Update on $33 Hot Water Upgrade in NSW

In NSW, you could easily upgrade your electric hot water with a heat pump water heater for just $33! As low as this price seems, it could facilitate an upgrade to qualifying heat pumps from top brands like Ecogenica, Eco Alliance, Chromagen, Smart Lifestyle, etc.

Upgrading at this low price was possible as many installers claimed several rebates and energy-saving programs at the state and federal levels and passed the benefits to homeowners. 

Unfortunately, this offer is no longer available. It ceased on January 1, 2024, so you cannot claim it anymore.

If anybody convinces you otherwise, stay away from them to avoid losing your money for nothing.

We have some good news: You can explore other deals and upgrade your hot water system.

Wondering how? 

Here, we define the $33 hot water program, explain what happened to it, and then reveal the current deals you can explore for upgrading to a heat pump water heater.

Key Takeaways

• On January 1, 2024, the $33 rebate expired 
• STCs and ESCs can still help with the hot water upgrade
• Learn the newest info on top-performing heat pumps and deals.

A Brief History  of the $33 Heat Pump Water Heater Upgrade in NSW

The $33 hot water upgrade wasn’t a single rebate or government program. It was a product of the innovative use of several programs to incentivise residential energy efficiency. 

Installers used the available rebates, ESCs, and STCs to pay the cost of the heat pump installation and passed the savings to customers while still making their profits. The final price? In most cases, a mere $33.

This promotion was extended to houses that were already equipped with electric hot water heaters.

Installers would evaluate these homes for qualifications, and for homes that qualified, the installer would then replace these old systems with far more efficient heat pump models at a very subsidised price.

These installed heat pumps were of higher quality as they were supplied by reputable brands such as Ecogenica, Chromagen, and Smart Lifestyle.

During this time, it was a win-win case for homeowners and the environment. Consumers got more efficient systems while the planet benefited from less pollution. 

Top Brands and Their Pricing During the $33 Hot Water Upgrade in NSW

During the $33 hot water upgrade, many brands took part, and not all had the same price tag.

The brands that qualified for a $33 installation cost all met the government requirement on energy efficiency, so homeowners were assured they would cut down on water heating costs.  

• Ecogenica’s 215L: This was among the best-selling units. It went for only $33. 

• Ecogenica’s 290L: With just $199, you could have upgraded to Ecogenica’s 290L.

• Chromagen: The cost is only $33 for a larger 200L, and the same is for a smaller 170L.

• Smart Lifestyle: You only needed $99 to upgrade to SmartLife units.

Why is the $33 Hot Water Upgrade No Longer Available?  

One thing should be clear by now– that there was nothing like a single “$33 rebate.”

As we already stated earlier, this cost was caused by several installers being able to claim many state and federal government rebates and incentives and then use them to lower installation prices. 

The two most common incentives that made this possible are: 

• STCs (Small-Scale Technology Certificates)
• ESCs (Energy Saving Certificates)

Installers used these certificates to offset the full cost of the system and installation. They were able to keep prices low, sometimes as low as $33,  by claiming these certificates on the customer’s behalf.

However, both of these incentives are decreasing in value over time. Here’s how:

STCs (Small-Scale Technology Certificates)  

Each year, the number of STCs a homeowner can claim for a heat pump reduces by around 3 to 4 certificates. By April 2024, the value of an STC certificate was around $40. If you do the quick math, it means the STC amount you can claim for the unit is dropping by  $120 to $140 every year. 

To some, this might look like a big deal; however, it can become one for those who want to keep the upgrade costs as low as possible. 

ESCs (Energy Saving Certificates)  

ESCs are based on the energy saving offered by the new system over the previous one.  They are affected by the system’s efficiency and your climatic zone.

In April of 2023, one ESC was valued at $31.25. By April 2024, it fell to $19.75 — a 40% drop. To illustrate the difference, consider a system that qualified for 45 ESCs in 2023. That was approximately $1,406 in rebate value. Now, it is valued at about $888.

This sudden drop made it economically impossible for most of the installers to continue providing the $33 upgrade. With less revenue from rebates, they were no longer able to meet their costs while providing low costs.

There Are Still Great Deals Available  

While you might be sad now that the $33 hot water upgrade isn’t working anymore, all is not lost.

There exist other deals that allow you to grab and upgrade your hot water very affordably. So, what are they? You might ask!

STCs – Small-scale Technology Certificates

These are incentives by the federal government. When you install a heat pump, you earn a certain number of STCs depending on the system’s size and efficiency.

We will calculate the number of STCs you qualify for and then apply the discounts upfront. 

ESCs – Energy Saving Certificates

ESCs are a NSW government incentive. When you upgrade to a heat pump, you can earn ESCs based on the energy savings of your new system. We will determine the eligible ESCs and deduct them from the initial heat pump installation prices. 

Which System Should You Choose?  

Choosing the right hot water system comes down to a few key things: your household’s water usage, your existing setup, and your budget.

Most people upgrading from electric systems will find heat pumps to be the most straightforward and cost-effective choice. They work well in most NSW climates and are eligible for good rebates. 

One thing that’s worth noting is that the government did its own testing on heat pumps in the rebate scheme.

Instead of relying on manufacturers’ claims, they used the same test conditions for every unit. The result? Ecogenica came out on top for efficiency.

That means Ecogenica’s systems perform better in real-world use than many well-known brands like Rheem, iStore, Sanden, and Reclaim. It’s definitely worth keeping in mind if you’re looking for a reliable and cost-effective upgrade.

Final Thoughts  

While the $33 upgrade offer might be a thing of the past, NSW residents still have a chance to improve their hot water systems without spending a fortune. 

With the right combination of rebates and a good understanding of what’s available, you can still upgrade to an energy-efficient heat pump or solar system at a great price.

Not only will you save money on your energy bills, but you’ll also be making a solid move toward reducing your carbon footprint and improving your home’s overall energy performance.