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Solar Hot Water Rebate

The Australian Government is providing a rebate of $1,600 to help eligible home-owners, landlords or tenants replace their electric storage hot water systems with solar or heat pump hot water systems. This offer is part of the Government's $4 billion Energy Efficient Homes Package and it came into effect on 3 February 2009.

The $1,600 Solar Hot Water Rebate will help people save money on their power bills and reduce their household's greenhouse gas emissions. Water heating is the largest single source of greenhouse gas emissions from the average Australian home, accounting for around 28 per cent of home energy use (excluding the family car).

Installing a climate friendly hot water system can save a family up to $700 off their energy bills each year.

Further information

• Energy Efficient Homes Package - fact sheet for householders (PDF - 1.0 MB)
• Frequently asked questions

Eligibility requirements

The $1,600 Solar Hot Water Rebate is only available to people who have not already accessed support to install ceiling insulation through the Homeowner Insulation Program.

Full details of eligibility are provided in the Solar Hot Water Rebate guidelines. Key criteria are listed below.

Eligible systems

To be eligible for the rebate, a hot water system must:

• replace an electric storage hot water system
• be purchased and installed on, or after 3 February 2009
• be a solar or heat pump hot water system that is eligible for at least 20 Renewable Energy Certificates (RECs) at the time and place of installation
• be installed by a suitably qualified person (for example an electrician or plumber).

Eligible households

• An owner-occupier, landlord or tenant can apply for the rebate as long as the dwelling where the hot water system is installed is a principal place of residence.
• Government organisations are not eligible for the rebate.

How to apply

Important information

• Applying for the rebate is straightforward, simple and free.
• Only individuals aged 18 years and over who are the owner or tenant of the dwelling are eligible to apply.
• Only apply for the rebate after the system has been installed.
• The rebate is not available as a point of sale discount nor can a retailer, installer or commercial business apply for the rebate on behalf of their customers.
• To claim a rebate, the applicant will need to submit an application using the application form which is below. The application form is also included as part of the guidelines.
• An applicant has up to six months after an eligible system is installed to submit an Application Form. If you want to apply for a rebate on a system installed before 3 February 2009 see information about the previous rebate.
• The applicant should allow eight weeks for the application to be processed.
• An applicant must submit a copy of their purchase receipt with their application. No other supporting documentation is to be submitted with the application.
• The Solar Hot Water Rebate requires the applicant to agree that, if requested, they will provide evidence to support claims made in the application as part of an audit process to ensure the applicant has met all program guidelines. For example, proof of system installation or allowing an authorised representative access to your property may be requested at a later date.

Application information

Applicants should read all material and ensure they meet all eligibility requirements before applying.

• Download the Solar Hot Water Rebate guidelines and application form (PDF - 410 KB)
  (a booklet incorporating all documents and information you will need on the rebate)
• Download the Solar Hot Water Rebate guidelines and application form (RTF - 774 KB)

The applicant will need the following information:

1. Date of installation of your new solar or heat pump hot water system.
2. BSB Number - six digit number which identifies the bank/financial institution and branch where your bank account is held.
3. Bank Account Number where the rebate is to be deposited.

Application Form

You can apply by using the application form included in the guidelines or by downloading and printing the form below and sending it to:

Solar Hot Water Rebate
Department of the Environment, Water, Heritage and the Arts
GPO Box 787
Canberra ACT 2601

• Download the Solar Hot Water Rebate application form (PDF - 90 KB)
• Download the Solar Hot Water Rebate application form (RTF - 335 KB)

For more information you can also contact our national information line on 1800 808 571.

What is the role of the installer?

To be eligible for the rebate, a hot water system must be installed by a licensed electrician or plumber as required under standard regulations. The licensed installer must sign your application form verifying that:

• The system is a new and complete hot water system that replaces an existing electric storage hot water system previously operational at the dwelling.
• The system is eligible for at least 20 RECs at the time and place of installation.
• Installers are also required to provide other technical and installation details including the tank number of the new system and the installation date. Installers are aware of the process and have easy access to the information.

It should take no more than a few minutes for them to complete their part of the form.

We recommend you seek around three quotes to ensure you are getting the best value for your system.

Information for installers

Licensed plumbers and electricians have an important role in the rebate application process. Installers need to complete and sign part of their customer’s application form at the time the system is installed. Completing these parts of the application form is straightforward and only takes a few minutes. The information provided by installers is used by the Australian Government to verify certain eligibility requirements for the rebate.

• Download the factsheet for plumbers and electricians (PDF - 262 KB)

Renewable Energy Certificates (RECs)

Under the Mandatory Renewable Energy Target (MRET) - a scheme set up under Commonwealth law to promote the development of renewable energy - installation of solar and heat pump hot water heaters may be eligible to create Renewable Energy Certificates (RECs). While households can create and trade these certificates on their own, Registered Agents may create and trade RECs on behalf of households. Registered Agents will generally pay the household for the right to create RECs, meaning the cost of the hot water system to the household is reduced. This will provide additional cost reductions to eligible hot water systems.

To be eligible for the Solar Hot Water Rebate, a hot water system must be eligible for at least 20 RECs at the time of purchase at the installation address. A list of eligible systems is available in the Register of Solar Water Heaters.

Hot water system retailers can also advise you on the number of RECs assigned to a system.

More information about RECs is available on the Office of the Renewable Energy Regulator website:

• Renewable Energy Certificates  - Office of the Renewable Energy Regulator
• Solar Hot Water Heaters  - Office of the Renewable Energy Regulator

• Energy Efficient Homes Package Call Centre: 1800 808 571