Hot Water Cost

The same heat pump, four states, four prices

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

Last checked

Victoria stacks two reductions and reports the largest total. NSW offers 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.

A heat pump that installs for $3,000–$5,200 anywhere in the country does not cost the same anywhere in the country. Hot water schemes are run by states, not by Canberra, and they have drifted apart badly enough that the state line is now 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

Reported reduction on a heat pump, by state

Victoria is an installer-reported combined figure (Solar Victoria rebate plus the VEU discount, replacing electric). NSW is the official Energy Savings Scheme maximum. South Australia and Queensland publish no state figure, so they are drawn at zero rather than guessed at.

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

Solar Victoria pays up to $1,000 towards an eligible system, and a Victorian Energy Upgrades discount of about about $630 comes off first when you are replacing electric. Installers report a combined up to $1,630 for eligible systems. The rebate has income and property tests, so a household can qualify for one and not the other. There is a worked example of the order they apply in.

New South Wales: one discount, no paperwork for you

The Energy Savings Scheme gives up to $640 for replacing an electric water heater, with a typical range of $405–$675 depending on the model. It reaches you as an upfront discount, which is the part people miss: there is nothing to claim afterwards, so if it is not in the quote, it is not coming.

South Australia: ask the retailer, not the state

The Retailer Energy Productivity Scheme obliges energy retailers to deliver savings, but the state publishes no fixed amount. Offers come from any retailer, and you do not have to be their customer. It is worth ringing two or three, because there is no published figure to compare against.

Queensland: closed, and worth knowing why

The Climate Smart Energy Savers rebate is closed. Purchases had to be made by 4 December 2023, and while it ran it paid $300–$1,000. Quotes and guides still circulate with those numbers attached, so check the date on anything that promises you a Queensland rebate today.

What is 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 are quoted is usually already lower than the sticker price on the unit.

If you are 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 Victorian rules on one street and no state scheme at all on the next. Ask which scheme they are claiming under and for the property, not for their business address.

Schemes change and certificate prices move. Every figure here carries its source and the date it was checked; confirm the current amount with your installer before you sign. The calculator applies these rules to your own situation.