Costs, Rebates & Tips
By now, you know how a hot water heat pump works and why it’s more efficient than gas or electric storage. But is it the right choice for your home?
Upfront Cost vs Long-Term Savings
Heat pumps usually cost more upfront than gas or electric units—often between $2,500 and $5,500 installed. But they quickly pay themselves off in lower energy bills, often within 4–6 years.
Over 10 years, a heat pump can save thousands compared to gas or electric heaters. Even if you sell your home before you benefit from payback, a new hot water heat pump can add resale value to your home.
Rebates and Incentives
Government programs can significantly reduce the purchase price:
● Solar Victoria rebate – up to $1,400 off for eligible households.
● Victorian Energy Upgrades scheme – provides additional discounts.
TIP: Always ask your installer to explain which rebates you qualify for—they can often apply the discount directly to your invoice.
Is My Home Suitable?
Heat pumps work well in most Australian climates. They’re especially cost-effective if:
You’re replacing an old gas or electric unit.
You have rooftop solar and want to use excess power for free hot water.
You’re aiming for an all-electric, climate-friendly home.
Things to consider:
Space and ventilation – the pump needs airflow.
Tank size – a household of four usually needs 270–315L.
Noise – discuss with your installer and find a place in your home where it will minimise ambient noise.
Choosing the Right System
Integrated vs Split – choose based on available space (Integrated units are simpler to install but bulkier, while split systems offer more flexibility in tight spaces.).
Efficiency rating (COP) – higher is better (look for 3–5+).
Refrigerant type – Look for modern systems using low-impact refrigerants like R-290 (propane) or R-744 (CO₂). These are far more climate-friendly than older refrigerants such as R134a or R410A.
Installer – make sure they’re accredited and experienced.
The Big Picture
Hot water heat pumps are a smart investment for families who want to cut bills, lower emissions, and future-proof their homes.
Switching to one is more than just saving money—it’s about building a healthier, safer climate for our kids.
