meta pixel

NSW Heat Pump Hot Water Rebates Complete Guide

By Jesse-Aaron Raiz

April 13, 2024

If you’ve heard of the NSW Heat Pump Hot Water Rebates and are struggling to comprehend how they actually work, you’re not alone.

Maybe you’ve even spoken to a sales person or two, and have quickly realised that they are just incentivised to sell you their system and don’t actually understand rebates or how good the system they’re shelling out actually is.

This article is intended to be a comprehensive and in-depth explanation of the rebates that are available for NSW home owners to get their systems upgraded.

So, what rebates are on offer in NSW, how much are they worth, and why?

The first thing to understand is that rebates that are available are not static. There are two rebates available (that can be combined) and there are three factors that will determine the amount of rebates that you will qualify for.

1. Energy Saving Certificates (Known as ESCs)

2. Small-scale Technology Certificates (Known as STCs)

This article goes in depth to show you how to calculate the value of the rebates for heat pumps and how to take advantage of them.

If you’re looking for the best heat pumps to install, check out our top 13 ranked heat pumps blog post.

The reason rebates fluctuate in amounts is because they are designed to reward you for greater energy savings and penalise you for worse energy savings.

So as an example, you will receive a higher rebate on a very efficient system in a zone that will benefit most from a heat pump hot water system, compared to a less efficient system in a very cold climate that won’t benefit as much from a heat pump hot water system.

The factors that will determine the rebates that you are entitled to are:
1. Your location
2. The efficiency of the system you are installing. (Rebates are only available for heat pump hot water systems or a solar hot water systems)
3. The system you will be replacing/upgrading.

The NSW hot water rebates that are currently available are:

1. Energy Saving Certificates (known as ESCs).

These are part of the NSW energy saving scheme. The amount of ESCs that you receive for upgrading your system will depend on a few different factors.

Anyone living in Australia lives in of 5 climate zones. If you are in a colder climate, you will receive slightly fewer ESCs than a warmer climate, because warmer climates benefit more from heat pumps.

The second factor is the efficiency of the system you’re installing. The more efficient your system, the more efficient the certificates. The main system we install, the Ecogenica 290FR system we install benefits from the greatest number of certificates.

The third factor is which system you’re upgrading from. The more efficient your existing system, the fewer rebates you will be eligible for. Electric systems (not including solar systems) receive the most ESCs, followed by gas. Solar systems, or existing heat pumps receive no ESCs.

We get a lot of customers with solar systems where the solar component is no longer working & customers whose heat pump component is not working. In this case, the system relies entirely on the booster to heat up the hot water. Unfortunately, these systems are not eligible for ESCs, but they will be eligible for STCs.

To highlight these factors I’ve prepared some examples that vary the number of ESCs you can get.

If you want to do this yourself, the government has provided a handy calculator so you can calculate the number of ESCs that you qualify for. You can find it here.

For an example of how to provide inputs, the postcode is 2020, the brand is Ecogenica and the model is EG-330fr.

The certificates provided are correct as of April 09, 2024. At the time of writing (April 9th, 2024) these certificates are valued at $21.70 each.

Inputting variables to determine the number of certificates.

For the second set of inputs, I have left them as default

Inputting variables to determine the number of certificates part 2.

ESCs from Installing an Ecogenica 290FR in Mascot Upgrading from an Electric Unit

I got 46 certificates from upgrading to an Ecogenica 290FR from an electric resistance unit. At the time of writing, the ESC price is at $21.70. So this represents $998.2.

ESCs from Installing a Reclaim 315L system (REHP-CO2-315SS-WIL-V2) in Mascot Upgrading from an Electric Unit

A reclaim is a premium priced heat pump, but as it is less efficient than Ecogenica, it gets only 44 certificates under the same conditions. This equates to a $954.8 rebate.

ESCs from Installing an iStore 180L system (PASHW008-180LD-NM) in Mascot Upgrading from an Electric Unit

iStore’s 180L system is not quite as efficient as Ecogenica or Reclaim. Under the same conditions, it produces only 41 certificates. Equivalent to $889.7 at the time of writing.

ESCs from Installing an Ecogenica 290FR in Mascot Upgrading from a Gas unit

As mentioned previously, upgrading from a gas unit produces less certificates as they are more efficient than traditional electric resistance boilers. In this case, upgrading from a gas system to an Ecogenica 290FR produces only 26 certificates, compared to 46 if it were an electric system.

The value of this rebate is therefore $564.2 at the time of writing.

How long will ESCs be around for?

Unlike with STCs, there’s no planned removal of ESCs but they are set to decrease later this year by a significant amount.

On June 1st of 2024, the ESCs that each upgrade will be eligible for will drop by about 40%, representing a massive decrease in the amount of rebates you’ll getting $998.2 for upgrading to an Ecogenica 290FR in the first example above, you’ll be getting $598.92. This represents almost a $400 drop in rebates.

On January 1st of 2025, ESCs are set to drop another 10%.

Which is why it’s worth considering upgrading your system before June 1st.

2. Small-Scale Technology Certificates (known as STCs)

STCs are part of a federal rebate program that reward homeowners and businesses upgrading to energy efficient products. You can get STCs for heat pump hot water systems and solar systems.

You can use this government calculator to calculate the number of rebates that you qualify for.

Unlike with ESCs, the system you are upgrading from does not change the amount of ESCs that you are eligible to. So you can upgrade from an older heat pump to a heat pump and still be eligible for STCs, but not ESCs. That means that every heat pump installation is eligible for STCS, including Gas systems replacements, heat pumps replacements, solar hot water replacements and new installs.

STCs depend on the efficiency of the system you are upgrading to and the location that your system is being installed in.

How Long Will STCs Be Available For?

The number of STCs that you can claim for a heat pump reduces every year by 3-4 certificates. As of April 11th, the market value of an STC is at $40, meaning the rebates reduce by around $120-$160 every year.

By 2031, STCs will no longer be available.

STCs from Installing an Ecogenica 290FR in Mascot Upgrading from an Electric Unit in 2024

By upgrading to a 290FR Ecogenica, you will get 23 STCs, representing a $960 rebate.

STCs from Installing a Reclaim 315L system (REHP-CO2-315SS-WIL-V2) in Mascot Upgrading from an Electric Unit

A 315L Reclaim Heat Pump gets 22 certificates representing $920 in rebates.

STCs an iStore 180L system (PASHW008-180LD-NM) in Mascot Upgrading from an Electric Unit

A 315L Reclaim Heat Pump gets 21 certificates representing $880 in rebates.

Combining NSW Hot Water Heat Pump Rebates together

The nice thing about these rebates is that they are not mutually exclusive. You can claim both at the same time.

So here are a few examples of combining rebates to get the total number of rebates.

Total Rebates from Installing an Ecogenica 290FR in Mascot Upgrading from an Electric Unit

ESC rebate: $998.2
STC rebate: $960
Total Rebate Value: $1958.2

Total Rebates Installing a Reclaim 315L system (REHP-CO2-315SS-WIL-V2) in Mascot Upgrading from an Electric Unit

ESC rebate: $954.8
STC rebate: $920
Total Rebate Value: $1874.8

Total from Installing an iStore 180L system (PASHW008-180LD-NM) in Mascot Upgrading from an Electric Unit

ESC rebate: $889.7
STC rebate: $880
Total Rebate Value: $1769.7

ESCs from Installing an Ecogenica 290FR in Mascot Upgrading from a Gas unit

ESC rebate: $564.2
STC rebate: $880
Total Rebate Value: $1444.2

How To Apply For Rebates

Home owners do not directly apply for certificates themselves. This process is handled by Accredited Certificate Providers who are vetted by the government and are approved to install heat pumps under the scheme.

All contractors that freehotwater.au employs are accredited certificate providers, as well as having insurance and plumbing and electrical certifications.

Conclusion

In summary, understanding and maximizing the benefits of the NSW Heat Pump Hot Water Rebates can significantly reduce the cost of upgrading to more energy-efficient systems for homeowners.

The two main types of certificatesโ€”Energy Saving Certificates (ESCs) and Small-scale Technology Certificates (STCs)โ€”vary in amount based on your location, the efficiency of the system you install, and the system you replace. It’s evident that acting sooner rather than later is beneficial due to the scheduled reductions in rebate values.

By leveraging these rebates, you not only contribute to a more sustainable environment by reducing energy consumption but also enjoy considerable savings. For those unsure about navigating the complexities of these rebates, utilizing accredited certificate providers simplifies the process, ensuring that you get the maximum possible benefit without the hassle.

Whether you’re upgrading from an old electric unit or a gas system, understanding these rebates can make a significant financial difference in your investment. Thus, it’s worth taking the time to evaluate your options and make an informed decision before these incentives decrease.

Want a quick quote, free of charge?

If you do decide you want to apply for these rebates, why not install a system through us? Even if you just have question, please feel free to contact us.

We are rated 4.9/5 Stars on Google with 160+ 5 star reviews. We offer a great service at an affordable price point. Simple hit ‘apply now’ on this website and we’ll be in touch.

Picture of Jesse-Aaron Raiz

Jesse-Aaron Raiz

I am the owner of freehotwater.au, lewater.au and our umbrella group Gridless.com.au.

My goal is to provide clear and transparent information about energy efficiency products, mainly heat pumps, air conditioners and solar.

As a business I provide my customers a 5-star service, with the objective of providing the best systems in terms of efficiency and warranty at the best prices. Basically, I want to provide the best value possible.

I train jiu-jitsu 1-2 times per day, and can easily destroy my brother Zach in ping pong or jiu jitsu, any day of the week. Do not listen to him if he says he got a 10-game win streak at ping pong in hawaii, this is clearly nonsense and should not be taken seriously.

Enquire Today!

The best system you can get under the government scheme

๐Ÿ‘๐Ÿฝ FREE SWITCHBOARD UPGRADE
๐Ÿ‘๐Ÿฝ 7 year warranty on tank
๐Ÿ‘๐Ÿฝ 5 year warranty on compressor
๐Ÿ‘๐Ÿฝ Free Rebate Processing
๐Ÿ‘๐Ÿฝ Free concrete slab if required
๐Ÿ‘๐Ÿฝ Free tempering valve if required
๐Ÿ‘๐Ÿฝ Free pressure limiting valve if required
๐Ÿ‘๐Ÿฝ Free duo valve if required
๐Ÿ‘๐Ÿฝ Free delivery
๐Ÿ‘๐Ÿฝ Free pickup of old tank
๐Ÿšซ No extra charges or hidden fees!
ย 

Reasons to Upgrade:

Our heat pump is the most efficient on the market, with a COP of 5. This means it is 5 times more efficient than old electric resistance hot water systems. Here are some of the most common reasons our customers choose to upgrade:

๐Ÿ’ฐ Your tank is old or about to break and it needs replacement.
โ›ฝ๏ธ Your tank is new but inefficient
๐Ÿค‘ You want to drastically reduce your hot water bill by up to 81%
๐ŸŒ You want to reduce your burden on the environment
๐Ÿ˜ญ Your water is not hot enough
๐Ÿคด You want a system with the best warrantyย and best efficiency in the scheme. You deserve it.
๐Ÿ’€ You want a free system worth $5030.ย 

Scroll to Top

Sign Up & LIMITED TIME ONLY FREE SWITCH BOARD UPGRADE

ONLY $33* TO UPGRADE

42.86%* MORE EFFICIENT THAN CHROMAGEN.