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Are You Eligible for a Free Hot Water Upgrade in NSW?

Are You Eligible for a Free Hot Water Upgrade in NSW?

Being more energy efficient and sustainable in the modern world is crucial; the time is now to make changes that benefit the environment.

New South Wales has various initiatives to make Australia more energy efficient.

One of these programs is the free hot water system upgrade program. But what are the eligibility criteria?

Continue reading our hot water upgrade guide to learn more about the government hot water rebate in NSW, including how to know if you’re eligible, how to apply, the benefits, and more.

What is the Free Hot Water Upgrade Program in NSW?

In NSW’s mission to reduce greenhouse gas emissions, the government realised that electric hot water systems are a problem because water heating takes up 15-30% of household energy use in Australia, and around 50% of Australian households have electric water storage systems.

Because of this, they created a hot water upgrade program (part of the Energy Savings Scheme) so homeowners can replace their gas or electric hot water systems with more environmentally friendly options, like solar hot water systems or heat pump hot water systems.

How Does the Program Align with Broader Sustainability Goals?

The primary aim of the hot water system upgrade is to reduce greenhouse gas emissions.

They also aim to give renewable energy providers a much larger stake; this links with the upgrade program because renewable energy providers sell solar hot water systems and sustainable heat pump hot water systems.

How Do You Understand Your Free Hot Water Upgrade Eligibility in NSW?

Before upgrading your hot water system to one that promotes energy savings, you must find out if you’re eligible for a free upgrade.

Here are the main eligibility criteria to get a free upgrade for hot water systems in NSW.


The residency criteria are straightforward if you want to upgrade your existing electric system to a heat pump water heater. 

The primary criterion is that residential homeowners must live in the NSW area to receive the upgrade. Residential homeowners and those in strata houses can apply.

Existing Hot Water System

You must have an electric hot water system to be eligible for the program.

If you already have a heat pump hot water system, there is no need for an upgrade.


Some approved suppliers linked to the program will set income restrictions to get the free upgrade.

To determine these, check the criteria with your approved supplier. Better yet, research multiple suppliers to get a quote.

Property Type

To make the hot water upgrade as accessible as possible for NSW residents, they offer it to people with different types of properties.

For example, standalone homes are certainly part of the program, but other residences like apartments are also eligible.

What Are the Benefits of Replacing Your Electric Hot Water System?

Before you go through with upgrading your electric hot water system, you need to know what benefits you can get from it.

You Can Save Money on Power Bills

Saving money on various energy bill types is a massive benefit of heat pump hot water and solar systems.

The upgrade saves you money on your electricity bill and hot water bill; you’ll see a 50-80% drop in water bill amounts if you upgrade to a solar hot water system.

A New Hot Water System Can Have a Positive Environmental Impact

As mentioned above, because solar hot water system options and energy-efficient heat pump hot water systems use renewable energy, they have multiple environmental benefits. Some of these include: 

It Can Increase the Value of Your Property

Replacing your old system with a new one can increase your property value for several reasons, including:

The NSW Government Provides Incentives for the Program

The hot water upgrade is part of the NSW Energy Savings Scheme, so one of the main benefits is that it is free under that scheme as long as you’re eligible.

Other incentivised upgrades under the NSW Energy Savings Scheme include lighting upgrades, pool pump upgrades and more.

You Contribute to Other Sustainability Efforts in NSW

As mentioned above, upgrading to a heat pump hot water system helps to meet NSW’s sustainability goals.

For example, they have a 13% energy-saving target for 2030.

How Do You Apply for a Hot Water System Upgrade in NSW?

Now you know what the hot water upgrade can get you and how it can help the environment, here’s how to apply. 

Double-Check That You’re Eligible

Before starting the application process, check your eligibility. Read through our above eligibility criteria, and also check with your hot water system supplier to ensure you meet all their criteria.

Get a Quote for the Installation Process

After this, you must get a quote from an approved supplier. 

If you go straight into the application form without doing this, you won’t be able to complete it. A quote is a required piece of documentation so that the upgrade can cover the total cost of the installation.

Choose a Hot Water System

Once you have an eligible quote, you can buy a new hot water system.

The two choices you have are solar and heat pump hot water systems. The main difference is that solar systems use sunlight to generate energy, whereas a heat pump system takes heat from the surrounding air.

Once you know the type you want (let’s say heat pump), consider the price, assess your hot water needs and buy a heat pump system that facilitates those needs.

Also, check if the heat pump system is eligible for your property; not all hot water systems are suitable for apartments, for example.

Complete the Hot Water System Upgrade Application Form

You can complete the application form after you have the quote and purchase the system. You do this through the approved supplier; they will give you a nomination form to fill out. Skipping this step means you don’t get the system for free.

You need to sign the form and present relevant documents to the supplier, like your quote and details about your chosen product.

Once you sign the form, you can arrange the installation.

Get the New Free Heat Pump NSW Hot Water System Installed

Your supplier will choose from a list of fully licensed plumbers and send one to your home to install the system. They will install it for you and show you how it works. They will also remove and dispose of the existing electric hot water system safely.

After the plumber performs their installation services, the process is over. However, if you have any problems, contact the supplier.

Final Thoughts on if You Are Eligible for an NSW Hot Water Upgrade

In summary, it is easy to check if you’re eligible for the NSW Hot Water Upgrade Program, and the eligibility criteria are fair.

Upgrade your old system with a heat pump hot water system to reduce your energy consumption, saving you money on power bill payments and positively impacting the environment. 

Find Out More on Ecosaver!

If you want to learn more about the program or want other services, contact us on Ecosaver.

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