Living sustainably

Energy Efficient Homes Package

Energy Efficient Homes Package

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 hot water systems with solar or heat pump hot water systems. This offer is part of the Government's $3.9 billion Energy Efficient Homes Package and it came into effect on 3 February 2009.

Systems that were installed before 3 February 2009 are not eligible for the $1,600 rebate, but they may be eligible for the previous Solar Hot Water Rebate.

The previous rebate provided $1,000 and was means-tested.

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 $300 to $700 off electricity bills each year.

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:

Eligible households

How to apply

Important information

Application information

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

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

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:

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.

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:

Solar Hot Water System