NSW Hot Water Rebates Explained (2026)
Rebates are the reason a heat pump now costs about what a premium electric system used to. Here's the heat pump rebate NSW homeowners can access, how the Energy Savings Scheme and federal STCs stack, who's eligible, and how it's claimed.
What hot water rebates exist in NSW
Two separate incentives do the heavy lifting in New South Wales, and they stack. The first is the NSW Energy Savings Scheme (ESS) — a state scheme that gives a point-of-sale discount when you replace an old electric or gas system with an efficient heat pump. The second is the federal Small-scale Technology Certificate (STC) incentive, which applies to heat pumps and solar hot water nationwide.
Together, these are what bring a heat pump's upfront price down sharply — in Sydney, typically from around $4,000 to roughly $3,000 installed, and sometimes more where you're replacing an electric system. Standard gas and electric systems don't attract either incentive.
See also: eligible heat pumps
The ESS, federal STCs, and combining them
They come from different places and are calculated differently — but you claim them together.
NSW Energy Savings Scheme (ESS)
A state scheme delivered as a point-of-sale discount through an accredited installer. Replacing an electric system generally earns a bigger discount than replacing gas, and the heat pump must be on the approved product list.
Federal STCs
Small-scale Technology Certificates are a national incentive for heat pumps and solar. The number you earn depends on the system's size, efficiency and your climate zone — and the installer deducts their value from the price.
Combining the rebates
The real saving comes from stacking both. An accredited installer applies the ESS discount and the STC value to the same quote, so you see one reduced out-of-pocket figure rather than claiming anything back later.
Which systems get a rebate
The incentives target efficient systems — which is the whole point of them.
| System | ESS discount | Federal STCs |
|---|---|---|
| Heat pump | Yes — the largest, especially replacing electric | Yes |
| Solar hot water | Not the ESS heat-pump discount | Yes |
| Gas storage / continuous | No | No |
| Electric element | No | No |
How to claim a hot water rebate in NSW
The process is designed to be simple because the installer does the heavy lifting.
We handle the rebate paperwork
Point-of-sale means no claiming back — we do the paperwork.
Because the discount is point-of-sale and we're set up for it, you don't chase anything. We confirm your eligibility, pick an approved heat pump that suits your home, apply the ESS discount and STC value to your quote, and handle the assignment paperwork after the install. You just see a lower price and sign one form.
If you want to go straight to it, see the eligible heat pumps we install and claim your rebate with us — we'll confirm the exact out-of-pocket figure for your home up front.
See also: claim your rebate
NSW hot water rebate questions, answered
The questions we're asked most about the rebates.
What is the heat pump rebate in NSW?
What is the NSW Energy Savings Scheme for hot water?
How do I claim a hot water rebate in NSW?
Can I combine the NSW rebate with federal STCs?
Do gas or solar systems get the rebate?
Do you handle the rebate paperwork?
Claim your NSW hot water rebate
We're set up for the ESS — we'll confirm your eligibility, apply the discount and STCs up front, and handle the paperwork. Sydney-wide, and we come to you.