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Hot Water Cost

The same heat pump, four states, four prices

The unit's identical. What changes is the scheme where you live, and whether it's still open.

Last checked

Victoria stacks two reductions. NSW gives one upfront discount. South Australia leaves the amount to energy retailers, and Queensland's appliance rebate has closed. Same unit, very different out-of-pocket cost. For each state's rules on their own, see rebates by state.

A heat pump that installs for $3,000–$5,200 doesn't end up costing the same everywhere. Hot water incentives are run by the states, not Canberra, and they've drifted far enough apart that the state line is worth hundreds of dollars.

How a hot water price is reduced, in order The installer's price already includes the federal small-scale technology certificate discount. A state scheme discount or rebate comes off next. What remains is the amount you pay. Quoted price STCs already in it − State scheme discount or rebate = You pay the balance Not to scale — the reduction differs by state and system.
Fig. 1 — The order, not the size. Federal certificates are already inside the quoted price; a state scheme comes off next; what is left is your out-of-pocket cost. The blocks are drawn the same size on purpose, because the amounts differ by state.

What each state takes off

Most a state takes off a heat pump replacing an electric system

Victoria is Solar Victoria's stated combined maximum (its rebate plus the VEU discount). NSW is the official Energy Savings Scheme maximum, which NSW calls indicative. South Australia and Queensland publish no state figure, so they're drawn at zero rather than guessed.

Show these figures as a table
Item Figure
Victoria up to $1,630
New South Wales up to $640
South Australia No fixed amount
Queensland Scheme closed

Victoria: two programs, applied in order

A Victorian Energy Upgrades discount comes off first, indicatively $630 when you're replacing electric. Solar Victoria's rebate of up to $1,000 is then worked out on what's left, and Solar Victoria puts the two together at up to $1,630. The rebate has income and property tests, so a household can get the discount and miss the rebate. Here's a worked example of the order they apply in.

New South Wales: one discount, nothing to claim later

The Energy Savings Scheme gives up to $640 for replacing an electric water heater. It reaches you as an upfront discount. So if it isn't in the quote, it isn't coming. More on the NSW discount.

South Australia: ask the providers, not the state

The Retailer Energy Productivity Scheme puts targets on energy retailers, but there's no fixed amount from the state, and each provider decides which upgrades it offers. Ring two or three activity providers, because there's no published figure to compare against. How REPS works.

Queensland: closed, and still quoted

The Climate Smart Energy Savers rebate is closed. Purchases had to be made and installed by 4 December 2023, and while it ran it paid $300–$1,000. Old pages still carry those numbers, so check the date on anything promising a Queensland rebate today.

What's the same everywhere

Federal small-scale technology certificates apply nationally. Your installer's quoted price already includes the federal STC discount, which is why the "before rebate" price you're quoted is usually already lower than the sticker price on the unit.

If you're near a border

Eligibility follows the property, not the installer. A plumber who works both sides of the Murray can install the same unit under Solar Victoria and Victorian Energy Upgrades on one side and the NSW Energy Savings Scheme on the other. Ask which scheme they're claiming under for your property, not for their business address.

Schemes change and certificate prices move. Confirm the current amount with your installer before you sign. The calculator applies these rules to your own situation.