You can access discounts to lower the cost of switching to a new energy-efficient solar or heat pump hot water system.
Switching to a new energy-efficient hot water system in your home or business can help you:
- save money on your power bills in the long term by using less energy
- reduce maintenance costs with newer systems that are more efficient and reliable
- reduce your emissions and be an active part of helping NSW reach net zero by 2050.
How you can save money on a new hot water system
Unlike a rebate, this incentive is provided as an upfront discount in the quote provided to you for the installation of a new hot water system.
If you’re eligible, discounts can range between:
- $400 and $670 when you replace an electric water heater with an air source heat pump water heater
- $190 and $310 when you replace a gas water heater with an air source heat pump water heater.
The actual discount amount and final cost of your installation will vary depending on factors like:
- the installer you choose
- the location of your installation and the services provided which may include things like travel and transportation costs
- the model you choose to install
- the design of your home or work building which may influence the complexity of the installation and the need for any additional building work.
To find out your installation discount and get the best deal, we recommend comparing quotes from multiple installers who offer this incentive.
You may need to make a minimum payment towards the cost of your new hot water system and the installation services.
For more information about the discounts and incentives, read our FAQs.
How to access the incentive and install a new hot water system
Important information:
We want to ensure you are always protected. Before you begin, it’s important to know that as a consumer, you have basic rights when buying a product or service in Australia. These basic rights are called consumer guarantees and are protected under Australian Consumer Law. Visit the Australian Competition and Consumer Commission website to learn more.
Please also read our terms of service.
If you’re interested in installing a hot water system and taking advantage of this discount, you will need to work with an installer who is providing this incentive.
You should get multiple quotes from different installers to ensure you’re getting the best deal suited to your individual circumstances and needs. Make sure you ask each installer whether they’re offering this incentive and that the discount is included in the quote they give you.
Ways to find and choose an installer
Use a third-party comparison website
These third-party comparison websites can be used to find local installers, get quotes and compare products. They may also provide support to you throughout the quoting and installation process.
Energy Matters Solar Quotes Solar Choice
Important information about third-party comparison websites:
These comparison websites have been provided as a tool for searching for installers only. The listing of these comparison websites should not be considered as an endorsement of their services or a recommendation to use them. These comparison websites may be listed for an undetermined period, and we may remove them at any time. Comparison websites will be used at your own risk, it is your responsibility to find the right installer and quote that suits your specific needs and individual circumstances. The NSW Government does not take responsibility for any interactions or outcomes experienced by using comparison websites.
For other comparison websites interested in being listed on this website please contact us by emailing [email protected]
Contact local installers directly
You can find local installers by searching for them online, using business directories or getting recommendations from friends and family.
Use your own licensed tradesperson
If you’d like to use your own licensed tradesperson they will need to make a special agreement to do the work with an Accredited Certificate Provider (ACP). Accredited Certificate Providers can be found on the Independent Pricing and Regulatory Tribunal (IPART)’s website.
To choose which brand and model to install you should discuss with multiple installers what options are available to you in order to receive a discount. The installer can provide advice on what model is best suited for your circumstances.
While you can do your own research, it is important to note that not all hot water system models are eligible for this incentive.
Once you’ve chosen your hot water system, let your installer know so they can organise for it to be installed.
When deciding which hot water system is right for you it is important to know that a more energy-efficient model will provide you with a bigger installation discount and long-term savings on your energy use.
Your chosen installer will provide you with:
- a nomination form which must be signed and returned for them to secure the discount on your installation under this incentive. This must be completed before the installation begins as you won’t be reimbursed for work already completed.
- a quote detailing the work to be completed, the discount you will receive and the total cost.
You may also be required to provide documentation proving your eligibility to claim this discount.
Once you have completed the paperwork, you can proceed with the installation and receive your discount. If you have any issues or questions, contact your installer for assistance.
Set a date for installation with your chosen installer. A licensed plumber and/or electrician from your chosen installer will:
- install your new system
- show you how to use it
- safely dispose of or recycle your old hot water system
- assist with any issues for the duration of the product’s warranty. In some cases the warranty on parts may be provided by the equipment manufacturer and not the installer.
Who to contact if you have questions or issues
If you have any questions about the incentive or have issues with your installed hot water system, you should contact your installer. Alternatively, you can contact the Accredited Certificate Provider (ACP) listed on the nomination form you signed when agreeing to the installation.
If you are unable to resolve matters about the work you contracted to be done, you may seek the assistance of NSW Fair Trading. Complaints about unlicensed work or licensing matters may be referred to the Building Commission NSW.
If you are unable to identify the Accredited Certificate Provider or if you have concerns about the conduct of an Accredited Certificate Provider or their representatives with respect to this incentive, you should contact the scheme administrator, the Independent Pricing and Regulatory Tribunal (IPART).
Some frequently asked questions are answered here.
Installers wanting to participate
If you are an installer that wants to offer this discount to your customers under this incentive, you must be partnered with an Accredited Certificate Provider (ACP). These businesses work independently from the NSW Government and have been accredited by the scheme's administrator, the Independent Pricing and Regulatory Tribunal (IPART), to provide this incentive. Accredited Certificate Providers will also assist you with the incentive requirements.
If you are an installer looking to partner with an Accredited Certificate Provider operating in your area, Accredited Certificate Providers can be found on the Independent Pricing and Regulatory Tribunal (IPART)’s website.
Please contact [email protected] if you require further information.