If your hot water has gone cold, it’s a sure sign that your hot water system needs to be replaced. But before you go and buy a new one, we’ll show you how to access discounts on the upfront cost of energy-saving systems that will help you slash your power bills in the long run.
Both federal and state governments offer financial incentives that encourage homeowners to upgrade to an energy-efficient hot water system, not only to save on their household energy bills but also to slash greenhouse gas emissions.
From eligibility criteria through to which system to choose, this article covers everything you need to know about applying for rebates that will save you money on the purchase price of an energy-efficient hot water system.
Here’s how to apply for rebates with government schemes like the Victorian Energy Upgrades program, the Small-Scale Renewable Energy Scheme, and others.
To determine if yours is an eligible household, you’ll need to find what rebates are available in your state. Some rebates on offer for hot water system upgrades, like the Solar Homes Program, apply only to certain states, while others, like Small-Scale Technology Certificates, are nationwide incentives. You can find a comprehensive list of Australia-wide and state-by-state hot water rebates here.
Eligibility for some rebates also depends on household income and whether you are an owner-occupier, and the rules on energy-efficient products are also strict. In most cases, they will have to meet minimum energy savings.
To receive discounts on your new hot water system, you need to work with an Accredited Certificate Provider (ACP) who is registered with the relevant energy authority. They can help you navigate the rebate process and ensure you save money on your purchase. You can check the Clean Energy Regulator website for a list of accredited certificate providers by location.
You will need to work closely with your installer to choose the right hot water system for your household. While appliances that heat water using renewable energy sources, such as hot water heat pump systems and solar hot water systems, are the most common choices for rebate eligibility, they must still meet minimum energy efficiency standards.
You also need to ensure that the water heater you choose works with the layout of your property and your available space. For example, some homes may not have room for a split system heat pump water heater and may need to opt for an integrated system, while other homes aren’t suitable for solar panels and may have to look for eligible heat pump options.
Depending on which hot water rebate you are applying for, your installer may be able to apply on your behalf. However, some programs require homeowners to apply directly, as you may need to provide proof of income or homeownership.
You’ll need to submit detailed quotes outlining the cost of the energy-efficient upgrades, installation costs, and any additional work that will be required to help your new hot water system meet current regulations. These quotes should also show the estimated rebate.
In some cases, rebates can be approved before installation, and in others, you will need to submit a final claim following installation.
Regardless of which order the rebate process occurs, all plumbing work needs to be correctly documented and your plumber will need to provide compliance certificates verifying their work meets required building regulations.
Again, depending on which rebates you apply for, a discount may be automatically applied upon purchasing and installing energy-efficient products, or you may have to be paid directly through the scheme. Be sure to keep all of your documentation so that you can track approval, as sometimes the process can take several months.
It is possible to apply for state and federal hot water system rebates simultaneously, so do your research to find stackable incentives that will help you upgrade and cut your energy costs in the long run. Be sure to ask your installer if they will claim for you, or if you’ll need to do it yourself and double-check if they apply for all incentives available to you.
The other way to maximise your rebate claim is to avoid making the common mistake of choosing an unapproved installer or the wrong system. Remember to always check that yours is an Accredited Certificate Provider, that you follow any pre-installation requirements, and that you choose an eligible product.
Hot water rebates are designed to encourage the widespread adoption of energy-efficient systems, reducing the country’s reliance on electricity and gas. By offering financial incentives to households and businesses to adopt energy-efficient heat pumps and solar systems, the government is promoting energy savings that will help Australia reach net-zero greenhouse gas emissions by 2050.
Modern hot water systems save energy, use less water, require less maintenance, and significantly cut energy bills. By taking advantage of the financial incentives to replace old, inefficient electric water heaters, homeowners can save anywhere from a few hundred to a few thousand dollars on the cost of a new hot water system, so it’s well worth looking into what you are eligible to receive when shopping for a new water heater.
Solar hot water systems and heat pump hot water systems are the most common types that are available for Small-Scale Technology Certificates (STCs). However, other renewable energy systems can also qualify, and further rebates may apply.
At Same Day Hot Water Service, all of our supply and install prices for heat pumps have STCs included as a point-of-sale discount to make things easier. For our solar hot water systems, supply and installation prices have STCs as an included discount, while supply-only prices require customers to claim STCs themselves.
In most cases, you can apply for state and federal hot water system rebates simultaneously.
You don’t have to replace an existing system to claim a rebate. Many also cover the cost of new installations of energy-efficient appliances.
How long it takes to receive your cash back depends on what type of rebate you qualify for. Some rebates are automatically applied by the installer as a discount upon purchase, while others require you to apply to the scheme directly.
Deadlines for financial incentives vary depending on which state you live in, while federal STC rebates will end on December 31, 2030, with the value of rebates gradually decreasing each year. While there is no cap on the number of STCs, their value (your rebate) is determined by the size of the system, its location, and the year in which you purchase your appliance.
There are so many ways to save money by investing in a heat pump water heater or a solar system, so you should take the opportunity to do so now before these generous financial incentives end. By investing in more efficient technology now, you can start saving straight away and maximise your rebate.
For more information on eligible products and applying for hot water rebates, contact Same Day Hot Water Service today on 1300 721 996 or visit our website to see our full range of energy-saving appliances.