Hot Water Heat Pumps

We all love a good hot shower, but how much is it costing you? Hot water heating currently accounts for 21% of total energy usage for the typical Australian home. Most of us are paying hundreds of dollars more than necessary every year for our hot water. The culprit is the out-dated hot water systems in our homes – both conventional resistive electric hot water systems and gas hot water systems.

Fortunately, technology has progressed. Now, it’s widely acknowledged that most efficient way of heating hot water is with a hot water heat pump.  Experts also agree that the best way to reduce your hot water heating costs is to combine the heat pump with a solar panels system. That way your solar system powers your heat pump for free, providing you with plenty of hot water, day and night.

Prices for hot water heat pumps have plummeted in recent years.  Combined with attractive government hot water rebates, the upfront cost of installing a quality hot water heat pump system is a lot less than you might expect.

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Why install a heat pump?

Here are the top reasons why it’s a great idea to install a hot water heat pump.

The perfect combination: Heat pump hot water system + solar panels

Combining a hot water heat pump system with solar panels gives you the biggest bill savings. That’s because most heat pump systems come with a built-in automatic timer.  You can use the timer to power up your heat pump around midday when the sun is producing the most energy.  That way your free solar electricity is providing you with free hot water.  It’s the perfect energy-saving, bill-busting combination!

What rebates are available for heat pump hot water systems?

Federal government rebates – in the form of Small-scale Technology Certificates (STCs) – are available for approved hot water heat pump systems.

Where you live in Australia will determine the value of your STCs for your new heat pump system.  As a rule of thumb the more STCs a heat pump earns in your zone, the more efficiently it will work for you.

As you can see from the chart below, Victoria, Tasmania and southern NSW are the areas where you get highest value STCs for hot water heat pumps.  But even if you’re in Queensland or northern NSW, the STC heat pump rebate is still worth having!

Heat Pump STC Rebate 2022
Zone 122        $815
Zone 221        $780
Zone 326        $960
Zone 428        $1,040
Zone 528        $,1040
australia map

Victorian heat pump rebates

All Victorian households and businesses that upgrade from an inefficient electric system are eligible for Victorian Energy Efficiency Certificates – known as VEECs.  VEECs are a type of rebate with each VEEC representing one tonne of greenhouse gas that has been prevented from entering the atmosphere.

The highest value VEEC rebates are for those converting from an old electric-resistive hot water system – that’s because old electric hot water systems generate the most greenhouse gas emissions.

The great thing about VEECs is that they are in addition to the federal government STC rebates.  Melbourne metro households installing an approved hot water heat pump system can get up to $2,580 in combined VEEC and STC rebates, with regional Victorian households getting slightly more.

Victorians get VEEC and STC Rebate

 # VEECsValue of VEECsSTC rebateVEECs + STC
Metro22$1,540$1,040$2,580
Regional24$1,680$1,040$2,720

Interested in a heat pump quote?

Get in touch if you’d like advice or a quote for switching over to a hot water heat pump system.  It’s a great way to save on your power bills.

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