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Hot water and heat pump STCs

Do gas boosted, electric storage and instantaneous hot water earn STCs?

Short answer

Gas boosted solar hot water systems can earn STCs if the solar water heater model is registered. Standard electric storage and instantaneous gas or electric systems do not, because the federal scheme covers solar water heaters and air source heat pumps only.

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

The federal STC scheme does not pay for hot water in general. It pays for two product types: solar water heaters and air source heat pump water heaters. Everything else falls out of scope, which is why these three questions have mostly the same answer.

Gas boosted solar hot water

A solar water heater uses roof collectors to heat water, with a booster for cloudy days. The booster can be gas or electric. The registered product is the whole system, so a gas boosted model is eligible when its exact model is listed on the Clean Energy Regulator’s register of solar water heaters and installed by an eligible installer. The STC count comes from the register for your zone and install year, with a factor of 0.5 for 2026. See how many STCs a solar hot water system gets.

What does not qualify is a gas heater that is simply connected to solar panels or a retrofit that does not match a registered model.

Electric storage hot water

A standard electric storage system heats water with an element and holds it in a tank. It is not a solar water heater and not a heat pump, so it creates no federal STCs. Replacing one with an eligible heat pump or solar water heater does earn STCs, and the old unit’s removal is part of the evidence. See is a replacement heat pump eligible.

Instantaneous hot water

Instantaneous (continuous flow) gas and electric heaters heat water on demand without a tank. They are not eligible for federal STCs. Some state programs treat gas or electric appliance changes separately, so see your state’s scheme, for example Victorian heat pump certificates or NSW heat pump rebates.

Quick reference

System Federal STCs
Solar water heater, gas boosted Yes, if the model is registered
Solar water heater, electric boosted Yes, if the model is registered
Air source heat pump, under 425 L Yes, if registered
Electric storage (element) No
Gas storage No
Instantaneous gas or electric No

At roughly $38 to $40 per STC at the time of writing, being eligible matters, but so does the year: counts fall each January to 2030.

From the desk: "solar ready" or "heat pump ready" is not the same as registered. Ask for the register listing, not the marketing language.

Common mix-ups

  • Brand ranges. A brand’s solar range and its standard electric range sit under different model codes.
  • Hybrid systems. Check whether the unit is a heat pump with an electric boost or an electric unit with a marketing label.
  • Retrofits. Adding collectors to an existing tank is a different question from a registered complete system.

What this means for you

Before you buy, check the exact model on the register: how to check hot water STC eligibility. Installers can find the claim steps in our hot water STCs page, the hot water checklist and pricing.

Follow-up questions

People also ask

Are gas boosted solar hot water systems eligible?
Yes, where the solar water heater model is on the Clean Energy Regulator's register. The booster type is part of the registered product, so confirm the exact model.
Is a plain electric storage hot water system eligible for STCs?
No. An ordinary electric storage unit is not a solar water heater or heat pump, so it does not create federal STCs.
Are instantaneous hot water systems eligible?
Not under the federal STC scheme. State programs may cover some gas or electric changes, so check the state scheme.

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