Short answer

South Australia's help comes through the Retailer Energy Productivity Scheme (REPS): energy retailers offer free or discounted upgrades, including replacing a water heater with a heat pump. The state doesn't publish a set dollar amount, because each retailer chooses its own offer. Federal STCs stack on top, and SA households can use the Solar Sharer free window from 12pm to 3pm.

On this page
  1. What heat pump rebates are available in South Australia?
  2. Which REPS activities cover hot water?
  3. What are the rules for a heat pump under REPS?
  4. How much is the SA rebate?
  5. Can I combine REPS with federal STCs?
  6. How does the Solar Sharer Offer work in SA?
  7. What should Adelaide buyers check?
  8. Sources for this page

REPS works differently from a normal rebate. The state sets energy saving targets for retailers, and the retailers meet them by offering households and businesses discounted upgrades. That means the "rebate" you get depends on who you ask, and you can shop around: you don't have to be a customer of the retailer making the offer.

What heat pump rebates are available in South Australia?

South AustraliaOpen

Retailer Energy Productivity Scheme (REPS)

What you get
Free or discounted energy upgrades offered by participating energy retailers, which can include replacing or upgrading a water heater (activity WH1). The SA Government does not publish a fixed dollar amount: retailers choose what they offer.
Who can get it
  • Households and businesses. You don't have to be a customer of the retailer offering the activity
  • Established homes (class 1), apartments (class 2) or small business premises. New houses are excluded
  • Heat pumps installed from 1 January 2026 must earn at least 13 STCs in zones 3 and 4
  • The old water heater must be removed from the premises
  • Priority group customers may get further discounts
Key dates
The current scheme period runs from 1 January 2026 to 31 December 2030.
How to get it
Contact energy retailers or their activity providers and ask which REPS water heater activities they offer and at what price.
Official source
Retailer Energy Productivity Scheme (Government of South Australia (sa.gov.au)). Last checked: November 2026.

The SA Department for Energy and Mining says retailers "can choose which eligible productivity activities they provide to customers", and suggests contacting your energy retailer or activity provider about availability and any rebates in 2026 (Department for Energy and Mining).

Which REPS activities cover hot water?

REPS water heater activities (Department for Energy and Mining)
CodeActivity
WH1Replace or upgrade water heater
WH3Switch an electric (heat pump or resistance) water heater to a tariff with solar sponge and off-peak blocks
WH4Connect a new or existing electric heat pump water heater to an approved demand response aggregator (residential only)

WH1 and WH4 were varied from 1 January 2026 (REPS activity specifications). WH4 is a newer idea: your heat pump is linked to a service that can shift when it runs to help the grid. Ask any provider offering it exactly what control they get and what you get in return.

What are the rules for a heat pump under REPS?

The WH1 specification (version WH1.2026.1) sets these conditions (WH1 PDF):

  • Heat pumps installed on or after 1 January 2026 must earn at least 13 STCs when assessed for both zone 3 and zone 4.
  • It covers established houses (class 1), apartments (class 2, new or established) and small business customers. A water heater for a new house is excluded.
  • The replaced water heater must be removed from the premises.

How much is the SA rebate?

No official SA Government page I read states a dollar figure, because the discount is set by each retailer or provider. I found one figure on a government-hosted page that turned out to be advertiser content, so I haven't used it. Get the discount in writing on the quote, and compare at least two REPS providers. The government notes that priority group customers "could be eligible for further discounts or offers" (Department for Energy and Mining).

Can I combine REPS with federal STCs?

Yes. The WH1 rules actually depend on the STC rating of the heat pump, and the federal STC discount applies in SA like everywhere else.

Australia-wideOpen

Small-scale technology certificates (STCs)

What you get
A point-of-sale discount worth the market value of the STCs your model earns. The number depends on the model, your postcode zone and the year it is installed, and it falls each year until the scheme ends in 2030.
Who can get it
  • Any home or business in Australia
  • The heat pump model must be on the Clean Energy Regulator's register of solar water heaters, with a tank under 425 L
  • Installed by tradespeople meeting your state or territory licensing rules
Key dates
Installed in 2026: 5-year deeming period. 2027: 4 years. 2028: 3. 2029: 2. 2030: 1. The scheme ends on 31 December 2030.
How to get it
Most people assign the STCs to the installer or retailer (a registered agent), who takes their value off the price. You can also create and sell them yourself within 12 months of installation.
Notes
The Clean Energy Regulator does not set the price agents pay. The STC clearing house price is capped at $40 excluding GST, and open market prices vary daily.
Official source
Solar water heaters and air source heat pumps (Clean Energy Regulator). Last checked: November 2026.

Adelaide's CBD postcode is in heat pump zone 3 (CER postcode zones). Suburbs and nearby towns can sit in different zones, so check your own postcode. If you get regular frosts, read the cold climate guide.

How does the Solar Sharer Offer work in SA?

South Australia is one of three regions where the federal Solar Sharer Offer has run since 1 July 2026. In SA the free window is 12pm to 3pm, an hour later than NSW andSouth East Queensland, with up to 24 kWh free each day for eligible households with a smart meter who opt in (energy.gov.au). Energy Made Easy says the times don't change for daylight saving (Energy Made Easy). A heat pump on a timer is a natural fit, as long as it is on the general circuit rather than controlled load. See solar and off-peak timing.

What should Adelaide buyers check?

  • That the model earns at least 13 STCs in zones 3 and 4 if you want the REPS discount.
  • That the old heater will be removed (a REPS condition).
  • A timer you can set to 12pm to 3pm if you plan to use the Solar Sharer Offer.
  • Frost performance if you live in the Hills.

See the Adelaide guide for climate figures and more.

Sources for this page

  1. Retailer Energy Productivity Scheme (REPS), Department for Energy and Mining (SA). Last checked: November 2026.
  2. REPS activity specifications, Department for Energy and Mining (SA). Last checked: November 2026.
  3. REPS activity WH1: replace or upgrade water heater (WH1.2026.1), Department for Energy and Mining (SA). Last checked: November 2026.
  4. Energy saving rebates, Department for Energy and Mining (SA). Last checked: November 2026.
  5. Postcode zones for air source heat pumps and solar water heaters (Version 3, 1 January 2020), Clean Energy Regulator. Last checked: November 2026.
  6. Solar Sharer Offer, energy.gov.au (Australian Government). Last checked: November 2026.
  7. Solar Sharer Offer: what you need to know, Energy Made Easy (Australian Energy Regulator). Last checked: November 2026.
  8. Retailer Energy Productivity Scheme, Government of South Australia (sa.gov.au). Last checked: November 2026.
  9. Solar water heaters and air source heat pumps, Clean Energy Regulator. Last checked: November 2026.

Every source used on the site is listed on the sources page.