What rebates can you get on heat pump hot water?
Every eligible heat pump water heater earns federal STCs that the installer takes off the price; the count depends on the model and your zone. In Victoria, Solar Victoria adds up to $1,000 off ($1,400 for a locally made unit) when you replace a system that's at least 3 years old (Solar Victoria).
Victorian Energy Upgrades can add a discount too, and NSW runs its own hot water upgrade incentive. Checked 1 October 2026.
Heat pump hot water incentives, with their sources.
| Program | Amount | Conditions | Source |
|---|---|---|---|
| Federal: STCs for heat pump water heaters | product-specific | Every eligible model has its own certificate count by zone, set by the Clean Energy Regulator. The installer creates them and takes the value off the price. | cer.gov.au |
| Victoria: Solar Homes hot water rebate | up to $1,000 ($1,400 locally made) | Owner-occupier, combined taxable income under $150,000, property under $3 million, existing home, old system at least 3 years old, product on Solar Victoria's list. Not for new builds. | solar.vic.gov.au |
| Victoria: VEU hot water discount | set by the provider | Accredited provider applies it. Minimum co-payment $200 and a warranty of at least 5 years. | energy.vic.gov.au |
| NSW: hot water upgrade incentive | set by the provider | Replacing an electric or gas water heater with an eligible heat pump through an accredited provider. | energy.nsw.gov.au |
| NSW: Home Energy Saver loan | up to $15,000 at 0% | Covers heat pump hot water among other upgrades. Combined taxable income up to $210,000. | energy.nsw.gov.au |
Ask the installer to list each discount as its own line: STCs (with the count), the state rebate, and any VEU or NSW incentive. If the quote just says "rebates", you can't check it.
Are there heat pump hot water rebates in Victoria?
Yes, two that can apply to one job: the Solar Homes hot water rebate (up to $1,000, or $1,400 for an Australian-made product) and a Victorian Energy Upgrades discount through an accredited provider. Solar Homes has the same income and property tests as the solar rebate; VEU doesn't. A home that already had the Solar Homes panel rebate can still get the hot water rebate (Solar Victoria).
Can I get a heat pump rebate in NSW?
Yes. NSW's hot water upgrade incentive applies when an accredited provider replaces your electric or gas water heater with an eligible heat pump (NSW Climate and Energy Action), and the federal STCs come off on top. The Home Energy Saver loan can cover what's left, at 0%.
Is heat pump hot water worth it?
It usually is when you're replacing an old electric storage tank: a heat pump uses roughly a third of the electricity for the same hot water. It's a closer call against gas, and the main downsides are noise from the compressor and a higher upfront price. Put it on the timer to run when your solar is producing and the running cost drops again.
Want the figures for your address?
Five taps, no email or phone number. The next page shows the published figures for your postcode and the checks to run on any quote. If you'd like a quote, Tidy Energy, our partner installer, answers the phone.
Your postcode
The zone, the state programs and the install counts all hang off it. Nothing else about your address is asked or kept.
No email, no phone number. The figures appear on the next page, and the only thing we ask after that is whether you'd like to call.
Questions people ask.
How much is the heat pump hot water rebate in Victoria?
Up to $1,000 from Solar Victoria, or $1,400 for a locally made product, for owner-occupiers under $150,000 combined income replacing a system at least 3 years old. Federal STCs and a VEU discount can come off on top. Checked 1 October 2026.
How many STCs does a heat pump get?
It depends on the model and your zone. The Clean Energy Regulator sets the count for each product; the installer should state it on the quote.
Can I get the hot water rebate if I already got the solar rebate?
Yes in Victoria. The hot water rebate rules exclude an address that already had a hot water or battery rebate, not one that had the solar panel rebate.
Can I get a rebate on a new build?
Not the Victorian hot water rebate, which needs an existing system at least 3 years old. Federal STCs still apply.
What are the disadvantages of heat pump hot water?
A higher upfront price than a like-for-like tank, some compressor noise, and slower recovery in very cold weather. Placement away from bedrooms and a timer set to solar hours deal with most of it.
Sources.
- Solar Victoria: hot water rebate checked 1 October 2026
- Energy Victoria: VEU hot water system discounts checked 1 October 2026
- Essential Services Commission: VEU co-payment and warranty requirements in force from 1 February 2025
- NSW Climate and Energy Action: hot water upgrade incentive checked 1 October 2026
- NSW Climate and Energy Action: Home Energy Saver checked 1 October 2026
Related: the upgrade order · air conditioner rebate Victoria · every Victorian rebate