Cut Your Hot Water Bills by Up to 70%
Heat pump hot water systems use just one-third of the energy of a standard electric system. Calculate your savings and discover the government rebates available in your state — often exceeding $1,500.
Calculate Your Savings
Answer 5 quick questions to see how much you could save by switching to a heat pump hot water system.
How Heat Pump Hot Water Works
Unlike a traditional electric heater, a heat pump doesn't generate heat — it moves existing heat from the air into your water, making it 3–5x more efficient.
Absorb Heat from the Air
The heat pump draws in ambient air from around the unit — even cold air contains usable thermal energy.
Compress & Amplify
A refrigerant absorbs the heat and is compressed, raising its temperature significantly above that of the surrounding air.
Transfer Heat to Water
The hot refrigerant passes through a heat exchanger, transferring its energy to the water in the storage tank.
Use 3x Less Electricity
For every 1 kWh of electricity consumed, a heat pump produces 3–5 kWh of hot water energy — far more efficient than a resistive element.
Heat Pump vs Other Systems
See how a heat pump compares to your current hot water system.
vs Electric Storage
Major upgradeStandard electric storage systems use a resistive element — essentially the same technology as a kettle. Highly inefficient.
vs Natural Gas
Strong upgradeGas hot water has lower running costs than electric storage, but heat pumps are still significantly cheaper and produce zero direct emissions.
vs LPG
Outstanding upgradeLPG is the most expensive fuel type in Australia. Switching to a heat pump delivers the highest financial return of any system type.
vs Solar Hot Water
ComparableBoth technologies are efficient, but heat pumps work 24/7 regardless of sunlight and are often more reliable in southern states.
What Does a Heat Pump Look Like?
A heat pump hot water system consists of a compact unit (similar in size to a split-system air conditioner) mounted near a storage tank. It can be installed indoors or outdoors and runs almost silently.
- Typical tank size: 200–315 litres
- Unit footprint: roughly 60cm × 60cm
- Noise level: 40–50dB (quieter than a dishwasher)
- Works in temperatures as low as −10°C
Australian Climate Zones
Australia is divided into 5 STC climate zones that determine how many Small-Scale Technology Certificates you receive. Zones with more solar energy and warmer temperatures qualify for more STCs.
Tropical — highest STC value, best ambient temperatures for heat pumps
Sub-tropical — excellent conditions, high STC value
Warm temperate — good conditions, solid STC value
Cool temperate — heat pumps still very effective, lower STCs
Government Rebates by State
Australian homeowners can access federal and state incentives when installing a heat pump hot water system. Select your state to see what's available.
Act before 2030: Federal Small-Scale Technology Certificates (STCs) reduce in value each year and end entirely on 1 January 2030. Installing sooner means a higher rebate.
Federal STC Rebate
~$700
Zone 3 — based on system capacity & location
Energy Savings Certificates (ESC)
$600–$900
State-specific incentive program
Total Combined Rebate
$1,300–$1,600
Federal + state stacked together
Energy Savings Certificates (ESC)
NSW Energy Savings Scheme provides Energy Savings Certificates (ESCs) that can be stacked with federal STCs for significant savings.
How STCs Work
Install an eligible heat pump
Choose a heat pump listed on the Clean Energy Regulator's register. Your installer can confirm eligibility.
Your installer claims STCs on your behalf
Most registered installers act as agents and apply your STC value as an upfront discount on the purchase price.
Discount applied at point of sale
You receive the STC value as an immediate reduction on your invoice — no need to wait for a rebate cheque.
Claim state rebate separately
Most state rebates are applied separately, either by your installer or via an online claim. Both can be stacked for maximum savings.
Compare Heat Pump Models
All models listed are eligible for federal STC rebates and widely available through Australian installers.
| Brand & Model | STC | Best For | ||||
|---|---|---|---|---|---|---|
Reclaim Energy CO2 Heat Pump 250L | 250L | 5.9 | 5 yrs | ~$3,800 | Most Efficient | |
Reclaim Energy CO2 Heat Pump 315L | 315L | 5.9 | 5 yrs | ~$4,200 | Best for Large Families | |
Sanden SANCO2 250L | 250L | 5.8 | 7 yrs | ~$4,500 | Best for Cold Climates | |
Sanden SANCO2 315L | 315L | 5.8 | 7 yrs | ~$4,900 | Best Warranty | |
Bosch CS7000i AW 270L | 270L | 3.7 | 5 yrs | ~$3,300 | Quietest Operation | |
Rheem Ambiheat 270L | 270L | 3.6 | 5 yrs | ~$3,100 | Most Popular Brand | |
Rheem Ambiheat 340L | 340L | 3.6 | 5 yrs | ~$3,500 | Best for Large Homes | |
Dux Airoheat 270L | 270L | 3.5 | 5 yrs | ~$2,900 | Great All-Rounder | |
Chromagen CHA-RS 250L | 250L | 3.5 | 5 yrs | ~$2,700 | Best for Solar Pairing | |
iStore 180L All-In-One | 180L | 3.4 | 5 yrs | ~$2,400 | Best for Small Households | |
iStore 270L All-In-One | 270L | 3.4 | 5 yrs | ~$2,800 | Best Value Mid-Size | |
Quantum HeatDump 270L | 270L | 3.3 | 5 yrs | ~$2,600 | Budget Friendly |
* Installed prices are approximate and may vary by location and installer. COP (Coefficient of Performance) indicates efficiency — a COP of 3.5 means 3.5 units of heat energy per unit of electricity consumed.
Get Your Free Quote
Connect with a local CEC-accredited installer who will assess your home, confirm your eligible rebates, and provide a no-obligation installation quote.
No-obligation quote
Free assessment with zero pressure to purchase.
CEC-accredited installers
All installers are Clean Energy Council accredited — required for STC eligibility.
Rebates handled for you
Your installer will manage the federal STC and state rebate process.
Same-day installation available
Most heat pump installations are completed within a single day.
Local CEC-accredited professionals
Verified, insured, and experienced with heat pump installs
Frequently Asked Questions
Everything you need to know about heat pump hot water systems and Australian rebates.