It’s been more than a decade since the federal government announced plans to phase out old school electric hot water systems. Some say that’s sluggish government, but a deeper dive finds that the gas, formerly considered the go-to in eco-tech has been eclipsed by developments in two key areas: Solar Hot Water installations and Heat Pump Hot Water installations. In a complete backflip on its promise to phase out electric hot water, the federal government now includes both new solar and heat pump installations in its financial incentives under the Small Scale Technology Certificate Scheme.

Solar Hot Water

To qualify for a STC credit (usually paid as a discount on your hot water installation cost) you must be installing new solar panels for water heating. This means that consumers and businesses that took advantage of previous solar rebates will not qualify for the STC rebates.

Heat Pump Hot Water

Heat pumps are the hot new(ish) item in hot water systems. Drawing heat from the air around them, heat pumps are by far the most efficient water heaters on the market. They’re also the most expensive. All new heat pump installations qualify for the STC rebate but they will still cost more than your average system at set up. They do however, save up to 80% on water heating bills, recouping the additional expense long before their predicted replacement date. Heat pump hot water systems work most efficiently above 21 degrees, making them absolutely ideal for most Australian cities.

Solar Powered Heat Pump Hot Water

If you don’t qualify for the STC scheme because of existing solar panels, using your solar system to power your heat pump hot water system in the cooler months will double down on your electricity savings. Your heat pump will still qualify you for the STC scheme but you may not qualify for as many credits as you would with both new installations.

Australia’s most efficient heat pump water heaters

Water heating efficiency is measured in Coefficient of Performance – high efficiency, low energy use. The most efficient CoP ratings for ambient heat pump hot water are a whopping 4 – 6+. So what are Australia’s best heat pump hot water systems for Brisbane, Darwin and other warmer environments?

Sanden Heat Pumps

Rheem Water Heat Pumps

Reclaim Heat Pump Hot Water

Apricus Heat Pump Hot Water

How to apply for your STC

For domestic applicants, the news is good. Your local plumber “transfers” your certificate credits to their business, paying you out the dollar amount in a rebate or as an installation discount. Depending on the solar or heat pump hot water system you choose, that could be up to a thousand dollars in rebates. The plumbing firm must then complete the paperwork to be reimbursed for your new water heater system. You have to do…nothing.