Heat Pump Hot Water Rebates in New South Wales (2026)

By PumpSwap. Checked against the official sources on 21 September 2026. How we check

In NSW, a heat pump hot water system installed in 2026 gets the federal STC discount (typically $500 to $800) plus an Energy Savings Scheme (ESS) discount of up to $640 when replacing an electric water heater, or up to $330 when replacing gas. Both are taken off the installer's quote. NSW's Home Energy Saver adds zero-interest loans of up to $15,000, and discounts of up to $4,000 for lower-income households are due later in 2026.

Total rebates and discounts: up to $1,440, plus a low-interest loan. PumpSwap's modelled installed price after rebates in New South Wales: $2,500 - $5,000.

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New South Wales heat pump rebates at a glance

Scheme	What you get	How it reaches you	Source
Small-scale Technology Certificates (STCs)	$500 to $800	Taken off the installer's quote	Official page
Energy Savings Scheme (ESS) Certificates	Up to $640	Taken off the installer's quote	Official page
Home Energy Saver loan (a loan, not a rebate)	Zero-interest loan of up to $15,000, repaid over up to 10 years	For owner-occupiers and landlords with a combined household taxable income up to $210,000. Open now, delivered by Brighte and Plenti.	Official page
Home Energy Saver discount (not open yet)	Up to $4,000	Due later in 2026 for households on up to $80,000 or with an eligible concession card, including renters with landlord permission. It was not open when we checked.	Official page

Who qualifies for each scheme is set out on its official page and in the steps below. Loans are listed but not counted as savings.

How to claim in New South Wales

Get quotes from installers who work with an Accredited Certificate Provider. The ESS discount is applied in the quote, and you pay at least $200 (excluding GST) per system.
The heat pump must carry a minimum 5-year warranty against defects covering the heat pump unit, tank and manufacturer-supplied parts.
Choose a heat pump on the Clean Energy Regulator's register, because only registered models earn STCs. The installer or their agent takes the STC discount off the quote when you assign the certificates to them.
If you want a Home Energy Saver discount when it opens, apply for the discount before any Home Energy Saver loan: the discount cannot be applied to a purchase already financed with that loan.
Unsolicited door-knocking for these upgrades has been banned since 12 September 2025, so be wary of anyone who turns up uninvited.

What has changed in New South Wales, 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 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
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

Official sources for every scheme

Federal: Small-scale Technology Certificates, Clean Energy Regulator (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)

What a heat pump costs in New South Wales after rebates

PumpSwap's modelled installed price after rebates, for New South Wales's largest centres. It is a guide, not a quote: the real price depends on the system, your home and the installer.

Area	Modelled price after rebates
Wollongong	$2,400 - $4,700
Gosford	$2,600 - $4,900
Newcastle	$2,500 - $4,800
Maitland	$2,600 - $5,000
Coffs Harbour	$2,700 - $5,100
Shellharbour	$2,500 - $4,900
Tweed Heads	$2,700 - $5,100
Wagga Wagga	$2,800 - $5,200

New South Wales heat pump rebate questions

What is the NSW heat pump hot water rebate called?

It is the Energy Savings Scheme (ESS), a certificate scheme: up to $640 when replacing an electric water heater and up to $330 when replacing gas. It is not the Peak Demand Reduction Scheme (PDRS); the PDRS heat pump water heater activity was suspended in December 2024 and later removed, with support continuing under the ESS.

Do I have to pay anything myself?

Yes. The ESS sets a minimum payment of $200 excluding GST per water heater system.

Can I combine the ESS discount with Home Energy Saver?

The Home Energy Saver loan guidelines say an install may also qualify for the ESS, STCs and the Home Energy Saver discount. The discount cannot be applied to a purchase that already used a Home Energy Saver loan, so apply for the discount first.

Can I still get a discount for replacing gas with gas?

No. The ESS activities for high-efficiency gas and gas-boosted solar water heaters ended on 30 June 2026. Replacing gas with a heat pump still qualifies, for up to $330.

What changes on 1 January 2027?

The federal STC discount steps down every 1 January until the scheme ends in 2030. A heat pump installed in 2027 earns about one fifth fewer certificates than the same model installed in 2026, so the upfront discount falls with it.