NSW hot water system rebate

Water heating is the biggest energy user in NSW homes. By switching from an electric to a climate-friendly hot water system, you can save up to three tonnes of greenhouse gas emissions each year and $300 on your energy bills.
The rebate is available for new gas, solar or heat pump hot water systems which replace an electric system.
Eligibility
The new hot water systems must:
- Replace an existing electric hot water system
- Be for residential properties in NSW only
- Be purchased in full and installed between October 1, 2007 and June 30, 2011
- Be installed by a licensed plumber
Hot water systems installed to comply with BASIX (the Building Sustainability Index) for new homes and major renovations are not eligible for a rebate
How much is the rebate?
- $300 for a gas hot water system with a 5-star or higher energy rating
- up to $1200 for a solar or heat pump hot water systems eligible for at least 20 Renewable Energy Certificates (RECs) under the Mandatory Renewable Energy Target (MRET).
The rebate for solar and heat pump hot water systems is based on the amount of greenhouse gas emissions saved, determined by the eligibility of your system for Renewable Energy Certificates (RECs).
| Number of RECs | Rebate amount |
|---|
20-27 | $600 |
28-35 | $800 |
36-43 | $1000 |
44+ | $1200 |
RECs are an electronic form of currency established to promote renewable energy generation. Your hot water system supplier will be able to provide more information about RECs.
The total sum of payments[1] you are receiving cannot exceed the total cost[2] of your new hot water system. Please note that you can request a reduced payment for your NSW rebate if the total payments would exceed the cost if it was paid in full.
[1] Includes payments from Renewable Energy Certificates (RECs), the NSW and Australian Government rebates, plus any local government and/or energy retailer incentives
[2] The total cost of your new hot water system includes the purchase, delivery and installation costs
See the full Terms and Conditions for the hot water system rebate
Read the Hot Water System rebate brochure (09350HWRebBR.pdf, 895KB, requires Acrobat Reader)
Applying for the rebate
You apply for the rebate after the hot water system has been installed. You will need to:
When will I get my rebate?
The increase in the Australian Government solar hot water rebate has resulted in a large number of applications to the NSW hot water system rebate program. It is currently taking around 90 days for you to receive your rebate cheque, from the time we receive your completed application form and receipt(s). We are working to reduce this timeframe.
Frequently asked questions
Go to frequently asked questions
Contact us
For more information about applying for the hot water system rebate, call the Department of Environment and Climate Change Environment Line on 1300 361 967 or email us at rebates@environment.nsw.gov.au
Page last updated: 01 July 2009