Solar & Heat Pump Hot Water Rebates in WA (2026)

If you're thinking about a solar or heat pump hot water system in WA, one of the big drawcards is the federal rebate that can knock a meaningful chunk off the upfront price. That rebate comes through the Small-scale Technology Certificate (STC) scheme, and understanding how it works helps you compare quotes properly.

Here's a plain-English guide to how STCs work in 2026, who's eligible, and how the savings actually reach your pocket. One important note up front: the exact dollar value changes with the market, so always confirm the current figure with an accredited installer rather than relying on a number you read online.

What is the STC scheme?

The Small-scale Technology Certificate scheme is a federal government program that encourages households to install eligible solar and heat pump hot water systems, as well as rooftop solar panels. It's not a cash-back payment you apply for after the fact. Instead, it works as an upfront discount on your installation.

Here's the mechanism in simple terms:

  • When you install an eligible system, it's deemed to create a set number of certificates (STCs), based on the clean energy the system is expected to generate or displace over its rated life.
  • Each certificate has a dollar value on an open market.
  • In practice, you assign these certificates to your installer or their agent, who handles the paperwork and effectively buys them from you.
  • In return, they take that value off your quoted price as a discount.

So you almost never touch a certificate yourself. You just see a lower price on the quote, which is why people usually just call it "the rebate".

How many certificates does a system earn?

The number of STCs a system creates depends on a few factors:

FactorHow it affects your certificates
System type and capacityLarger, more efficient eligible systems generally earn more certificates
Your location (postcode zone)Australia is divided into zones based on sunshine and climate, which affects the deemed output
The deeming periodThe number of years the scheme credits the system for, which reduces over time
STC market priceThe dollar value per certificate fluctuates with market supply and demand

Two things worth knowing about timing: the deeming period reduces by one year every 1 January, so a system installed earlier in the scheme's life earns more certificates than the same system installed later. And the small-scale scheme is legislated to wind down towards the end of the decade, so the incentive gradually shrinks over the coming years. If you're on the fence, that's a reason not to leave it indefinitely.

Who's eligible?

Eligibility rules are set federally, but the general requirements are:

  • The system must be an approved, eligible model on the register of accredited products.
  • It must be installed by an accredited installer and comply with the relevant standards.
  • It typically replaces or supplements an existing system, or is fitted in an eligible dwelling.
  • Installation must meet all state requirements, which in WA means the plumbing and any gas or electrical work is done by appropriately licensed tradespeople.

Because the rules and eligible product lists change, the safest approach is to have an accredited installer confirm your specific system and situation qualify before you commit.

Solar vs heat pump: which for the rebate?

Both solar and heat pump hot water systems can attract STCs, and both can dramatically cut your running costs compared with conventional electric storage.

  • Solar hot water uses roof-mounted collectors to heat water directly from the sun, ideal for Perth's sunny climate, usually with an electric or gas booster for cloudy days.
  • Heat pump hot water works like a reverse fridge, drawing heat from the surrounding air to heat the water very efficiently. It doesn't need roof collectors, so it suits homes with limited or shaded roof space.

Which earns more support and which suits your home depends on your roof, climate zone and household. Our solar and heat pump hot water service can help you weigh it up, and our broader guide on electric vs gas vs solar hot water compares the running costs.

What savings can you expect?

There are two savings to think about. First, the upfront STC discount reduces the purchase and install price, and it can be a substantial reduction depending on your system, zone and the current market price. Because those figures move, we won't quote a dollar amount here as current fact. Ask your accredited installer for the exact STC value applied to your quote.

Second, and often bigger over time, is the running-cost saving. Solar and heat pump systems use far less grid electricity than conventional electric storage, so many households see meaningful reductions on their power bills year after year. Combined, the upfront discount plus ongoing savings is what makes these systems attractive despite a higher sticker price than basic electric.

How to get started the right way

  1. Get quotes from accredited installers and ask each to itemise the STC discount clearly.
  2. Confirm the specific system model is eligible and suited to your home.
  3. Check the warranty and local service support.
  4. Make sure the installer is licensed for the plumbing, gas and electrical work involved, as required in WA.

Getting a clear, itemised quote lets you compare like with like, and confirms you're actually receiving the STC benefit you're entitled to.

Ready to switch to solar or heat pump hot water? Call our licensed Canning Vale plumbers to talk through eligible systems and get a clear, itemised quote.

Frequently asked questions

How much is the solar hot water rebate in WA?

The value comes from federal STCs and changes with the market, your system, and your postcode zone, so there's no fixed figure. It's applied as an upfront discount on your quote. Ask an accredited installer for the current STC value for your specific system.

Do I have to apply for the STC rebate myself?

Usually not. Most people assign their certificates to the installer or their agent, who handles the paperwork and simply takes the value off your quoted price as a discount, so you rarely touch a certificate yourself.

Are heat pump hot water systems eligible for the same rebate as solar?

Yes. Both eligible solar and heat pump hot water systems can attract STCs. The number of certificates each earns varies by system type, efficiency, capacity and location, so ask your installer to compare both for your home.

Is the STC rebate being phased out?

The small-scale scheme is legislated to wind down towards the end of the decade, and the deeming period reduces each 1 January, meaning the incentive gradually shrinks over time. If you're considering a system, it's worth confirming current eligibility and value sooner rather than later.

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