What is the Solar Hot Water Rebate?

The Solar Hot Water Rebate is a component of the Australian Government's Energy Efficient Homes Package.  Applicants who replace an existing electric storage hot water system with a solar or heat pump hot water systems may be eligible for the rebate. The rebate is designed to assist with the up-front cost barriers to climate friendly systems, which also deliver low operating costs for the household.  Rebates are not available for replacing older solar or gas hot water systems.

Is the solar rebate means tested?

No it isn't! If you are a low income earner of pensioner you may be eligible for an increased rebate. 

Who can apply for the solar rebate?

Owners or tenants of the home where the system is being installed can apply. The application process is simple and straightforward and is completed at the time the new hot water system is being installed.  Government agencies or occupants of public housing are not eligible for this rebate.  Home owners that have already accessed assistance to install ceiling insulation under the Homeowner Insulation Program are not able to apply.

Can I apply for the solar rebate if I am renting?

Yes. The applicant can be the owner or the tenant living in dwelling.  A tenant should not install a system without approval from the owner of the dwelling.

Are rebates available for new homes or those which are rebuilt?
In order to maximise the environmental outcomes of the rebate, solar hot water systems installed on new houses are not eligible for the rebate. In comparison to existing housing stock, new homes are generally more energy efficient. The Australian Government provides an incentive to all other households to install climate friendly hot water systems in the form of renewable energy certificates (RECs).

What are renewable energy certificates (RECs)?
RECs are assigned by the Office of the Renewable Energy Regulator as part of the Renewable Energy Target scheme and reflect the deemed value of equivalent renewable energy generation over a ten year period. These certificates are tradable and commonly provide a discount of over $1,000 from the upfront cost of the average solar hot water system.

Can I still apply for other state or territory rebates?
Yes. An application for the Australian Government Solar Hot Water Rebate will not be affected by any rebates that other governments may offer. For details on other rebates, you will need to follow up with your relevant state or territory authority.

Can I get the rebate for a system I install on my investment property?
Yes. The system for which a rebate is being claimed must be installed at a principal place of residence. This can be an investment property which must be the tenant's principal place of residence. It cannot be a holiday home.

An owner may apply for a rebate on more than one property. A separate application must be submitted for each property.

Are solar rebates available for holiday homes?

Rebates are not available for holiday homes. To ensure the largest environmental benefit will be achieved, the rebate has been designed to replace electric storage hot water systems in principal places of residence.

How will the rebate payment be made?
Payment is made by electronic funds transfer into the bank account of a successful applicants account within eight weeks of receiving a completed and eligible application form.

What is a solar retrofit and why isn't it eligible for the rebate?
Solar water heater retrofit kits are used to add solar panels to existing electric storage tanks. Conventional tanks are not designed to be connected to solar collectors so retrofit kits are not as effective as a water heater designed specifically for solar.  In order to be eligible for the rebate the solar or heat pump system must be a new and complete hot water system that is eligible for at least 20 renewable energy certificates (RECs).  A 'retrofit' system that is based around a previously installed component is not eligible for RECs and therefore not eligible for the Solar Hot Water Rebate.

Why does a licensed installer need to sign my application form?
As part of the rebate application process you must provide proof that you are replacing an existing electric storage hot water system and have installed a hot water system that is eligible for 20 renewable energy certificates or more. The installer can certify this and can also provide the tank serial number which is not always easy for the applicant to obtain.