Ready to get up to 3 quotes?

7 things you need to understand before buying a heat pump hot water unit

1. Rebates

There are generous state and federal government incentives and rebates that drastically change the cost of a heat pump hot water unit.

Your heat pump hot water unit will be made cheaper by:

  1. STCs - small-scale technology certificates. These come with most if not all units, so almost everyone will receive the benefit of STCs.
  2. State rebates - ESCs for NSW, VEECs and Solar Vic rebate for Victoria and REPS for South Australia

What does all this mean? It means that your heat pump can be as much as $2,500 cheaper than you'd otherwise pay. Importantly, it also means there are good quality, affordable heat pumps that are cheaper to install than gas equivalents, so it'll be cheaper to install as well as being much cheaper to run.



2. Maintenance

Most heat pump hot water units require little maintenance. However, there are some units on the market which place tough requirements on owners. For example, Emerald's units require a plumber to make a service call every six months. Plumber's aren't cheap, so that's going to add considerable cost over the life of the unit.

I'm not saying don't get a unit because of the maintenance requirements, but you should at least be aware. I've read every Owners Manual on the market and my reviews compare and highlight the maintenance requirements for each unit.

3. Refrigerants

Heat pump hot water units use a refrigerant to effectively transfer heat from the air to the water. In fact, it's the use of the refrigerant that is largely responsible for heat pump hot water being so efficient. But not all refrigerants are equal (ozone layer anyone?). Each refrigerant has a Global Warming Potential (GWP) - the measure of heat absorbed by one tonne of a gas relative to heat absorbed by one tonne of carbon dioxide.

The better heat pump hot water units use carbon dioxide and propane, which both have low GWPs. Some units use R-134a which has a GWP of 1,430! While the manufacturers of these units will tell you that the refrigerants are recaptured at end of life and there will be no leaks, I could never recommend these unit.

It really depends on how environmentally minded you are. If you're not so fussed, then all units are on the table. If you are environmentally minded, opt for units that use carbon dioxide or propane.

4. Solar

Will your heat pump hot water unit work well with solar? Yes, absolutely! As the amount we are paid for exporting our solar back into the grid continues to decline, heaps of people are turning to heat pump hot water to optimise their solar. And the good news is it's super simple! Your solar doesn't need to feed into the heat pump hot water unit directly or require any special connections. Your solar simply feeds into your switchboard and meter and will power your heat pump hot water unit when it's producing free energy.

Better still - set a timer so that you only run the heat pump hot water unit during the day. If the sun is shining, bingo bango you have free hot water 😄


Ready for quotes?

Heat Pump Compare connects you to trusted installers that share our commitment to quality advice, products and service.


5. What are the potential concerns?

There's no such thing as a free lunch - there are a few downsides to heat pump hot water you should be aware of, but they don't apply to most people.

  • Noise - heat pump hot water makes more noise than gas hot water. Be mindful if you're installing the unit say next to your patio or entertaining area. A good quality unit won't make too much noise, but poorer quality units may be more noticeable than you like.
  • Space - heat pump hot water units are big machines and not every one has room for them. Some people that have instant gas hot water may not have room. We also need to be mindful of access - is there enough room to bring in the new unit?
  • Maintenance - heat pump hot water requires more maintenance than gas hot water units. Most good units require a service every 5 years, so it's manageable.

6. Choose wisely

Heat pump hot water is a big investment - you want to get it right. You’ll often only be able to access Federal and State rebates once, and you’ll know about it if your hot water unit isn’t working - so it’s important to pick a unit that is reliable.

7. Don't ask your plumber!

Now this is clearly a broad, sweeping statement, and I apologies to the well-intentioned plumbers out there, but I've heard too many stories of people asking their standard plumber for their advice. Nearly every time - get another gas unit!

Your typical plumber loves a gas unit because it's probably half of their business. I've spoken with too many plumbers that don't like heat pump hot water because it's not business as usual. They need to learn new skills, deal in new equipment and they need to organise an electrician to handle the electrical side. I've spoken with apprentice plumbers that still aren't even taught heat pump hot water at TAFE.

My advice - use reputable companies that specialise in heat pump hot water installations. They know the products, they carry the stock, they install these units day in, day out. They will be authorised with relevant state authorities to claim rebates on your behalf. Authorised Hot Water Retailers and Installers with Solar Victoria and possibly even Accredited Providers under the Victorian Energy Upgrades Program, passing on maximum rebates to you the customer.

Of course, all installers on the Heat Pump Compare website fit this description.

Get your free quotes through Heat Pump Compare for great advice and peace of mind.

More Learn articles: