HOT WATER HEAT PUMPS: THE SMARTEST CHOICE FOR 2025
KEY POINTS
- Heat Pumps Are Ultra-Efficient – They generally use 1kW of electricity to generate 3kW of heat, with the extra 2kW coming for free from the air, making them three times more efficient than traditional electric hot water systems.
Perfect for Victoria’s Climate – Unlike solar thermal systems, heat pumps work in all weather conditions, day and night, making them a reliable choice for Victorian homes.
- Massive Savings with Rebates – Victoria offers $1,000+ in state rebates, plus a federal STC rebate (~$750), meaning you could slash your upfront cost in half!
Choose a Trusted Brand – Stick to top-rated brands like iStore, Haier, and Reclaim for long-lasting, quiet, and energy-efficient performance. Avoid cheap, unreliable models that cost more in the long run.
If you’re looking to cut energy costs, slash emissions, and future-proof your home, upgrading to a hot water heat pump is a no-brainer—especially in Victoria’s climate. Unlike traditional electric or gas systems, heat pumps transfer heat from the air into your water rather than generating it directly, making them up to three times more efficient. That means lower power bills, a smaller carbon footprint, and a smarter way to heat your water.
How Do Heat Pumps Work?
Heat pumps don’t generate heat—they move it. They extract heat from the surrounding air and use it to heat your water, here’s the process:
- A fan draws in air, containing heat energy, across the evaporator.
- The evaporator turns the liquid refrigerant into a gas.
- The compressor pressurises the refrigerant into a hot gas.
- The hot gas inside the condenser coil heats the water inside the coil-wrapped tank.
- The refrigerant reverts back to a liquid after heating the water and continues to the evaporator for the process to start again.
- The cycle continues until the set target temperature is achieved.
- As water is used in the home, the cycle will restart once the temperature in the tank has dropped below 45 °C.
Here’s how the efficiency stacks up:
✅ 1kW of electricity in → 3kW of heat out
✅ That extra 2kW? It’s free heat from the air
This 300% efficiency is why heat pumps use about one-third of the energy of a traditional electric hot water system. Even in winter, they can still extract heat from the air, making them perfect for Victoria’s climate.
Why Heat Pumps Are Ideal for Victoria
Heat pumps thrive in cooler climates like Victoria’s. While solar thermal hot water systems work well in the tropics, they struggle on cloudy days. Heat pumps, however, don’t rely on direct sunlight—they pull warmth from the air and work efficiently day and night, rain or shine.
Pair your heat pump with solar panels? You’ll maximise your savings, using solar energy to power the system and cutting your reliance on the grid even further.
What Does a Heat Pump Cost?
Pricing varies depending on the brand, size, and efficiency, but here’s a solid guide:
- Budget-friendly models (like iStore) start at $3,000 installed.
- Premium high-efficiency options (like Reclaim) range from $5,000–$6,000.
- Avoid the cheap junk under $2,000—loud, inefficient, and unreliable.
Installation costs depend on your setup. If you’re replacing an existing electric system, it’s usually straightforward. But if new plumbing or electrical work is needed, expect extra costs!
The Best Heat Pump Brands in Australia
Choosing the right brand matters. We looked at consumer reviews on prodcutreview.com.au and spec sheets to find our top-performing heat pumps:
🏆 iStore – Best budget-friendly option (4.8 stars)
🥈 Haier – Strong reputation, solid performance
🥉 Reclaim – Premium efficiency, ultra-quiet (4.9 stars)
Brands that don’t stack up:
Quantum, Thermann and Sanden all have poor customer ratings and reliability concerns.
If you want a heat pump that lasts, performs well, and won’t drive you crazy with noise, stick to a trusted brand!
Rebates & Incentives: Save Big in Victoria
Victoria has some of the best rebates in the country, making it the perfect time to upgrade:
✔ $1,000 rebate for replacing an old electric or gas system with a heat pump.
✔ An extra $600 rebate available for eligible households and businesses.
✔ Federal STC rebate (around $750) applied at purchase, reducing upfront costs.
Bottom line? If you take advantage of these rebates, you could cut your upfront cost in half.
What to Look for in a Quality Heat Pump
Not all heat pumps are created equal. Here’s what really matters when choosing the right one for your home:
1. Efficiency (STCs = Running Cost Savings)
The more STCs (Small-scale Technology Certificates) a heat pump qualifies for, the more efficient it is. More efficiency = lower energy bills.
2. Heating Speed (Recovery Rate)
A heat pump that takes too long to heat water can be frustrating. Look at the litres per hour rating—faster heating means you won’t run out of hot water after back-to-back showers.
3. Tank Size (How Big Should You Go?)
- 1-2 people → 150L
- 3-4 people → 270-300L
- 5+ people → 315-400L
Going too small = running out of hot water. Going too big = wasting energy heating unused water.
4. Split vs. All-in-One Systems
Split System (e.g. Reclaim, Sanden)
✅ Quieter
✅ More efficient
✅ Longer-lastingAll-in-One (e.g. iStore, Evoheat)
✅ Smaller footprint
✅ Easier and cheaper to install
5. Warranty & Longevity
A heat pump should last at least 10-15 years. Look for:
- 5+ years on the compressor
- 10+ years on the tank
6. Noise Levels
Good heat pumps operate between 37-50 decibels—about the same as a quiet fridge. If noise is a concern, go for a split system over an all-in-one.
Heat Pump vs. Solar Hot Water - Which One?
Some people ask: “Should I get a solar thermal hot water system instead?”
Heat Pumps Work Better in Victoria
- They don’t need direct sunlight (works 24/7).
- They perform better in cold weather.
- They use less electricity than traditional hot water heaters.
Solar thermal is great in the tropics, but in Victoria, a heat pump is the more reliable, cost-effective choice.
The Smarter, More Independent Choice
A heat pump hot water system slashes energy use, saves you money, and reduces emissions—all while keeping your home running efficiently.
- Take advantage of Victoria’s rebates and slash your upfront costs.
- Pair it with solar panels for even bigger long-term savings.
- Choose a trusted brand for reliability and performance.
Why keep paying more for inefficient hot water? Take control, own your power, and upgrade to a heat pump today!
