What it is
Energy NSW describes it as a discount from the NSW Government's Energy Savings Scheme, aimed at lowering what you pay to switch to an energy efficient heat pump or solar hot water system.
Installers offering it must be partnered with an Accredited Certificate Provider (ACP). They operate independently from the NSW Government, so ask which accredited supplier they work with or are subcontracted by.
The published amounts
| Indicative discount | |
|---|---|
| Electric water heater replaced with a heat pump | up to $640 |
| Gas water heater replaced with a heat pump | up to $330 |
Why those amounts are only a guide
NSW itself says the discount amounts are "indicative only". The page they come from was updated on 6 February 2026, and the scheme's rules changed again on 7 September 2026. Treat the figures as dated, and get the actual discount in writing on your quote.
NSW's history page lists a rule change that started on 12 September 2025 as well as the 2026 one. We haven't read the detail of either, so check Energy NSW's current page before you rely on anything here.
You still pay something
NSW is clear that part of the cost of the new system and its installation is yours: there's a minimum payment. A pitch that says otherwise doesn't match the scheme's own description.
What to check on the quote
- The discount is on it. NSW tells customers to get quotes that confirm the discount is included.
- The accredited supplier's name, and whether the installer is their partner or a subcontractor.
- Your minimum payment, as a figure.
- STCs. If the model is on the Clean Energy Regulator's register, ask whether that discount is in the price too.
- A temperature control device. In NSW one is required when a hot water heater is replaced, even like for like.
The paperwork on a replacement
Replacing an existing hot water system is listed in NSW as minor work, so no Notice of Work is needed before it starts. When a Certificate of Compliance is lodged at the end, the plumber must provide a copy to the person who arranged the work. Ask for yours.
NSW requires a contractor licence for all specialist work regardless of its cost, and plumbing is specialist work. You can check a licence on the NSW public register: see how to check a plumber's licence.
Be careful of
- Leaning on a comparison site. Energy NSW's own words are that comparison websites "should be used at your own risk". That goes for referral sites like ours too: trust the written quote, not the ad.
- A business that sounds like the government. Installers are independent of it.
- An exact discount promised before anyone has seen the job. NSW's own figures are indicative.
- A quote with no discount line, or no accredited supplier named.
Questions to ask the installer
- Which Accredited Certificate Provider are you partnered with?
- How much is the discount on this quote, and what is my minimum payment?
- Is the STC discount included as well?
- Will you fit a temperature control device, and will I get a copy of the Certificate of Compliance?
What we would do
Treat the NSW figures as a guide, not a promise. Ask for one written quote that shows the discount, your minimum payment and the accredited supplier's name, and don't sign if any of the three is missing. Before any of that, have a plumber who specialises in hot water check that a heat pump suits the spot and the household, because a discount on the wrong system isn't a saving.