The federal government solar hot water rebate

The main rebate you’ll hear about comes from the Australian Government, not the state. It’s called the Small-scale Renewable Energy Scheme (SRES) and it’s available to homeowners right across Australia.

Instead of giving you cash back after you’ve paid full price, this scheme provides an immediate discount off the top. Here’s how it works in simple terms:

• It’s all about STCs: Installing an eligible solar hot water system creates a number of Small-scale Technology Certificates, or STCs. Think of these as green energy tokens that have a market value.
• Your installer does the work: You don’t need to worry about trading these certificates yourself. Your installer will calculate how many STCs your new system is eligible for and claim them on your behalf.
• You get an instant discount: In exchange for you assigning the STCs over to them, the installer gives you an equivalent discount directly off your invoice. This can save you hundreds, or even thousands, of dollars from the total cost.

The number of STCs your system generates depends on its size, its efficiency, and where in Queensland you live (as different “solar zones” get different amounts of sunshine). Because Queensland is the Sunshine State, we often get a higher number of STCs compared to southern states, which is great news for our wallets.

Gigi’s pro tip: The SRES scheme is being phased out and will end in 2030. Each year, the number of STCs a system is eligible for decreases slightly. This means the sooner you install your system, the larger the discount you will receive.

Are there any Queensland government solar incentives in 2025?

This is a common point of confusion. In the past, the Queensland government has offered specific rebates for energy-efficient appliances, including solar hot water. For example, the popular Climate Smart Energy Savers program offered rebates of up to $1,000, but this scheme was quickly oversubscribed and is now closed. Another state-level rebate program ended back in 2012.

As of October 2025, there are no active, state-wide solar hot water system rebates offered by the Queensland government. The federal STC scheme is the main and most significant incentive available.

It’s always a good idea to check the official Queensland Government energy websites for any new programs that may be announced, as they can sometimes be for a limited time.

How to get your solar hot water system rebates QLD

One of the best things about the federal STC rebate is how simple it is for you, the homeowner. The process is designed to be handled entirely by your chosen installer.

Here’s a step-by-step guide to what you can expect:

• Choose your system and installer: First, get quotes for an eligible solar hot water system from a reputable installer. Crucially, they must be accredited by Solar Accreditation Australia (SAA) to ensure your system qualifies for the rebate and is installed to Australian standards.
• The quote includes the discount: When you receive a quote, it should clearly show the full price of the system and then the STC discount applied, giving you the final price you’ll pay.
• Sign the paperwork: At the time of installation, you’ll sign a form that officially assigns the right to create and sell the STCs from your system to your installer or their registered agent.
• Pay the discounted price: You simply pay the final, lower amount on your invoice. Your installer handles all the backend administration to redeem the value of the certificates.

Are you eligible for the rebate?

Eligibility for the SRES scheme is straightforward. The key requirements are:

• Your new solar hot water or heat pump system must be on the Clean Energy Regulator’s list of approved models.
• It must be installed by an SAA-accredited professional.
• The system must be new and complete.
• The STCs for the system must be created within 12 months of the installation date.

The scheme is open to both new builds and existing homes, so almost everyone can take advantage of it.

Comparing solar hot water system costs and rebates in QLD

So, what does this all mean for the final price you’ll pay? The total cost of a solar hot water system depends on the type, brand, and size you choose.

Here are some typical price ranges you can expect for a fully installed system before the rebate is applied:

• Roof-Mounted Systems: Around $3,500 – $5,500. These are the classic systems where both the storage tank and the panels sit on your roof.
• Split Systems: Approximately $4,000 – $7,000. With these, the panels are on the roof but the tank is on the ground.
• Heat Pump Systems: Roughly $3,000 – $5,000. These are a great alternative if your roof is shaded, as they extract heat from the air instead of directly from the sun, and are also eligible for STCs.

The STC discount will typically reduce these prices by several hundred to over a thousand dollars. For example, a system with an initial cost of $4,800 might receive an STC discount of around $700, bringing your final out-of-pocket cost down to $4,100. Always confirm the final, discounted price with your installer.

Ready to make the switch?

Understanding solar hot water rebates in Queensland really boils down to one thing: the federal SRES scheme. It provides a fantastic upfront discount that makes switching to an energy-efficient hot water system much more affordable. While state-based rebates are not currently available, the federal incentive is strong and reliable.

If you’re ready for a proper quote, I can introduce you to a trusted, SAA-accredited local expert who can give you a precise price, including the STC discount, for a system that’s perfect for your home.