The heat pump market in Australia is being pushed by ageing electric and gas systems, state programs and the STC discount. That makes it a reasonable business to enter. It also makes it crowded, so the businesses that last are the ones with clean paperwork and tidy cash flow.
1. Licences and structure
Hot water installation needs a plumbing licence in every state, plus electrical work by a licensed electrician for wiring and the isolator. Most new businesses either hold both trades or partner with a trusted sparky. Add the insurance, ABN and GST registration you need. CEC and SAA solar accreditation is not the test for hot water. See licences for heat pump STCs.
2. Products and suppliers
Only models on the Clean Energy Regulator register create STCs, so build your product list from the register, not from a brochure. Ask suppliers about credit terms, delivery times and warranty handling. See supplier STC discounts for how supply deals can interact with certificates.
3. A claim process that repeats
The claim is a fixed sequence: check the model, choose the installation type, get the assignment signed, install and photograph, create the claim and sell the certificates. Document it once and use it on every job. See how to claim STCs on a heat pump and paperwork for plumbers.
4. Cash flow
You fund the STC discount at the start and are paid when certificates sell. If your trader pays in a day, you carry a week of exposure. If it pays in a month, you carry a month. Work out the number before you take your first job. See how to improve installer cash flow.
5. Margin
The STC is a discount you give and then recover, not a profit centre. Your margin sits in the install price, the product markup and efficient scheduling. A quote that relies on a high STC price assumption is a bet on the market. At the time of writing STCs have been roughly $38 to $40.
| Cost or income | Notes |
|---|---|
| Unit and fittings | From supplier |
| Labour and travel | Plumber plus electrician |
| STC discount to customer | Funded by you, recovered on sale |
| Admin and claim time | Often forgotten |
From the desk: price on the STC rate you can lock, not the rate you hope for. A trader that publishes a daily rate and holds it on lodgement removes one variable from your margin.
What this means for you
Get licensed, pick registered models, build a checklist, and choose a trader on terms, not only rate. Energy Merchants is built for installers like this, with zero fees and 24-hour settlement for established partners. See start trading, pricing, how it works, how to become a solar installer for the wider picture and the hot water STC pillar.