Government rebates are a great way to save money on your upfront costs when choosing and installing a hot water heat pump. In this blog we provide an overview of the federal and state rebate programs and the rebates that are available for our range of European domestic hot water heat pumps (DHW heat pumps).

Upgrade to a Market-Leading Domestic Hot Water Heat Pump for Less with Government Rebates

If you’re replacing an old electric or gas hot water system, or looking for the best heat pump, choose a German-engineered DHW heat pump that you can trust to deliver market-leading performance, reliability and durability, plus up to 70% annual energy savings.

Types of Hot Water Heat Pump Rebates Available

Federal Grants: What are the Nationally Available Small-scale Technology Certificates (STCs)

Small-scale Technology Certificates (STCs) are a federal scheme of tradable environmental credits awarded after installing eligible renewable energy systems, such as the Viessmann Vitocal 161-A DHW Heat Pump. These certificates help you to significantly reduce your upfront costs, helping you to purchase the best technology with the lowest environmental impact for less.  

As part of Australia’s commitment to gradually phase out the Small-scale Renewable Energy Scheme (SRES), the number of Small-scale Technology Certificates (STCs) allocated each year continues to decline. This reduction reflects the government’s long-term strategy to transition toward large-scale renewable initiatives. Below is the updated allocation table for 2024 to 2026.

Below is our quick guide to the savings that you can make. To accurately calculate the number of STCs that can be created for an installation, please contact or visit the the Clean Energy Regulator.

State Grants and Rebates for Hot Water Heat Pumps

Victorian Energy Efficiency Certificates (VEECs)

Victorian homeowners can access extra savings through the Victorian Energy Upgrades (VEU) program. Victorian Energy Efficiency Certificates (VEECs) are awarded when replacing old hot water systems with our high-efficiency heat pumps. Each VEEC (certificate) represents one tonne of carbon dioxide equivalent abated by your approved system that is delivering the energy saving activity. For more information on VEECs and the VEU Click Here.

These state incentives combine with Federal STCs to maximise rebates, making it even more affordable to upgrade to the best hot water heat pump and future-proof your home.

Solar Victoria Hot Water Rebates

Through Solar Victoria, households in Victoria may be eligible for a rebate of up to $1,000 when replacing an existing hot water system that is at least three years old. To check eligibility requirements and for more details, Click here.

VEU Gas Subsidy

Eligible households across Victoria that have gas hot water systems can transition to an approved product and claim VEECs. For more information Click Here.

New South Wales Energy Savings Certificates (ESCs)

Like the VEECs, if you are an NSW homeowner, you may qualify for Energy Savings Certificates (ESCs), which are a part of the NSW Energy Saving Scheme (ESS) and that supplement the Federal STC rebates. This extra support makes switching to a Viessmann system a smart, cost-effective, and environmentally responsible choice. For more information on ESCs, go to the ESS website Click Here

Energy Savings Certificates (ESCs) are awarded based on the energy saved when you invest in an approved energy-saving activity in New South Wales.

ESCs are available when a Viessmann domestic hot water heat pump replaces:

✅  An existing electric storage tank or electric instantaneous water heater (D17), or

✅  An existing gas storage tank or gas instantaneous water heater (D19)

To claim ESCs, your installer must work with an Accredited Certificate Provider (ACP) who manages the creation and trading of certificates. Accredited Certificate Providers (ACPs) are able to create and trade ESCs on the certificate market. Most installers will coordinate this for you, but it’s important to confirm they are partnered with a registered ACP under the NSW Energy Savings Scheme.

Queensland Climate Smart Energy Savers Rebate

Eligible Queenslanders can now access Climate Smart Energy Saver rebates when replacing old appliances with 4-star rated (or higher) models and energy-efficient hot water systems.

For heat pump hot water systems, rebates include:

✅  $800 Standard Rebate – available to all eligible Queensland households

✅  $1,000 Low-Income Rebate – available to households with lower annual income

These rebates make it easier and more affordable to upgrade to sustainable, energy-efficient solutions. For more information, click here

Queensland Business Energy Saving and Transformation Rebate

The QBEST Rebates scheme supports small and medium-sized Queensland businesses to upgrade to energy-efficient equipment — including heat pump hot water systems when replacing old electric or gas storage units. Eligible businesses can access rebates of up to $12,500 towards the purchase (and installation, if required) of qualifying energy-efficient equipment. This program makes it easier for businesses to cut costs, lower emissions, and transition to sustainable energy solutions. For more information, click here

Homeowner Quick Guide to Benefitting from Hot Water Rebates  

Check eligibility:

✅ Check that the heat pump that you are replacing your existing electric or gas water heater with is approved.

✅  Check your property location and system size determine the STC count; VIC/NSW/QLD may add extra rebates.

Get a Quote with Rebates Applied:

✅  Ask for a line-item quote showing STC, VEEC/ESC/QLD rebates, and any other rebate deductions.

Install and Lodge Certificates:

✅  Your installer (or their partner) submits documentation to create STCs and relevant state certificates within required timeframes.

Start Saving:

✅  Enjoy lower running costs and lower emissions from day one.

Hot Water Rebate FAQs 

Do Rebates Vary by Location?

Yes. STC counts depend on your STC Zone, and state incentives differ between states.

Can I Combine (stack) Incentives?

In many cases, yes. For example, STCs + VEECs in Victoria, or STCs + ESCs in NSW, or STCs + Queensland rebates (see above). Program rules apply.

Who Claims the Certificates?

Usually your installer or supplier handles creation and trading of STCs/VEECs/ESCs on your behalf (NSW requires an ACP).

How Much Will I Save?

Savings depend on certificate prices (which change daily), your location, and the system installed. Request a tailored quote.

Important Notes and Disclaimer

✅  Certificate values (STCs, VEECs, ESCs and Queensland rebates) fluctuate with the market and may change daily.

✅  Eligibility, evidence requirements, and approved product lists are set by each scheme and may be updated.

✅  STCs must be created within 12 months of installation.

✅  State rebates are subject to program rules, funding limits, and approval.

✅  Always verify current values and rules before purchase and ensure your installer is properly accredited for the relevant scheme.

Got Questions? Get in Touch 

If you are looking to buy or replace your hot water heat pump and have any questions, get in touch with our team today.