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NSW ESS and PDRS (ESCs and PRCs)

Can you claim STCs and ESCs on a NSW heat pump, and how much is the discount?

Short answer

In NSW, a qualifying heat pump water heater can earn federal STCs and NSW ESCs on the same installation, provided the model is on both the Clean Energy Regulator and NSW approved product lists. The discount is typically hundreds of dollars per scheme, varying with the model and the date.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For installers and homeowners

Heat pump hot water has two public subsidy streams in NSW. The federal Small-scale Renewable Energy Scheme pays STCs, and the NSW Energy Savings Scheme (ESS) pays ESCs. They operate separately, which is why the answer to “can I claim both” is generally yes when the product qualifies.

How each one works

Federal STCs NSW ESCs
Scheme SRES, run by the Clean Energy Regulator ESS, administered by IPART
Product list CEC and CER approved water heater lists Products accepted under the NSW method for residential hot water
Who claims Registered agent or installer, often assigned to a trader Accredited certificate provider
How the value reaches the customer Point-of-sale discount Point-of-sale discount or payment

For federal STCs, the number depends on the model’s rated capacity and the zone. See heat pump STCs explained and the hot water STCs page.

The NSW activity in practice

The residential activity under the ESS for heat pump and solar water heaters is commonly referred to as the HEER method. The customer-facing discount is the ESC count times the provider’s price, less costs. At about $29 per ESC (reported, late September 2026) a few tens of certificates give a discount in the hundreds of dollars. Reported figures for the NSW discount have been in the range of a couple of hundred dollars up to several hundred, depending on the model and whether it replaces an electric or gas system. Confirm the current numbers with your provider.

Questions to settle before you quote

  1. Is the model on both lists? A model listed for one scheme only earns only that scheme.
  2. Is the installation a replacement or a new system, and which does the method allow? See installation type guidance.
  3. Who is the ACP, what is their rate and when do they pay?
  4. Does the quote show the STC discount and the ESC discount as separate lines?
  5. Does the customer’s income or concession status open any further NSW support? See the Home Energy Saver answer.
From the desk: keep two evidence packs, because each scheme has its own paperwork. The federal one follows the [hot water and heat pump checklist](/resources/hot-water-and-heat-pump-stc-checklist/), and the ACP will tell you what they need for the ESC side.

Timing the two claims

Install date, commissioning and certificate creation should line up across both schemes. Agree with the provider on who submits what, and when, so that neither claim is held up waiting on the other.

What this means for installers and customers

Installers get two sources of discount on one install, and customers see a lower price. It only works if the paperwork lines up. Get a clear picture of both, use a single serial and install date on both packs, and see STC trading and pricing for the federal certificates. For the NSW scheme overall, see the NSW pillar.

Follow-up questions

People also ask

Does the NSW discount replace the STC discount?
No. Both can apply to the same job when the product qualifies for each, because they are separate schemes.
Who claims the NSW certificates?
An accredited certificate provider (ACP) claims ESCs under the Energy Savings Scheme. The installer claims or assigns the federal STCs.
How much is the NSW heat pump discount?
It varies. Reported figures run from a couple of hundred to several hundred dollars in ESC value, plus the STC value. Ask your provider for the figures on the exact model.

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