiving your QR code. From 1 March 2027, a gas system that reaches end of life must be replaced with an efficient electric one. We could not confirm how many rebates remain.
Victorian Energy Upgrades (VEU). Every Victorian household can use VEU, with no income test. Our Victoria rebate guide lists $630 for replacing inefficient electric hot water and $560 for gas, with a five-year warranty and a $200 minimum contribution. Solar Victoria says the two programs together reach $1,630, or $2,030 for locally made models.
Is there a heat pump rebate in NSW?
Yes. The NSW Energy Savings Scheme gives an upfront discount of up to $640 for replacing an electric water heater with a heat pump and up to $330 for replacing gas, per the NSW Government.
All households and small businesses may be eligible, with no income test. The discount is indicative and varies with the installer, location and model. You pay a minimum contribution, and our NSW rebate guide notes a five-year warranty requirement and that nomination forms must be signed before work starts.
Is there a heat pump hot water rebate in Queensland?
No, not from the state. As at November 2026 we found no Queensland Government rebate for heat pump hot water, and no retailer certificate scheme like those in NSW and Victoria.
The Climate Smart Energy Savers rebate ($300 to $1,000 on efficient appliances) closed by April 2024, according to our Queensland rebate guide. Treat any Queensland “state rebate” claim with caution.
Is there a heat pump hot water rebate in South Australia?
Partly. South Australia has no fixed state rebate, but REPS includes hot water activities delivered by approved providers for energy retailers.
ESCOSA lists four residential water heating activities, including WH1 (replace or upgrade a hot water system) and WH4 (connect an electric heat pump to an approved demand response aggregator). The page publishes no dollar amounts. SolarQuotes, in an article updated in August 2026, says amounts are set by retailers and are larger for priority groups such as concession holders. Ask each provider for the discount in writing, and see our SA rebate guide on funding risk.
Is there a heat pump hot water rebate in WA?
No. As at November 2026 Western Australia has no state rebate for heat pump or solar hot water and no energy-saving certificate scheme. Federal STCs apply, and our WA rebate guide notes the federal Household Energy Upgrades Fund offers discounted green loans through participating lenders.
What about the ACT, Tasmania and the Northern Territory?
The ACT has no stand-alone heat pump rebate, and Tasmania and the Northern Territory have none for hot water.
- ACT. A heat pump can go on the 3 per cent Sustainable Household Scheme loan, and concession card holders can claim 50 per cent up to $2,500, per our ACT rebate guide.
- Tasmania. The 0% Energy Saver Loan Scheme closed on 1 September 2025. NILS Tasmania offers 50 per cent up to $1,500 on a heat pump for low-income households, but does not say if that covers hot water, per our Tasmania rebate guide.
- Northern Territory. We found no NT Government rebate, matching our NT rebate guide.
Worked example: what a heat pump might cost after rebates
This electric-to-heat-pump swap uses our own illustrative assumptions: an installed price of $3,800 and 15 STCs at $39 each (about $585). Your quote will differ.
| Step | Victoria (standard model) | NSW |
|---|---|---|
| Installed price before discounts | $3,800 | $3,800 |
| Federal STC discount (15 x $39) | minus $585 | minus $585 |
| State certificate discount | minus $630 (VEU) | minus $640 (ESS, at most) |
| Price after certificates | $2,585 | $2,575 |
| Solar Victoria rebate (50%, capped) | minus $1,000 | Not applicable |
| Approximate net cost | about $1,585 | about $2,575 |
With a $1,400 locally made rebate, the Victorian figure would be about $1,185. In NSW the state discount is an upper bound, so the real figure can be higher. Neither case is free.
Are free heat pump hot water offers real?
Sometimes, but “free” usually means certificate schemes have covered the whole cost for a qualifying home. Treat it as a discount to verify.
- A minimum contribution applies. Victoria lists $200, and NSW quotes require a minimum payment.
- The discount depends on what you replace. A working efficient system, or an ineligible product, can mean no discount.
- Quality has been an issue. In June 2023 the Essential Services Commission restricted two businesses over allegedly poor heat pump installs.
- Check the quote. It should show the STC and state discount lines, the brand and model, the tank size, a warranty of at least five years and the installer’s accreditation. Use the Clean Energy Regulator register to confirm the model is listed.
How does a heat pump work with rooftop solar?
A heat pump works best on solar if it heats at midday, when your panels are exporting. Set the unit’s timer or schedule for roughly 10 am to 3 pm so the tank heats on your own power instead of grid power.
As covered in our solar hot water versus heat pump guide, Sustainability Victoria’s July 2025 Melbourne figures put running cost at about $275 a year on peak tariff with no solar and about $150 to $180 a year with rooftop solar. Solar diverters, which suit plain element tanks, do not work with heat pumps. Confirm with your installer that the unit has a flexible timer, and check any controlled-load tariff.
What to check on your quote
Compare at least three written quotes using our quote comparison guide and our installer directory. We do not verify accreditation, so check it yourself.
- Are the federal STC and each state discount shown as separate lines?
- Is the model on the Clean Energy Regulator register, and is it under 425 litres?
- What is the warranty, and who honours it if the installer stops trading?
- What is the noise level, and can the timer run at midday on your tariff?
FAQ
How much is the heat pump hot water rebate in Australia?
The federal STC discount is roughly $380 to $800 on most models in 2026, based on an installer’s estimate (Aussie Solar Tech, May 2026) of 10 to 20 certificates at about $38 to $40 each. Victoria can add up to $1,630 and NSW up to $640.
Is there a heat pump rebate in Victoria in 2026?
Yes. Solar Victoria pays up to $1,000 (or $1,400 for locally made models) to owner-occupiers earning under $150,000, and Victorian Energy Upgrades adds about $560 to $630 for any household.
Is there a heat pump rebate in NSW?
Yes. The NSW Energy Savings Scheme gives up to $640 when replacing electric hot water and up to $330 when replacing gas, with no income test.
Is there a heat pump hot water rebate in Queensland, WA or the NT?
No state rebate exists in Queensland, Western Australia or the Northern Territory as at November 2026. Only the federal STC discount applies.
Is there a heat pump hot water rebate in South Australia?
Partly. The REPS scheme covers replacing a hot water system, but ESCOSA publishes no amounts and each approved provider sets its own discount.
Can I get a free heat pump hot water system?
Sometimes, in Victoria and NSW, where rebates can cover most or all of a qualifying replacement. Minimum contributions usually apply.
What is the heat pump STC rebate and how is it calculated?
It is a one-off discount from Small-scale Technology Certificates that the installer takes off your quote. The count depends on the model and your postcode zone, and the 2026 deeming period is 5 years, falling to 4 in 2027.
Sources
- Solar water heaters and air source heat pumps, Clean Energy Regulator
- Deeming period decline, Clean Energy Regulator
- Hot water rebate, Solar Victoria
- Hot water system discounts, Victorian Energy Upgrades
- Regulator takes action over water heater installations, Essential Services Commission, June 2023
- Hot water upgrade incentive, NSW Government
- REPS water heating activities, ESCOSA
- Heat pump rebates, SolarQuotes, August 2026
- Heat pump rebate guide, Aussie Solar Tech, updated May 2026
- STC prices, Demand Manager
About this guide
Written by the Solar Cobber editorial team from independent desk research checked in November 2026. Solar Cobber is a free directory that may earn referral or advertising fees from installers, and commercial relationships never affect our content. This is general information, not financial advice. To report a correction, use our contact page.
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