Heat Pump

What is a Heat Pump?

A heat pump is a system that efficiently uses renewable energy to heat water without using the electricity. The hot water heat pump is like a reverse refrigerator that uses the air outside the unit to heat the water stored inside the unit using a heat exchange system. These systems are energy efficient and can save you good amount of money to help you achieve your saving goals.

How does it work?

1. Extracts heat from the air outside
A fan extracts heat energy from the air outside the unit, across the evaporator.

2. Converts the air to gas
The evaporator then converts the liquid refrigerant into hot gas.

3. Water Heating
The hot gas produced helps to heat the water inside the unit using the condenser coil.

4. End Result
Hot water is produced, and you end up saving up to 80% on your energy consumption attributted to your hot water usage.

  • Lower Running Cost

Much cheaper to run than systems based on combustion. The more energy efficient the systems are, the greater long term savings on energy.

  • Long Lasting

Heat pumps require less maintenance than the combustion heating systems. The life-span of heat pumps is relatively long, up to 50 years

  • Reduces Emission

Reduces your carbon emissions and it has an efficient conversion rate of energy to heat. Water source heat pumps reach high efficiencies, close to 600%.

Energy Efficiency & Running Cost

A heat-pump water heater uses much less electricity than an electric storage water heater. This is because it only requires electricity to drive the compressor and the fan, instead of using electricity to heat the water directly, with an electric element.

Choose a Hot Water System

Things to consider when choosing a hot water heater.

  • fuel type – electric, gas or solar 
  • system size
  • running costs.
Types of a Hot Water System
  • Electric hot water systems

Electric storage hot water systems – the most common type in Victoria – heat water with an element in the bottom of the unit and store it in an insulated tank, ready for use throughout the day. Electric hot water systems are the cheapest to buy but the most expensive to run.

  • Gas hot water systems

A high efficiency gas hot water system is one of the most economical types of water heaters, when operated on natural gas. Gas and electricity prices are rising, so if you have a conventional gas or electric hot water system that needs replacing, consider a more efficient gas or solar hot water system.

  • Solar hot water systems

A solar hot water system is more expensive to buy and install, but the running costs will be significantly lower. The cheapest and most environmentally friendly type of water heating to run is natural gas-boosted solar.

  • Heat-pump water heaters

A heat-pump water heater uses heat from the surrounding air to heat water in a storage tank. A heat-pump water heater uses much less electricity than an electric storage water heater, but are generally better suited to warmer climates.

Where can I place it?

Heat Pump Water Heaters required plenty of fresh air from outside and it advisable to install them in the areas located outside your house. However, some models can also be placed in the garage while some heat pumps can extract air from the ceiling spaces.

Suitable conditions for Heat pumps

The amount of heat transferred to the water in the storage tank depends on the surrounding air temperature.

Heat-pump water heaters are therefore generally better suited to warmer climates and are not well suited to cool climates – especially where frosts occur regularly.

In cooler climates, the compressor will run for longer periods, which can result in greater energy consumption and a shorter life expectancy for the pump.

A heat-pump water heater might be worth considering if a solar hot water system is not suitable for your household. For example when:

  • there is a lack of roof space for solar panels
  • your house is oriented poorly for solar panels
  • electricity is your main fuel choice.
How to size your hot water heater?

A storage heater that is too small will continually run out of hot water, while one that is too large will be more expensive to run because it will maintain the water temperature even when it’s not being used.

Similarly, a continuous flow system that’s too small may not be able to keep up with your hot water demands when multiple hot water outlets are being used at the same time. Your water heater supplier will be able to help you choose the right-sized system.

  • Storage hot water heaters are sized according to household size. The more people, the larger your storage tank will need to be.
  • Continuous flow or instantaneous systems are sized according to the number of hot water outlets in the home, rather than the number of people.
  • Solar water heaters are sized according to the number of people in the household. The more people, the larger the storage tank and the more solar collectors required.
How does it cost?

When purchased from the market, heat pump hot water systems can range in price up to $5000 fully installed. However, we are offering installation of the hot water systems along with handsome warranty for FREE In Victoria and a huge price drop from $5000 to $1500 for NSW, under the  Government scheme.

Why does it too cheap?

A combination of three Government scheme does the magic! It takes two Victorian State Government’s initiatives and one Federal Government initiative to make you eligible for a free installation!

Solar and heat pump hot water system rebate


The Solar Hot Water rebates provides Victorian households with $1000 to assist with the purchase of a solar or heat pump hot water system.

Not for profit community housing providers are also eligible to apply for the rebate on behalf of their tenants.

How should I know if I'm eligible?
  • Are you the owner-occupier of the property?
  • Do all the owners have a combined household taxable income of less than $180,000 per annum (based on their Australian Tax Office Notice of Assessment for the last two years)?
  • Is it an existing property, valued at under $3 million?
  • Is your hot water system that needs to be replaced is at least three years old from the date of purchase?
  • Have you received a solar PV rebate or a battery rebate under the Solar Homes program? 
  • Is your property newly built?
  • Is your solar (or heat pump) hot water system on the Solar Homes program approved products list
Message Us
  •  FREE subject to approval case by case depending on installation scenario
  • For commercial sites, also need to look at existing hot water system kilowatt rating.