Benefit from hot water rebates

February 2011

The energy guzzling electric hot water system is being phased out around Australia so it’s a great time to switch to a more efficient option and take advantage of generous government rebates.

Ausgrid’s energy efficiency expert Paul Myors said hot water is the biggest energy user in many Australian homes, and almost 50% of households have electric hot water systems that cost up to $500 a year to run.

Every time you have a hot shower powered by an electric hot water system it’s like running 150 televisions for the length of your shower. But lower emission options like solar, heat pumps or gas can substantially reduce your energy bill.

With Solar hot water systems, more than 65% of your hot water is provided free by the sun. Heat pump hot water systems work like a refrigerator in reverse – taking heat from the surrounding air and transferring it to the water tank, while natural gas has less than half the emissions of electricity from coal.

To be eligible for the NSW Government rebate you must purchase and install the new system before 30 June 2011, while the Federal Government’s rebate may change depending on demand.

Electric hot water systems that are 10 years or older are most likely to be at risk of break down. So these households should consider upgrading before rebates expire.

The Federal rebates are $1,000 for conversion to solar hot water, and $600 for heat pump systems and the NSW Government provides a further rebate of $300, including conversion to gas hot water.

For more information on rebates visit or

Electric solar hot water system