Smart, cost effective hot water systems that use less energy

Up to $3,700 in rebates for heat pump hot water systems

If you live in Victoria and have an old gas or electric hot water system, you’re in luck.  Victorian Government rebates for upgrading to an efficient hot water system are amongst the best in Australia.

What’s more, if you purchase a hot water system that uses renewable energy you can also access the federal government rebate – called Small-scale Technology Certificates.

In total, these rebates are worth up to $3,700.

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Why choose a heat pump hot water system?

A heat pump hot water system is the ideal choice for bill-savvy, carbon-conscious Victorian households. Heat pump systems have amongst the lowest annual running costs, they’re highly efficient and can run off your solar power.

Heat pump technology has moved forward in leaps and bounds. Now, there are quality heat pump systems that work at maximum efficiency even in sub-zero temperatures. The better heat pumps are also less noisy than earlier models, with the best models no louder than a modern indoor fan.

Without a solar panels system, the annual cost of running a heat pump hot water system is around $185 for the average Australian home. That’s $615 less than the cost of running a conventional electric storage hot water system and around $400 less than a gas hot water system.

Add rooftop solar to power your heat pump system, and you should be looking at a zero-dollar electricity bills for hot water – and a zero-carbon footprint for your hot showers!

With falling heat pump prices and attractive government rebates, the upfront cost of an efficient heat pump system is likely to be lower than you’d expect.  With a typical payback of 3-5 years and an expected system life of 15 years, heat pumps are the perfect hot water system for most Victorian homes.

What rebates are available for heat pump hot water systems in Victoria?

There are three different government rebates that Victorian households can access when upgrading to an efficient heat pump hot water system.

Which is best, an electric hot water system or a heat pump?

In the past, electric storage hot water systems have been the cheapest hot water systems Victorian households could purchase. But now, with running costs of around $820 a year, conventional electric hot water systems are an expensive dinosaur in your home. They’re also heavy greenhouse gas emitters, producing around 4.75 tonnes of CO2 a year.

Upgrade to an efficient heat pump hot water system and your hot water heating bills will reduce four-fold. Add solar panels to your home, and you can reduce your hot water heating bills still further.

With a hot water heat pump, you’ll not only be doing your bank balance a favour; you’ll also be helping the environment. Heat pump hot water systems only release 1.6 tonnes of greenhouse gases a year. Add solar power to run your heat pump, and you’ve pretty much got carbon-neutral hot water.

Is it worth upgrading from gas hot water to a heat pump?

The answer is YES, regardless of whether you’re on a gas storage or gas instantaneous hot water system.  In fact, you’ll cutting your hot water bills by at least 50% by upgrading from gas to a heat pump hot water system.

Gas v. heat pump hot water systems: Comparison of the annual running costs

Hot water systemAnnual running cost
Gas storage$410
Gas instantaneous$365
Heat pump$185

Source: Sustainability Victoria’s Hot Water Running Costs

Note: the exact running cost for a heat pump will depend on the hot water usage, electricity tariff and pump model.

For those households debating whether to move off gas, it’s worth knowing that gas is forecast to become more expensive. Most of our gas is extracted through “fracking” which is not only environmentally damaging but expensive to produce. Most of our gas resources are exported, making gas even pricier for Australian residents.

recent report found that Melbourne families could save $700 per year on energy bills by choosing a new home that doesn’t have a gas connection and opting for all-electric appliances instead.

Gas – as a fuel for your home – is on the way out. Utilising government rebates to upgrade from gas to a hot water heat pump system makes sense, both financially and environmentally.

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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