Swap an old electric water heater for a heat pump in NSW and the discount is up to $640. Replacing a gas water heater gets up to $330. It arrives as an upfront discount, so there's no cheque to wait for.
How much you get
| You're replacing | Discount |
|---|---|
| An electric water heater | up to $640 |
| A gas water heater | up to $330 |
Official maximums from NSW Climate and Energy Action. NSW says the amounts are indicative only: the installer, your location, the model and the job itself all change the final figure.
Show these figures as a table
| Item | Figure |
|---|---|
| Replacing electric | up to $640 |
| Replacing gas | up to $330 |
Those are ceilings, not promises. NSW says the discount you're actually offered depends on the installer you pick, where you live, the model and how hard the install is. Two quotes for the same unit can carry different discounts, which is one more reason to get more than one.
Why gas gets a smaller discount
The scheme pays for energy saved. A heat pump replacing an electric tank cuts a lot of metered electricity. One replacing gas saves less under the scheme's rules, so the discount is smaller. The same pattern shows up in Victoria; our gas-switch guide puts the two states side by side.
What a heat pump costs and saves in NSW
NSW puts the cost of installing a heat pump water heater at $2,000–$6,000, depending on size, model and installer, and the yearly bill saving against a traditional system at $200–$800 a year. For the ranges installers report nationally, see the replacement cost guide.
The zero-interest loan
If the discount doesn't close the gap, NSW also offers a zero-interest loan of up to $15,000 for a heat pump water heater or other eligible upgrades. It's for homeowners and landlords with a combined taxable household income of up to $210,000, and it's delivered through selected finance providers, so you choose a provider and apply with your quotes.
How to get the discount
- Ask more than one installer who offers the Energy Savings Scheme discount for a written quote.
- Check each quote shows the discount on its own line. What else a quote should show
- Fill in the paperwork your installer gives you. They claim the incentive, not you.
Want a number for your own home? The calculator applies the NSW figures to the system you're looking at. If you're near the Victorian border, check which state the property is in: Victoria's rebates work quite differently.