Hot Water Heat Pump Cost & Savings Calculator

Hot water heat pumps are 4x more efficient than traditional electric or gas water heaters, and can save you hundreds on electricity bills. Use our hot water heat pump cost and savings calculator to find out:

  • How much you could save by switching to a hot water heat pump.
  • Which government rebates you qualify for.
  • An estimated cost to get a hot water heat pump, including installation.

Why do you save money with a hot water heat pump?

The average household uses 25% of their energy bill to heat water. The hot water in your shower comes from your hot water system, which either heats water in a tank, or heats water as you use it.

Normal hot water systems use electricity or gas to create heat to heat up the water. Instead of generating heat, hot water heat pumps move heat from the air into your water. It works exactly like a fridge, but in reverse. 

Even if the ambient temperature doesn’t feel very warm, there’s still a lot of heat energy in it. A heat pump can take all of that energy and heat a tank of water to 60 degrees C – the same temperature as traditional hot water heaters. 

Because it takes so much less energy to move heat as opposed to generating heat, hot water heat pumps are 4x more efficient than traditional electric or gas water heaters. That means they use less energy to heat the same amount of water, which saves you money on your bills.

What impacts the savings?

The amount you save primarily depends on a number of different things. You can use our hot water heat pump calculator to estimate the savings for your specific situation.

What type of hot water heater you’re switching from

You’ll get the most savings if you’re switching from an electric storage heater, because those types of hot water systems are the least efficient. But there’s no question that switching is still worth it if you currently use another type of system.

Types of hot water systems. The type of system you have impacts the savings you will get from switching to a hot water heat pump.
The type of system you are switching from will impact how much you save. The calculator will ask which type of system you currently have.

How much hot water you use

If you’re a large household, or just enjoy long hot showers, you use more hot water each day. Using more hot water takes more energy, which means switching to a hot water heat pump will save you more money.

If you have, or are planning to get, solar

If you get home solar you could save even more, since you can time your hot water heat pump to run during the day, when your solar panels are generating the most electricity.

How much does a hot water heat pump cost?

The cost to switch to a hot water heat pump depends on a variety of different factors. You can use our hot water heat pump calculator to estimate the cost, including installation, for your home.

Type of hot water heat pump

There are different types of hot water heat pumps available on the market, with different features. In general, more expensive hot water heat pumps:

  • Are quieter
  • Have a timer for solar
  • Have a longer warranty

Government rebates

Heat pumps have so many benefits for energy efficiency and combating climate change – which is why both the federal government and state governments offer rebates if you install or upgrade to a hot water heat pump. The exact amount of the rebate depends on the size of the system installed and where you live, but will generally be from a few hundred dollars up to a few thousand dollars.

You can use our hot water heat pump calculator to find out which rebates you are eligible for.

Installation cost

The cost of installation depends on which installer you select, and the complexity of the installation. The layout of your home and existing wiring can also make a difference, including if you need a switchboard upgrade or relocation of the hot water system to allow enough space.

Conclusion

Hot water heat pumps are the unsung heroes in the world of energy savings. They’re relatively uncommon in Australian homes – but that’s rapidly changing (and for good reason). In the first 3 quarters of 2023, NSW homeowners installed 60,000 of them – almost 8x the amount installed in the same period in 2022.

Use our hot water heat pump calculator to find out how much you could save, and make the switch.