Replace your old gas hot water with a heat pump system
Save up to 75% (or more!) over a traditional electric hot water heater.
Water heating accounts for more than a quarter of average household energy costs – so the type of hot water system you have in your home makes a huge difference to your bills and your household emissions.
Electric heat pump hot water systems are a great option for reducing your bills. According to Sustainability Victoria, heat pump water systems use around 60 to 75% less electricity than traditional electric hot water systems.
Making a plan to replace your current hot water service with an efficient heat pump will mean you’re ready to go when your current system breaks down.
Download our Go Electric Plan(PDF, 631KB)
Difference between heat pumps and solar hot water
Both heat pump systems and high-performance solar hot water systems are the most efficient water heating options.
However, most solar hot water systems use gas to boost the temperature of the water during winter months. Also, heat pump systems don’t need solar hot water collectors on the roof so can be a better option where you have limited roof space, or where access to sun is limited.
Heat pump systems absorb warmth from the air and transfer it to heat water – a bit like air conditioning. This video from Solar Victoria shows you how it works.
Heat pump systems come as either split systems, with a separate tank and compressor, and integrated systems, with a combined tank and compressor.
If you have solar panels, you can time your heat pump to come on during the sunniest hours of the day so you’ll be getting free hot water most of the time.
What to look for
This guide from Renew will help you know what to look for when you’re buying a heat pump.
As a guide, a four-person household will typically need a 270–315L tank.
The My Efficient Electric Home Facebook group provides a forum to search and discuss information on various models.
Costs
Heat pump hot water systems have a greater upfront cost but are much cheaper to run over the life of the unit. Systems range in price from about $2000 to $4000, excluding installation. You are likely to be eligible for rebates which will reduce the cost substantially– see below.
The Sustainability Victoria website shows the difference in running costs for different types of hot water systems depending on the size of the household.
Their website also gives information on efficiency and running options, including the best time to run your system to save money.
Victorian Government support
There are three rebates available to reduce the cost of an efficient heat pump hot water system. STCs from the Federal Government and Victorian Energy Efficiency Credits (VEECs) from the Victorian government vary according to your location and the system you're upgrading from. Ask your installer to explain these to you and show them on your quote.
In addition, the Victorian Government’s Solar Hot Water program provides eligible Victorian households with a rebate of up to $1,000 to assist with the purchase of a heat pump or solar hot water system. This is in addition to the $1,400 rebate available for solar panels, so if you have neither solar panels or an environmentally friendly and energy efficient hot water system, it’s a good time to invest.
What if it’s an emergency?
While the usual process is that you get a quote and confirm your eligibility for the rebate first, you can still get the rebate if you need to install a system urgently – for example if it breaks down.
Read the process for emergency installations on the Solar Victoria website for more information.
More information
If you have any questions or want to find out more, please contact us.
Climate Emergency and Sustainable Transport
Email: climateemergency@darebin.vic.gov.au