Heat Pump Hot Water Rebates in WA: How to Claim STCs in 2026

If you have been looking into a heat pump hot water system for your Perth home, the conversation almost always turns to rebates.

Conflicting information about government incentives is something we encounter daily.

The Small-scale Technology Certificate (STC) scheme is the primary mechanism that reduces the upfront cost of these energy-efficient units.

We want to clear up the confusion regarding how this works in 2026.

Here is the practical breakdown of the savings you can expect and the specific eligibility rules for Western Australia.

What Are STCs?

Small-scale Technology Certificates (STCs) function as a distinct form of currency within Australia’s Renewable Energy Target.

When you install an eligible renewable energy system, such as a heat pump, you are essentially “creating” renewable energy or displacing fossil fuel usage.

The government quantifies this benefit into certificates.

Each STC represents one megawatt-hour (MWh) of electricity that your new system will displace over its lifetime.

Energy retailers are legally required to buy these certificates to prove they are supporting renewable energy.

This demand gives the certificates a monetary value, which installers claim on your behalf to lower your invoice immediately.

Why The Value Changes

The value of a single STC is not fixed by the government.

It trades on an open market, typically hovering between $36 and $39.

The exact discount you receive depends on market supply and demand at the moment your system is installed.

How Much Is the Rebate Worth in 2026?

The financial landscape for STCs shifts slightly every year due to the “deeming period,” which we will explain shortly.

For a standard heat pump hot water installation in Perth during 2026, the rebate value generally sits between $800 and $1,150.

Three main factors dictate your final number:

1. System Efficiency (COP): More efficient units generate more certificates.
2. Tank Size: Larger capacities usually displace more electricity usage.
3. Climate Zone: Perth is classified as Zone 3, which receives a specific multiplier compared to cooler or warmer regions.

Estimated 2026 Rebate Values (Zone 3)

The following table outlines what we are currently seeing for standard residential installations in Western Australia.

Values are estimates based on a market price of $37 per STC. Prices change frequently.

The “Deeming Period” Drop: Why Waiting Costs Money

There is a critical detail that many homeowners miss.

The Small-scale Renewable Energy Scheme is designed to phase out gradually by 2030.

Every year on January 1st, the “deeming period”—the number of years you can claim certificates for—reduces by one year.

This means a system installed in 2026 attracts fewer certificates than the exact same system did in 2025.

We advise customers that delaying an installation until next year will result in a guaranteed drop in the rebate value, regardless of market prices.

If you are on the fence, 2026 is better than 2027.

How the Process Works

Our goal is to make the administrative side invisible to you.

Most homeowners do not have the time or certification to trade on the commodities market, so the industry uses a streamlined assignment process.

Step 1: Selection and Assessment

You choose a system that is listed on the Clean Energy Regulator’s register of approved devices.

We verify that the unit suits your household size and meets the Zone 3 efficiency requirements.

Step 2: Compliant Installation

A licensed plumber and electrician must install the unit.

Since late 2024, the regulator has strictly enforced “geo-tagging” requirements.

Installers must take time-stamped, GPS-located photos of the installation to prove it exists and complies with standards.

Step 3: STC Assignment

Once the job is done, you sign a specific legal document called the STC Assignment Form.

This document legally transfers the rights to the certificates from you to the installer or aggregator.

Step 4: Point-of-Sale Discount

The rebate is applied as a direct credit on your final invoice.

You only pay the “net” price, meaning you never have to chase a reimbursement check or deal with government portals.

What We Handle

We take on the compliance risk so you don’t have to.

Managing STCs requires strict adherence to federal guidelines, and mistakes can lead to the regulator rejecting a claim.

Our team manages the following steps:

• Verification: Confirming the property has not already claimed STCs for a similar system recently.
• Calculation: Determining the exact certificate yield for your specific hardware.
• Submission: Filing the geo-tagged evidence and serial numbers with the registry.
• Trading: Selling the certificates to aggregators to fund your discount.
• Pricing: Locking in your rebate value at the time of quote to protect you from market dips.

Detailed Eligibility Requirements

The government does not hand out these certificates for every hot water upgrade.

Strict criteria ensure that the subsidy only supports genuine energy reduction.

System Standards:

• Product Registry: The specific model number must be active on the Clean Energy Regulator’s register.
• Capacity Limits: The tank size generally cannot exceed 425 litres for a single residential certificate application.
• New Components: You cannot claim STCs on second-hand units or refurbished parts.

Installation Standards:

• Licensing: The work must be performed by tradespeople holding valid WA plumbing and electrical licenses.
• Standards: The setup must comply with AS/NZS 3500 (Plumbing and Drainage) and AS/NZS 3000 (Wiring Rules).

Property Criteria:

• Replacement or New: You can claim this for a brand new build or when replacing an old gas or electric system.
• Timeline: The STC assignment form must be signed within 12 months of the installation date.

State vs Federal Rebates: The WA Context

Western Australia differs significantly from states like Victoria or New South Wales regarding local incentives.

Confusion often arises because national news outlets discuss “state rebates” that do not apply here.

The Federal Scheme (Available in WA)

The STC incentives described in this guide are federal.

This means they apply to every eligible installation in Perth and regional WA automatically.

The State Situation (No Double Dipping)

As of 2026, the Western Australian state government does not offer a standalone cash rebate for heat pump hot water systems on top of the federal STC scheme.

Previous initiatives or pilot programs have concluded.

You should be wary of any door-knocker or cold caller promising “free hot water” based on a new state government program; these are often misleading sales tactics.

Comparing Heat Pump and Solar Hot Water Rebates

Solar thermal systems (panels with a tank on the roof) and heat pumps (compressor units on the ground) both generate STCs.

The rebate values are surprisingly similar, though the technologies differ.

While the rebates are close, the installation costs often differ.

Heat pumps generally require less labor to install than roof-mounted solar thermal systems, often resulting in a lower net price for the customer.

Common Questions About Heat Pump Rebates

Can I claim the rebate myself to get the cash?

Technically, yes, but we strongly advise against it.

To do this, you must register as an agent with the Clean Energy Regulator, pay a creation fee, prove compliance, and then find a buyer on the spot market.

Most homeowners find the administrative burden and delay are not worth the effort compared to an immediate invoice discount.

Does my income level affect eligibility?

No, the STC scheme is not means-tested.

It is based entirely on the estimated energy savings of the hardware, not your household income or pension status.

What if I am replacing a broken heat pump?

You are still eligible for STCs.

The scheme incentivizes the installation of a new, efficient unit, even if it replaces an older unit of the same type.

How do I know the installer is honest about the rebate?

Transparency is key in this industry.

Your quote should clearly show the “Gross Price” (full cost) and the “STC Incentive” as a separate line item deduction.

Maximising Your Benefit

Size Correctly

Bigger is not always better for your wallet.

While a 315L system gets more rebate dollars than a 200L system, the upfront cost difference usually outweighs the extra rebate.

We recommend sizing for your actual water usage rather than chasing a slightly higher certificate count.

Combine with Solar PV

Using a heat pump becomes even more economical if you have rooftop solar panels.

By setting the unit’s timer to heat water between 10:00 AM and 2:00 PM, you effectively run the system for free.

This operational saving often dwarfs the initial rebate value over the life of the system.

Example Quote Breakdown

Seeing the numbers in a real-world context helps clarify the value.

Here is a representative breakdown of how a quote comes together for a standard 4-person family home in Perth.

Note: This is an example only. Installation complexity and hardware choices will vary.

Ready to Claim Your Rebate?

Navigating government incentives should not be a headache.

We provide clear, itemized quotes that show you exactly how much the federal scheme is contributing to your new system.

Contact us today to get an assessment of your home’s needs and a precise calculation of your 2026 rebate entitlements.