Hot Water Rebates: Government Discounted Hot Water Systems

Last updated on June 18, 2022

The global trends of inflation have led people to look for cost-effective ways to save money. The same goes for hot water systems too. 

People tend to consider more economic solutions for consistent and efficient provision of hot water.

In Australia, hot water systems are getting quite popular among the masses to fulfil their hot water needs. 

Amid this scenario, a hot water rebate is a fine way to save loads of money without compromising on water availability.

Government Rebated Hot Water In Sydney And Melbourne

What is a hot water system?

Hot water systems are high-yield equipment, that heat the water in large volumes by incorporating advanced technologies. This leads to the consistent provision of hot water for domestic, commercial, and industrial purposes.

Types of hot water systems

Various types of hot water systems are available in the market today. The mechanism by which water is heated in these water heaters varies depending upon the type of hot water system.

Broadly, hot water systems are classified into four distinct types depending upon their source of heat generation:

  1. Electric Hot Water System
  2. Gas Powered Hot Water System
  3. Solar Type Hot Water System
  4. Heat Pump Hot Water System

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What is a hot water rebate?

Hot water rebate is a way to assist people in purchasing hot water systems for domestic and commercial needs. 

Through hot water rebates, people get significant financial assistance and discounts to implement hot water systems that provide operational savings too.

These rebates are meant for encouraging the use of renewable energy sources for public needs. This prevents depletion of our energy sources and leads to sustainable eco-friendly communities too.

In Australia, plenty of hot water rebate schemes are prevalent to financially help Australians in installing water heating systems. These schemes vary in their offerings, eligibility criteria, and loads of other factors.

Here, we will throw light on available hot water rebate schemes for Australians. 

This would help you understand the rebate schemes and what these schemes have to offer you as a hot water system user in Australia.

STCs based hot water rebate

Small Scale Technology Certificates are a type of rebate provided by the federal government for various renewable energy measures including the installation of hot water systems.

You can claim small-scale technology certificates STCs based on how much electricity is displaced by your heat pump water heater over the course of its lifetime.

STC Rebate Zones


The incentive you get depends upon your location in Australia, efficiency of your hot water system, type of your hot water system, and current STCs price in the market. Based on these factors, you can receive an incentive ranging from $300-$1000 for your STCs.

State hot water rebate

Besides the hot water rebate schemes offered by federal government, various states offer rebates too. The eligibility criteria for various state rebates differ from each other causing it difficult to compare them all at once.

If your heat pump water heater is listed in your state governments register of products you should be eligible to receive some form of rebate on your hot water heat pump.

However, many hot water system manufacturers use rebate calculators that automatically calculate your rebate entitlement depending upon your postcode.

New South Wales energy savings scheme (ESS)

ESS is a Government initiative to offer financial incentives to New South Wales households and businesses. 

These incentives are meant to encourage the installation, improvement, and replacement of energy-saving devices and appliances.

This lets you upgrade to an energy-saving hot water system for just $33. 

Besides this affordable installation, you get hundreds of dollars on your electricity bills with reduced operational costs of the hot water systems.

You can relish up to 80% lower running costs with the installation of these energy-efficient hot water systems. 

Hence, it’s the right scheme for you to get your own water heating system assisted with the New South Wales rebates.

Victorian Government hot water rebate

This hot water rebate scheme from the Australian Government is meant for solar and heat pump hot water systems. The rebate assists Victorian families by providing a 50% rebate of up to $1,000 to get their solar or heat pump water heating systems installed.

The rebate scheme can also be availed by not-for-profit community housing providers. However, they must apply for the rebate on behalf of their tenants.

To be eligible for this hot water rebate scheme, you must:

  • have a total household income of less than $180,000 per annum before tax
  • be an owner or occupier of a home valued at under $3 million
  • be replacing an existing hot water system that is older than 3 years from the purchase date
  • have an eligible hot water system installed on or after 19 August 2018
  • choose a product that is on the Clean Energy Regulator’s Register of solar water heaters

Households will only be eligible for one rebate under the Solar Homes package. You cannot have received a solar PV rebate or a battery rebate under the program.

*Other conditions may apply.

Queensland Government hot water rebate

This solar hot water rebate scheme from Queensland Government is meant for eligible households. The rebate assists locals in replacing their electric-type hot water systems with solar or heat pump hot water systems.

Under this rebate scheme, you can either be eligible for a concessional rebate of $1000, meant for pensioners and low-income earners. Otherwise, you can receive a standard rebate of $600 from the Queensland Government.

Western Australia hot water rebate

The solar hot water heater subsidy provides rebates to Western Australian households. The rebate amount ranges from $500-$700 meant for those who install environment-friendly, gas boosted solar water heaters.

The rebate can be availed by homeowners, renters, or landlords residing in Western Australia and installing solar water heaters.

South Australian Government hot water rebate

The state government of South Australia has created Retailer Energy Efficiency Scheme REES to assist residents in the installation of solar hot water heat pumps. The REES can be availed by single and multi-family homes as well as small businesses.

Besides REES and STC incentives, Adelaide city provides a rebate of up to $1000 for solar heat pump installation within the city.

The South Australian Government also pays you up to $2000 for the installation of qualifying solar or heat pump hot water heaters. This lets you save installation costs along with the reduction in operational costs of these energy-efficient hot water systems.

Tasmanian Government hot water rebate

Tasmanian Energy Efficiency Loan Scheme TEELS was launched by Aurora Energy and the Tasmanian Government. TEELS was developed to assist households and business owners adopt solar hot water systems with interest-free loans.

Homeowners can have interest-free financing ranging from $500 to $10000 while businesses can borrow up to 40,000.

Northern territory smart energy grants program

The smart energy grants program of northern territory opened applications in 2018. This energy-efficient hot water rebate program is worth around $4 million.

The initiative provides a federally supported 50/50 split for home improvement and adaptation to green technologies. Solar hot water systems and heat pumps are eligible for this rebate too.

E-Green Electrical: The right choice for your hot water system installation

Here at E-Green Electrical, we are available to assist with the upgrade to an energy-efficient hot water solution.

We’re available for a free consultation with one of our energy experts regarding your current hot water system.

We assist you with the procedure of upgrading your system with an energy-efficient heat pump hot water system. Our experts will help you attain all the rebates available.

Simply reach us by dialing 1300 323 636 and we will guide you with the best offers tailored to your subjective requirements and preferences. Our energy experts will assist you in optimizing the rebates, so you get to pay the very lowest price. 

Our services cover Sydney and Melbourne metropolitan areas. Get in touch with us today to know the availability of our services in your area.

How E-Green Electrical will help me claim my hot water rebate?

At E-Green Electrical, our team of consultants and energy experts will guide you through the steps of choosing the right system and applying for a rebate. 

Our wide range of services ensures the complete installation of your water heating systems with guaranteed rebates.

As loads of hot water rebate schemes are available out there, your eligibility depends on various factors as:

  • The type of hot water system you are replacing
  • The type of system you are purchasing
  • Condition of the system
  • The state from where you are applying for the rebate

Depending upon these factors, our experts will guide you on the type of rebate you are eligible for. Estimated rebate amount you will receive and other necessary information you will need as a rebate applicant.

Which hot water system should I prefer?

As mentioned earlier, multiple types of hot water systems are available in the market. They typically vary in their sources of heat generation. 

These different types of hot water systems go well aligned with varying climatic conditions and individual requirements.

However, heat pump hot water systems are quite preferable to other types of hot water systems.

Benefits of heat pump hot water systems

Heat pump hot water systems offer loads of benefits over other types of hot water systems. Here are a few reasons why you should prefer a heat pump hot water system instead of solar, electric, or gas type systems.

  • Cost-effective operation and reduced running expenses
  • Energy-efficient systems with significant energy savings
  • Ecofriendly working
  • Reduced emission of greenhouse gases leading to environmental protection
  • Efficient even at lower temperatures and cold climatic conditions
  • Easy to install and operate

These are a few reasons why a heat pump hot water system should be your preference as compared to other types of hot water systems.

Wrapping Up

Amid the ongoing energy crisis, global trends are moving towards energy efficiency and sustainability. In Australia, loads of hot water rebate schemes are prevalent to encourage the upgradation to energy-efficient hot water systems.

E-Green Electrical, with its team of qualified consultants and energy experts, assists you in availing rebates for your hot water systems. 

Reach us today to have a consultation with our experts to get the right system for you, installed at costs as low as possible.

Frequently Asked Questions (FAQs) about hot water rebates


1. What is a hot water rebate?

A hot water rebate helps incentivize the use of heat pumps as your primary water heating system and to encourage their installations and usage. These rebates are meant to assist people upgrade to a more energy-efficient and eco-friendly appliance.

2. Who can claim the hot water rebate?

In Australia, plenty of hot water rebate schemes are offered to the public. These rebates differ in their eligibility, incentives, and other features. 

Generally, these rebates are meant for households, rental properties, and businesses to encourage the usage of energy-efficient and cost-effective hot water systems by the public.

3. Is it difficult to claim a hot water rebate?

Claiming your hot water rebate may often turn out to be time-consuming and hectic. However, here at E-Green Electrical, our team of energy experts and consultants assists you with the entire process. 

This helps you choose the right system for you and optimally claim your rebate to reduce your installation costs as much as possible.

4. Why should I install a hot water system?

Hot water systems are advanced appliances that ensure the availability of a high volume of hot water for your needs. 

This hot water can be used for domestic and household purposes or you can use it for commercial and industrial requirements too.

5. Which hot water rebate scheme is the right one for me?

Amid the number of hot water rebate schemes, the answer to this question varies for every household and business. This depends upon your location, your water heater system type, the condition of your current water heater, and the kind of upgradation you intend to have.

6. Which hot water system is the best among all?

The heat pump hot water system is considered the best as per the loads of benefits it holds. Heat pump water heaters are energy-efficient and cost-effective. 

They are more eco-friendly and are easy to install. Their capability to effectively perform at low temperatures makes them a good fit for cold regions.

7. How can I get E-Green Electricals’ services for claiming my hot water rebate?

You can reach us by dialing 1300 323 636 and we will guide you with the best offers tailored to your subjective requirements and preferences. 

Besides that, you can send us an email or contact us through the contact form given on our website and our representative will entertain you accordingly.

Gaurav Sharma

At E-Green Electrical , Gaurav writes about Electrical energy, Solar energy, Energy conservation and electrical product reviews. He is most interested in how we can utilize technology and renewable resources to reduce energy consumption , prevent pollution and save money at the same time.

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