Federal STCs: the main incentive
Heat pump and solar hot water systems listed on the Clean Energy Regulator's register create small-scale technology certificates (STCs) under the federal Small-scale Renewable Energy Scheme. The certificates have a market value, and in practice the installer or their agent takes them in exchange for a discount on the price you pay. You don't apply for anything yourself.
How many certificates a system creates depends on the model, your postcode's climate zone and the year it's installed. Certificates traded at close to $40 each in the first half of 2026, according to the Clean Energy Regulator, but the price moves with the market.
Why sooner is worth more
The number of certificates a system can create is based on a "deeming period" that drops by one year for each later installation year:
| Installed in | Deeming period |
|---|---|
| 2026 | 5 years |
| 2027 | 4 years |
| 2028 | 3 years |
| 2029 | 2 years |
| 2030 | 1 year |
So the same heat pump earns fewer certificates each year. The Clean Energy Regulator says the decline continues until 2030, when the scheme ends.
Queensland state rebates
Queensland's Climate Smart Energy Savers program paid a rebate on eligible heat pump hot water systems, but it has closed. As of November 2026, we're not aware of a Queensland Government rebate for heat pump hot water. If a new program opens, we'll update this guide.
Other help with the cost
Some lenders offer discounted green loans for energy upgrades, including heat pumps, through the federal Household Energy Upgrades Fund. The terms are set by each lender.
Is a heat pump worth it without a state rebate?
For most Sunshine Coast homes replacing an electric tank, yes. A heat pump uses around a third of the electricity of a standard electric tank for the same hot water, the mild climate suits it all year, and it can run on your rooftop solar in the middle of the day. Compare the options in our guide to heat pump vs electric hot water, or see heat pump hot water.
This is general information, current as of November 2026. Incentives change, so we confirm what applies to your system when we quote.
Common questions
Is there a heat pump rebate in Queensland?
The main incentive is the federal STC scheme, which reduces the price of eligible heat pumps, usually as a discount on your quote. Queensland's Climate Smart Energy Savers rebate has closed, and as of November 2026 we're not aware of a state replacement.
How do I claim STCs on a heat pump?
In most cases you don't claim them yourself. The installer or their agent takes the certificates and takes their value off your quote. The model must be listed on the Clean Energy Regulator's register.
Will heat pump STCs be worth less next year?
Yes. The deeming period drops by one year for each later installation year, from 5 years for a 2026 install to 4 years in 2027, so the same system creates fewer certificates. The scheme ends in 2030.
Sources and further reading
- Clean Energy Regulator: deeming period decline for solar water heaters and air source heat pumps
- Clean Energy Regulator: Quarterly Carbon Market Report, March quarter 2026 (small-scale scheme)
- Queensland Government ministerial statement, 14 April 2024: Climate Smart Energy Savers program closed
- energy.gov.au: Household Energy Upgrades Fund
- Business Queensland: hot water systems (temperature control devices on new and replacement systems)
- QBCC: Form 4 notifiable work (installing, replacing or removing a water heater)
- Clean Energy Regulator: solar water heaters and air source heat pumps (STC eligibility)
- Residential Tenancies Authority: emergency and routine repairs