Heat Pump Hot Water Rebates in Australia (2026)
Every Australian household can claim the federal STC discount, typically $500 to $800 off at point of sale. On top of that, 4 states and territories run their own rebate, certificate, or loan programs, taking total savings as high as $2,830 in Victoria. This guide compares what is available in every state, how the schemes stack, and links to the detailed eligibility rules and suburb pricing for your state. See what has changed and what is coming.
Get free installer quotesThe federal rebate: Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STCs)
Applied as a point-of-sale discount. Typical value for a 2026 install; it varies by system, climate zone and certificate price, and steps down every 1 January until the scheme ends in 2030.
STCs are the one incentive every state and territory shares. Your installer claims them for you and takes the value straight off your quote, so the price you are quoted should already include the discount. Everything below stacks on top of this.
Heat pump rebates by state (2026)
Total potential savings combine each state program with the federal STC discount, calculated the same way as our state guides. Click through for eligibility rules, gas ban deadlines, and suburb-level pricing.
| State | State rebates and discounts | Total potential savings | Details |
|---|---|---|---|
| Victoria |
| Up to $2,830 | VICguide → |
| New South Wales |
| Up to $1,440 | NSWguide → |
| Queensland | Federal STC discount only | Up to $800 | QLDguide → |
| South Australia |
| Up to $800 | SAguide → |
| Australian Capital Territory |
| Up to $800 | ACTguide → |
| Western Australia | Federal STC discount only | Up to $800 | WAguide → |
| Tasmania | Federal STC discount only | Up to $800 | TASguide → |
| Northern Territory | Federal STC discount only | Up to $800 | NTguide → |
The Australian Capital Territory figure includes the Sustainable Household Scheme, which is a low-interest loan (3% fixed) repaid over up to 10 years rather than a rebate.
What has changed, and what is coming
Rebates move several times a year. Each entry below links to the official source, and every scheme on this page was last checked against its source on 21 September 2026.
- 1 March 2027VICComing
Gas hot water replacement rule. For existing owner-occupied homes, a gas hot water appliance that breaks and cannot be repaired must be replaced with an electric alternative. Exemptions apply, so check the official page for your situation. Victorian Government, building electrification standards
- 1 January 2027FederalComing
Small-scale Technology Certificates (STCs). The deeming period drops from 5 years to 4, so the same heat pump earns about one fifth fewer certificates than a 2026 install and the upfront discount falls with it. It drops again every 1 January until the scheme ends in 2030. Clean Energy Regulator, calculating STC entitlements
- 18 October 2026VICComing
Victorian Energy Upgrades, water heating review. The Victorian Government is reviewing the household water heating activities under Victorian Energy Upgrades, and public consultation closes on this date. Nothing changes for households until final rules are published. Engage Victoria, VEU water heating activities
- 1 July 2026VICIn effect
Solar Homes hot water rebate. The combined household taxable income cap fell from $210,000 to $150,000. The rebate itself is unchanged: 50% of the purchase price up to $1,000, or up to $1,400 for an eligible locally made product. Solar Victoria, program changes from 1 July 2026
- 1 July 2026ACTIn effect
Sustainable Household Scheme (a loan, not a rebate). The maximum loan rose from $15,000 to $20,000 for new applications. Households that applied or were approved before 1 July 2026 stay at $15,000. The rate is 3% over up to 10 years. ACT Government, Sustainable Household Scheme
- 17 June 2026NSWIn effect
Home Energy Saver (new). New program launched. Zero-interest loans of up to $15,000 over ten years opened the same day for households with a combined taxable income up to $210,000. Discounts of up to $4,000 for households on up to $80,000 or with an eligible concession card are due later in 2026 and were not yet open when we checked. NSW Government, Home Energy Saver
- 1 January 2026FederalIn effect
Small-scale Technology Certificates (STCs). The deeming period dropped from 6 years to 5, reducing the certificates each system earns compared with a 2025 install. Clean Energy Regulator, calculating STC entitlements
- 1 September 2025TASIn effect
Energy Saver Loan Scheme. The scheme closed to new applications. Tasmanian households now have the federal STC discount only. Renewables, Climate and Future Industries Tasmania
- 1 July 2025VICIn effect
Solar Homes hot water rebate. An extra $400 became available for eligible locally made hot water products, lifting the maximum rebate from $1,000 to $1,400. Solar Victoria announcement, 8 June 2025
Official sources for every scheme
- Federal: Small-scale Technology Certificates, Clean Energy Regulator (checked 21 September 2026)
- VIC: Solar Homes hot water rebate, Solar Victoria (checked 21 September 2026)
- VIC: Victorian Energy Upgrades hot water discounts, Victorian Government (checked 21 September 2026)
- NSW: Energy Savings Scheme hot water upgrade, NSW Government (checked 21 September 2026)
- NSW: Home Energy Saver, NSW Government (checked 21 September 2026)
- ACT: Sustainable Household Scheme, ACT Government (checked 21 September 2026)
- TAS: Energy Saver Loan Scheme (closed), ReCFIT Tasmania (checked 21 September 2026)
How the rebates stack: Victoria example
Victoria is the clearest example of stacking, because three separate schemes apply to the same installation:
After stacking all three, PumpSwap's modelled installed price in Victoria is $2,200 - $4,500. From 1 March 2027 a gas hot water appliance in an existing Victorian home that breaks and cannot be repaired must be replaced with an electric alternative. See the complete Victorian gas ban guide or the Victoria rebate guide for eligibility details.
What you pay after rebates
Rebates only tell half the story. Installed prices vary by suburb, brand, and installation complexity. Start with the national cost guide or the cost index, then drill into local pricing:
Popular brands to compare
Rebate schemes generally require approved systems installed by qualified installers, so the brand you choose matters. Compare specifications, pricing, and warranty for the most popular options:
Compare all brands side by side →Frequently Asked Questions
What is the federal heat pump hot water rebate?
The federal incentive is Small-scale Technology Certificates (STCs). The value varies by system, climate zone and the certificate price, and is typically $500 to $800 for a 2026 install. It is applied as a point-of-sale discount by your installer, so you do not need to claim it separately. The discount steps down every 1 January until the scheme ends in 2030. From 1 January 2027 the same system earns about one fifth fewer certificates, so the discount falls again.
Is there a heat pump rebate in NSW?
Yes. The NSW Energy Savings Scheme (ESS) gives a discount applied in your quote by participating installers: up to $640 when replacing an electric hot water system with a heat pump and up to $330 when replacing gas. You pay a minimum contribution towards the job. Federal STCs stack on top, taking total savings in New South Wales to around $1,440. NSW also launched Home Energy Saver on 17 June 2026: zero-interest loans of up to $15,000 are open now, and discounts of up to $4,000 for lower-income households are due later in 2026.
Is there a heat pump rebate in QLD?
Queensland does not currently offer a state heat pump rebate. Queensland households still receive the federal STC discount, typically $500 to $800 at point of sale. Queensland has a warmer climate, which means heat pumps run at excellent efficiency year-round and keep running costs low.
Which state has the biggest heat pump rebates?
Victoria, for most households. The Solar Victoria hot water rebate is 50% of the purchase price up to $1,000, or up to $1,400 for an eligible locally made product (combined household taxable income under $150,000 since 1 July 2026, property value under $3 million, existing system at least 3 years old, and you must use an authorised hot water retailer). Victorian Energy Upgrades (VEU) adds up to $630 when replacing electric or up to $560 when replacing gas, with a $200 minimum contribution, and federal STCs stack on top, for total savings of up to $2,830.
Can I stack federal and state rebates?
Yes. Federal STCs apply Australia-wide, and state rebates and certificate schemes apply on top of them. In Victoria, for example, a household can combine STCs, the Solar Victoria hot water rebate and a VEU discount for up to $2,830 off a heat pump hot water system.
What help is available in the ACT?
The ACT Sustainable Household Scheme offers a low-interest loan (3%) of $2,000 to $20,000 over up to 10 years for people who own their home. It covers hot water heat pumps, household batteries, electric heating and cooling, electric cooktops, EV chargers and ceiling insulation; rooftop solar is no longer on the list. It is a loan rather than a rebate, and federal STCs still apply on top. The $20,000 maximum applies to applications submitted on or after 1 July 2026 ($15,000 for earlier participants).
How do I claim heat pump rebates?
Most schemes are applied for you. STC, VEU, ESS, and REPS discounts are applied at point of sale by participating retailers and installers, so they come straight off your quote. The Solar Victoria hot water rebate needs an application, made through a Solar Victoria authorised hot water retailer. Getting quotes from installers who work with these schemes is the simplest way to capture every discount you are eligible for.
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