The short answer
Every state gets the federal discount: solar water heaters and air source heat pumps on the Clean Energy Regulator's register create small-scale technology certificates, which an agent can turn into a discount on the price. On top of that:
- NSW: up to $640 for replacing an electric water heater with a heat pump (up to $330 when replacing gas), or up to $900 for an electric-boosted solar water heater.
- Victoria: a Solar Homes rebate of up to $1,000 (up to $1,400 for a locally made product), plus up to $560 off through Victorian Energy Upgrades when a heat pump replaces gas.
- ACT: 50% of the cost, up to $2,500, for homeowners with an eligible concession card, and low-interest loans for everyone.
- South Australia: free or discounted upgrades from energy retailers under REPS.
- Queensland and Tasmania: the state programs (Climate Smart Energy Savers and the Energy Saver Loan Scheme) have closed.
The federal hot water rebate
Solar water heaters and air source heat pumps can claim small-scale technology certificates, which an agent can turn into a discount on the purchase price. Only models on the Clean Energy Regulator's register qualify, and the tank must be under 700 L for a solar water heater or under 425 L for an air source heat pump.
NSW hot water rebates
OpenUnder the NSW Energy Savings Scheme, eligible households can get an upfront discount of up to $640 for replacing an electric water heater with a heat pump, or up to $330 for replacing a gas water heater with a heat pump. Replacing an old electric water heater with an electric-boosted solar water heater can get up to $900.
OpenHomeowners and landlords with a combined household income of up to $210,000 can also get a zero-interest Home Energy Saver loan of up to $15,000 for a heat pump or electric-boosted solar water heater.
Victoria hot water rebates
OpenThe Solar Homes rebate is up to $1,000 for a heat pump or solar hot water system, or up to $1,400 for an eligible locally made product (the higher amount has applied since 1 July 2025). It is 50% of the product purchase price, worked out after the STC and VEU discounts are taken off.
You must be the owner-occupier, the owners' combined taxable income must be under $150,000 a year, the property must be worth under $3 million, and the system being replaced must be at least 3 years old.
OpenVictorian Energy Upgrades (VEU) takes up to $560 off replacing a gas hot water system with a heat pump - up to $1,560 when combined with a Solar Homes rebate, or up to $1,960 with a locally made product. For a VEU discount the existing system must be in a building at least 2 years old, the new product needs a minimum 5-year warranty, and you pay at least $200.
ACT hot water rebates and loans
OpenACT homeowners with an eligible concession card can get 50% of the cost, up to $2,500, for a hot water heat pump or evacuated tube solar hot water system, within a total of up to $5,000 in rebates. Under the Sustainable Household Scheme, homeowners can borrow $2,000 to $20,000 at 3% interest over up to 10 years for the same systems.
Other states
| State | What is available | Status |
|---|---|---|
| South Australia | Free or discounted energy upgrades from energy retailers under REPS, including help to save on water heating costs. | OpenOpen |
| Queensland | The Climate Smart Energy Savers rebate, which included solar and heat pump hot water systems, has closed. The federal STC discount applies. | ClosedClosed |
| Tasmania | The Energy Saver Loan Scheme (interest-free loans of up to $10,000) closed on 1 September 2025. The federal STC discount applies. | ClosedClosed |
| WA and NT | We found no state hot water rebate for households on the official pages we checked. The federal STC discount applies. | - |
What a new hot water system costs
Installed prices from our hot water system cost guide:
- Heat pump (supply + install): $3,000 to $6,000
- Solar hot water: $3,500 to $7,000
- Electric storage (supply + install): $800 to $3,000
- Gas storage (supply + install): $1,200 to $3,500
Ask each installer which rebates and discounts their price already includes.
Frequently asked questions
Is there a rebate for heat pump hot water systems?
Yes. Heat pumps on the Clean Energy Regulator's register get the federal STC discount in every state, and NSW, Victoria and the ACT add their own rebates.
How much is the NSW heat pump rebate?
Up to $640 for replacing an electric water heater with a heat pump, or up to $330 for replacing a gas water heater, under the NSW Energy Savings Scheme.
How much is the Victorian hot water rebate?
Up to $1,000 through Solar Homes for a heat pump or solar hot water system, or up to $1,400 for an eligible locally made product.
Can I combine the Victorian hot water rebate with VEU?
Yes. Replacing gas with a heat pump can get up to $560 through VEU, and up to $1,560 when combined with a Solar Homes rebate, or up to $1,960 with a locally made product.
Is there a hot water rebate in Queensland?
The Climate Smart Energy Savers rebate, which covered solar and heat pump hot water systems, has closed. Queensland systems on the register can still get the federal STC discount.
Compare quotes from local plumbers and hot water installers, and ask which rebates and discounts each price already includes.
Get hot water quotes →Sources
Rebate rules, amounts and dates change, and every program has its own eligibility rules - confirm with the program below before you sign a quote. Checked against these pages in October 2026:
- Home Energy Support: Rebates for Homeowners - Climate Choices (climatechoices.act.gov.au) · www.climatechoices.act.gov.au/policy-programs/home-energy-support-rebates-for-ho
- Sustainable Household Scheme - Climate Choices (climatechoices.act.gov.au) · www.climatechoices.act.gov.au/policy-programs/sustainable-household-scheme
- Solar water heaters and air source heat pumps | Clean Energy Regulator (cer.gov.au) · cer.gov.au/schemes/renewable-energy-target/small-scale-renewable-energy-scheme/s
- Hot water upgrade incentive | NSW Climate and Energy Action (energy.nsw.gov.au) · www.energy.nsw.gov.au/households/grants-rebates/household-energy-saving-upgrades
- Solar water heaters | NSW Climate and Energy Action (energy.nsw.gov.au) · www.energy.nsw.gov.au/households/upgrades/solar-water-heaters
- Home Energy Saver | NSW Climate and Energy Action (energy.nsw.gov.au) · www.energy.nsw.gov.au/households/grants-rebates/home-energy-saver
- energy.nsw.gov.au (energy.nsw.gov.au) · www.energy.nsw.gov.au/sites/default/files/2026-08/Home-Energy-Saver-Loans-guidel
- More Queenslanders set to benefit with additional funding from key cost-cutting program - Ministerial Media Statements (statements.qld.gov.au) · statements.qld.gov.au/statements/100109
- SA.GOV.AU - Energy discounts and offers from retailers (web.archive.org) · web.archive.org/web/20260524124010/https://www.sa.gov.au/topics/energy-and-envir
- The Energy Saver Loan Scheme is Now Closed | ReCFIT (web.archive.org) · web.archive.org/web/20260909165112/https://www.recfit.tas.gov.au/get_involved/ne
- Tasmania's Energy Saver Loan Scheme | ReCFIT (web.archive.org) · web.archive.org/web/20260215083840/https://www.recfit.tas.gov.au/grants_programs
- Hot water rebate (solar.vic.gov.au) · www.solar.vic.gov.au/hot-water-rebate
- Hot water system discounts (web.archive.org) · web.archive.org/web/20260821162030/https://www.energy.vic.gov.au/victorian-energ
- Victorian Energy Upgrades program | Essential Services Commission (esc.vic.gov.au) · www.esc.vic.gov.au/victorian-energy-upgrades-program