Today's rateSTC $38.50·VEEC $60.00Rate card

Hot water and heat pump incentives

Solar hot water STCs for installers

Short answer

Eligible solar water heaters earn STCs based on the registered model's performance and the climate zone of the install. The installer creates the certificates after the job with the owner's assignment and clean evidence, then sells them to a trader.

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

Solar water heaters were the original hot water STC product, and they remain eligible. They earn certificates through the same Small-scale Renewable Energy Scheme as rooftop solar and heat pumps, but the count is set by the product and the zone rather than by panel kilowatts.

How the count works

Each registered model has an entitlement based on its tested annual energy contribution, adjusted for the climate zone where it is installed. Sunnier zones tend to produce larger entitlements. The result is a whole number of STCs, usually in the tens. Always use the registered figure for the exact model, rather than a rule of thumb. At the time of writing the STC market has been roughly $38 to $40.

Eligibility basics

  • The model must be registered for STC creation.
  • Installation must meet the relevant plumbing, electrical and safety standards by a suitably licensed installer.
  • The installation type, new, replacement or additional, must be correct. See the installation type guide.
  • The owner assigns the right to create certificates through a signed form.

Evidence for the claim

Photograph the collectors on the roof, the tank, the data plates with serial numbers, the connections and the installed system in context. For replacements, photograph the old unit before removal. The hot water and heat pump checklist lists everything the registry wants.

How it differs from heat pumps

The claim process is almost identical, but solar water heaters have extra evidence points around collector orientation and tank location, and fewer new quotes now that heat pumps have taken the lead. Both are within the same hot water STCs pillar. For the heat pump process, see how to claim STCs on a heat pump.

From the desk: do not assume the same trader terms apply to every product. Check that your trader handles solar hot water evidence and quotes the rate in writing.

What this means for installers

Keep a template for each product and installation type, and review photo sets before lodgement. A trader that pre-checks hot water claims saves rework. See how it works, pricing and the resources hub for the wider process.

Follow-up questions

People also ask

Is solar hot water the same as a solar PV system?
No. It heats water directly and is claimed under the hot water category, not the rooftop PV formula.
Do I need the same evidence as a heat pump?
The core is similar: model, serials, photos, owner assignment and installation type.
Are solar water heaters still worth quoting?
In some climates and households yes, but heat pumps now dominate new quotes.

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