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Heat Pump Hot Water Systems

Heat pump hot water systems are an energy-efficient way to keep your household supplied with hot water. They use warmth from the surrounding air to heat water while using less electricity than conventional electric storage systems. With the right setup, they can also make use of rooftop solar power or eligible free daytime electricity offers.

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Our Heat Pump Hot Water Systems

How Does a Heat Pump Hot Water System Work?

A heat pump collects heat from the surrounding air and transfers it into water stored in an insulated tank. It uses electricity to run this process, but needs much less electricity than a conventional electric storage system that relies on a heating element.

The system works in a similar way to a refrigerator, but moves heat into your water instead of removing it. A refrigerant absorbs warmth from the air, a compressor raises its temperature, and a heat exchanger transfers that heat to the water.

Heat pumps do not need direct sunlight or rooftop solar panels to operate. Their performance depends on the model and surrounding air temperature, so choosing a system suited to your local climate matters.

Why Choose Heat Pump Hot Water?

A heat pump can be a practical upgrade when replacing an older hot water system or looking for ways to reduce household energy use.

Benefits can include:

  • Lower electricity use than a conventional electric storage water heater
  • The ability to use electricity generated by rooftop solar panels
  • Daytime heating and storage for hot water use later
  • Timers or app-based scheduling on compatible models
  • Government incentives for eligible systems and installations

Your running costs will depend on the system you choose, household hot water use, local conditions and electricity plan.

Using Solar Panels to Power Your Heat Pump

If you have rooftop solar panels, a heat pump can help you use more of the electricity your home generates.

Solar PV panels produce electricity during daylight hours. By scheduling a compatible heat pump to run during the strongest solar generation period, you may be able to heat water using more of your own solar power and less electricity from the grid.

The insulated tank stores the heated water for use later, including morning or evening showers. You do not need a home battery to store energy as hot water.

If your panels are not generating enough electricity to run the heat pump alongside other household appliances, a grid-connected home can draw the remaining electricity from the grid.

Is a Heat Pump the Same as Solar Hot Water?

Heat pumps and solar hot water systems both offer energy-efficient water heating, but they collect heat differently.

A heat pump draws warmth from the surrounding air. A solar hot water system uses roof-mounted solar thermal collectors to capture heat from sunlight, with a booster providing additional heating when needed.

Solar PV panels are different again. They generate electricity, which can power a heat pump and other appliances around your home.

This means you can use solar electricity to power a heat pump without installing a solar thermal hot water system.

Heat Pumps and the Solar Sharer Offer

You do not need rooftop solar panels to benefit from daytime solar energy.

The Solar Sharer Offer gives eligible households in New South Wales, South East Queensland and South Australia access to a daily three-hour free electricity window. Households need a smart meter and must opt in through a participating electricity retailer.

If your heat pump’s controls and electrical connection allow it, scheduling heating during this window may reduce the electricity cost of heating your water. The tank can then store that hot water for later use.

Check the whole electricity plan before switching, including supply charges, rates outside the free window and usage limits. Your household may also need heating outside the window to maintain enough hot water.

Read our Solar Sharer Offer guide for eligibility details, free electricity times and what to check before changing your setup.

Getting the Timing and Controls Right

Many heat pumps have built-in timers, while some models offer app-based settings. These controls can help you schedule heating around solar generation, electricity rates and your household’s routine.

Before changing settings, check how your hot water system is connected. A controlled load supply may restrict when the system receives electricity, so changing a timer alone may not make daytime heating possible.

Tank size and recovery time matter too. Your system needs enough time to heat the water your household uses, while maintaining the manufacturer’s required operating and hygiene settings.

Australian Hot Water can assess your setup and explain whether changes to the controls or electrical supply are needed.

Heat Pump Rebates and Incentives

Eligible heat pump installations may qualify for incentives that help reduce the upfront cost.

These can include federal Small-scale Technology Certificates, or STCs, and state-based programs such as the NSW hot water upgrade incentive.

The assistance available depends on your location, existing hot water system, chosen model and installation requirements. Check eligibility and complete any required paperwork before installation begins.

Heat Pump Installation and Maintenance

Australian Hot Water can help with everything from choosing a suitable heat pump to installation, servicing and repairs.

Our qualified plumbers and electricians can assess your household’s hot water needs, existing connections and installation space. We can also discuss airflow, operating noise, system controls and how a heat pump could work with your rooftop solar.

Once installed, your system should be maintained according to the manufacturer’s instructions. Keeping the area around the unit clear helps maintain airflow, while scheduled servicing can help identify problems and support reliable operation.

For installation advice, maintenance or urgent hot water problems, contact your nearest Australian Hot Water branch.

Find the Right Heat Pump for Your Home

Whether you have rooftop solar, are replacing an older system or want to explore smarter daytime heating, Australian Hot Water can help you compare your options.

Contact Australian Hot Water for practical advice and a quote.

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