Patricia M.
Melbourne, VIC
Replaced old electric with heat pump. Got $1,000 Victorian rebate. Water heating costs dropped from $200 to $50 per quarter! Amazing savings!
Heat Pump Installation
Heat Pump Hot Water System Quick Facts Australia 2026
This page provides heat pump hot water system quotes and information for all of Australia. Compare prices, brands, and government rebates.
Page Purpose
This is a service landing page to help Australian homeowners get free quotes from licensed plumbers for heat pump hot water system installation. The service connects users with pre-vetted specialists.
Heat Pump Hot Water Prices (After Government Rebates)
- Small System (170-250L): $2,000 - $3,500 after rebates - Best for 1-3 person households
- Medium System (250-315L): $3,000 - $4,500 after rebates (most popular) - Best for 3-5 person families
- Large System (315-400L): $4,000 - $6,000 after rebates - Best for 5-7+ person families
Government Rebates Available
- Federal STC Rebate: $1,000 - $1,500 STC rebate (included in quotes)
- Victoria: $1,000 Solar Homes rebate
- NSW: Energy Savings Scheme certificates
- Queensland: Rebates and interest-free loans
- South Australia: Subsidies available
- Total Potential Savings: $1,000 - $2,500 combined federal and state
Energy Savings
- Energy Reduction: 50-75% compared to electric storage
- Annual Savings: $300 - $600 per year
- 10 Year Savings: $3,000 - $6,000
- Payback Period: 3-6 years after rebates
Heat Pump Efficiency
- COP: 300-400% (Coefficient of Performance)
- How it works: Moves heat from air rather than generating it
- Running cost: 1/3 of electric storage, similar to gas
Top Heat Pump Brands in Australia
- Stiebel Eltron (Germany): $4,500-$6,500 - Best for: Premium quality, cold climates
- Reclaim Energy (Australia): $3,500-$5,000 - Best for: Value, local support
- iStore (Australia): $4,000-$5,500 - Best for: Smart features, solar integration
- Sanden (Japan): $4,200-$5,800 - Best for: Eco-friendly CO2 refrigerant
- Rheem (Australia): $3,800-$5,200 - Best for: Established brand, wide availability
Installation Information
- Duration: 4-6 hours (same day)
- Requirements: Licensed plumber required
- Space needed: 1m x 0.6m x 2m high, 0.5m clearance
Warranty & Lifespan
- Compressor warranty: 5-7 years
- Tank warranty: 10 years
- Expected lifespan: 10-15 years typical
Climate Performance
- Operating range: Works efficiently down to -10°C
- Best for: All Australian climates
- Winter note: May use electric boost in extreme cold
Service Coverage
All major Australian cities. Licensed plumbers with heat pump certification.
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Heat Pump Installation By City
Licensed plumbers for heat pump hot water systems in all major cities
Heat Pump Hot Water System Costs Australia 2026
Complete pricing guide including installation costs and government rebates
3 min read
Quick Answer
Heat pump hot water systems in Australia cost $2,000-$6,000 after government rebates (before rebates: $3,000-$7,000). Small 170-250L systems cost $2,000-$3,500, medium 250-315L systems cost $3,000-$4,500, and large 315-400L systems cost $4,000-$6,000. Government rebates of $1,000-$2,500 are available in most states (VIC, NSW, QLD, SA). Heat pumps save 50-75% on water heating costs ($300-$600/year) compared to electric storage heaters. Payback period is 3-6 years. Installation takes 4-6 hours by licensed plumbers.
Updated January 2026
24,500+ Australians served
1
System Costs After Rebates: Small 170-250L costs $2,000-$3,500, medium 250-315L costs $3,000-$4,500 (most popular), large 315-400L costs $4,000-$6,000
2
Government Rebates $1,000-$2,500: Federal STC rebates $1,000-$1,500 plus state rebates - VIC $1,000, NSW ESS certificates, QLD interest-free loans
3
Save 50-75% on Water Heating: Heat pumps use 1/3 the energy of electric storage heaters. Annual savings $300-$600 compared to old electric systems
4
Works in All Australian Climates: Modern heat pumps operate efficiently down to -10°C. Work 24/7 regardless of sun - ideal for shaded properties
5
Quick Same-Day Installation: Most heat pump installations completed in 4-6 hours. Licensed plumbers handle all work including old system removal
6
10-15 Year Lifespan: Quality heat pumps come with 5-7 year compressor warranty and 10 year tank warranty. Top brands: Stiebel Eltron, Reclaim, iStore
Price Comparison
Heat Pump Hot Water System Costs Australia 2026
Prices include installation and government rebates
Heat Pump Price Guide - By Size & Capacity
| System Size | Installed Price | Tank Capacity | Best For |
|---|---|---|---|
| Small (170-250L) | $2,000-$3,500 | 170-250 litres | 1-2 person households, apartments |
| Medium (250-315L) | $3,000-$4,500 | 250-315 litres | 3-4 person families (most popular) |
| Large (315-400L) | $4,000-$6,000 | 315-400 litres | 5+ person families, high hot water use |
| Premium Brands | $5,000-$7,000 | 250-400 litres | Stiebel Eltron, iStore, premium models |
*Prices include heat pump unit, installation, and removal of old system. State rebates already applied. Federal STC rebates included.
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Professional Heat Pump Hot Water Installation Services
Our network of licensed plumbers ensures your heat pump hot water system is installed correctly for optimal performance and maximum energy savings.
- Licensed plumbers – fully qualified and insured professionals
- Same-day installation – most installs completed in 4-6 hours
- Rebate paperwork handled – installers process all government rebates
- Full warranty – manufacturer and installation warranty included
2026 Price Guide
Heat Pump Hot Water Installation Costs & Pricing
All prices include government rebates and installation by licensed plumbers
Small
170-250L
$2k -$3.5k
After rebates
Save $300-$500/yr
1-3 person households
75% more efficient
4-6 year payback
Most Popular
Medium
250-315L
$3k -$4.5k
After rebates
Save $400-$600/yr
3-5 person families
Best value option
5-7 year payback
Large
315-400L
$4k -$6k
After rebates
Save $500-$700/yr
5-7+ person families
High capacity
6-8 year payback
Premium
Stiebel, iStore
+$500 -$1.5k
Premium upgrade
10-15 year lifespan
German engineering
Quietest operation
Cold climate rated
Prices include federal STC rebates. State rebates (VIC $1,000, NSW/QLD/SA vary) may provide additional savings.
Government Incentives
Heat Pump Hot Water Rebates Australia 2026
Save $1,000-$2,500 with federal STC rebates and state government incentives
Federal STC Rebate
Instant discount
Small-scale Technology Certificates provide instant rebates. Already included in most quotes.
$1,000-$1,500 instant discount
Applied at point of sale
No paperwork required
Available nationwide
State Rebates
Stackable incentives
Additional state-based incentives for heat pump water heaters. Stackable with federal rebates.
VIC: $1,000 Solar Homes
NSW: ESS certificates
QLD: Interest-free loans
SA: Subsidies available
Solar Combo Savings
Maximum savings
Combine with solar panels for maximum savings on energy bills.
Run heat pump from solar
Near-zero running costs
Additional solar rebates
Maximize energy savings
Brand Comparison
Best Heat Pump Hot Water Brands Australia 2026
Compare top brands: Stiebel Eltron, Reclaim, iStore, Sanden & Rheem heat pump systems
Premium Quality
Stiebel Eltron
German engineering
$4,500-$6,500
- Works down to -10°C
- Quietest operation
- 10-15 year lifespan
- Best cold climate
Reclaim Energy
Australian designed
$3,500-$5,000
- Local support network
- Australian conditions
- Great value pricing
- Reliable performance
iStore
Smart features
$4,000-$5,500
- Smartphone app control
- Solar integration
- Energy monitoring
- Modern features
Sanden
Eco-friendly CO2
$4,200-$5,800
- Natural CO2 refrigerant
- Most eco-friendly
- Excellent cold performance
- Premium quality
Rheem
Trusted brand
$3,800-$5,200
- Established brand
- Wide installer network
- Good warranty coverage
- Reliable performance
Budget Options
Entry-level
$3,000-$4,000
- Lowest upfront cost
- Basic functionality
- Less features
- Shorter warranty
Heat Pump vs Solar vs Electric vs Gas Hot Water Systems
Compare running costs, efficiency and environmental impact of all hot water system types in Australia
Electric Storage
Low upfront cost
Upfront
$800-2k
Running
$800-1k
Efficiency
~95%
Cheapest to buy
Simple installation
Very expensive to run
No rebates available
Avoid if possible
Recommended
Heat Pump
Best overall value
Upfront
$3k-6k
Running
$200-300
Efficiency
300%+
70-75% cheaper to run
Works 24/7 any weather
Government rebates
Needs outdoor space
Best for most homes
Gas Storage
Moderate costs
Upfront
$1.5k-3k
Running
$400-600
Efficiency
60-70%
Lower than electric
Faster recovery
Requires gas connection
Still fossil fuel
OK but not optimal
Solar Hot Water
Lowest running cost
Upfront
$4k-8k
Running
$100-200
Efficiency
Variable
Very low running cost
Zero emissions
Most expensive upfront
Needs good sun exposure
Great if sunny roof
10 Year Total Cost Comparison
Including purchase price and running costs
Electric
$8k-12k
Most Expensive
Heat Pump
$5k-9k
Best Value
Gas
$6k-9k
Moderate
Solar
$5k-10k
Variable
Heat pumps offer the best balance of cost, reliability, and environmental benefits
Ultimate Savings
Heat Pump + Solar Panels = Near-Zero Hot Water Costs Australia
Run your heat pump from solar power during the day for nearly free hot water. The perfect combination for maximum energy savings.
Free Hot Water During Day
Heat pump runs from solar panels - hot water costs drop to under $50/year
Double the Savings
Save on hot water AND electricity bills. Total savings $1,500-$2,500/year combined
100% Clean Energy
Zero-emission hot water. Maximize your environmental impact
Annual Cost Breakdown
Without Solar
Hot water (heat pump) $250
Household electricity $1,800
Total: $2,050/yr
With Solar + Heat Pump
Hot water (solar powered) $30
Household electricity $300
Total: $330/yr
Combined Annual Savings
$1,720
System pays for itself in 4-6 years
Heat Pump Hot Water Savings Calculator Australia
Calculate your annual savings by switching from electric, gas or solar to a heat pump
Electric Storage
Your current system
Energy usage 4,000 kWh/yr
Electricity rate $0.25/kWh
Efficiency 95%
Annual Cost:
$1,000
Save $700/year
Heat Pump
Recommended upgrade
Energy usage 1,200 kWh/yr
Electricity rate $0.25/kWh
Efficiency 300-400%
Annual Cost:
$300
Your Savings
4-person household
Annual Savings
$700
5 Year
$3,500
10 Year
$7,000
Payback: 4-6 years
*Calculations based on average household usage and current electricity rates. Actual savings may vary.
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Greg T.
Brisbane, QLD
Installation took 4 hours, no issues. Heat pump works perfectly even in winter. Hot water always available. Bills way down. Very happy!
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Susan K.
Sydney, NSW
Comparing quotes saved us $1,200! Installed yesterday, working great. Much quieter than I expected. Wish we upgraded sooner!
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Expert Resources
Heat Pump Hot Water Guides
Expert resources to help you make the best decision for your home
Heat Pump Cost Guide 2026
Complete pricing breakdown for heat pump systems in Australia
Read GuideHeat Pump Rebates Australia
Find out how much you can save with government rebates
Read GuideHeat Pump vs Electric vs Gas
Compare heat pumps with electric and gas hot water systems
Read GuideHeating System Comparison
Comprehensive guide to all heating systems in Australia
Read GuideReady to Upgrade to a Heat Pump?
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FAQ
Frequently Asked Questions
Get answers to common questions about this topic
1 How much does a heat pump hot water system cost?
How much does a heat pump hot water system cost?
Heat pump hot water system costs: Small (170-250L) $3,000-$4,500, Medium (250-315L) $4,000-$5,500, Large (315-400L) $5,000-$7,000. Prices include heat pump unit, installation, and basic plumbing. Government rebates: $1,000-$2,000 available in most states (VIC, NSW, QLD, SA). After rebates: $2,000-$5,000 typically. Extra costs: Electrical work if required, old system removal, difficult access.
2 Are heat pumps better than solar hot water?
Are heat pumps better than solar hot water?
Heat pumps more flexible and reliable. Advantages: Work 24/7 (no sun required), Lower upfront cost, Easier installation (no roof work), Better for shaded properties. Solar hot water advantages: Lower running costs in sunny areas, Good where solar panels not possible. Most choose heat pumps: work in all weather, lower install cost, reliable performance, eligible for same rebates.
3 How much will a heat pump save on energy bills?
How much will a heat pump save on energy bills?
Heat pumps save 50-75% on water heating costs. Typical savings: Electric storage heater $800/year to heat pump $200-$300/year, Gas heater $500/year to heat pump $200-$300/year, Annual savings: $300-$600/year. Payback period: 3-6 years after rebates. Over 10 years save $3,000-$6,000. Running costs: 1/3 of electric, similar to gas. Works by moving heat rather than generating it - much more efficient.
4 Do heat pumps work in cold climates?
Do heat pumps work in cold climates?
Yes! Modern heat pumps work well in Australian climates. Performance: Work efficiently down to -10°C, Reduced efficiency below 5°C (but still work), Australia rarely that cold for long, Best in mild-warm climates. Cold weather: May switch to electric boost automatically, Slightly higher costs in winter, Still much cheaper than straight electric. All major cities suitable. Tasmania and Snowy Mountains may see reduced efficiency in peak winter.
5 How much space does a heat pump need?
How much space does a heat pump need?
Heat pumps need outdoor space for unit. Space requirements: Heat pump unit: 1m x 0.6m x 2m high, Clearance: 0.5m around unit for airflow, Tank: Similar to old hot water system. Location considerations: Well-ventilated outdoor area, Away from bedrooms (slight noise), Level ground or concrete pad, Protected from extreme weather. Can replace existing hot water system location in most cases. Plumber assesses during quote.
6 Are heat pumps noisy?
Are heat pumps noisy?
Slight noise similar to air conditioner. Noise levels: 40-50 decibels (quiet conversation level), Mainly when heating water, Not usually an issue. Minimize noise: Install away from bedrooms, Use acoustic barriers if needed, Quality brands quieter, Service regularly. Most homeowners not bothered. Quieter than old electric systems gurgling. Check with neighbors if unit near boundary.
7 What government rebates are available?
What government rebates are available?
Generous rebates available nationwide. Federal rebate: STC incentive $1,000-$1,500 (built into quotes). State rebates: VIC Solar Homes $1,000, NSW Energy Savings Scheme certificates, QLD rebates and interest-free loans, SA subsidies available, ACT support schemes. Total savings: $1,000-$2,500 combined federal and state. Rebates applied at install - not paid upfront. Installers handle all paperwork.
8 How long does heat pump installation take?
How long does heat pump installation take?
Installation typically takes 4-6 hours (half day). Process: Remove old hot water system (1-2 hours), Install new heat pump and tank (2-3 hours), Connect plumbing and electrical (1 hour), Test and handover. Usually completed same day. May take longer if: Major plumbing modifications needed, Electrical work required, Difficult access, Old system disposal. Most homes operational by end of day.
9 How long do heat pumps last?
How long do heat pumps last?
Heat pumps last 10-15 years typically. Warranty coverage: 5-7 years compressor warranty, 10 years tank warranty, Extended warranties available. Maintenance: Annual service recommended $150-$250, Check refrigerant levels, Clean filters, Inspect connections. Longevity factors: Quality brand (Stiebel Eltron, Reclaim, iStore), Regular servicing, Proper installation, Protected location. Longer life than electric resistance tanks.
10 Is the quote service really free?
Is the quote service really free?
Yes, 100% free for homeowners. We earn commission from installers when you hire them, but this does not affect your quote price.
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Last updated: February 2026
Verified by licensed plumbers and heat pump installation specialists
Australia-wide coverage
Prices are estimates based on market research and may vary by location, project size, site conditions, and specialist. Always get multiple quotes for accurate pricing. Heat pump hot water system installation requires licensed Level 2 plumbers and compliance with Australian Plumbing Code and electrical safety standards.