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$99 Heat Pumps - Good value or avoid?

Government incentives do a wonderful job in reducing the cost of heat pump hot water units.

However, as is often the case with industries that receive government support, this has resulted in some units being offered at extremely cheap prices.

The image above is a classic example - a heat pump hot water unit fully installed for just $33.

These ultra low prices have lead to some unintended consequences, which the The Energy Efficiency Council addresses in its Heat Pump Hot Water Roadmap. The Roadmap lists the problems below and suggests that co-payments are required from consumers when accessing government incentives.

Source: Energy Efficiency Council Heat Pump Hot Water Roadmap

Let's look at the pros and cons of ultra cheap heat pumps, using this example of a proud owner of a $99 heat pump uploaded to My Efficient Electric Home


Cons

It's easy to point out the cons of this installation.

  1. The image on the right shows the dents in the unit, possibly received during transport. Dents in the tank will increase the chances of the unit corroding
  2. The image on the right shows what I think must be the condensate drain. It looks, ah...different
  3. Insulation - the pipes have very little insulation (basically everything should be insulated)
  4. Level - the unit is not level, which may not lead to any issues, but looks sloppy
  5. Electrical cord - the electrical cord is simply dangling about, which again may not lead to any issues, but is another sign of sloppy work

It is very clear that no care has been taken with the installation of this unit. Nearly all of these issues could have been resolved if the people installing it had taken more care.

The issue with ultra cheap units isn't just the quality of the unit, it's the quality of the installation. At such low prices, installers will 'get the job done' as quickly as they can and move on.

All the issues above are to do with the people installing the unit, not the unit itself. A poor quality installation will mean the unit isn't given a chance to perform.

Pros

  1. It's affordable - I'd much prefer to see one of these installed than a new gas unit
  2. There are good stories - my extensive online research through forums and other places shows plenty of people that are happy with their cheap units. Many boast a sense of pride that they have a unit which is working and they managed to avoid paying thousands of dollars.

Reliability

Arguably the most important factor of any heat pump hot water unit is its reliability, and this is where we don't have enough evidence.

While I mentioned above that there are plenty of 'good news' stories, most of these are "mine's been working wonderfully for 18 months." Let's reassess when you've had it for 5 years, and even then, if it lasts 10 years.

You generally only receive rebates once, and they won't be around forever - we want to make them count.

Summary

I don't have such a black and white view that everything cheap is nasty and absolutley will not work. As I mention above, I'd much prefer to see a $99 heat pump installed than another gas unit.

People looking at ultra cheap heat pumps should consider whether they can afford something that is likely to be more reliable.

Do you want to gamble your rebates? If so, go for it, but please keep your eyes wide open. It might be a good idea to read our article on What does a good installation look like and be there as the installers are doing the job. Ask them to insulate the pipes, ask them to level the unit, ask them to tidy up the electrical cord, don't accept units that have dints in them.

Otherwise, I'd encourage you to buy something which is likely to be more reliable if you can afford it. It may just save you both financially and a great deal of trouble in the long run.

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