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The One Article to Read on Heat Pump Hot Water

If you read one article on heat pump hot water, make it this one. 

People are time poor. I get it. We’re busy working, looking after the home, the kids, walking the dog. As much as I love researching heat pump hot water, I appreciate that others may not have the time or the same level of interest.

Well the good news is I am here to help!

Let me help you learn the keys to heat pump hot water so you are well equipped to:

  • Understand how they work and why you will save
  • Choose a unit
  • Choose an installer
  • Understand their weaknesses - they aren’t perfect

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.

How does heat pump hot water work?

Heat pump hot water sucks heat out of the air, amplifies and pumps it into water. Heat pump technology is incredibly efficient - depending on the air temperature, for every one unit of energy in, 3, 4 or even 5 units of energy are transferred into the water. Put another way, for every $1 you spend powering a heat pump, you're getting $3 or $4 worth of energy. It’s this efficiency that makes heat pump hot water the cheapest way to heat water for your home.

See more: How does heat pump hot water work

What is a refrigerant?

Heat pump hot water units use a refrigerant to effectively transfer and amplify heat from the air into water. Refrigerants are regulated due to their toxicity, flammability and global warming potential. There are many different types of refrigerants used in the market, with three main ones used in heat pump hot water units: carbon dioxide, propane, R-134a. The latter is being phased out of the market due to tighter regulatory controls.

The key for heat pump hot water customers is to work out how much emphasis they put on the refrigerants. R-134a has a global warming potential of 1,430, meaning if the gas were to escape, it would have 1,430 times the global warming impact than carbon dioxide. Environmentally minded customers would probably not consider heat pump hot water units using R-134a. While not always, there tends to be a correlation between price and refrigerant. More expensive heat pump hot water units use better quality refrigerants with lower global warming potential.

See more: Refrigerants



When should I switch to heat pump hot water?

You have two options:

  1. Switch before your current unit fails
  2. When your current unit fails - the beauty of this approach is the cost of heat pump hot water is framed differently. For example, let’s assume your gas storage hot water unit fails. Let’s assume it will cost $2,500 to replace with another gas storage unit. The ‘cost’ or premium on a heat pump hot water unit is now $2,500 less, as that money needs to be spent anyway. All of a sudden a $3,000 unit now only costs $500, as opposed to $3,000. The downside of switching when your current unit fails is you’ll want to act quickly - no one likes a cold shower!

Will I save with heat pump hot water?

Yes! Heat pump hot water is the most efficient and cheapest way to heat water in the home. 

Heat pump hot water savings depend on a number of factors:

  • Hot water usage - how many people in the home? Are they like my wife who loves a 15 minute shower?
  • Current hot water service - savings will be greater if it’s replacing an inefficient hot water service
  • Solar - if the home has solar, we can set up timers to run the units during the day, powered by free electricity generated by the solar system

Of course, the ongoing savings from heat pump hot water need to be compared to the upfront cost. 

How much do heat pump hot water units cost?

Affordable units might cost around $1,000 or less, but might also compromise on reliability. Top of the range units might cost upwards of $7,000. There can be generous state and federal rebates available for units, but it’s the final price that really matters.

See more: Heat pump hot water rebates

Do heat pump hot water units need to be maintained?

Heat pump hot water units generally do not require a great deal of maintenance, but it pays to be aware of maintenance requirements before selecting a unit. Different manufacturers place different obligations on you to maintain the unit, otherwise it will be out of warranty. In my reviews, I comment on the maintenance requirement of each unit. Choosing the wrong unit can lead to increased hassle and cost over the life of the unit.

See more: Servicing & Maintenance

Should I get a Split system or All-in-one?

Unless you have limited locations to install the new unit, we don’t think this should drive your decision making. We think more important factors in choosing a unit are cost and reliability.

One benefit of split systems is the compressor can be replaced independently of the tank when it fails. With compressor warranties typically being 5 years and tank warranties sometimes 15 years, this can be more economical over the long run. All-in-one units need to be completely replaced when they fail.

Which unit should I choose?

Well that’s the big question! Different people have different requirements and preferences, so we stop short of recommending a particular unit for everyone. We do however have strong reviews of avoiding certain units. Please see our reviews to help you make an informed decision.

What are the downsides of heat pump hot water?

Nothing is perfect, and there are some things we should note about heat pump hot water:

  • Noise - they can be a little noisy, but it depends where they are installed and how they are run (don't run them at night time). Almost all units are rated at lower noise than your typical air conditioner.
  • Durability - probably the greatest drawback of heat pump hot water compared to other hot water services is the typical warranty is only 5 years. Warranties on gas storage, instant gas and electric hot water units are typically more than 10 years. Heat Pump Compare will continue to campaign and encourage manufacturers to extend their warranties. Manufacturers are quick to suggest units ‘should’ last 10 to 15 years. Well if that’s the case - warrant them for 10 years! We think the 5 year typical warranty is a function of two factors: first, the typical warranty on many air conditioners (similar technology) is 5 years and second, the minimum warranty for units to be eligible for many rebates is 5 years (eg: if a unit is not warranted for a minimum of 5 years, it will not be eligible for that rebate). It is our view that this has had the unintended consequence of setting an industry standard, one that we’d like to see increased.
  • Space - installing heat pump hot water can be an issue where they are replacing instant gas units. Instant gas units are quite small, and heat pump hot water units are large and not always practical.
  • Cool climate - not all units are suitable for cold climates
  • Cost - of course you can buy a top of the range unit like a Reclaim or Sanden that doesn’t have any of these issues, but you’re then paying top dollar.


How is a heat pump hot water unit installed?

Typically a plumber attends first. They remove the old unit and bring in the new unit. In the majority of cases they’ll fit the new unit where the old unit was. However, plumbers can ‘relocate’ the hot water service by installing the new unit in a new location, usually at extra cost. The plumber takes away the old unit. Some say “look at us, we’re fantastic, we’ll even take away your old unit”, but in many cases they’ll need to do that to claim certain rebates and even if that doesn’t apply, it should be part of any comprehensive service.

An electrician typically attends later in the day to wire in the new unit. Most common and best practice is to run a wire from the unit back to the switchboard.

See more: What does a good installation look like?


Where can heat pump hot water be installed?

Units need to be installed outside (which makes sense anyway as having a large volume of water inside the home can end badly). They are typically installed down the side of houses. They often are a little bigger than gas storage units and can sometimes lead to restricted access.

What factors affect the installation cost of heat pump hot water?

  • Split system vs All-in-one - split systems typically cost a little more to install
  • Relocation - allow extra expense if you would like the new unit in a different location to the existing unit
  • Access - how easy or difficult it is to bring in the new unit
  • Switchboard - whether there is room for a new dedicated circuit on the switchboard. In some case a switchboard may need an upgrade
  • Cabling - the difficulty and length of the wiring run from the unit to the switchboard

How do I find a good installer?

The efficiency and durability of a heat pump hot water unit is greatly affected by the quality of its installation. The good news is Heat Pump Compare is here to help! We only list reputable installers that are well reviewed and satisfy our criteria. We encourage customers to leave reviews of our installers and let us know if there are any issues. We’re confident that all customers requesting quotes from Heat Pump Compare installers are in good hands.

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