Heat pump hot water rebates in 2026: what you can get in each state

Rebates for heat pump hot water come in layers: a federal discount everywhere, then state programs that differ a lot. Most are applied by the installer as a discount on the quote, so you won’t see a cheque, but you should see each one itemised. Here’s what’s available in each state as of October 2026.

Everywhere: small-scale technology certificates

Heat pumps earn STCs under the federal Small-scale Renewable Energy Scheme. The model has to be on the Clean Energy Regulator’s register of solar water heaters, which lists the certificates each model earns over 10 years in each climate zone. Your installer usually takes their value off the price.

The number shrinks each year. A heat pump earns certificates for a “deeming period”, which falls by a year every year until the scheme ends in 2030:

Victoria: two programs that stack

Victorians can combine a Solar Homes rebate with a Victorian Energy Upgrades (VEU) discount, and the federal STCs. Energy Victoria puts the combined state support at up to $1,560, or $1,960 with a locally made product.

The rules for the Solar Homes rebate, including the income cap, are on Solar Victoria’s hot water rebate page. You’ll need a Solar Victoria authorised retailer: you can search for authorised hot water retailers near you.

NSW: the Energy Savings Scheme

The NSW Government’s Energy Savings Scheme gives an upfront discount on the quote: up to $640 when you replace an electric water heater with a heat pump, and up to $330 when you replace gas. The amounts are indicative and depend on the installer, and you’ll pay a minimum amount yourself.

• Who can get it: all NSW households, if an installer offering it covers your area. If you already have an efficient system, you may not qualify.
• Who offers it: installers working with an Accredited Certificate Provider. Ask each installer whether the discount is in their quote.
• Larger discounts in some postcodes: for a limited time, homeowners in eligible postcodes can get larger discounts, until June 2027 or until funding runs out.

South Australia: offers from energy retailers

Under South Australia’s Retailer Energy Productivity Scheme (REPS), energy retailers offer free or discounted energy upgrades. You don’t have to be a retailer’s customer to use its offers, and different retailers offer different upgrades, so compare what they offer for hot water. Priority group households may be eligible for bigger discounts.

ACT: low-interest loans

The ACT’s Sustainable Household Scheme lends homeowners $2,000 to $20,000 at 3% interest, repaid over up to 10 years, with no establishment fees, and hot water heat pumps are eligible. Concession card holders can get rebates of up to $5,000, covering up to half the cost, combined with a zero-interest loan of up to $10,000.

Queensland, WA, Tasmania and the NT

We couldn’t find a state government heat pump rebate for households in Queensland, Western Australia or the Northern Territory as of October 2026. In Tasmania, the Energy Saver Loan Scheme closed on 1 September 2025. STCs still apply in every state, and some local councils run their own rebates, so check your council’s website.

How to make sure you get every discount

• Check eligibility before you sign. Some programs, including Victoria’s Solar Homes rebate, have to be approved before the installation.
• Ask for a quote that shows STCs, each state discount and your final price on separate lines.
• Check the model is on the register and, in Victoria, eligible for the program you’re claiming.
• Keep the paperwork: the certificate assignment form, the compliance certificate and the warranty.

Choosing a system? See our best heat pump hot water systems, read heat pump vs solar hot water, and find hot water retailers near you.

This guide is general information, not financial or legal advice. Rules, rebates and prices change, so check the linked sources before you decide. Facts checked 22 October 2026.