Installing a heat pump hot water system in Perth? You could save over $1,000 through government incentives. Here’s everything you need to know about rebates available to Western Australian homeowners.
Understanding STCs (Small-scale Technology Certificates)
We have seen confusion around “rebates” lately because, technically, the federal Small-scale Renewable Energy Scheme (SRES) isn’t a cash-back offer. Instead, it provides an upfront point-of-sale discount based on “certificates” (STCs). In 2026, the number of certificates you receive is calculated on the energy your system will save over the next five years (the remaining deeming period).
How STCs Work in 2026
- Certificates are created based on your system’s efficiency and Perth’s climate zone (Zone 3).
- Certificate value fluctuates daily based on the spot market (currently averaging $37.00 - $38.50 per certificate).
- You assign certificates to your installer via a legal form.
- The discount is applied immediately to your invoice.
Current STC Values for Perth
Perth falls in Zone 3 for STC calculations. Because the scheme phases out in 2030, the “deeming period” dropped to 5 years on January 1, 2026. Here is what that looks like in real dollar figures for a typical installation:
| System Size | 2026 Certificates (Approx.) | Est. Discount (@ $38/STC) |
|---|---|---|
| 270L (Typical 3-4 Person) | 22 - 24 STCs | $836 - $912 |
| 315L (Typical 4-5 Person) | 24 - 27 STCs | $912 - $1,026 |
| 400L+ (Large Family) | 28 - 32 STCs | $1,064 - $1,216 |
Values estimated for 2026. Actual amounts depend on the specific model’s efficiency rating and the live market price of certificates.
Eligibility Requirements
To qualify for STCs on a heat pump hot water system, you must meet strict criteria. Our team often sees applications delayed because of simple oversights, so check this list carefully.
Property Requirements
- ✅ Residential property: Must be an existing dwelling (owner-occupied or rental).
- ✅ Replacement rule: You must be replacing an existing electric, gas, or solar hot water system.
- ✅ Licensed installation: The system must be installed by a licensed plumber with specific solar accreditation.
- ✅ Compliance: The installation must meet WA plumbing standards, including the mandatory installation of a tempering valve to limit bathroom water temperature to 50°C.
System Requirements
- ✅ Clean Energy Regulator Approved: The specific model must be on the current Register of Solar Water Heaters.
- ✅ New System Only: Second-hand or refurbished units get zero rebate.
- ✅ Minimum Capacity: The tank size must be appropriate for the dwelling’s load.
The “Noise Trap” (Crucial for Perth Homes)
New installations must comply with the Environmental Protection (Noise) Regulations 1997. In residential Perth areas, noise at your neighbour’s boundary generally cannot exceed 45 dB(A) after 10 PM.
- The Risk: Buying a cheaper, loud unit (50dB+) and placing it near a fence line can lead to council orders to remove it.
- The Fix: We recommend “whisper quiet” models like the Reclaim Energy (CO2) or iStore units, or installing a timer to ensure the compressor only runs during the day.
Comparing Top Heat Pump Brands
Choosing the right hardware is just as important as the rebate. We often compare these two top contenders for Perth homeowners:
| Feature | Reclaim Energy (Premium) | iStore (Best Value) |
|---|---|---|
| Refrigerant | CO2 (R744) - Eco Friendly | R290 (Propane) - High Efficiency |
| Noise Level | Ultra Quiet (37dB) | Quiet (48dB) |
| Warranty | 15 Years (Tank), 10 Years (Unit) | 5 Years (Tank & Unit) |
| Best For | Tight spaces near neighbours | Budget-conscious families |
How to Claim Your Rebate
Most Perth installers, including us, handle the STC process for you. This means you do not need to trade certificates yourself.
The Standard Process
- Get quotes from licensed installers who itemise the STC discount.
- Select your system (ensure it uses R290 or CO2 refrigerant for future-proofing).
- Sign the STC Assignment Form on the day of installation.
- Pay the “Gap”: You only pay the final price (Quote minus Rebate).
- Installation proceeds with a Certificate of Compliance issued afterwards.
What You Need to Provide
- Proof of ownership (Rates notice).
- Photos of your existing hot water system (to prove it’s a retrofit).
- Clear access path for the installers.
Timeline
- Quote to installation: Typically 3-7 days.
- STC processing: Instant discount at point of sale.
- Plumbing Certificate: Issued within 5 days of completion.
Maximising Your Savings
The rebate is just the start. You can reduce your running costs to under $0.50 a day by tweaking how you use the system.
The “8-Cent” Power Hack
If you are with Synergy, switch to the Mid-Day Saver tariff. This plan offers a “Super Off-Peak” rate of approximately 8.4 cents per kWh between 9 AM and 3 PM.
- Action: Install a simple timer on your heat pump.
- Setting: Program it to run only between 10:00 AM and 2:00 PM.
- Result: You heat your water for pennies while the air temperature is highest (making the heat pump most efficient).
Combining with Solar PV
If you have rooftop solar, your hot water becomes effectively free. By running the heat pump during peak solar production (11 AM - 2 PM), you use your own excess energy instead of exporting it for a low feed-in tariff.
Future Incentive Changes
The STC scheme is legislated to end in 2030. Every year on January 1st, the “deeming period” reduces by one year, which lowers the rebate value.
| Year Installed | Deeming Period | Approx. Value Drop |
|---|---|---|
| 2025 | 6 Years | (Baseline) |
| 2026 | 5 Years | ~16% Drop |
| 2027 | 4 Years | ~33% Drop |
| 2028 | 3 Years | ~50% Drop |
Key takeaway: Waiting until 2027 will cost you roughly $200-$300 in lost rebates.
Common Questions About Rebates
Do I get a rebate if I’m replacing gas hot water?
Yes. Replacing a gas storage or instant system with a heat pump is one of the most common upgrades we perform. It qualifies for the full STC entitlement.
Can landlords claim the rebate?
Yes. As long as the property is an existing residential dwelling, landlords can claim the rebate. You will need to sign the assignment form remotely if you cannot be on-site.
Is there a rebate for solar hot water too?
Yes, traditional roof-mounted solar hot water systems also get STCs. However, many homeowners now prefer heat pumps because they don’t require roof reinforcement and offer better efficiency in winter.
What if I’m building a new home?
New builds generally do not qualify for the replacement aspect of STCs in the same way, as the system is often counted towards the home’s 6-star energy compliance. Ask your builder specifically if they are claiming the STCs or if you can.
Do I need to apply for the rebate myself?
No. The “assignment” model means the installer does the paperwork. You simply sign the form allowing us to claim the certificates, and we give you the money as an upfront discount.
Get Your Rebate Quote
Want to know exactly how much you’ll save? Contact us for a free assessment. We’ll calculate your STC entitlement based on:
- Your current hot water system.
- Recommended replacement size.
- Current 2026 certificate values.
Call 08 7666 2806 or request a quote online. We handle all the rebate paperwork - you just enjoy the savings.
