Renewable Energy Bonus Scheme—Solar Hot Water Rebate

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REBS closes on 30 June 2012

The Government announced on 28 February 2012 that REBS will close on 30 June 2012.

Since the introduction of rebates for climate friendly hot water systems in 2007, the Government has funded over 250,000 rebates in excess of $320 million. REBS has played an important role in helping households reduce their emissions and cut their power bills.

In line with the announcement on 28 February 2012, to be eligible for the REBS Solar Hot Water rebate, your system must have been installed, purchased or ordered (and a deposit paid) up to 28 February 2012.

  • If you have installed a system prior to 28 February 2012, your application must reach the Department within 122 days from the date of installation.
  • If you purchased or ordered (and paid a deposit) for a system up to 28 February 2012, but installed it after 28 February 2012, applications must be received by the Department by 30 June 2012.

Please note that:

  • Systems purchased or ordered after 28 February 2012 are not eligible under REBS.
  • Applications received by the Department after 30 June 2012 will not be eligible.

The Government is continuing to support households to install climate-friendly hot water systems through the Small-scale Renewable Energy Scheme. Under this scheme, solar and heat pump hot water systems are assigned a number of Small-scale Technology Certificates (STCs). Retailers usually offer an upfront discount on systems in exchange for the STCs.

More information on STCs.

You may also be eligible for some state rebates; you can contact your state government for information on rebates in your area.

A valid tax invoice or receipt must include:

  • the date the deposit was paid/date the system was purchased;
  • the seller's identity;
  • the name of purchaser or street address or name of installer;
  • indication that the tax invoice is for the supply of the system;
  • the type of system purchased e.g. heat pump or solar hot water; and
  • the system price including GST.

The department may seek further evidence if tax invoices/receipts are not acceptable.

Changes to eligible systems from 1 November 2011

To be eligible for the rebate under the Renewable Energy Bonus Scheme (REBS) your system must generate 20 or more small-scale technology certificates (STCs) at the time of installation.

The Office of the Renewable Energy Regulator (ORER) determines the number of STCs assigned to hot water systems. As of 1 November 2011 ORER have applied a new method for calculating the number of STCs assigned to hot water systems. As a result some systems no longer attract the minimum 20 STCs required to be eligible for the rebate under REBS.

Therefore, it is important that you check with your supplier or the manufacturer that the system you are installing attracts 20 STCs or more from 1 November 2011.

Alternatively the new STC value of your intended system is available on the ORER website when using the SHW Calculator.

Flood News

The Prime Minister announced on 27 January 2011 that as part of the response to the flood disaster the Australian Government will redirect projected surplus funding from this program. These surplus funds have become available as a result of lower than anticipated levels of demand for the Rebate in 2010. Enough money remains within the program to support current rebate demand levels. All REBS applications will continue to be processed as normal.

Renewable Energy Bonus Scheme—Solar Hot Water Rebate

The Renewable Energy Bonus Scheme—Solar Hot Water Rebate (REBS) assists households to save money on power bills and reduce their carbon emissions.

Water heating is the largest single source of greenhouse gas emissions from the average Australian home, accounting for around 23 per cent of household emissions. Installing a climate friendly hot water system can save a family hundreds of dollars off their energy bills each year.

REBS is available to help eligible home-owners, landlords or tenants to replace electric storage hot water systems with solar or heat pump hot water systems. Under REBS, eligible households can claim a rebate of $1000 for a solar hot water system or $600 for a heat pump hot water system.

REBS replaced the former Solar Hot Water Rebate Program which was discontinued as of close of business 19 February 2010.

Guidelines and applications forms for the rebate are below.

IMPORTANT: An application must be received by the department within four months (122 days) of an eligible system being installed.

On this page:

Eligibility requirements

Full details of eligibility are provided in the guidelines. Key criteria are listed below.

  • Rebates are only available to people who have not previously received assistance to install ceiling insulation through the Home Insulation Program or the Homeowner Insulation Program at this address. An exception to this provision applies where foil insulation has been removed under the Australian Government’s Foil Insulation Safety Program.
  • The system must replace an existing electric storage hot water system.
  • An owner-occupier, landlord or tenant can apply for the rebate as long as the dwelling where the hot water system is installed is a principal place of residence.
  • The system must be installed and certified by a suitably qualified person (for example an electrician and/or plumber).

How to apply

Important information

  • Applying for the rebate is straightforward and simple.
  • You can only apply for the rebate after the system has been installed.
  • The rebate is not available as a point of sale discount nor can a retailer, installer or commercial business apply for the rebate on behalf of their customers.
  • To claim a rebate, you need to submit an application using the application form below.
  • An application must be received by the department within four months (122 days) of an eligible system being installed.
  • Please attach a copy of your purchase receipts which clearly indicates that you have installed a solar or heat pump hot water system with the application. No other supporting documentation is required.
  • You are required to agree that, if requested, you will provide evidence to support claims made in the application as part of an audit process to ensure you meet the program guidelines. For example allowing an authorised inspector access to your system.
  • You should allow eight weeks for the application to be processed.

You should read the guidelines to ensure you meet all eligibility requirements before applying.

Your application will need the following information:

  1. date of installation of your new solar or heat pump hot water system
  2. type of system (ie solar hot water or heat pump system)
  3. BSB Number—six-digit number which identifies the bank/financial institution and branch where your bank account is held
  4. bank account number where the rebate is to be deposited.

Guidelines and application form

For more information, please visit the Guidelines, where the application form is also available for download.

Submitting your application

Once you have completed your application form, ensuring you have met all requirements of the Guidelines, send it to:

Renewable Energy Bonus Scheme—Solar Hot Water Rebate
Department of Climate Change and Energy Efficiency
GPO Box 854
Canberra ACT 2601

For more information please call 1800 808 571 or email: solarhotwater@climatechange.gov.au.

The role of the installer

To be eligible for the rebate, a hot water system must be installed by a licensed electrician or plumber as required under standard regulations. The licensed installer must sign your application form verifying that:

  • The system has been installed in accordance with the relevant building standards and government requirements.
  • The system is a new and complete hot water system that replaces an existing electric storage hot water system previously operational at the dwelling.
  • The system is eligible for at least 20 small-scale technology certificates (STCs) formerly known as Renewable Energy Certificates, at the time and place of installation.
  • Installers are also required to provide other technical and installation details including the tank number of the new system and the installation date. Installers are aware of the process and have easy access to the information.

It should take no more than a few minutes for them to complete their part of the form.

We recommend you seek around three quotes to ensure you are getting the best value for your system.

Information for installers

Licensed plumbers and electricians have an important role in the rebate application process. Installers need to complete and sign part of their customer’s application form at the time the system is installed. Completing these parts of the application form is straightforward and only takes a few minutes. The information provided by installers is used by the Australian Government to verify certain eligibility requirements for the rebate.

Small-scale Technology Certificates

As of 1 January 2011, the enhanced Renewable Energy Target (RET) was split into two parts, the large-scale renewable energy target (LRET) and the small-scale renewable energy scheme (SRES). Under the SRES, new solar and heat pump hot water heaters may be eligible to create small-scale technology certificates (STCs), formerly known as renewable energy certificates (RECs). Householders can create and trade these certificates on their own, but it is more common for Registered Agents to create and trade STCs on behalf of householders. The STCs benefit for consumers usually comes as a point of sale discount. Most retailers will advise potential buyers how many STCs are provided by each solar or heat pump hot water system model and how much each of those STCs are worth. The retailers then provide a discount to the buyer, meaning the cost of the hot water system to the householder is reduced.

The Renewable Energy Bonus Scheme—Solar Hot Water Rebate may apply to systems that earn 20 STCs or more at the time of purchase at the installation address. Hot water system retailers can also advise on the number of STCs assigned to a system.

More information about STCs is available on the Office of the Renewable Energy Regulator website:

Applicants rebuilding following the February 2009 Victorian bushfires

The Renewable Energy Bonus Scheme—Solar Hot Water Rebate has been opened up to people who lost their homes in the February 2009 Victorian bushfires and have rebuilt. The rebate is not usually available for people building new homes, but the Government has made an exception for homes destroyed or left uninhabitable in the February 2009 fires.

Eligible systems

To be eligible for the rebate, a hot water system must:

  • replace an electric storage hot water system (Exception: if your home was destroyed in the February 2009 Victorian bushfires, you may be eligible for the rebate for your newly rebuilt home on the same site, provided the home also includes a 2000-litre rainwater tank (compliant with Victorian five-star building standards) which is connected to the dwelling for toilet flushing)
  • be a solar or heat pump hot water system that is eligible for at least 20 small-scale technology certificates (STCS), formerly Renewable Energy Certificates (RECs), at the time and place of installation
  • be installed by a suitably qualified person (for example an electrician or plumber).

An application must be received by the department within four months (122 days) of an eligible system being installed.

Frequently asked questions

Progress on Rebate payments

The Renewable Energy Bonus Scheme – Solar Hot Water Rebate is currently processing most eligible, complete applications within eight weeks from the date of receipt. Some applicants may be experiencing delays outside this eight week timeframe and we apologise for any inconvenience this may cause. Applicants will receive either a remittance advice if eligible or a letter from the department if further information is required.

If you receive a remittance advice, please allow 7 to 10 business days from the date of the advice for funds to appear in your nominated bank account.

If you are concerned about the status of your rebate application, please call the department's contact centre on 1800 808 571 or email:
solarhotwater
@climatechange.gov.au
.

This webpage will be updated regularly.

Rebate feedback

The Department of Climate Change and Energy Efficiency values your feedback on the Renewable Energy Bonus Scheme—Solar Hot Water Rebate.

Please use the online feedback form to contact us.