There’s no dedicated WA state rebate for heat pump hot water systems in 2026 — but that doesn’t mean there’s no financial incentive available.
Western Australian homeowners are still entitled to the **federal government rebate** that applies to every state and territory in Australia, and it can take a meaningful amount off the upfront cost of upgrading to a heat pump hot water system.
The Federal Rebate: How It Works
The Australian Government’s **Small-scale Renewable Energy Scheme (SRES)** applies nationwide. When you install an eligible heat pump hot water system, your installer generates **Small-scale Technology Certificates (STCs)** on your behalf and passes the value to you as an **upfront discount off the installation price**. There are no forms to fill out and no waiting for a cheque — the saving comes straight off your bill at point of sale.
For WA homeowners, the federal STC rebate on a heat pump hot water system typically ranges from **$800 to $1,500** — and in some cases higher, depending on the system size, efficiency rating, and your climate zone.
WA’s warm climate and higher solar radiation zones mean systems here can generate a competitive number of STCs compared to cooler southern states, making the federal rebate particularly worthwhile.
Why Act Now — Not Later
The SRES scheme reduces every year. On January 1st the government winds back the deeming period, which determines how many STCs your system earns:
| Year | Federal Rebate Value |
|---|---|
| 2026 | Higher |
| 2027 | Lower |
| 2028 | Lower again |
| 2031 | Scheme ends completely |
Every year you delay, the rebate shrinks. Installing in 2026 locks in the best available discount.
The Real Savings Picture
Beyond the upfront rebate, a heat pump hot water system uses up to **75% less electricity** than a standard electric storage tank. For most WA households, that means annual hot water energy savings of up to **$400 per year**.
With electricity prices continuing to rise, a heat pump is one of the most practical upgrades a WA homeowner can make — and the federal rebate makes the upfront cost far more manageable. The payback period on most systems falls between **3 and 6 years**.
Is Your System Eligible?
To qualify for the federal STC rebate:
– The system must be on the Clean Energy Regulator’s approved products register
– Tank capacity must be 425 litres or under
– Must be installed by a licensed plumber
– Must be a new installation or like-for-like replacement at the same address
Most quality heat pump hot water systems available in Australia meet these requirements. Your installer will confirm eligibility and handle the STC paperwork as part of the installation.
What About Regional WA?
Households on the **Horizon Power network** (regional and remote WA) may have access to additional state-level programs. Speak to a PowerBay-accredited installer about what’s currently available in your area.
**Talk to a PowerBay-accredited installer near you to find out exactly how much you could save.**
PowerBay is a proud Australian renewable energy brand, available exclusively at Bunnings Warehouse. Our range of solar panels, home batteries, EV chargers, and hot water solutions is designed to make renewable energy simple and accessible for every Australian home.