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Heat Pump Hot Water Melbourne | Installation & Rebates
Heat pump hot water system installed at a Melbourne home by Smart Solar Energy
Melbourne & regional Victoria

Heat Pump Hot Water Melbourne

One of the largest loads in your home, replaced with a system that runs on a fraction of the power.

Hot water is typically the single biggest electricity load in an Australian home after heating and cooling. A heat pump moves heat from the air rather than generating it with an element, which is why it uses far less power for the same result. Smart Solar Energy supplies and installs heat pump hot water systems across Melbourne and regional Victoria.

1:3Power in to heat out
SolarRuns on daytime generation
1 dayMost changeovers
LicensedPlumbers & electricians

How a heat pump hot water system works

An electric storage system heats water the same way a kettle does, by pushing current through an element. A heat pump works more like a fridge running in reverse. It draws warmth out of the surrounding air, concentrates it through a compressor, and transfers that heat into the tank.

Why that matters for your bill

Because the system moves existing heat rather than creating it, each unit of electricity delivers roughly three units of heat. An electric element can only ever deliver one. That ratio is where the running cost difference comes from, and it holds up through Melbourne winters since the unit is pulling heat from air well above freezing.

Heat pump compared to what you have now

Electric storage
100% efficient
  • Cheapest to buy
  • Highest running cost
  • Large daily load
  • What most older homes have
Gas storage
Varies by model
  • Ongoing gas supply charge
  • Cannot run on solar
  • Flue and clearance rules
  • Being phased out in new builds
Already have solar on the roof?

Set the heat pump to run through the middle of the day and it heats water using generation you'd otherwise export at a low feed-in rate. For many households that turns hot water into a near-zero running cost.

See our solar systems

What size system do you need?

Tank size is matched to household size and how your hot water use is spread through the day. A family that showers back to back in the morning needs more storage than one spread across the evening.

170 L
1–2 people

Couples, units and smaller households.

215 L
3–4 people

The most common choice for family homes.

270 L
4–6 people

Larger families, or homes with heavy morning demand.

300 L+
6+ people

Large households and share accommodation.

Sizing also depends on the number of bathrooms and whether usage is concentrated or spread. We confirm the right capacity during the assessment.

Brands we install

We supply units with established Australian service and parts support, which matters more on hot water than most appliances since a failure leaves you without hot water the same day.

Rheem

Long-established Australian brand with the widest service network and readily available parts.

Reclaim

Australian designed, with strong cold-weather performance and a well regarded CO2 refrigerant system.

Sanden

Split system design with the tank separate from the compressor, quiet in operation and efficient in cooler climates.

More brands

Other units are available depending on stock, rebate eligibility and what suits your site.

Ask about a specific brand

Rebates on heat pump hot water

Replacing an electric or gas hot water system with a heat pump often attracts incentives, since it reduces household emissions. Federal STCs apply to eligible units, and Victoria runs its own program alongside them.

Why we check before quoting

Eligibility usually depends on what you're replacing, the model being installed and whether the property has claimed before. Rules and funding also shift through the year. Rather than advertising a headline figure, we confirm what applies to your address and include it in the quote.

What's included in our installs
  • Removal and disposal of your existing system
  • Supply and installation of the new heat pump
  • Plumbing and electrical work by licensed trades
  • Tempering valve and compliance requirements
  • Rebate application lodged on your behalf
  • Timer setup so it runs during solar hours

Our installation process

1
Assessment

Household size, existing system and where the unit can sit all get checked, along with rebate eligibility.

2
Fixed quote

Supply, install, removal of the old system and any rebate are priced together, with nothing added later.

3
Changeover

Most swaps are completed in a day, so you're back to hot water the same evening.

4
Timer and handover

The unit is set to heat during daylight hours, then we walk you through the controls.

Areas we service

Heat pump installations run across Melbourne and regional Victoria, including Cranbourne, Clyde, Dandenong, Frankston, Pakenham, Berwick and surrounding suburbs. Not sure if you're in range? Ask us.

Frequently asked questions

Running costs, cold weather, noise, sizing and rebates.

How much does a heat pump hot water system cost?

The installed figure depends on the unit, your existing setup and how much plumbing or electrical work the changeover needs. Rebates reduce it considerably, and because eligibility varies by property we apply them to your quote rather than advertising a headline price. A like-for-like swap in an accessible spot sits at the lower end.

Do heat pumps work in Melbourne winters?

Yes. Heat pumps extract warmth from ambient air rather than needing sunshine or high temperatures, and Melbourne rarely drops near the limits of what these units handle. Efficiency does dip in the coldest weather, though even then a heat pump uses substantially less power than an electric element.

How much will it cut my bill?

Hot water is usually one of the largest loads in a home, and a heat pump uses roughly a third of the electricity of an electric storage system for the same output. Where the unit is timed to run on solar generation during the day, the running cost drops further again.

Are heat pumps noisy?

They run at a similar level to an outdoor air conditioning unit, since the technology is much the same. Placement matters more than the unit itself, so we position it away from bedroom windows and neighbouring boundaries where the site allows.

Can I get a rebate on a heat pump?

Federal STCs apply to eligible units, and Victoria runs a separate program for households replacing electric or gas hot water. Eligibility depends on what you're replacing, the model installed and whether the property has claimed before, so we confirm your position before quoting and lodge the application for you.

Get a heat pump quote

Tell us your household size and what system you have now, and we'll send a fixed installed price with rebates applied.

Request a free quote

Frequently asked questions

Running costs, cold weather, noise, sizing and rebates.

How much does a heat pump hot water system cost?

The installed figure depends on the unit, your existing setup and how much plumbing or electrical work the changeover needs. Rebates reduce it considerably, and because eligibility varies by property we apply them to your quote rather than advertising a headline price. A like-for-like swap in an accessible spot sits at the lower end.

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Hot water is usually one of the largest loads in a home, and a heat pump uses roughly a third of the electricity of an electric storage system for the same output. Where the unit is timed to run on solar generation during the day, the running cost drops further again.

They run at a similar level to an outdoor air conditioning unit, since the technology is much the same. Placement matters more than the unit itself, so we position it away from bedroom windows and neighbouring boundaries where the site allows.

They run at a similar level to an outdoor air conditioning unit, since the technology is much the same. Placement matters more than the unit itself, so we position it away from bedroom windows and neighbouring boundaries where the site allows.