Heat pump water heaters

The efficient way to heat water for your home. Heat pumps use renewable energy from the air to deliver hot water at a fraction of the running cost of gas or electric storage systems.

Why switch?

Water heating is the second largest energy expense in most Australian homes. Heat pump water heaters can cut those running costs dramatically — especially when paired with rooftop solar.

They also produce far fewer greenhouse gas emissions than gas systems, helping households move away from fossil fuels without sacrificing comfort or reliability.

How they work

An air-source heat pump transfers heat from the outside air to heat your water, typically to about 55°C. A refrigerant gas is compressed to raise its temperature, then heat is transferred to the water in the storage tank. The cycle repeats until the set temperature is reached.

Because they move heat rather than generate it through combustion or resistance, heat pumps are typically three to four times more efficient than conventional electric or gas water heaters.

Running costs at a glance

Placeholder comparison based on national averages — your actual savings depend on household size, climate, and energy tariffs.

$1,050Electric storage (avg. annual)
$740Gas instantaneous (avg. annual)
$260Heat pump (avg. annual)

With solar PV, heat pump running costs can drop to around $80 per year on average.

Rebates and incentives

Most heat pump water heaters sold in Australia are eligible for Small-scale Technology Certificates (STCs) under the federal Renewable Energy Target. Many states and territories offer additional rebates on top.

The value of incentives depends on your location, system size, and climate zone. Our recommendation report estimates rebates for your address and shortlisted models automatically.

Choosing the right system

Not all heat pumps are equal. Tank size, compressor quality, noise levels, warranty, and performance in cold climates all matter. A unit that works well in Queensland may not suit a Tasmanian winter.

Hot Water Savings compares over 1,100 certified models against real usage data from Australian households — so you get a shortlist matched to your home, budget, and priorities.

Common myths

“Heat pumps don't work in cold weather.” Modern units are designed for Australian conditions and include backup elements for extreme cold snaps.

“They're too noisy.” Many current models operate at levels comparable to a quiet dishwasher, with top performers under 45 dB.

“They're too expensive.” Higher upfront cost is usually offset by lower running costs and available rebates within a few years.

Find the right heat pump for your home

Answer a few questions and get a personalised recommendation report with cost, rebate, and carbon savings estimates.

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