Rebates & Incentives

RECs & Rebates

Water heating via a standard electric hot water system, is the largest single source of greenhouse gas emissions from the average Australian home. In an effort to reduce Australian greenhouse gas emissions the Australian government has put in place a number of generous rebates for consumers. These rebates provide significant financial incentives for purchasing sustainable hot water systems.  Rebates are eligible to households when a solar or heat pump hot water system is installed replacing an existing electric hot water system.

Government rebates appear in 3 forms:

Renewable Energy Certificates (RECs)

A Renewable Energy Certificate represents the equivalent of one megawatt hour of electricity generation from an accredited renewable energy source. Every solar and heat pump water heater has been assigned a REC value based on how much non renewable energy you displace using a solar/heat pump hot water system. With the intent to increase the amount of electricity generated by renewable sources the federal government implemented this incentive.

Each REC is assigned a monetary value. These RECs can be traded, purchased or sold. RECs are based on the efficiency of the system, simply meaning the more RECs the more efficient the system is deemed to be.

To get the current value of RECs for a particular water heater, visit www.orer.gov.au

Federal Government Rebate

The Federal Rebate has recently changed on 19th February 2010 from $1600 to $1000. The new Renewable Energy Bonus Scheme has replaced the Home Installation Program and the Solar Hot Water Insulation Program. Both of these programs were discontinued on 19th February 2010. As of the 20th February 2010 a $1000 rebate is available for the installation of solar or heat pump hot water systems when replacing an existing electric system. This rebate is not applicable for new homes. This incentive is available to eligible homes up until 2012.

To learn more about Federal Government Rebate and download your application form visit www.environment.gov.au/energyefficiency/solarhotwater.

NSW State Rebate

As of the 15th of January 2010 the NSW State Rebate of $300 is available for Solar Hot Water Systems, Heat Pumps and 5-Star Natural Gas Water Heaters (installed when replacing an existing electric hot water system).

Rebates are subject to change. For more information visit www.environment.nsw.gov.au/rebates