Commercial · Hot water
Commercial heat pump hot water rebates
Switching a business from old electric or gas hot water to a high-efficiency heat pump is one of the best-value energy upgrades available — and in 2026 state schemes and federal certificates can cover a large share of the cost. Here's what's on offer for businesses across NSW, Victoria and South Australia, what qualifies, and what it's actually worth.
What's available
Support for commercial hot water upgrades
Commercial hot water is covered by the same state energy efficiency schemes as other business upgrades, plus a federal scheme — and they can often be combined on the one job.
NSW — Energy Savings Scheme
Businesses replacing electric-resistance or gas hot water with a heat pump can earn Energy Savings Certificates (ESCs), passed on as an upfront discount by an accredited provider.
VIC — Victorian Energy Upgrades
The VEU runs dedicated commercial and industrial heat pump water heater activities — decommissioning a gas boiler (44A), decommissioning electric resistance (44B), or installing a heat pump (44C) — creating VEECs that discount the install.
SA — Retailer Energy Productivity Scheme
South Australian businesses can access a discount on eligible heat pump hot water upgrades through REPS, administered by retailers and accredited providers.
Federal — Small-scale Technology Certificates
Heat pump water heaters are a renewable technology under the federal Small-scale Renewable Energy Scheme, generating STCs that usually stack on top of the state discount.
How commercial hot water rebates work
Despite the word "rebate", you almost never wait for a cheque. The value is delivered as an upfront discount on your installed price, funded by the certificates your upgrade creates.
- You replace an inefficient system. The schemes reward swapping an existing electric-resistance or gas hot water system for a high-efficiency air-source heat pump — they don't fund fitting out a brand-new site that never had hot water.
- The upgrade creates certificates. Depending on your state, the job generates VEECs (VIC), ESCs (NSW) or REPS certificates, plus federal STCs. Each represents energy or emissions saved over the system's life.
- An accredited provider assigns them. You transfer the right to create those certificates to an accredited provider, who in return takes the value off your quote and handles the registration and paperwork.
- You pay the discounted price. The certificate and STC value is already deducted, so you only pay the net amount — often plus a modest co-payment on larger systems.
The point that matters: a heat pump uses roughly a third of the energy of an electric-resistance system to deliver the same hot water, so the upgrade keeps paying for itself in lower running costs long after the discount is banked.
How much can a business save?
There's no single figure, because the discount scales with the system and the saving scales with how much hot water you use. The main levers are:
- System size. Bigger commercial heat pumps create more certificates, so the upfront discount grows with capacity.
- What you're replacing. Swapping out electric-resistance generally yields a larger incentive than replacing gas, because the energy saving is greater.
- Your state and certificate prices. VEEC, ESC, REPS and STC values move with the market, which changes the discount month to month.
- Your hot water bill. The ongoing running-cost saving — often the bigger prize — depends on how many litres of hot water your business gets through each day.
For a hot-water-heavy business, a heavily discounted install plus a running cost cut to around a third can make the payback genuinely short. The only way to get a real number is a site-specific quote from an accredited provider.
Which businesses benefit most
The upgrade makes the most sense where hot water runs hard all day. Typical sites include:
Food & hospitality
Cafes, restaurants, pubs, clubs and commercial kitchens — constant washing, cleaning and sanitising drives high hot water use.
Accommodation
Hotels, motels, caravan parks and B&Bs with guest showers and laundry running every day.
Health, care & fitness
Gyms, aged care, medical and childcare centres where showers, cleaning and hygiene demand reliable hot water.
Personal services & trades
Hairdressers, salons, beauty clinics, laundromats and car washes — hot water is core to the service.
By state
Commercial hot water rebates by state
| State | Scheme | Commercial hot water in 2026 |
|---|---|---|
| NSW | Energy Savings Scheme (ESS) | Heat pump replacing electric or gas hot water earns ESCs, applied as an upfront discount |
| VIC | Victorian Energy Upgrades (VEU) | Dedicated commercial & industrial heat pump water heater activities (44A / 44B / 44C); products must be on the VEU Register |
| SA | Retailer Energy Productivity Scheme (REPS) | Eligible heat pump hot water upgrades discounted via retailers and accredited providers |
| Federal | Small-scale Renewable Energy Scheme | STCs for eligible heat pump water heaters — generally stackable with the state discount |
| QLD / WA / TAS / NT / ACT | No equivalent state scheme | Federal STCs may still apply; no state certificate discount for commercial hot water |
Is a "free commercial hot water system" really free?
You'll see plenty of "free hot water for business" advertising. The honest position: for most commercial systems the schemes cover a large share of the cost rather than the whole thing, so a modest co-payment is common — especially on larger or higher-output units. Smaller systems are sometimes supplied at little or no upfront cost, but it varies by site, state and the certificate prices on the day.
That's no reason to skip it. A heavily discounted heat pump that then runs on roughly a third of the energy is an excellent deal whether or not the headline says "free". The useful question isn't "is it free?" — it's "what's my out-of-pocket cost, and what will it save me each year?" An accredited provider can answer both for your exact site.
How it works
How Energy Rebate Check works
Check your postcode
Enter your postcode and select "Commercial" to see the hot water programs that may apply to your site.
Submit a quick enquiry
Send a few details about your current hot water system and business type — it takes a minute.
Get matched to a provider
If it stacks up, we connect you with an accredited provider who can quote and handle the certificates.
FAQ
Commercial hot water rebate questions
It's a discount on replacing an old electric-resistance or gas hot water system at a business with an energy-efficient air-source heat pump. The saving comes from state schemes (NSW ESS, VIC VEU, SA REPS) and federal STCs, applied by an accredited provider as an upfront discount rather than a cash rebate you claim back later.
Any business in a participating state replacing an inefficient system can usually qualify, but it's most worthwhile for high hot water users — cafes, restaurants, pubs, hotels and motels, gyms, aged care, salons, commercial kitchens, laundries and childcare. The bigger the existing hot water bill, the bigger the saving.
It depends on system size, what you're replacing (gas or electric), your state, and certificate prices at the time. State certificates and federal STCs together can cover a large share of the upfront cost, and because a heat pump uses around a third of the energy of electric resistance, the ongoing running-cost saving is often larger than the rebate itself.
In many cases yes. The federal Small-scale Renewable Energy Scheme provides STCs for eligible heat pump water heaters, and these can generally be combined with a state scheme discount (VEU, ESS or REPS) on the same job. Your provider works out the combined figure and handles the paperwork.
For most commercial systems the schemes cover a large share of the cost rather than all of it, so a small co-payment is common. Smaller systems are occasionally supplied at little or no upfront cost, but treat blanket "free" advertising with care and confirm your actual out-of-pocket cost with an accredited provider.
Generally: you're replacing an existing electric-resistance or gas system, you install a heat pump listed on the relevant scheme's approved product register, and you use an accredited provider who creates and assigns the certificates. In Victoria the commercial and industrial heat pump water heater activity covers decommissioning a gas boiler (44A), decommissioning electric resistance (44B) or installing a heat pump (44C).
Official scheme sources
Always confirm current rules and discounts against the official scheme administrators before committing:
Related pages
See what your business can get on hot water
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