The solar hot water rebate Australia program is an energy rebate scheme that provides eligible families with a refund for building a new solar hot water system or upgrading an existing electric or gas system with solar power. So, if you are from Australia and planning to switch to solar, we will help you discover how much is a solar hot water system in Australia and what rebates are available in different states.
Is there a Government Rebate for Solar Hot Water Systems in Australia?
Yes, long-term cost savings on solar hot water can greatly lower the initial investment by taking advantage of considerable government rebates or incentives available to Australians. Since 2001, the Australian federal government has administered the Small-Scale Renewable Energy Scheme, which provides point-of-sale subsidies through the creation of Small-scale Technology Certificates. Each STC has a monetary value that can be paid to your installer in return for a point-of-sale solar rebate. Furthermore, the SRES has resulted in millions of Australians saving thousands of dollars on the costs of small-scale solar PV systems, heat pumps, wind, hydro, and solar hot water systems.
An overview of each state is provided below that discusses Rebates and certificates:
| STATE | SMALL-SCALE TECHNOLOGY CERTIFICATES | STATE REBATE ON SOLAR HOT WATER AND HEAT PUMP SYSTEM |
| Victoria | Yes | Rebates through Solar Homes Program |
| South Australia | Yes | Rebates through REPS Scheme |
| Australian Capital Territory | Yes | No |
| New South Wales | Yes | No |
| Queensland | Yes | No |
| Western Australia | Yes | No |
| Tasmania | Yes | No |
| Northern Territory | Yes | No |
What is Solar Hot Water Rebate Australia Program?
In many regions of Australia, installing a solar hot water system or heat pump is a wonderful method to reduce the cost of heating a building’s water. When installing a hot water system powered by the heat of the sun, an ordinary homeowner can save anywhere from $140-$400 per year on electricity costs.
Of course, financial reasons aren’t the only reason to install a solar water heater incorporating a renewable energy system also helps the environment. As a result, the federal government and several states have begun to offer rebates to encourage the installation of solar water heaters and heat pumps.
1. Federal Government Assistance for Solar Hot Water
The federal government’s solar hot water rebate is perhaps the most well-known, as under the Australian Government’s Renewable Energy Target. Solar water heating systems are accepted for Small Scale Technology Certificates (STCs), which act as green energy tokens that could be traded or sold like any other consumer good. However, most homeowners simply use their Small Scale Technology Certificates straight to the upfront cost of the green energy system, typically saving thousands of dollars on total installation costs.
STC values are not fixed; rather fluctuate based on a few specific parameters such as geographical zone, type of technology used, system size, and system model. Furthermore, not everyone will be successful in their application for federal green energy incentives.
Although the rules vary by region few consistent qualifications, one must meet to receive a solar hot water rebate. The rules include owning and occupying the property, having a solar water heater among the list of eligible models, not having previously qualified for a solar panel or solar battery rebate program, and the property not being a new construction building.
2. Rebates on Heat Pump Hot Water
Heat pumps are one of the most cost-effective and ecologically beneficial ways to heat a home’s water in arid climate zones. They are also commonly used in locations that cannot simply install solar panels. The solar hot water rebate Australia provides a heat pump and hot water rebate, which qualifies for Small Scale Technology Certificates (STCs).
What is Solar Hot Water Rebate in South Australia?
Before diving to learn about what is the Queensland government solar hot water rebate scheme, do you know about South Australia? Depending on where you reside in South Australia, you may be able to claim various rebates when purchasing a heat pump hot water system installed by one of the heat pump sellers. According to market research, they provide the following rebates:
- STCs – up to $1150 in rebate
- REPS – up to $1056 in rebate
- City of Adelaide heat pump rebates – Up to $1500 in rebates
These rebates can be combined to generate even greater savings.
Note: The rebate mentions are based on market research which can vary depending on the location.
Also Read: How does ACT Sustainable Household Scheme Work?
What is Solar Hot Water Rebate Western Australia Scheme?
Since you are aware of solar hot water rebate in South Australia, do you know about rebates in Western Australia? Western Australia has a limited energy rebate scheme in comparison to other states, but the solar hot water rebate Australia program is one such benefit accessible to homes and businesses. Although it is not exclusive to Western Australia, it is a federal government incentive known as the Small Scale Renewable Energy Scheme (SRES) which may apply to solar hot water systems across Australia.
Small-Scale Technology Certificates (STCs) are issued by the SRES to homes that buy and set up solar hot water systems. The value of these certificates is not fixed and might fluctuate depending on supply and demand. According to research, the rebate value for solar electricity in Western Australia is $814, which equates to 22 STCs for a 1.5kW installation.
If your system is 2kW, you will receive $1,110 or 30 STCs. These figures are based on an STC value of $37, which can range between $34 and $40. Moreover, there is another type of rebate called the Large-Scale Renewable Energy Target (LRET), which is for commercial properties.
How much is a Solar Hot Water System in Australia Cost?
After learning about whether is there a government rebate for solar hot water systems, are you wondering how much these systems cost? The cost of establishing a solar hot water system in Australia is impacted by various factors, including the type of system and location. Depending on the unit used, the initial cost of a solar hot water system might range from $2,600 to $6,000. Electric hot water systems, on the other hand, range from $500 to $1,900, while gas systems range from $800 to $1,400. A 250-liter hot water tank, which is typically utilized by a four-person home, can cost anywhere between $750 and $1,300.
New solar hot water systems are eligible for a small-scale technology certificates (STCs) refund, which is based on the system’s size and performance. The solar hot water rebate Australia value fluctuates between $30 and $40 per STC received.
Note: Solar water heating system cost and rebates may vary substantially depending on your region and the type of hot water system you install on your property.
Also Read: Solar Panel Rebates in BC
What is the Queensland Government Solar Hot Water Rebate?
Before jumping to learning about the solar hot water system cost Victoria scheme, let us learn about rebates in Queensland. Queensland led the way as one of Australia’s early adopters of solar energy. Many residents qualified for up to $1,000 in solar hot water rebate in Australia owing to the Queensland Government’s Solar Hot Water Rebate scheme. Unfortunately, there are currently no state government rebates or federal discounts available for solar systems in Queensland.
Instead, homeowners can get a Feed-in Tariff (FIT) from their energy retailer for surplus electricity generated by their solar system and put it back into the grid. FIT rules differ depending on where you live in Queensland, with regional QLD having a minimum FIT of 6.583 cents/kWh and South East QLD having no minimum FIT.
It is recommended that you check for different rates and switch energy retailers if required to get the best FIT rate available. However, rather than the FIT rate, the actual worth of solar comes from self-consumption.
Moreover, some households might qualify for a $200 rebate if they connect their hot water system to an economy tariff. Nevertheless, it’s crucial to stay up to date on any changes to QLD solar subsidies and incentives because both the federal and state governments are always investigating and proposing new programs.
Also See: What are Solar Rebates QLD?
What is Solar Hot Water Rebate NSW?
The New South Wales energy savings scheme is aimed at helping households in upgrading their hot water systems by covering a significant portion of the expenses of switching from a traditional, electric water heating system to a new solar or heat pump water heater.
After learning about what is solar hot water rebate Australia program, let us discuss the rebates in NSW. They are now offering eligible homeowners up to $1200 for the replacement of an electric hot water system or $350 for the replacement of a gas hot water system. Unfortunately, no state government or commercial rebates are available in New South Wales for solar water heaters or heat pumps. Nevertheless, the residents of New South Wales can still apply for national STCs and various no-interest loans.
Note: You must contact an approved supplier to find out if you are qualified for the Energy Savings scheme.
Also Read: What are Solar Rebates in Victoria?
How much does Solar Hot Water System Cost in Victoria?
The Solar Homes Programme, which is led by the Victorian government offer solar rebate available in Victoria. It provides refunds as well as interest-free loans to qualified homes for the installation and purchase of solar panel systems, battery storage, and solar hot water systems. In addition to the government incentive, Victoria’s Solar Homes Programme pays up to $1,000 in hot water refunds for solar and heat pumps. Furthermore, water heaters may be eligible for up to $700 in incentives under the Victorian Energy Upgrade Scheme.
Since you learned there is a solar hot water rebate NSW, the availability and quantity of the rebate vary by state. In Victoria, eligibility is limited to applicants who have not previously qualified for the program, have homes under $3 million, combined household income of less than $180,000, and replacement of a water heater that is over three years old.
Note: Get an estimate from an authorized local provider before installing your solar water heater or heat pump, since this allows you to apply for both the Victorian Solar Homes Programme and the Victorian Energy Upgrade Scheme.
In this blog, we have learned about the schemes of solar hot water rebate Western Australia, South Australia, Victoria, and elsewhere that differ based on government schemes and location. These Governments’ solar hot water rebate Australia encouraged the use of clean energy while also rewarding consumers for surplus electricity generated by their solar system.
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