Heat Pump Hot Water Rebates WA 2026: Complete Guide to STCs and Savings

You know that sinking feeling when a repair quote lands on your desk and it is nearly half the price of a brand-new system? We founded Hot Water System Perth in 2021 specifically to help homeowners solve this dilemma, and often, the financial tipping point comes down to rebates when considering a heat pump hot water system.

From what we have seen in the field, understanding government incentives is usually the difference between patching up an old unit and upgrading to a modern, efficient solution.

The landscape for hot water rebates in Western Australia has shifted for 2026.

This guide breaks down exactly how the Small-scale Technology Certificates (STC) scheme works right now and how the numbers have changed for Perth residents this year.

What Are Small-scale Technology Certificates (STCs)?

Small-scale Technology Certificates (STCs) serve as the currency of Australia’s Renewable Energy Target scheme. You generate these certificates when you install an eligible renewable energy system, such as a heat pump or solar hot water unit.

Each certificate represents one megawatt-hour of electricity displaced by your new system over its lifetime.

Buying a system essentially allows you to “mint” these certificates based on its efficiency.

Large electricity retailers are required by law to buy these certificates to meet their renewable energy obligations.

We handle this trade for you in almost every residential case.

Instead of handing you a stack of digital certificates to sell, the industry standard is to trade them on your behalf and apply the value as an immediate Point-of-Sale (POS) discount on your invoice.

The 2030 Phase-Out Factor

It is critical to understand that the STC scheme is designed to slowly expire.

The number of certificates you receive is based on a “deeming period,” which refers to the expected years of energy generation remaining until 2030.

For installations in 2026, the deeming period has dropped to 5 years.

This means a system installed today generates fewer certificates—and a smaller rebate—than the exact same system installed last year.

How Much Can You Save in 2026?

The specific dollar value of your rebate is not a flat rate.

It fluctuates based on three main technical factors that we calculate for every quote.

1. System Efficiency (COP)

The Coefficient of Performance (COP) measures how much heat a pump produces for every unit of electricity it consumes.

A standard electric element has a COP of 1.0 (1kW in, 1kW heat out).

High-quality heat pumps, like the ones we often recommend, can achieve a COP of 4.0 or higher.

Higher efficiency ratings result in a higher calculation of “displaced energy,” which directly translates to more STCs and a larger discount.

2. Installation Location (Zone 3)

Your geographic location determines the solar radiation and ambient air temperature assumptions used in the formula.

Perth falls into Zone 3.

This zone generally receives a moderate number of certificates compared to the tropical Zone 1, but it is still high enough to make the rebate substantial.

3. Current Market Price

The value of a single STC is traded on an open market, typically hovering between $38 and $40 AUD.

While the price is relatively stable, a drop of even two dollars per certificate can change your final price by over $50.

Estimated Rebate Values for Perth (Zone 3)

System Type	Efficiency	Est. STC Count (2026)	Approx. Rebate Value
Standard Heat Pump	Medium COP (~3.0)	~19 - 22	$720 - $880
Premium Heat Pump	High COP (~4.0+)	~24 - 28	$910 - $1,100
Solar (Roof Mounted)	Electric Boost	~20 - 25	$760 - $950

Note: These figures are based on a $38 STC price and the 2026 deeming period multiplier.

Eligibility Requirements

To ensure your installation qualifies for these savings, strict compliance standards must be met.

We ensure every job ticks the following boxes to prevent any rebate rejection.

System Standards

• Approved Products: The heat pump must be listed on the Clean Energy Regulator’s register of solar water heaters.
• Australian Standards: The unit must comply with AS/NZS 4234 for heated water systems.
• Capacity Limits: The tank capacity generally must not exceed 425 litres for a single residential certificate application.

Installation & Trades

• Licensing: The work must be performed by a fully licensed plumber and electrician.
• Compliance: You must receive a valid Certificate of Compliance (electrical and plumbing) after the job is done.
• Replacement Rule: Generally, you are free to replace an existing gas or electric system, but the new unit must be a complete system, not just a replacement tank or compressor.

How to Claim STCs

Homeowners in Perth typically have two pathways to access these funds, but one is significantly easier than the other.

Option 1: Point-of-Sale Discount (Industry Standard)

This is the method we use for 99% of our customers.

You sign a form assigning the right to create the STCs to us or an aggregator.

We then deduct the full value of those certificates from your quote immediately.

This approach means you pay the lower “net price” upfront and do not have to worry about trading accounts or market fluctuations.

Option 2: Self-Claiming (The Hard Way)

You technically have the right to register, create, and sell the certificates yourself through the REC Registry.

However, this process is rarely worth the effort for a single residential system.

• You must pay a registration fee to the Clean Energy Regulator.
• You must find a buyer for a small number of certificates.
• You wait weeks for the transaction to clear.

Given the fees and time involved, you might end up with less money in your pocket than if you took the upfront discount.

Maximizing Savings Beyond the Rebate

While the STC rebate lowers the purchase price, the real financial win comes from how you run the system.

Synergy “Midday Saver” Rates

Western Australia’s energy market offers specific advantages for heat pump owners.

Synergy’s Time of Use (TOU) tariffs, specifically the Midday Saver plan, offer extremely low electricity rates (often around 8 cents per unit) between 9:00 AM and 3:00 PM.

We recommend setting your heat pump’s timer to run exclusively during this window.

This strategy acts like a “thermal battery,” storing cheap energy as hot water for you to use later in the evening.

The “Solar Soak” Strategy

If you have rooftop solar panels, a heat pump is the most efficient way to utilize your excess generation.

Instead of exporting power to the grid for a low feed-in tariff, you divert that power into your hot water tank.

This effectively gives you free hot water year-round.

Getting the Maximum Benefit

Making the right choice now can save you thousands over the next decade.

Here is our checklist for securing the best value:

1. Check the Deeming Period: Remember that delaying your purchase until 2027 will reduce the rebate value again.
2. Verify the COP: Ask for the technical spec sheet and look for a Coefficient of Performance above 4.0 for Perth’s climate.
3. Request the “Net” Price: Ensure your quote clearly shows the total system cost minus the STC rebate so you know exactly what you are paying.
4. Hire Local Experts: Choose installers who know the specific plumbing configurations common in WA suburbs.

Common Questions About Rebates

Does the rebate apply if I switch from gas?

Yes, replacing a gas storage or instantaneous unit with an eligible heat pump qualifies for the full STC rebate.

Can I claim rebates for repairing my old heat pump?

No, the STC scheme is strictly for the installation of new, complete systems.

Replacing a compressor or a tank individually does not generate new certificates.

Will the rebate amount increase in the future?

It is highly unlikely.

The scheme is legislated to phase out, meaning the multiplier drops every January 1st until it hits zero in 2030.

Do I pay tax on the rebate?

No, the STC benefit is provided as a point-of-sale discount, so it is not considered taxable income for residential homeowners.

Next Steps

If you are tired of high energy bills or facing a costly repair on an old unit, 2026 is the time to make the switch before the incentives drop further.

We provide free onsite assessments for Perth Metro homeowners to help you understand exactly how much you can save.

Contact us to discuss which high-efficiency system suits your home and receive a transparent quote with all current rebates applied.