Slash Your Energy Bills: Discover the Heat Pump Hot Water Rebate NSW Benefit

Looking to reduce your energy spend with a heat pump hot water system? The NSW government is offering a “heat pump hot water rebate NSW” that can significantly decrease your installation costs. Find out how to claim up to $1200 in rebates, check if you’re eligible, and understand the straightforward application process—all crucial details for NSW residents determined to save money and energy.

Key Takeaways

  • The NSW Heat Pump Hot Water Rebate supports the adoption of energy-efficient hot water systems, offering financial incentives that can save households and businesses thousands of dollars.

  • Eligibility for the rebate requires NSW residency and the current use of electric or gas hot water systems, with certain specifications for businesses and residential properties.

  • Applying for the rebate involves engaging with Accredited Certificate Providers, choosing an energy-efficient system, handling installation by certified professionals, and can contribute to significant energy and cost savings.

Heat Pump Hot Water Rebate NSW: An Overview

Heat pump hot water system with solar panels

The NSW Government’s initiative, the Heat Pump Hot Water Rebate, is designed to encourage the adoption of energy-efficient appliances, specifically hot water systems. This rebate not only supports households but also businesses, helping them save on upfront costs when upgrading to more efficient hot water systems.

This rebate empowers households to drastically cut their energy bills by choosing a heat pump hot water system. Similarly, businesses can gain advantages by decreasing their energy costs and carbon footprint, which in turn aids in environmental conservation.

Wondering how it works? The essence of this rebate lies in swapping your conventional hot water systems with ones that are more energy-efficient, such as heat pump or solar hot water systems. This small shift significantly impacts your hot water bill, leading to substantial savings, and contributes to a greener New South Wales.

What is the Heat Pump Hot Water Rebate?

The Heat Pump Hot Water Rebate is more than just a financial incentive; it’s a mission to promote energy efficiency and reduce greenhouse gas emissions. Launched in 2009, the NSW Government’s Energy Savings Scheme offers financial incentives for the installation, improvement, or replacement of energy-saving equipment, with a specific focus on hot water systems.

The rebate forms part of the broader Energy Savings Scheme, aiming to incentivize the replacement of less efficient electric or gas hot water systems with more energy-efficient heat pumps or solar water heaters. This program is a testament to the NSW government’s commitment to reducing energy consumption and promoting the adoption of sustainable energy sources.

Fundamentally, this hot water system rebate represents not just a financial bonus, but a stride towards a sustainable future. By replacing your existing hot water system with a more energy-efficient one, you contribute to a greener planet while enjoying significant savings on your energy bills.

Benefits of the Rebate

The Heat Pump Hot Water Rebate comes with a host of benefits. For starters, upgrading to a heat pump hot water system can save homeowners over $1,000 annually on water heating costs. This implies that you can have a steady hot water supply without the concern of escalating energy bills.

Yet, the financial advantages extend beyond that. Households and businesses can claim thousands of dollars in rebates when installing eligible hot water systems. The financial benefits through the NSW Energy Savings Scheme include up to $1200 off on hot water system upgrades and $350 for gas system replacements.

In addition, homeowners who upgrade their systems can benefit from:

  • Rebated or discounted heat pump hot water systems due to proceeds from selling energy certificates in the energy markets

  • Cutting down on energy bills

  • Receiving a considerable discount on the setup of a new hot water system

A win-win situation indeed!

Eligibility Criteria for the Rebate

To leverage the Heat Pump Hot Water Rebate, specific eligibility criteria must be fulfilled. Primarily, households and businesses must be located within New South Wales to qualify for the rebate. The type of existing hot water system in your property also plays a crucial role in determining your eligibility.

It’s important to note that installations in new buildings, replacements of existing solar or heat pump water heaters, or installations mandated by legal requirements are not eligible for the rebate scheme. This ensures that the rebate is targeted towards replacing less energy-efficient hot water systems, thereby maximizing energy savings and environmental benefits.

So, if you’re a resident of New South Wales and have an existing electric or gas hot water system, this rebate could be your ticket to significant energy savings and a greener lifestyle.

Residential Requirements

For homeowners, to be eligible for the NSW Heat Pump Hot Water Rebate, it is required to have an existing Electric or Gas Hot Water System. Furthermore, your property must be located in New South Wales, with specific considerations for various residential suburbs.

Other requirements include having a minimum space of two meters around the hot water system for rebate eligibility. Even the size of your current water heater plays a role in determining your eligibility for the rebate. So, before you decide to upgrade, it’s worth checking if your property meets these criteria.

Business Requirements

For businesses, the qualifications for the NSW Heat Pump Hot Water Rebate are:

  • Businesses looking to replace their existing electric or gas hot water system with a heat pump water heater are eligible for the rebate.

  • The building where the heat pump water heater is to be installed must fall under BCA Class 1 or 4.

  • The business location can influence eligibility as certain regions are prioritized.

Accredited Certificate Providers (ACPs) must verify that businesses meet the guidelines of the Energy Savings Scheme, and the equipment to be installed must be accepted by the Scheme Administrator. Also, the storage volume of the heat pump hot water equipment in liters is another consideration for the rebate scheme eligibility.

Energy-Efficient Hot Water Solutions

Heat pump hot water system installation

If you meet the criteria for the Heat Pump Hot Water Rebate, your next move should be to investigate energy-efficient hot water alternatives. The NSW Energy Savings Scheme incentivizes the replacement of electric or gas hot water systems with more energy-efficient options, such as approved heat pump and solar water heaters.

By upgrading to energy-efficient hot water systems, households and businesses can enjoy significant long-term savings on energy and water bills. Moreover, you’d be contributing to a lower environmental impact, aligning with the objectives of the NSW Energy Savings Scheme.

So, what exactly are these energy-efficient hot water solutions? Let’s delve into two popular choices: heat pump hot water systems and solar hot water systems.

Heat Pump Hot Water Systems

Heat pump hot water system components

Heat pump hot water systems are an innovative solution to providing hot water while saving energy. These systems work by absorbing external heat through an evaporator fan and transferring it to the water, much like a reverse air conditioner. A heat pump system like this is not only impressive but also highly efficient.

These systems can reach efficiencies of up to 350% and are designed to supply hot water constantly, even in temperatures as low as -10 degrees Celsius. By insulating the hot water pipes connected to heat pump systems, you can minimize heat loss, further enhancing their overall energy-saving capability.

And the benefits don’t stop at energy efficiency. Adopting heat pump hot water systems can lead to significant reductions in energy bills. Popular brands like:

  • iStore

  • Rheem

  • Dux

  • Quantum

  • Rinnai

  • Enviroheat

  • Reclaim

  • Stiebel Eltron

offer heat pumps that can provide up to 65% energy savings compared to conventional heaters.

Solar Hot Water Systems

Solar hot water system with sunlight

Solar hot water systems are another great way to save energy and reduce your energy bills. Harnessing the power of the sun to heat your water, these systems are a renewable energy solution that maximizes the use of natural resources.

For solar hot water systems, rebate eligibility may include both the federal STC Rebate and the NSW Energy Savings Scheme Rebate when combined. This means you could potentially save even more on your hot water system upgrade.

Popular brands of solar hot water systems include:

  • Rheem

  • Solarhart

  • Dux

  • Rinnai

  • Apricus

By opting for a solar hot water system, you’re investing in a sustainable future while enjoying significant savings on your energy bills.

How to Apply for the Heat Pump Hot Water Rebate

Interested in the Heat Pump Hot Water Rebate and wish to apply? Your initial step should be to locate an Accredited Certificate Provider (ACP) or a certified supplier. These approved suppliers will evaluate your eligibility and provide a detailed quote for the system upgrade.

It’s a good idea to obtain quotes from several approved suppliers to compare deals and find the most suitable system for your specific requirements. Once you’ve chosen a supplier, you’ll need to sign a nomination form from them before the completion of the new system’s installation.

Be aware that there may be additional costs, known as a co-payment, depending on the heat pump model selected. The installation will be implemented by a certified electrician and/or plumber dispatched by the approved supplier, ensuring proper disposal and recycling of the old equipment.

Choosing an Approved Supplier

Selecting an approved supplier, or an Accredited Certificate Provider (ACP), is a vital step in acquiring the Heat Pump Hot Water Rebate. You can use the NSW Treasury’s approved supplier lookup tool to find regional approved suppliers by postcode, ensuring you are engaging with an eligible provider.

It’s essential to engage with approved suppliers before starting any upgrade work to confirm eligibility, quote pricing, and ensure that the hot water system meets your specific needs. Residents benefit from the customer support of approved suppliers who provide ongoing assistance after the installation of energy-efficient hot water systems, underpinning the rebate program’s success.

Application and Installation Process

The process of applying and upgrading to a heat pump hot water system via the NSW rebate includes the following steps:

  1. Reach out to approved suppliers to check your eligibility and obtain quotes.

  2. Choose a heat pump hot water system that is suitable for your home setup.

  3. Supervise the installation of the chosen system.

  4. Sign a nomination form provided by the supplier before the completion of installation.

The supplier will assist you in selecting the right system and guide you through the process.

The installation of the new hot water system, as opposed to traditional hot water systems, must be carried out by a licensed plumber and/or electrician provided by the supplier, who is also responsible for disposing of and recycling the old system. The Federal Government’s Small-scale Technology Certificates (STCs) can be used to offset part of the cost of the system at the point of sale, with the value of STCs being subject to market demand.

The final cost to the homeowner will vary depending on the model, current system type, and complexity of installation, but the NSW government’s rebate options start at $199 for certain systems, which includes installation costs.

Maximizing Your Energy Savings

After setting up your energy-efficient hot water system, there are additional steps you can take to boost your energy savings. Upgrading to a more energy-efficient hot water system contributes to a lower environmental impact. The NSW Energy Savings Scheme assists in long-term energy and cost savings by facilitating the switch to more energy-efficient hot water systems.

For example, increasing a home’s energy efficiency rating from a 6-star to a 7-star rating can reduce energy use for heating and cooling between 18-28%, leading to an estimated annual savings of approximately $900. So, along with your new hot water system, consider other energy-efficient upgrades to amplify your savings.

Regular Maintenance

Regular upkeep is instrumental in optimizing the efficiency of your new hot water system. Regular maintenance of heat pump hot water systems is crucial for maintaining optimal energy efficiency, which translates to lower energy bills and a reduced environmental impact.

A well-maintained heat pump water heater saves costs on premature replacements by having a prolonged lifespan. This involves annual or bi-annual professional inspections for assessing the condition of heat pump hot water systems and performing necessary maintenance tasks.

This includes:

  • Inspecting and, if necessary, replacing the anode rod within heat pump systems to prevent tank deterioration

  • Cleaning or replacing air filters to prevent clogs that could reduce the system’s efficiency

  • Ensuring that the area around a heat pump hot water system remains clear and well-ventilated.

Additional Energy-Efficient Upgrades

You can amplify your energy savings by incorporating more energy-efficient enhancements. For instance, setting your home heating to between 18°C and 20°C and cooling between 25°C and 27°C optimizes energy use, with each degree change potentially modifying energy consumption by 5-10%.

Another upgrade to consider is draught-proofing your home. By checking for gaps in windows and doors, you can prevent unwanted airflow and potentially save up to 25% on energy bills.

By maintaining your heat pump hot water system and implementing additional energy-efficient upgrades, you can ensure you’re making the most of the NSW Heat Pump Hot Water Rebate and significantly reducing your energy consumption.

Success Stories: Heat Pump Hot Water Rebate in Action

Happy family enjoying energy savings from heat pump hot water system

The Heat Pump Hot Water Rebate in NSW has emerged as a transformative factor for numerous households and businesses. One such success story is a homeowner who managed to have a 215L heat pump hot water system, originally priced at $3299, installed for only $33 after rebates. This goes to show how beneficial the NSW Energy Savings Scheme can be, offering substantial financial incentives while promoting the use of energy-efficient appliances.


In conclusion, the Heat Pump Hot Water Rebate in NSW offers a golden opportunity to households and businesses to reduce their energy bills and contribute to a sustainable future. By upgrading to energy-efficient hot water systems, such as heat pump or solar hot water systems, you can enjoy significant savings while playing a part in conserving the environment. Remember, every little bit counts towards creating a greener planet.

Frequently Asked Questions

Who is eligible for the heat pump hot water rebate NSW 2023?

If you have an existing Electric or Gas Hot Water System located outside, you may be eligible for the heat pump hot water rebate in NSW 2023, as the NSW Government has allocated $500 million to help households reduce emissions and save on energy bills.

What is the $33 hot water upgrade NSW?

You can upgrade your hot water system in NSW for a minimum customer contribution of $33 under the Energy Saving Scheme. This means you can have a new hot water system installed, ensuring you always have hot water available.

What kinds of hot water systems are considered energy-efficient?

Consider investing in a heat pump or solar hot water system as they are highly energy-efficient options. These systems can help you save money on your energy bills while reducing your environmental impact.

How can I apply for the rebate?

To apply for the rebate, simply contact an Accredited Certificate Provider (ACP) or an authorized supplier to assess your eligibility and offer a quote for the system upgrade. It's an easy process and can help you save on your upgrade costs.

How can I maximize my energy savings after installing a new hot water system?

To maximize your energy savings after installing a new hot water system, make sure to schedule regular maintenance and consider adding energy-efficient upgrades for even more efficiency.