Save with a heat pump hot water system

A hot water heat pump is an excellent choice for homeowners seeking to reduce their energy bills. Unlike traditional water heating methods, like gas or electric resistance, heat pumps use ambient air temperature to heat water, making them significantly more energy-efficient. If the last gas appliance in your system is your hot water, you can enjoy significant yearly savings from closing off your gas supply. Read below about how they work, the cost and benefits of replacing your old system, and how you can access government rebates.

Advantages of heat pump hot water systems

A heat pump is an energy-efficient system that transfers heat from one place to another, rather than generating heat directly. It uses a small amount of electricity to move heat from the outside air into your home, even in winter. This makes heat pumps a cost-effective, efficient, and most importantly, reliable option for home heating.

  • Energy-efficient water heating
  • Significant cost savings on energy bills
  • Reduced environmental impact
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Why replace my current hot water system with a heat pump?

A heat pump hot water system uses less energy than a traditional gas or electric system. A heat pump can be up to 8x more efficient and can lead to significant bill savings. Plus, there's great government incentives available to help you reduce the up front cost of doing so.

1. Cost

A heat pump hot water system typically costs between $3,500-4,500 installed in Australia, but government rebates through STCs (Small-scale Technology Certificates) can reduce this by $800-1,500 depending on your location. Running costs are around $150-250 per year for a family of four, compared to $500-600 for electric and $400-500 for gas systems. The payback period is typically 3-5 years when replacing an electric system, or 4-6 years when replacing gas.

2. Performance

Modern heat pump systems work effectively in all Australian climate zones, even during Melbourne's cold winters or Darwin's humid conditions. They typically heat water to 60°C in 2-3 hours and can deliver 200-300L of hot water per day, enough for a family of 4-5 people. Most systems operate effectively down to -5°C air temperature, which covers virtually all Australian locations, though they may take slightly longer to heat water during very cold conditions.

3. Safety

Heat pump systems are one of the safest hot water options available in Australia as they don't use gas (eliminating carbon monoxide risks), don't require roof access for maintenance (unlike solar hot water), and operate at lower pressures than traditional systems. They also include multiple safety features like automatic shut-off if leaks are detected, legionella prevention through regular 60°C heating cycles, and sturdy weatherproof casings designed for Australian conditions.

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Save thousands of dollars with government rebates

If you’re looking to replace your gas or electric hot water system with a more efficient heat pump hot water system, you can benefit from rebates that will reduce the cost. Like solar, the Australian government includes heat pump hot water systems in its Small-scale Technology Certificates (STCs) scheme. The rebate will vary depending on where you live and the efficiency of your current and new systems, but it is a great incentive that is currently available and can save you thousands of dollars. Plus, 28Watt will automatically apply the rebate to reduce the cost of the system upfront, so there is no need to wait.

Rising popularity in Australia

Heat pump hot water systems are growing in popularity across Australia as they are saving Aussie households money while the cost of living goes up. The Clean Energy Regulator (CER) reported a 70% jump in installations in 2023. Recently announced government incentives and rebates have made installing a heat pump hot water system an attractive option for almost all Australian households. To find out how much you can save by installing a heat pump hot water system, join our waitlist or send us an email at hello@28watt.com.au.

Frequently Asked Questions

Find answers to commonly asked questions about home batteries.

Think of it as a reverse fridge for your hot water. Instead of using electricity to directly heat water (like traditional electric systems) or burning gas, it uses a small amount of electricity to move heat from the surrounding air into your water. This makes it incredibly efficient - using about one-quarter of the electricity of a traditional electric hot water system to heat the same amount of water.
The answer depends on a few factors, including the type and age of your current system. Generally speaking, switching from an electric system can save you $300-600 per year on hot water costs, and switching from gas can save you between $200-400 per year. If you have solar panels the savings are even bigger as you can run the system during the day using solar power. These savings mean the system typically pays for itself within 3-5 years, even with the higher upfront cost.
Yes! Modern heat pump hot water systems work well across Australia's climate zones. In the tropical north around Darwin and Cairns, you'll get excellent performance year-round. Along the east coast in Brisbane and Sydney, they're very efficient in all seasons. Even in southern states like Melbourne and Hobart, they remain effective in cold weather, though may have slightly longer heat-up times in winter. The dry interior around Alice Springs sees great performance due to low humidity. Most systems can operate effectively down to -5°C, which covers virtually all Australian locations.
For most Australian homes, sizing is straightforward based on household size. A 1-2 person household typically needs a 170-250L tank. For 3-4 people, look at a 250-315L tank. Larger households with 5 or more people should consider a 315-400L tank. Consider your usage patterns too - if everyone showers in the morning, you might need a larger tank than if usage is spread throughout the day.
Heat pump hot water systems need less maintenance than you might think. Simply clean the air filter every 3-6 months by vacuuming or wiping it clean. Keep the area around the outdoor unit clear of leaves and debris. Have a qualified plumber check the system every 3-5 years to ensure everything's running efficiently. If you live in a coastal area, wash the outdoor unit every 3-6 months to prevent salt corrosion.

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