Hot water heater pump

The New South Wales Government has unveiled a scheme to save consumers up to $1,200 on the purchase of a heat pump hot water heater.

The New South Wales Government has begun to roll out its Heat Pump Hot Water Rebate initiative, a component of the Energy Savings Scheme (ESS). 

The program is designed to accelerate energy-efficient technology adoptions across New South Wales.

The government said heat pump technology is slowly overtaking more traditional water heating methods as the solution of choice.

Heat pump systems use ambient heat to generate hot water, significantly reducing both energy usage and costs.

Heat pump hot water heaters use about one-third of the energy consumed by conventional hot water heaters, lowering greenhouse gas emissions and contributing to environmental sustainability.

The New South Wales Government said it recognised the potential to promote environmentally-friendly consumption. As a result, the ESS specifically supports the installation of heat pump hot water systems with consumer rebates.

The rebate program is designed to reduce the upfront costs of greener alternatives.

New South Wales households and businesses interested in the Heat Pump Hot Water Rebate may access a variety of benefits, including:

  • Cost efficiency – by adopting heat pump technology for their hot water systems, you can enjoy lower operating costs and reduced energy bills. The rebate covers a substantial portion of the installation cost, so it’s financially feasible for much of the New South Wales community
  • Energy reduction – heat pumps are known for their ability to drastically decrease energy consumption. These reductions align with ESS goals to cut energy usage and extend the life of existing energy infrastructures
  • Environmental impact – when you transition to heat pump technology, you contribute to reduced carbon emissions. Heat pump adoptions support statewide and national environmental targets for combating climate change

The ESS was launched in 2009 as part of New South Wales’ effort to enhance energy efficiency and reduce greenhouse gas emissions. The program incentivizes the purchase and installation of innovative technologies that lower energy usage.

The government said the ESS initiative has reduced both energy consumption and costs. By the end of 2022, it was responsible for a decrease of 23Mt of greenhouse gas emissions. 

By 2030, the energy savings target will increase to 13 per cent. By increasing the target, New South Wales hopes to reduce 70 per cent of emissions by 2035 and achieve net zero by 2050.

Part of the ESS, the New South Wales Heat Pump Hot Water Rebate provides rebates for eligible New South Wales households and businesses that have an existing electric or gas hot water heater.

The Heat Pump Hot Water Rebate is available to all residents of New South Wales who replace their old electric or gas hot water systems with newer, qualified heat pump models.

The financial incentives come in the form of tradable certificates known as energy savings certificates (ESC). They provide a quantifiable and verifiable record of reductions in energy consumption or greenhouse gas emissions.

Each ESC symbolises saving one tonne of carbon dioxide-equivalent emissions through reduced energy use.

Once issued, ESCs can be sold and bought on a special market. There, electricity suppliers and other entities purchase the certificates, which supports their obligations to meet government-mandated targets.

ESC trading therefore provides a financial incentive to companies and individuals to invest in energy efficiency improvements.

While New South Wales households and businesses are eligible for the Heat Pump Hot Water Rebate when they upgrade from an existing system, they still must meet certain criteria. Eligible participants in the scheme must use approved products and adhere to the installation guidelines set by the ESS. Included products meet specific energy efficiency standards and performance benchmarks.

Not only must products come from a pre-approved list, but installations must be conducted by a licensed plumber or technician certified in handling refrigerants. Both the installation and the product must comply with all relevant Australian standards and the National Construction Code.

Featured image: A hot water heat pump. Courtesy of Efficient Energy Group.

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