What rebate applies to hot water in SA?

Air source heat pumps can earn STCs under the Small-scale Renewable Energy Scheme. The model must be on the Clean Energy Regulator’s register and hold less than 425 litres.

The number of STCs varies by model and zone, and it falls each January as the scheme winds down to 2030. You can assign the certificates to a registered agent, often in exchange for a discount on the system.

As a guide, a model earning 13 STCs is worth $520 at the $40 clearing house price before GST. That is our arithmetic, not a quote for any product.

REPS lists replacing or upgrading a water heater as an activity. ESCOSA says REPS is not a cash rebate scheme and the government does not pay customers. Retailers and activity providers offer discounted products or installation, applied when the work is done.

You do not need to be a customer of the retailer. Offers differ, and there is no published statewide amount. A co-payment may apply, so ask for the final price.

The current specification, WH1.2026.1, sets these rules.

• Established houses, new or established class 2 dwellings, and small energy consuming customers
• New houses and other class 1 building work needing approval are excluded
• Heat pumps installed from 1 January 2026 must earn at least 13 STCs in Zone 3
• The old water heater must be removed, with limited exceptions for roof cavity units
• A licensed installer must complete and certify the work

Retailers have a separate target for priority group households, who may be offered further discounts. This includes pensioner concession and Health Care Card holders, people receiving the SA energy bill concession, and renters paying $500 or less a week. Renters need the landlord’s written approval for fixed upgrades.

Water heating is 15% to 30% of household energy use, according to energy.gov.au. A heat pump uses about 30% of the energy of a conventional electric system. Heat pumps cost more to buy and install, which is why the discounts matter.

If you have solar, run the heat pump in the day. That uses power you might otherwise export for a few cents.

These questions will save you trouble later.

• Is the exact model on the register, and how many STCs does it earn?
• Is the discount already included in the price?
• Who holds the right to create the STCs?
• Is a REPS incentive included, and is a co-payment required?
• Does the price cover removing the old unit and any electrical work?

Hot water is often the easiest upgrade to pair with solar. We check your bill, your current system and your options at a bill audit, then quote the complete price with discounts shown.