Upgrade your hot water system | NSW Climate and Energy Action

You can access discounts to lower the cost of switching to a new energy-efficient hot water system.

Switching to a new energy-efficient hot water system in your home or business can help you:

use less energy and unlock long-term cost savings on heating water in your home
use less water and reduce maintenance costs with newer systems that are more efficient and reliable
reduce your environmental footprint and be an active part of reaching net zero by 2050.

How you can save money on a new hot water system

Unlike a rebate, the discount on the installation cost of your hot water system is provided as an incentive. The incentive is paid directly by an accredited supplier, known as an Accredited Certificate Provider (ACP), who will pass on the discount to you. The accredited supplier is the business you choose to work with to install your new air conditioner.

If you’re eligible, incentives could 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.

Your discount is set by the accredited supplier and may be different to the incentive amount.

These upfront incentives are in addition to the long-term lower operation costs of a more energy-efficient appliance.

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 the right to hold certain expectations when buying a product or service from a business. 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.

Step 1: choose an accredited supplier

Contact an accredited supplier to organise a home or business assessment to check your site’s suitability and your eligibility. Once this is done, the accredited supplier will provide you with a quote.

It’s a good idea to get quotes from more than one supplier to get the best deal and product for your home or business.

To find an accredited supplier:

find out which region your postcode is in by checking this list
select one operating in your region from our accredited supplier list on this page.

Important information:

Unfortunately, not all regions will have accredited suppliers operating in them. Accredited suppliers, or ACPs, work independently from the NSW Government. They choose which areas they operate in and what products and services they can offer.

We are working to increase the number of accredited suppliers working in more regions and improve how we connect you with them.

Step 2: choose a hot water system

Because every home and business is different, it’s important to choose the hot water system that best suits your water heating needs. 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 discount.

To choose which brand and model to install you can:

do your own research and make your own decision, or
talk to your accredited supplier who can provide advice and help you choose.

Once you’ve chosen your hot water system, let your accredited supplier know so they can organise for it to be installed.

Important information:

You may need to make a minimum payment towards the cost of your new hot water system and the installation services. The final cost will vary depending on:

the model you choose to install
the design of your home which may influence the complexity of the installation and the need for any additional building work
the services provided which may include things like travel and transportation costs.

Step 3: complete a nomination form

Once you’ve chosen your accredited supplier and the hot water system that suits your needs, the accredited supplier will give you a nomination form to complete before any work begins.

Important information:

You must sign and return the nomination form before your installation begins because you won’t be reimbursed for work already completed.

Step 4: organise your installation

Once you have completed the nomination form, you and your accredited supplier will book an installation date. Either you or your accredited supplier’s licensed plumber and/or electrician will:

install your new system
show you how to use it
safely dispose of or recycle your old hot water system.

If you’d like to use your own licensed electrician and/or plumber, they will need to make a special agreement to do the work with your accredited supplier.

Who to contact if you have questions or issues

If you have any questions about the hot water upgrade incentive or have issues with your recently installed hot water system, you should contact your accredited supplier directly.

If you are having any issues when dealing with an accredited supplier or a licensed technician, you should contact the Independent Pricing and Regulatory Tribunal (IPART) to make a complaint by emailing [email protected].

For more information, including how to make a complaint, visit IPART’s FAQs website.