Hot Water Heat Pumps

Slash Hot Water Costs With a Heat Pump System — Up to 70% Less Energy.

Heat pump hot water systems use ambient air to heat water — using up to 4× less electricity than conventional electric storage systems. Professionally installed by All Electric Homes, with government rebates available.

Heat Pump Hot Water — Key Figures
More efficient than electric
COP of 3–4 vs 1.0 for resistance
70%
Energy bill reduction
vs conventional electric HWS
$1,000
Vic rebate available
Subject to eligibility
15yr
Typical system lifespan
With regular maintenance
1 day
Standard installation time
Licensed plumber + electrician
How It Works

A Refrigerator in Reverse — Heating Water With Air.

A heat pump hot water system works like a reverse refrigerator. Rather than generating heat with an electric element, it extracts heat energy from the surrounding air and transfers it to your water — delivering 3–4 units of heat energy for every 1 unit of electricity consumed.

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COP 3–4

Heat Pump Efficiency

A Coefficient of Performance (COP) of 3–4 means a heat pump delivers 300–400% of the energy it consumes. A conventional electric element has a COP of 1.0.

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Solar Ready

Pairs Perfectly with Solar

Schedule your heat pump to run during peak solar generation hours. Combined with rooftop solar, hot water becomes effectively free — the largest single load offset available.

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Low CO₂

Gas Replacement

Replacing a gas storage water heater with a heat pump eliminates gas bills entirely and reduces hot water-related emissions by over 60% on Victoria's grid mix.

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Smart

Smart Scheduling

Modern heat pump systems include app-based scheduling, timer modes, and solar integration — letting you optimise when the system runs to maximise savings.

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Quiet

Low Noise Operation

Contemporary heat pump hot water units operate at 45–55 dB — quieter than a conversation. Suitable for outdoor installation adjacent to bedrooms and living areas.

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270–315L

Household-Sized Tanks

Tank sizes from 200L to 315L cater to households of 1–8 people. All Electric Homes recommends the right tank size based on your household occupancy and hot water usage.

Rebates & Incentives

Government Support for Heat Pump Hot Water in Victoria.

Victorian homeowners replacing an existing gas or electric storage system with a heat pump hot water unit can access significant government incentives. AEH manages all rebate applications on your behalf.

Victoria
Solar Victoria Hot Water Rebate
Up to $1,000
Available for eligible Victorian households replacing an existing gas or electric storage water heater with a heat pump system.
Check availability at solar.vic.gov.au
Federal
Small-scale Technology Certificates (STCs)
$300–$600
Federal STC incentive for eligible heat pump hot water installations. Value depends on system size and installation zone. Applied at point of sale.
Open — applied automatically by AEH
Combined
Victorian + Federal Combined Value
Up to $1,600
Eligible Victorian households can combine the Solar Victoria rebate with federal STCs to significantly reduce the upfront cost of installation.
Subject to eligibility — AEH confirms prior to quoting
Why Whole-Home vs Alternatives

Heat Pump vs Gas vs Conventional Electric.

Comparing running costs, emissions, and long-term value across common hot water system types for a typical 4-person Victorian household.

MetricGas StorageConventional ElectricHeat Pump (AEH)
Annual energy cost (avg)$400–$600$700–$1,100$200–$350
Energy efficiency (COP)0.75–0.851.03.0–4.0
CO₂ emissions (Victoria)HighMediumLow
Solar compatibleNoYes (limited)Yes — optimal with solar
Smart schedulingNoLimitedYes — app control
Government rebates (Vic)NoNoYes — up to $1,600 combined
Ongoing gas supply fee$300–$400/yrNoneNone
Typical lifespan10–12 yr8–12 yr12–15 yr
Common Questions

Frequently Asked Questions

Does a heat pump hot water system work in cold Victorian winters?
Yes. Quality heat pump systems operate effectively in ambient temperatures as low as -5°C to -10°C, making them suitable for all Victorian climate zones including alpine and highland areas. Most units include an electric boost element that activates automatically in very cold conditions to ensure you always have hot water. Performance (COP) does reduce slightly in cold weather but remains significantly more efficient than a conventional electric element.
Where does the heat pump unit need to be installed?
Heat pump hot water units require outdoor installation or installation in a well-ventilated space — the system extracts heat from the surrounding air and needs adequate airflow. Most installations are in the same location as the existing hot water system (side of house, backyard, or roof area). The integrated tank-and-pump unit is typically 1.2–1.8m tall and requires 1–2m of clearance around the air intake. AEH assesses your site during the quote process to confirm the best location.
How much can I save switching from gas hot water to a heat pump?
Savings vary by household size and usage. A typical 4-person Victorian household switching from gas hot water (including the gas supply standing charge) to a heat pump can expect to save $500–$900 per year on hot water-related energy costs. If solar panels are installed, scheduling the heat pump to run during solar generation hours can reduce the operating cost of hot water to near zero.
What brands does All Electric Homes install?
AEH installs leading Australian and international heat pump hot water brands including Reclaim Energy, Sanden, Rheem, Dux, and iStore. Brand selection is based on system performance, reliability data, warranty terms, and suitability for your specific installation configuration. Your AEH consultant will recommend the most suitable product for your home.
Do I need to do anything to maintain a heat pump hot water system?
Heat pump systems require minimal maintenance. The air filter on the intake should be cleaned every 3–6 months (a simple wipe-down). Annual checks by a licensed plumber or technician are recommended to inspect the pressure relief valve and anode rod (every 3–5 years for most models). AEH offers an optional annual service plan. Most manufacturers provide 5–7 year warranties on components.
Can a heat pump hot water system handle a large household?
Yes. Heat pump systems are available in tank sizes up to 315L and above, which comfortably meets the demands of households of 5–8 people. For very large households, AEH can recommend appropriately sized systems or a dual-tank configuration. A correctly sized system recovers a full tank of hot water within 2–3 hours, ensuring continuous hot water availability even during high-demand periods.
Get Started

Ready to Eliminate Your Hot Water Bill?

Get a free heat pump hot water assessment from All Electric Homes. We'll confirm your rebate eligibility, recommend the right system, and provide a full quote — no obligation.

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Or call us on 1800 719 873