How Do I Apply For The Heat Pump Hot Water Rebate in NSW? 

Hot water is often the second-largest energy expense in an average NSW home, coming right after air conditioning.

It can make up around 25% of total household energy use.

If your home still relies on a traditional electric storage tank, you could be spending more than AUD 1,100 a year just to keep the showers running. 

Thankfully, upgrading to a high-efficiency heat pump can reduce that cost to roughly AUD 290 a year, slashing your hot water energy bills by around 75%.

Even better, there is a heat pump hot water rebate that helps reduce the upfront costs of installing these systems. 

This article will discuss the heat pump hot water rebate, eligibility, how to apply in NSW, and more.

What Is the NSW Heat Pump Hot Water Rebate?

The rebate is actually a combination of two programs working together to make upgrading more affordable.

First, there’s the NSW Energy Savings Scheme (ESS).

This state initiative requires large energy companies to help reduce overall power consumption. They do this by subsidising upgrades like high-efficiency heat pumps for households.

Second, there are Federal Small-scale Technology Certificates (STCs).

Across Australia, each heat pump you install earns “points” that can be converted into a dollar value. This helps lower your upfront cost even further.

When you combine ESS and STCs, you can get a significant discount right at the time of purchase. The goal here is to replace old and costly electric hot water systems with heat pumps, which work like a fridge in reverse.

Who Is Eligible to Apply in NSW?

You don’t need to be a low-income earner to get this, but there are a few rules to follow:

• NSW Resident: Your property has to be within the state.

• The “Swap-Out” Rule: You generally have to be replacing an existing electric storage tank or a gas system. If you’re building a brand-new house, you usually won’t qualify for the state-level ESS portion because there’s no “old” energy to save.

• Property Type: Homeowners, landlords, and even small businesses qualify.

• Tenants: If you’re renting, you can still get the upgrade, but your landlord has to sign the consent forms since it’s a permanent change to the house.

• Accredited Installers: This is the big one. If you hire a plumber who isn’t “accredited” under the ESS scheme, you get AUD 0.

How Much Is the Heat Pump Rebate in NSW?

The rebate value depends on a few things:

• The Federal STC rebate is usually applied upfront. Many NSW systems receive around AUD 576–AUD 684, depending on location and system size.

• NSW ESS rebate: Extra certificates are issued based on the energy saved. Electric storage replacements get roughly AUD 240, while gas systems may get around AUD 110.

You can combine both and cut the total installation cost by AUD 700–AUD 900. However, the exact amount varies depending on the following:

• What you’re replacing: Swapping an old electric tank usually gets a bigger discount. 
• The unit’s efficiency: Better units generate more “certificates.”
• Your location: NSW is split into zones. Some areas get slightly more.

How to Apply For The Heat Pump Rebate: Step-by-Step Process

Applying for the NSW heat pump rebate is very easy, but you still need to follow a specific path to ensure you don’t accidentally disqualify yourself. Here is the process you need to follow:

1 Choose an Eligible Heat Pump System

Not every shiny new unit on the market qualifies for the rebate.

To tap into the NSW Energy Savings Scheme (ESS) and federal STCs, the heat pump must be on the government-approved list of high-efficiency models.

These units are tested to ensure they actually save the energy they claim.

Most reputable installers will only carry approved stock, but it’s always worth double-checking that the specific model you want is rebate-ready.

2 Get Quotes from an Accredited Installer

This is the make-or-break step. You cannot use just any plumber; you must use an Accredited Certificate Provider (ACP) or an installer partnered with one.

These companies are authorised to create the energy certificates that fund the discount. It’s a good idea to get at least two or three quotes.

Ask them specifically if they handle the decommissioning of your old system because that’s usually a requirement for the upgrade.

3 Confirm the Rebate is Included Upfront

When the quote arrives, look for a line item that shows the ESS Discount or STC Incentive. In NSW, the discount is applied before you pay. 

4 Installation and Paperwork

On install day, the team will swap your old gas or electric tank for the new heat pump.

They’ll need to take a few evidence photos—usually of the old unit, the new installation, and your switchboard.

Once they’re finished, you’ll sign a Post-Implementation Declaration confirming the work was done. This bit of paperwork is what allows the installer to finalise the rebate on their end.

When and How the Rebate Is Paid

It is an upfront discount. You should never be told to “pay the full AUD 4,000 now, and the government will send you AUD 1,000 back later.” In NSW, the value is deducted from the quote before you even pay. If an installer tells you otherwise, find a different one.

Final Thoughts

Applying for the heat pump hot water rebate in NSW is simpler than most people think.

You pick an eligible system, hire a licensed installer, and let them handle the paperwork. Rebates are applied upfront, cutting hundreds off the cost.

For households replacing old electric or gas systems, this is one of the easiest ways to save money and reduce energy bills.