Hot Water
Heat Pump Hot Water Installation
Cut your hot water bills by 60–75% with an efficient heat pump system.
Most Australian homes spend $800–$1,200 per year heating water with electric or gas. A heat pump moves free heat from the air into your tank, using 60–75% less energy. Solar Advice installs SAA-accredited systems with a written quote, on-site assessment, and full warranty. We handle the electrical work, testing and handover so you can start saving immediately.
⏳ Deadlines
- Cheaper Home Batteries steps down in 66 days (1 January 2027)About $252/kWh for the first 14 kWh, $151/kWh to 28 kWh and $38/kWh to 50 kWh (2026 rate) Source: DCCEEW Cheaper Home Batteries, from 1 May 2026 · checked 2026-10-16
- STC discount on new solar shrinks in 66 days (1 January 2027)about 20% less than this year (one fewer deeming year) Source: Clean Energy Regulator (small-scale technology certificates) · set by law
Electric and gas hot water costs are climbing.
Australian electricity tariffs have risen 15–25% over the past two years, and gas prices continue climbing. A 250L electric storage tank runs $800–$1,200 per year, and gas isn't much better. That means thousands of dollars wasted over the life of your system—money that compounds each time your network operator raises rates.
Installing a heat pump hot water system cuts that cost by 60–75% without replacing your plumbing or trading one fossil fuel for another. But picking the wrong brand, size or installer can waste money faster than the old system. You need an on-site assessment, a clear written quote, and a licensed professional who explains the work before starting. Solar Advice does all three.
What this covers
- 01
270L Heat Pump Replacing Electric Storage
The most common swap: removing an old electric storage tank and installing a new 270L heat pump system in the same location. Reuses existing plumbing and inlet; requires 230V power and often a new circuit breaker. Typically $4,000–$5,200 depending on electrical upgrades and site access.
- 02
Gas to Heat Pump Conversion
Decommissioning gas hot water and switching to a heat pump system. Involves isolating the gas line (plumber), removing the old tank and installing the heat pump with new electrical supply. Takes 2–3 days and costs $4,500–$6,000 due to additional disconnection work and site preparation.
- 03
Solar-Timed Heat Pump Installation
Pairing a heat pump with solar panels so it heats water during peak sun hours, then coasts at night. Requires compatible controls and battery or grid export settings. Maximises renewable energy use and can halve your heat pump running costs. Installed alongside solar: typically $1,500–$2,500 additional labour.
- 04
Heat Pump Tank Relocation
Moving an existing tank or installing a new one in a more practical location—closer to hot-water outlets, away from living areas or into a basement. Involves new plumbing runs, electrical supply and drainage. Cost depends on distance and height; typically $2,000–$4,000 on top of the system price.
- 05
Heat Pump Hot Water Repair & Servicing
Annual servicing keeps your system efficient and warranty-valid. Includes checking refrigerant, fan motors, electrical connections and the backup heater. Emergency repairs during cold snaps prioritised. Servicing costs $150–$300; diagnosis and repair typically $400–$1,200.
How a heat pump hot water system works and why it cuts bills by 60–75%
A heat pump hot water system is an air-source heat pump that moves warmth from the outdoor air into your water tank, rather than generating heat by burning fuel or resistance heating. The outdoor unit (compressor, fan and condenser coil) draws in ambient air, compresses refrigerant to raise its temperature, and transfers that heat to the water inside the tank via an internal heat exchanger. It runs on electricity, but because it moves heat rather than creating it, one kilowatt of electricity produces 3–4 kilowatts of heating energy—a coefficient of performance (COP) of 3:1 to 4:1. By contrast, electric resistive heating (the element in a storage tank) is 1:1; gas is ~85–90% efficient due to flue losses.
Efficiency is highest in mild weather (15–25°C) when the air is warm and the system barely needs to compress the refrigerant. On cold days (below 5°C), efficiency drops because the air holds less heat, so the compressor works harder or a backup electric element cuts in to maintain temperature. A smart controller can schedule heating for off-peak hours (late evening, early morning) when electricity is cheaper, or during peak solar export if you have panels. Over a year, most Australian homes use 60–75% less energy for hot water, translating to $400–$900 in annual savings depending on climate, current tariff and hot water demand. The payback period for a $4,500 system is typically 5–7 years through bill savings alone; government STCs reduce upfront cost and can halve that payback.
The system includes a 270–330L insulated tank, an outdoor compressor unit (300–800 W continuous), a thermostat, and a backup electric resistive element. Installation requires a 230V, 10–15 amp dedicated power circuit installed by a licensed electrician, and plumbing connections to existing hot-water outlets. SAA-accredited installers like Solar Advice ensure the system is sized correctly, installed to AS/NZS standards, and tested for safety and performance before handover. Once installed, your only ongoing maintenance is annual servicing and occasional filter cleaning.
What to check before choosing a heat pump hot water installer
The cheapest quote rarely saves money if the system is undersized, the electrician cuts corners or the warranty is paper-thin. Start by verifying the installer's SAA accreditation—the Solar Accreditation Australia register is public and free to search. SAA accreditation means the electrician has passed exams in solar and battery safety, understands the relevant Australian Standards (AS/NZS 4755, AS/NZS 3000), and is covered by professional indemnity insurance. Check the accreditation number, expiry date and any recorded complaints through the SAA website. Never accept verbal assurances or a photocopy; ask to see the current certificate.
Request an on-site assessment before any quote. A reputable installer will visit, photograph your site, check your roof or ground space, test your existing electrical switchboard, measure the cold-water inlet, review your hot-water usage pattern (family size, shower frequency), and identify any obstacles or upgrades needed. That assessment should take 30–60 minutes and be free or a small fee (typically $100–$200, often waived if you proceed). A written, itemised quote should then follow within 2–3 business days, breaking down equipment cost, labour, electrical work, permits, testing and warranty. Never sign a quote that lists only a lump sum, doesn't name the equipment brand and model, or lacks a completion date and warranty terms.
Ask whether the installer is accredited to claim STCs on your behalf. SAA-accredited installers can register the installation with the Clean Energy Regulator, which automatically calculates and transfers your STC rebate to your bank account or deducts it from the invoice—saving you the paperwork. Confirm they will supply all safety documentation (AS/NZS compliance certificate, electrical test report, manuals) on completion. Check their response time: Same Day Response for quotes and Same Day Response for urgent service calls is industry standard. Finally, ask for two or three recent references in your postcode or nearby suburb; a confident installer will provide them without hesitation.
Pricing guide
How much does heat pump hot water installation cost?
A heat pump hot water system typically costs $3,500–$6,000 installed in Australia. The exact price depends on tank size and efficiency rating, equipment brand and warranty length, electrical upgrades (new circuit or switchboard work), site access and tank location, plumbing modifications, and any decommissioning of an old system. A 270L system replacing an electric storage tank in a straightforward location is usually $4,000–$5,200; gas-to-heat-pump conversions add $500–$1,500 for disconnection work. Small-scale Technology Certificates (STCs) typically reduce your upfront cost by $500–$2,000 depending on your location zone and system size; confirm the current STC price and your zone with the Clean Energy Regulator.
- Tank size: 250L is standard for a family of 3–4; larger tanks cost $200–$400 more.
- Brand and warranty: Budget models start at $2,500–$3,200; premium brands with 10-year warranties cost $3,500–$4,500.
- Electrical work: A simple new circuit is $600–$1,000; switchboard upgrades can reach $2,000–$3,000.
- Site access: Ground-floor access saves $200–$500; attic, steep roof or remote locations cost $300–$800 extra.
- Plumbing: Reusing existing pipes saves $500; new hot-water runs or tank relocation add $800–$2,000.
- Urgency: Standard installation within 2–4 weeks is the quoted price; expedited or weekend work incurs a 10–20% surcharge.
| Job type | Low | Typical | High |
|---|---|---|---|
| 270L heat pump replacing electric storage | $4,000 | $4,800 | $5,500 |
| Gas-to-heat-pump conversion with decommissioning | $4,500 | $5,500 | $6,500 |
| Ground-mounted heat pump with new 10 A circuit | $4,200 | $5,000 | $6,000 |
| Solar-timed heat pump with controller (labour only) | $1,500 | $2,000 | $2,500 |
Prices are market guidance ranges in AUD (excluding GST). Final cost depends on your specific site, equipment choice and local electrical requirements. Always confirm current incentives with the Clean Energy Regulator or your state energy agency before committing. Cheaper Home Batteries rebates (applicable if bundling battery storage from 1 July 2025) are separate and confirm current amounts with your state.
Typically included
- On-site or remote assessment to determine system size, location and electrical requirements
- Written, itemised quote breaking down equipment, labour, electrical work, testing and warranty
- Supply of agreed heat pump system (tank, outdoor unit, controls and fittings) from a reputable brand
- Installation by a licensed electrician accredited by SAA, including a new or upgraded power circuit as needed
- Connection to existing cold-water inlet and hot-water outlet plumbing (reuse of pipes where possible)
- Testing for safety, temperature control and performance, plus AS/NZS compliance certification and handover manuals
Often excluded
- Decommissioning of old gas hot-water systems (plumber required, typically $500–$1,500)
- Major plumbing modifications, re-routing or tank relocation beyond 3 metres (plumber required)
- Structural work, such as building a platform or modifying walls
- Permit or council approval fees (rare for residential hot water, but may apply in some councils)
Never pay the full cost upfront before the assessment is complete. A reputable installer will ask for a deposit (typically 20–30%) to secure materials and a booking, with the balance due on completion. Always insist on a written contract that names the equipment, installation date, total price, warranty terms and conditions, and the installer's SAA accreditation number. If the installer refuses an on-site assessment, offers a price by phone alone, or cannot provide accreditation details, walk away—these are red flags for poor quality or unlicensed work.
Questions to ask every installer
- 1Is your electrician SAA-accredited? Ask to see the current certificate and verify the accreditation number on the SAA register.
- 2Will you provide an on-site assessment and a written, itemised quote before any work begins?
- 3What is included in the warranty, and for how long does it cover the compressor, tank, and labour?
- 4Can you arrange the STCs rebate on my behalf through the Clean Energy Regulator, or do I need to claim it myself?
- 5What is your typical response time for quotes and emergency repairs, and do you charge a call-out fee?
Brands we install
Brands we install
Ask us about current stock and warranty terms for each brand.
- Panels
- JinkoTrinaLONGiAikoRECCanadian SolarSunPower (Maxeon)
- Inverters
- FroniusSungrowSolarEdgeEnphaseGoodWeHuawei
- Batteries
- Tesla PowerwallSigenergyBYDAlpha ESSEnphase IQ BatterySungrow SBRFranklinWH
Solar designed around your situation
Which situation best suits you?
How much does a heat pump hot water system cost in Australia?
Will a heat pump hot water system qualify for government rebates?
How much money will a heat pump hot water system save me each year?
Can I put a heat pump hot water system on my roof?
What happens if I switch from gas hot water to a heat pump?
Do heat pump hot water systems work in cold climates?
What warranty covers a heat pump hot water system?
How do I choose between a heat pump and solar-boosted hot water?
Ready to cut your hot water bills?
Book a free on-site assessment and written quote from Solar Advice.