Replace your gas hot water service

Water heating accounts for more than a quarter of average household energy costs – so the type of hot water system you have in your home makes a huge difference to your bills and your household emissions.

Electric heat pump hot water systems are a great option for reducing your bills. According to Sustainability Victoria, hot water heat pump systems use around 60 to 75% less electricity than traditional electric hot water systems, and they can save up to $275 a year when compared to gas systems.

Making a plan to replace your current hot water service with an efficient heat pump will mean you’re ready to go when your current system breaks down.

Upgrade with Solar Savers

We have partnered with Solar Savers, a council-backed initiative that has already done the hard work when buying.

Solar Savers offers a number of different brands of hot water heat pumps available. View the estimated prices or watch the webinar.

Register through the Yarra Solar Savers page and receive up to three quotes from trusted, accredited suppliers.

Difference between heat pumps and solar hot water

Both heat pump systems and high-performance solar hot water systems are the best water heating options for improving environmental outcomes. However, most solar hot water systems also have gas for boosting hot water on cloudy days.

Heat pumps are also good if you do have solar panels as you can time your heat pump to come on during the sunniest hours of the day, creating your hot water with ‘free’ electricity.

If you plan to move away from fossil fuels and electrify your home, heat pump water heating is an excellent choice.

What are heat pump water heaters?

Traditional hot water systems heat water with electricity or gas like a stovetop kettle, but heat pump systems absorb warmth from the air and transfer it to heat water – a bit like air-conditioning.

Visit Sustainability Victoria for more detail about how heat pump hot water systems work.

Choosing the right system

Get advice before you buy such as what system best suits your needs, household size, and climate, to where you should place the unit, as noise can be something to consider.

Heat pump systems come as split systems, with a separate tank and compressor, and integrated systems, with a combined tank and compressor.

Solar Victoria has a great guide on what to look for when buying a system.

My Efficient Electric Home Facebook group provides a forum for information on various models. As a guide, a four-person household will typically need a 270–315L tank.

Costs

Heat pump hot water systems have a greater upfront cost but are much cheaper to run over the life of the unit.

Sustainability Victoria provides a useful overview of approximate annual energy costs and greenhouse gas emissions for various types of common water heating systems for different household sizes. Their website also details further information on efficiency and running options, including optimal on-peak set-ups and cheaper off-peak electricity tariffs overnight.

Discounts and government support

There are three rebates available to reduce the cost of installing a heat pump hot water system.

The Victorian Government’s Hot Water program provides eligible Victorian households with a rebate of up to $1,000 to assist with the purchase of a heat pump hot water system or solar hot water.

In addition, you may receive STCs from the Federal Government and Victorian Energy Upgrade discounts which vary according to your location and the system you're upgrading from. Ask your installer to explain each of these to you and show them on your quote.

The Yarra Home Energy Upgrades program provides subsidies up to $3,000 for hot water heat pumps and other energy upgrades to eligible Yarra concession card holders.