Why choose a heat pump hot water system

Heat pumps: Modern, energy-efficient hot water systems

Hot water systems account for a large chunk of our energy use at home. So when the time comes to replace yours, choosing an energy-efficient option can save you lots of money.

Hot water heat pumps have become the leading choice in energy-efficient electric systems in recent years.

They use around 60 to 75% less electricity than a conventional electric hot water system. That’s because heat pumps work by extracting heat from the surrounding air to warm up your water. For every unit of electricity used to run the heat pump, it can extract several units of energy from heat in the air.

They also cost much less to run than gas systems. Households that replace a gas hot water system with a quality heat pump hot water system can save around $250 a year on energy bills.

Some heat pumps come with a timer, so you can set them to run at the time of day that is most cost-effective for you. If you have solar, running a heat pump during the daytime means you can take advantage of free power from the sun. If you don’t have solar yet, you could time your heat pump to run during off-peak hours when your electricity price is lowest. Check with your electricity retailer if you’re not sure when that is.

Shane’s story: “Our gas bill has dropped dramatically”

Shane used a Solar Victoria hot water rebate to install a heat pump as part of his journey to a solar-powered, all-electric home. His gas bill dropped substantially after switching from gas hot water to the heat pump. And by timing the heat pump to run when his solar panels are generating electricity, he enjoys free hot water.

See why he’s impressed with it:

Common questions about heat pump hot water systems

1. How can I make sure I’m getting a good quality heat pump?

Start by reading our Hot Water Buyers Guide to learn about system sizes, warranties and everything else you need to know.

Then, get quotes from our authorised hot water retailers. To be on this list, retailers must meet quality and safety requirements that help ensure you receive a reliable product, installed safely by a trained professional.

2. Are heat pumps noisy?

Heat pumps contain fans and compressors that make a low level of noise when operating. While early heat pumps were noisier, technology has improved. Many manufacturers state the noise level of their products (in decibels, or dBA) so you can make comparisons. Typically, the decibel level of a heat pump is similar to that of a fridge.

Talk to your retailer about the best place to install your heat pump to minimise any disruption to your household and neighbours. Remember that it will only operate for a little while each day and if it has a timer you can control when it operates.

3. Do heat pumps work in winter?

Heat pumps work by extracting heat from the surrounding air. This may lead you to wonder whether they work on a cold winter morning. Don’t worry – you won’t be stuck with icy showers! It will just take a bit longer to heat your water tank in winter when there’s less heat in the air.

Hot water heat pump rebates

If you’re looking to install a heat pump hot water system for your home, there are Victorian government incentives available to help lower the upfront cost.

Eligible households can receive a Solar Victoria hot water rebate of 50% of the purchase price (after other discounts) of an eligible heat pump hot water system, to a maximum of $1,000.

The Victorian Energy Upgrades (VEU) program also offers discounts on hot water system upgrades to Victorian households replacing inefficient electric or gas hot water systems with heat pump hot water systems.

You can claim both the Solar Victoria rebate and the VEU discount if you choose a retailer that is authorised to participate in both programs.

So make the switch to an energy-efficient hot water system and start saving on bills today.