The “heat pump rebate” most households see is built from the same certificate scheme as rooftop solar. Eligible air-sourced heat pump water heaters earn small-scale technology certificates, STCs, when they replace or supplement an existing system. The installer sells the certificates and takes the value off your price.
How the federal discount works
Each registered heat pump model has an STC entitlement, based on its tested performance and the climate zone where it is installed. You assign the right to the certificates to your accredited installer through an assignment form, and the installer lodges the claim. The dollar value depends on the number of STCs and the market price, which at the time of writing has been roughly $38 to $40 per certificate. For how the count is set, see how many STCs a heat pump earns.
State and territory add-ons
States layer on their own programs, and they change. In Victoria, Victorian Energy Upgrades, run by the Essential Services Commission, can reward efficient hot water upgrades with VEECs. In NSW, the Energy Savings Scheme and Peak Demand Reduction Scheme can create ESCs and PRCs for qualifying work. See NSW heat pump rebates and ESCs. Other states run their own offers. Check your state agency’s official page for current rules, as eligibility and amounts shift.
What you need to qualify
- An eligible, registered model.
- Installation by a suitably licensed and accredited installer.
- A signed assignment form and a compliant claim.
- Evidence of installation and, in many cases, of the system being replaced.
Where people get caught
The most common trap is assuming a quote includes every available incentive. It might include only STCs. Ask which schemes have been applied and what the numbers are. Our hot water and heat pump checklist lists the paperwork an installer should have.
From the desk: ask for the STC count and the dollar value in writing, and ask whether any state certificates have been applied. Two quotes with the same headline price can hide very different incentives.
What this means for you
Compare quotes on final price after all incentives, and check the model is registered. The hot water STCs pillar explains the installer side, and the resources hub has the wider reading. To estimate your out-of-pocket cost, see how much a heat pump costs after the rebate.