This Beautiful Banner is included in Essentials!

A Guide to Hot Water System Rebates in NSW

A Guide to Hot Water System Rebates in NSW

The Australian and NSW governments alike are looking for ways to incentivize people to upgrade to a new hot water system. As part of a push for the use of more renewable energy across the country, incentives, rebates, and loans have popped up in many states and territories.

In New South Wales, households and businesses can access a hot water system rebate as part of the NSW Energy Savings Scheme. Upgrading to new hot water systems helps you to reduce your energy costs and improve your carbon footprint.

Find out more about hot water system rebates in NSW below.

What is the Hot Water System Rebate NSW?

The NSW Hot Water System Rebate, or Heat Pump Hot Water Rebate, is a fantastic opportunity for businesses and households to replace old systems with newer, more efficient ones. For households and businesses that already have electric or gas hot water systems in place, this state rebate can help you cover the cost of a replacement. This means you can install an efficient hot water system and get paid to do it!

Hot water systems use many different energy sources to heat the water you use in your home. You may already have an electric hot water system or a gas model in your home, but with the rebate, you can upgrade to a model that runs more efficiently. This could be a solar-powered option, which uses a renewable energy source, helping you to reduce your environmental impact and energy bills.

You may also upgrade to heat pump water heaters, which use reversed refrigeration technology. Using the heat from the surrounding area, these pumps draw in the heat to raise the temperature of the water inside. They use up to 70% less electricity than traditional hot water systems.

Updating your hot water system is an excellent way of saving money in the long run. Older models are more likely to use more energy due to loss through leaks, excess heat, and other ways. This means you may be paying for more energy than is actually used to heat the water.

By upgrading to a more efficient heat pump, you can reduce the costs of your electricity and gas bills and, hopefully, stop paying for energy you’re not using.

The upgrades to your water heaters are part of the NSW Energy Savings Scheme. You will need to pay a minimum amount towards the cost and installation of the new hot water system, and the final overall cost will vary depending on the model you choose, your current system, and any other services provided.

Currently, applicants can receive up to $1200 for replacing an electric hot water system and $350 for replacing a gas hot water system.

What is the NSW Energy Savings Scheme?

The NSW Energy Savings Scheme is a program that helps NSW households and businesses to retrofit energy efficiency upgrades into their homes and buildings. The scheme uses energy savings certificates (ESC) which are created each time you upgrade or install something that reduces your electrical consumption. Each energy savings certificate demonstrates a single notional Megawatt hour of energy savings.

Once created, these energy savings certificates can be bought and sold to energy retailers as commodities. They are sold to Accredited Certificate Providers (ACPs), which are the bodies allowed to sell the certificates to liable parties. The ACPs are used specifically so that the minimum standards of both product quality and installation are met to qualify for the program.

While this can all seem a bit overwhelming, it is important to note that you don’t need to work with an ACP directly. Instead, you would work with an upgrade solutions provider who then collaborates with ACPs. They are likely to take on the bulk of the paperwork to make the process as simple as possible.

Most early users of this scheme used it to retrofit LED lighting in warehouses and other spaces to save money and energy. However, the scheme has expanded and now includes your hot water systems and other energy-efficient retrofits!

Find out more about the NSW Energy Savings Scheme here.

Who is Eligible for the Hot Water System Rebate NSW?

As part of the NSW ESS, the hot water system rebate is open to households and businesses across the state. If you’re unsure whether your household or business is eligible for the specific hot water system rebate (NSW), reach out to one of the accredited suppliers from the scheme. These suppliers will be able to confirm your eligibility.

The Energy Savings Scheme is intended to put downward pressure on the energy bills within the state. Using more efficient hot water systems, lighting, and other technology reduces the demand for energy, thereby reducing the cost. It also helps to improve the carbon footprint of the entire state and the country as a whole.

How Can I Apply for the Hot Water System Rebate?

Installing a more energy-efficient hot water system will be vital to saving money and energy. Whether upgrading to solar hot water systems or choosing a heat pump hot water system, the process for application is the same. We’ve mapped out the steps you should take below.

  1. Step one: First, you need to contact a supplier from the list of approved suppliers in the scheme. They will check you are eligible for the scheme before they start any other paperwork and give you a quote for the product and the installation. We would always recommend getting a few different quotes from various accredited suppliers to ensure you’re getting the best deal and installation for your needs. The accredited suppliers in this scheme all work independently. This means you can find a supplier that meets your specific needs and requirements.
  2. Step two: Find the best new hot water system for you and your needs. In this scheme, you can choose between a solar hot water system and a heat pump water heater. Both of these hot water systems are more energy efficient than traditional models, but the kind you choose should work for you and your business. An accredited supplier will be able to show you different heat pumps and solar options to find the style that works best in your space.
  3. Step three: Choose your supplier before any kind of installation work begins. After getting the quotes, choose the supplier and installation team that can serve you best. Once you have chosen, you will be given a nomination form which has to be signed before the installation process is complete. If it is not signed before the completion, you will not be reimbursed for your new hot water system.
  4. Step four: The supplier you have chosen will send out a licensed electrician or plumber to install the new hot water system into your space. This expert will also show you how to use your new hot water system to ensure you know what is happening before they leave!
  5. Step five: Once the hot water system upgrade is installed, you don’t need to worry about your old electric or gas hot water system. The supplier’s installation crew will take it away and either dispose of it safely or recycle it properly. They will also take away any other equipment they have replaced so that you don’t need to seek out specific recycling methods.
  6. Step six: From here, you can get on with your new solar or heat pump hot water system, and if you have any questions, you can reach out to your supplier for answers.

You can find a long list of accredited suppliers here.

Benefits of Updating to a New Hot Water System

So, what is the benefit of updating your hot water system? Apart from the financial incentives, is upgrading your hot water system going to have any benefits for your business or household? Below, we have covered some of the many benefits of updating to newer and more efficient hot water systems.

Enhanced Efficiency

Obviously, a more energy-efficient hot water system will enhance the efficiency of your whole operation. Older systems, like gas and electric hot water systems, are less efficient simply because of their age. This means that you use more energy to power them as energy is lost to leaks, heat output and more.

Newer systems have a ton of features that make them more efficient. From insulation that ensures you don’t lose heat energy to programmable settings and timers, newer models include built-in technology to ensure that it is as efficient as possible.

You can use the timers to automatically turn the system off at specified times throughout the day or program the hot water system’s temperature and duration to meet your household’s needs.

All-in-all, an upgrade will ensure that you have the most efficient hot water system in your home or business to stop you from paying for energy you’re not using.

Better Functionality

With newer hot water systems, you’re going to have better functionality. Older systems may be tired, not work properly, or just not be up to date enough for your needs. If you live in a household or have a building where hot water is constantly required, your system may even break down more quickly due to excessive use.

Poor functionality can lead to inconsistencies in water temperature, longer waits for hot water and rapid depletion of hot water. Newer models have larger tanks, enhanced heating components, and more rapid heat-up times to ensure that your hot water is always at a stable temperature and ready when needed.

As a business, in particular, having hot water available on demand is essential. If you use hot water as part of a manufacturing process or in another process that is crucial to your business, you don’t have time to wait around for the hot water to heat up every day.

Reduction in Maintenance Needs

As with any older piece of machinery or technology, older hot water system models are more likely to break down and require repairs. This could lead to parts needing replacing and days without hot water available. It will also lead to lots of excess cash spent on fixing hot water systems that need replacing.

You can cut out these maintenance expenses by replacing your hot water system with a newer model. Newer hot water systems are much more dependable now and are created to have longer lifespans and fewer maintenance needs. In addition, you’re likely to get a guarantee from your supplier to cover any breakdowns or repairs.

While energy efficiency will help you reduce costs, you may not have considered how reducing maintenance costs may also impact your bottom line. Making the switch to a hot water system upgrade could have a profound impact on unforeseen repair costs.

Positive Impact on the Environment

As a less efficient system, your older hot water system model uses more energy than it needs. This means that you use more energy than you need as a household or a business. The energy used comes from the earth’s precious resources, so we should all try only to use what we need.

If you want to lessen your environmental impact, upgrading to a solar or heat pump hot water system is a fantastic place to start. It will reduce your energy consumption and greenhouse gas emissions and ensure that you’re doing your part for the planet.

In addition, a more eco-conscious approach to energy could profoundly impact your business. More and more consumers are looking for businesses and companies that actually care about the planet. By upgrading to more efficient models, you may even attract new clientele looking for an environmentally conscious company to shop or work with.

Improving Property Values

If you own your business’s building or your own home, then upgrading your hot water system can boost the value of the property when you come to sell it. It shows that you have maintained your home well and that you’re looking to decrease your environmental impact.

Additionally, some older hot water systems may not comply with building requirements, so upgrading your system will ensure that you’re being compliant.

Better Safety

While an older hot water system may still be working, it might not be as safe as you think it is. Due to wear and tear over time, older hot water system models are more likely to have leaks, bad connections, corrosion, and other issues that make them dangerous.

Leaks, for instance, can cause water damage, lead to mould growth and even electrical dangers. Newer hot water system models are equipped with many more safety features than older ones. These can include pressure relief valves to prevent pressure explosions and automated shut-off valves to stop the system should an issue arise.

These safety features can help keep your family or employees as safe as possible. They can also help you avoid damage caused by fires and other issues if the hot water system were to break down!

Solar Hot Water Systems Vs. Heat Pump Hot Water Systems: Which One Should I Choose?

The energy-efficient upgrades you make as part of this scheme are usually either solar hot water systems or heat pump hot water systems. But what is the difference? How do these kinds of hot water systems work, and which is right for you?

What is a Solar Hot Water System?

A solar hot water system uses sunshine to fuel your hot water. They may be used in a range of climates and are an affordable way to supply your home or building with hot water. There are different kinds of solar water heater systems, including active solar water heaters and passive solar hot water systems.

Different types of solar heaters are better for different climates, and an accredited supplier could give you a rundown of the best options for your location.

What are Heat Pump Water Heaters?

Heat pump hot water systems use electricity to move heat. They work in reverse to a refrigerator by pulling heat from the surrounding air and transferring it to the water in the storage tank to heat it up. Generally, heat pumps operate best in hotter environments and are unsuitable for colder locations.

There are other options besides air-source heat pumps, like geothermal heat pumps, which may be used in cooler locations. An accredited supplier could give you an idea of the best kind of heat pump hot water system for your building to ensure it is as efficient as possible.

Which Kind of Hot Water System Should I Choose?

Both heat pump hot water systems and solar-powered systems are energy efficient, good for the environment, and offer a safer way to heat the water in your home or building. The choice between the two will ultimately come down to a few factors. These include where you live, the climate in your area, the location of the hot water system, and your own personal choice.

We recommend speaking with an accredited expert for the best advice on which style would work in your situation, and we recommend you shop around and get different suppliers’ advice before making a final decision.

Are There Any Other Energy Rebates Available for Businesses In NSW?

In addition to the hot water system rebate in NSW, small businesses may also be able to benefit from energy bill relief from 1 July 2023 onwards. The Energy Bill Relief Fund provides $650 in energy bill relief from eligible small businesses based in NSW. (This Energy Bill Relief is also available to eligible households.)

You will need an electricity consumption below the 100MWh threshold and have a separately metered business tariff with your electricity retailer.

Small businesses may also take advantage of the Small-Scale Renewable Energy Scheme, which works like the Energy Savings Scheme using certificates for upgrades. In this scheme, small businesses in NSW are given a benefit towards the purchase cost of eligible renewable energy systems in their business.

Eligible systems include solar panels, wind turbines, hydro systems, solar water heaters, and air source heat pump water heating models. Each installation creates an STC, which can then be sold on.

Businesses in NSW should also take full advantage of other aspects of the Energy Savings Scheme, of which the hot water system rebate is part. This includes incentives to increase building energy efficiency, refrigeration, LED lighting, and power system upgrades. All of these changes will have a profound effect on your energy bill costs and your business’s environmental impact.

Many of the schemes available in NSW have overlaps, so businesses may use a combination of incentives to upgrade the relevant technology in their buildings. Be aware that eligibility criteria are in place for all schemes, and you may not be able to reap rewards for numerous schemes at once.


The NSW government has many incentives and rebates in place for businesses in the area. All incentives are designed to help businesses improve their energy efficiency, thereby reducing energy costs and demand for energy and positively impacting the environment.

NSW’s hot water rebate system is part of the Energy Savings Scheme. This scheme helps businesses and households to make energy-efficient upgrades with financial help. Upgrading your hot water system can have many benefits, including reducing maintenance and energy costs, increasing safety, and reducing your carbon footprint and greenhouse gas emissions.

At Ecosaver, we’re on a mission to help businesses across Australia upgrade their systems to more energy-efficient models. If you have questions about hot water systems, what upgrading could mean for you, and how to access these incentives, don’t hesitate to contact one of our experts today. We can offer guidance and advice to NSW-based businesses

Related Posts
× Chat