About Hot Water Heat Pumps
You're obviously on this page because you're thinking about upgrading your home's hot water system. Here's a quick overview of what hot water heat pumps are, how they work, and why they’re becoming so popular with Aussie homeowners.
What Is a Hot Water Heat Pump?
A hot water heat pump is a type of water heating system that uses electricity to move heat from the air into a water tank. Unlike traditional electric or gas systems, it doesn’t rely on directly heating the water. Instead, it works much like a refrigerator in reverse—making it significantly more efficient.
How Do Hot Water Heat Pumps Work?
These systems extract heat from the ambient air, even in cooler temperatures, and transfer that heat into a water tank using a refrigerant cycle. The key components include:
- An evaporator to absorb heat from the air
- A compressor to raise the temperature of the refrigerant
- A condenser to transfer the heat to the water tank
Because they move heat rather than generate it, heat pumps can use up to 70% less electricity than traditional electric water heaters.
Can I Power a Hot Water Heat Pump with Solar?
Absolutely. Heat pumps are a perfect match for rooftop solar. They consume electricity, but far less than standard systems—making them ideal for households looking to maximise their solar investment. Many systems feature timers so you can schedule operation during peak solar production hours, effectively turning sunshine into hot water.
The table below summarises the average prices paid by Australian homeowners for two common rooftop solar configurations—a 6.6 kW system and a 10 kW system—across five states in May 2025. It’s intended to give a snapshot of how costs vary regionally at that point in time.
All figures are drawn from the SolarQuotes Price Explorer, which aggregates real, installer-provided quotes submitted by consumers around Australia. Because it compiles hundreds of live quotes each month, the Price Explorer delivers a reliable, market-based benchmark for comparing typical system costs by state.
| State | 6.6 kW | 10 kW |
|---|---|---|
| NSW | $6,404 | $10,167 |
| QLD | $6,854 | $9,886 |
| SA | $6,255 | $7,412 |
| VIC | $5,658 | $8,042 |
| WA | $5,237 | N/A |
Does the Local Climate Affect Efficiency?
Yes, but modern systems are designed to work in a wide range of Australian climates. They’re most efficient in warmer regions but still perform well in cooler areas like Victoria and Tasmania, thanks to built-in electric boosters and cold climate designs. In general, the warmer the air, the more efficient the system becomes.
Hot Water Heat Pumps vs Other Systems
| System Type | Upfront Cost | Running Cost | Carbon Emissions | Best For |
|---|---|---|---|---|
| Hot Water Heat Pump | Moderate | Low | Low | Energy-conscious homes, solar households |
| Electric Storage | Low | High | High | Low upfront budget |
| Gas Storage | Moderate | Moderate | Moderate | Homes with gas connection |
| Solar Hot Water | High | Very Low | Very Low | Homes with good roof orientation |
Why More Australians Are Making the Switch
- Energy savings: Up to 70% less energy used compared to conventional electric systems
- Government rebates: Programs like the Victorian Solar Homes hot water rebate can cover part of the cost
- Solar synergy: Maximise rooftop solar use and minimise grid reliance
- Lower emissions: Ideal for reducing your household’s carbon footprint
Frequently Asked Questions
What You’ll Pay: Supply-Only vs Installed Prices
Prices for heat pumps generally range from $2,500 to $5,000 for the unit itself (supply-only). But here’s the twist: installed prices can actually be lower, thanks to point-of-sale rebates.
Take the Aquatech Rapid/X6 210L model. Its supply-only price sits at $3,000, but in NSW, the installed price drops to $2,250 because rebates are factored in upfront. That means buying directly from a retailer without an installer often ends up being more expensive.
So, unless you’re a DIY whiz with plumbing and electrical licences, going through an accredited installer is the smarter—and cheaper—move.
The Role of Government Incentives
Australia’s heat pump market is heavily shaped by rebates and certificates. Here’s how they work:
🌱 Federal Rebates – STCs
Small-scale Technology Certificates (STCs) are issued under a national scheme and can knock hundreds off your cost. The amount varies based on:
- Where you live
- The model
- Installation date
In early 2025, STCs traded at around $39.90 each, and installers usually apply this discount right off the top—no paperwork needed on your end.
🏛️ State-Specific Rebates
Each state adds its own flavour. For instance:
- NSW offers $400–$670 off for switching from electric and $190–$310 from gas under the PDRS.
- Victoria is even more generous, combining Solar Victoria rebates and VEECs to knock $1,000+ off in some cases.
This means the same unit can vary in price drastically by state. For example:
- The Enviroheat 250L model costs $2,650 installed in NSW, but drops to $1,510 or even $1,250 in VIC.
Other Price Factors to Watch
💼 Installation Complexity
The sticker price isn’t the whole story. If your job needs:
- Long cable runs
- Pipe upgrades
- Hard-to-reach areas
- Gas-to-electric conversions
...then expect to pay more. Some installers offer tiered packages (basic to premium), so check the fine print. A “cheap” install might not include essentials like removing your old system or safety switches.
🚛 Where You Live
Freight, labour, and local competition also affect prices. Metro areas tend to get free delivery and more competitive rates. Remote areas may face higher fees due to travel time and limited installer availability.
How the Major Brands Stack Up
Here’s a quick snapshot of popular models @Jul 2025 (installed prices include rebates):
Heat Pump Price Guide by Brand
| Brand | Model | Installed Price Range (AUD) | Customer Reviews |
|---|---|---|---|
| Solahart | Atmos Eco 280L | $3,300 – $4,100 | View Reviews |
| iStore | 270L | $1,710 – $2,211 + GST | View Reviews |
| Reclaim Energy | CO2 250L | $3,940 (VIC) – $5,040 (QLD) | View Reviews |
| Enviroheat | 250L | $2,600 – $2,700 | View Reviews |
| Aquatech | Rapid/X6 210L | $1,000 (VIC) – $2,600 (WA) | View Reviews |
| Emerald | Pro 270L | From $999 (VIC) – $3,399 | View Reviews |
| Hydrotherm | Dynamic/X8 260L | $1,750 – $3,499 | View Reviews |
| Evoheat | EVO270-E | From $2,405 | View Reviews |
| Haier | HP200M1-U1 (195L) | $1,800 (VIC) – $2,900 | View Reviews |
Buyer Tips: Avoid the Pitfalls
- Get at least 3 detailed quotes
Compare itemised quotes. Ensure each one spells out what's included—labour, materials, and all rebates. - Check installer credentials
Only Accredited Certificate Providers (ACPs) or their partners can process rebates. Don’t assume—ask for proof. - Understand the warranty
Not all warranties are equal. For example:- Solahart: 7 years on the cylinder
- Enviroheat: 5 years on tank & compressor
- Haier: Only 2 years on parts/labour
- Factor in total cost of ownership
Heat pumps are dearer upfront than electric systems (usually $3,000–$5,000 vs $1,000–$2,000), but the energy savings pay off quickly.
Final Thoughts
In 2025, the Aussie heat pump market is buzzing with opportunity—but also complexity. Between shifting rebates, regional price differences, and installer-specific deals, it’s a minefield for the unprepared.
But if you do your homework, get solid quotes, and choose a good installer, you could end up with a system that saves you thousands over time—and helps the planet while you're at it.
