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NSW ESCs and PDRS

NSW heat pump hot water rebate and ESCs

Short answer

In NSW a heat pump hot water system can attract federal STCs and, where the activity qualifies, ESCs under the state Energy Savings Scheme. Both normally appear as a discount on your quote. Ask your installer which are included.

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026 · For homeowners

If you are replacing a hot water system in NSW, you may be able to claim support from two certificate schemes, one federal and one state. Neither is a cash payment to you. They are discounts delivered through your installer, and the value comes from certificates that get sold in the market. For the national view, see heat pump hot water rebate in Australia.

The federal STCs

Eligible air-sourced heat pump water heaters earn STCs. The number depends on the model, the climate zone and the installation type. At the time of writing STCs have been roughly $38 to $40 each. See how many STCs a heat pump earns.

The NSW ESCs

The NSW Energy Savings Scheme, administered by IPART, rewards approved energy-saving activities, including efficient hot water upgrades, with Energy Savings Certificates. An accredited certificate provider creates them and sells them to retailers. Whether your job qualifies, and how much it is worth, depends on the activity method, the equipment and the property. See what an ESC is.

Things to ask your installer

  • Which certificates are included in the quote: STCs, ESCs, or both?
  • What is the count and dollar value for each?
  • Who is the accredited provider creating the ESCs?
  • Is the discount fixed at signing?
  • What happens if a claim is rejected?

What is not covered here

We have not listed specific dollar amounts for the NSW incentive, because they depend on the method and change with the market. Ask for the figure on your quote, and check the NSW Government and IPART pages for the current rules.

From the desk: two quotes with the same headline price can include different incentives. Ask each installer to list every certificate, and what you receive for each.

Renters and landlords

If you rent, the property owner normally decides on a hot water replacement, and the certificates relate to the installation, not the tenant. Landlords can often still benefit from the discount, and tenants benefit from lower running costs. If you are a tenant, it is worth raising the idea with your landlord.

What this means for you

Compare quotes on the final price after all incentives, check the installer’s accreditation, and keep a copy of the paperwork. For the cost side, see how much a heat pump costs after rebate. The hot water STCs pillar and the resources hub explain how installers claim.

Follow-up questions

People also ask

Do I apply for the ESC discount myself?
Normally not. An accredited provider creates the certificates and applies the value to your quote.
Can I get both STCs and ESCs?
Often, but the rules depend on the activity. Ask your installer.
Is the NSW program changing?
Schemes are updated from time to time. Check IPART's website for the latest.

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