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Why Install a Heat Pump Hot Water System?

Heat Pump Hot Water systems are becoming increasingly popular across Geelong and Melbourne, particularly in new homes that require high energy efficiency ratings. They are also eligible for government rebates available making them a cost-effective and environmentally friendly choice.

Keep scrolling for information on upgrading to install a Heat Pump Hot Water system, including costs…

Low Running Costs

Save 60-75% on running costs compared to traditional electric tank systems

Utilises Electricity

Those with Solar panels will benefit from extra savings

Hot Water Rebates

Rebates available to upgrade your less efficient hot water system to a Heat Pump Hot Water

Government Rebates For Hot Water Systems

What is a Heat Pump Hot Water System?

Although they look like a traditional storage tank water heater, Heat Pump Hot Water systems use 60–75% less electricity by leveraging heat transfer technology—similar to how a split-system air conditioner operates. Instead of generating heat directly, a heat pump extracts warmth from the surrounding air and uses it to heat water, significantly reducing energy consumption.

If you’re considering upgrading to a heat pump hot water system, now is a great time to take advantage of energy savings and available rebates.

While they might look similar to a traditional electric hot water tank and still contain an electric heating element, they utilise heat-transference technology, similar to that of a split system air conditioner, which requires a lot less electricity to run.

There are 2 types of designs available – Split Systems which have the compressor and fan located in a separate unit, and Integrated Systems which we recommend. Integrated Systems are fully contained in the 1 unit, which saves on space.

Firstly, the water is warmed to 30-40 degrees using heat-transference technology. A fan in the Heat Pump Hot Water systems pulls in heat from surrounding air. The heat is absorbed into the refrigerant which is compressed into a vapour. This process causes the vapour to increase in temperature and pressure. The heated vapour flows through coils in the tank which heats the water. At this point the vapour turns back into a liquid again and the process starts over.

Then, in order to bring the water up to at least 60 degrees, which is required to prevent bacterial growth in the storage tank, the electric heating element kicks in.

So while they still require an electric heating element, its much less electricity than what a traditional electric storage tank system uses. In fact, they are so energy efficient, they are now part of 3 different government rebate schemes encouraging people to upgrade to a Heat Pump Hot Water.

Those who generate their own electricity using rooftop Solar Photovolatic (PV) systems will benefit from even greater reduced running costs.

Despite utilising warm air from the atmosphere, there are many models of Heat Pump Hot Waters which are suitable for houses in Geelong & Melbourne. However, they do operate more efficiently, therefore using less electricity, when the air is warmer.

Heat Pump Hot Water system are a great option for those want an electric hot water system with low running costs. Benefits include: 

  • Low running costs – Heat Pump Hot Water Systems use 60-75% less electricity than a traditional electric tank hot water systems.
  • Runs off electricity – those who generate their own electricity using Solar Photovolatic (PV) systems will benefit from even lower running costs.
  • Low environmental footprint
  • Rebates – currently the Victorian Government are offering rebates for replacing less energy efficient hot water systems with Heat Pump Hot Water systems

Heat Pump Hot Water systems are the only energy efficient option if you are wanting a hot water system which runs on electricity. As they positively contribute to a house’s star rating, they are now commonly being used in new home builds.

As home rooftop Solar Photovolatic (PV) systems are becoming more popular, the demand for electric appliances, including hot water, are increasing. While traditional electric storage tank hot water systems use too much electricity for them to be used with Solar PV systems, Heat Pump Hot Water systems use a lot less electricity, so the electricity generated with your home solar panels can be used to assist the operation of your Heat Pump Hot Water.

In order to encourage the installation of energy efficient electrical appliances, there are currently Government Rebates available for upgrading less efficient hot water heating systems to Heat Pump Hot Water systems (see installation & running costs section).

When deciding if a hot water system is right for you, its important to consider:

  • Your hot water needs – how many people live at your house and how many bathrooms do you have? Do you keep running out of hot water or is your current system size sufficient?
  • Installation costs vs running costs – see our comparison chart below.
  • Energy source – do you have a preference for electricity, gas or solar?
  • Manufacturer warranty – how long is the manufacturer warranty on parts and labour?
  • Government Rebates – see below for more information on rebates.

Not sure what type of Hot Water System is best for your home? Give us a call or request a quote online.

All of our quotes include our recommendation based on your needs and are fully inclusive of all labour and parts required.

Plumber Installing A Heat Pump Hot Water In Melbourne
New Installation Of Rinnai Heat Pump Hot Water System
Plumber Installing A Heat Pump Hot Water In MelbourneNew Installation Of Rinnai Heat Pump Hot Water System
Before and after pics of a Heat Pump hot water rebate upgrade

Can I upgrade to a Heat Pump Hot Water system?

Yes, you can!

Keep in mind as they use electricity, Heat Pump Hot Water Systems require a dedicated electrical circuit. If you are upgrading from an Electric Tank Hot Water System, you will already have this.

But if you are upgrading from Gas, you may need a new dedicated electrical circuit installed by a qualified electrician, which we can organise as part of the installation.

As Heat Pump Hot Water systems use a fan, similar to that of a split system, its not recommended for placement near bedroom windows.

Heat Pump Hot Water installation costs in Geelong & Melbourne

At Martin Heating & Cooling, we are Master Plumbers, plus zone partners for Rinnai Hot Water systems, which means we get great deals which we pass onto our customers.

Installing a Heat Pump Hot Water in Geelong & Melbourne means you may be eligible for Victorian Government Rebates if you upgrade from a less energy efficient hot water system. See below for more information.

Installation costs can depend on what type of hot water system you currently have, where its located and if any upgrades are required.

To give you an idea of price, the cost to install a Heat Pump Hot Water system which is suitable for a family of 4 is normally $5,650, reduced to $3,300 with Victorian Government Rebates.

In terms of running costs, Heat Pump Hot Water uses 60-75% less electricity than traditional Electric Tank Hot Water systems. They are also cheaper to run than Gas Tank Storage Hot Water and Instantaneous Hot Water systems.

While not as cheap to run as Solar Hot Water, your running costs can be lowered if you generate your own electricity using a home rooftop Solar Photovolatic (PV) system.

If you don’t have Solar PV, we recommend using off-peak electricity tariffs (check your electricity provider offers off-peak tariffs), which means your Heat Pump Hot Water system will reheat itself of a night time which the tariffs are lower.

Please note, day-to-day running costs can vary depending on the ambient temperature outside. The warmer it is, the less energy your system needs to use to extract the heat out of the air to heat the water.

See below for our average annual running costs guide for Heat Pump Hot Water, based on a 4 person household.

Those installing Heat Pump Hot Water can benefit from the following Victorian Government rebates. If eligible, you can claim both rebates.

  • Solar Vic Rebate – A means-tested Victorian Government scheme which provides a rebate for Hot Water Heat Pumps & Solar Hot Water Systems.
  • Victorian Energy Upgrade Scheme (VEU) Rebate – Rebates are calculated in the form of VEECs (Victorian Energy Efficiency Certificates)

All scheme eligibility are subject to certain criteria and limited to approved brands and models. Once of the main criteria for VEECs is you need to upgrade from a less energy efficient hot water system. However, the Solar Vic rebate is not dependent on what you are upgraded from, rather it’s means-tested.

We are able to apply for the VEU rebates on your behalf, but the Solar Vic scheme needs to be claimed by the customer.

We work with most hot water brands including:

  • Rinnai – including Hotflo, B2B & Infinity 26 Continuous Flow and Sunmaster Solar ranges
  • Rheem Hot Water Systems
  • Dux Hot Water Systems
  • Aquamax Hot Water Systems
  • Bosch Hot Water Systems
  • Vulcan Hot Water Systems
  • Thermann Hot Water Systems

Other Hot Water Options...

Solar Hot Water SystemsInstantaneous Hot Water SystemsTank Hot Water Systems
Rinnai Hotflow Tank Hot Water System, Can Run On Electricity Or Gas

Storage Tank Hot Water Systems

Electric and Gas Tank Hot Water systems are durable and budget-friendly to install

Rinnai Infinity Continuous Flow Hot Water System Installed On An House's External Wall

Instant Hot Water

Instantaneous Hot Water systems only heat water as needed. They offer low cost installation & running costs.

Servicing Geelong, Melbourne's West & North West

At Martin Heating & Cooling, we’re proud to service a wide area that spans the Geelong region and half of Melbourne.

Our goal is to deliver the highest quality heating, cooling and hot water solutions to our customers wherever they are located.

Geelong Melbourne service area map for Martin Heating and Cooling

QUOTES & SERVICE REQUESTS

Want to book a service? Need a quote? Or just have some questions?

Call 1300 146 525 Mon to Fri 9am-5pm
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