The position in Western Australia, plainly
Western Australia does not run a state rebate for hot water systems. There is no WA equivalent of the schemes some eastern states operate.
What does apply here is federal: the Small-scale Renewable Energy Scheme, administered by the Clean Energy Regulator, which issues Small-scale Technology Certificates for eligible solar and heat pump hot water systems.
That is the mechanism that reduces the upfront cost of an efficient system in Perth. It is worth understanding, because it is substantial, and because it is where the confusion usually sits when people compare quotes. If you are still deciding between technologies, read heat pump versus solar hot water first.
What an STC actually is
A Small-scale Technology Certificate represents one megawatt-hour of electricity either generated or displaced by an eligible renewable system over its deemed lifetime.
When you install an eligible heat pump or solar hot water system, a number of certificates are created based on the model’s deemed savings compared to a conventional electric system, and the climate zone the installation is in. Those certificates have a market value, and that value is what becomes your discount.
For hot water in Perth, the practical result is typically a reduction of $800 to $1,500 or more. The exact figure depends on:
- The model. More efficient systems displace more electricity and therefore generate more certificates. A high-CoP CO2 split system generates more than an entry-level unit.
- The climate zone. Perth’s zone affects the deemed calculation.
- The certificate market price. STCs trade, and the price moves. It is generally stable but not fixed.
- The deeming period. The number of years of savings counted reduces as the scheme approaches its scheduled end, which means the value gradually declines over time.
That last point is worth noting. The scheme is scheduled to wind down, and the deeming period shortens each year. The rebate on the same system is generally worth more this year than next.
How it is applied
There are two ways STCs get handled, and the difference matters.
Assigned to the installer, deducted upfront. You assign the right to create the certificates to us as part of the installation. We handle the creation and registration, and deduct the value from your quote. The price you are quoted is the price you pay, with no separate claim, no waiting period and no paperwork on your side. This is how we do it.
Created and sold by you. Technically possible, but it means registering, creating the certificates yourself, and selling them into the market. Almost nobody does this for a single hot water system, because the administrative effort outweighs any difference in realised value.
When comparing quotes from different providers, check whether the figure includes the rebate or not. A quote showing $4,200 before STCs and one showing $3,000 after STCs may be the same system at the same price. Ask directly.
Eligibility requirements
Not every system qualifies. In broad terms:
The model must be listed. The heat pump or solar system needs to appear on the Clean Energy Regulator’s register of eligible products. Most mainstream brands sold in Australia are, but not every model.
It must replace or displace an eligible system. The scheme is designed to encourage displacement of conventional electric water heating.
Installation must meet the required standards. Installed by an appropriately qualified and accredited installer, to the relevant Australian Standards, with the correct documentation.
Documentation must be accurate. Serial numbers, installation date, address and installer details all need to be correct and verifiable. Certificate creation is audited.
We check eligibility before quoting, so you know what the rebate is worth on the specific system before you commit.
Does it change the decision?
Frequently, yes.
Consider a household replacing an ageing electric storage tank. Like-for-like replacement might be $1,600 installed. A heat pump might be $3,800 before rebate. That is a meaningful gap.
Apply an STC discount of, say, $1,200 and the heat pump lands closer to $2,600. Now compare running costs: the heat pump uses roughly a third of the electricity for the next decade on a load that is a quarter of the household energy bill. The payback on the remaining difference is short.
That is the calculation the rebate is designed to shift, and in our experience it is the single factor that moves most Perth households from a like-for-like replacement to an efficiency upgrade.
Rebate amounts, eligibility rules and deeming periods are set by the Clean Energy Regulator and change over time. We confirm the current position at the time of quoting. See our heat pump hot water page for system options, or get a free quote with the rebate already applied.