Heat Pump Water Heater Can Cut Home Energy Bills by Up to 60% – But Few Know About It

You read that right. You could save up to 60% on water heating expenses by upgrading to a heat pump hot water system.

For those who are sceptical, rest assured that it’s not a marketing spin and continue reading to find out more.

Energy usage of hot water systems in Australian households

According to ARENA’s Domestic Hot Water and Flexibility report, hot water systems in Australia account for 24% of residential energy usage and 18% of residential electricity use. This means they rank second only to space heating and cooling systems in terms of energy consumption.

To many of us, hot water seems like a basic utility. We are often oblivious that an inefficient water heating system might be working a hidden energy drain in our house. 

Not only are these systems inefficient, but they frequently operate during peak hours, when electricity prices are at their highest and grid demand is at its highest. 

Luckily, heat pump hot water systems can help with that.

What Is a Heat Pump Hot Water System?

Consider it a refrigerator working in reverse. Unlike traditional water heaters, heat pump water heaters do not use energy to create heat.

Heat pump hot water systems transport warmth from the air into your water tank. These systems are significantly more energy-efficient than traditional electric water heating systems. 

To be exact, heat pump water heaters consume up to 70% less electricity because they only transport heat rather than producing it from scratch.

Moreover, since these devices are entirely electric, rooftop solar energy can be used to power them. 

They are also climate-adaptable, functioning well in most Australian climates. Be it the humid air in Brisbane or Darwin, or the brisk mornings in Melbourne, heat pump water heating systems will not disappoint.

Why Don’t People Use Them If They’re That Good? 

That’s a valid argument. But there is a simple answer to it. 

Despite the claims of long-term savings and the studies supporting these claims, heat pump hot water systems are still not well known.

Many homeowners are unaware of them, and some professionals continue to install gas or electric systems merely out of habit or because it’s “what’s always been done.” 

It’s also a common misperception that these systems are exclusive to high-tech green construction or new residences.

At the same time, replacing your outdated hot water system with a heat pump is a rather easy procedure. It may be carried out as a scheduled changeover or after a breakdown.

Government Rebates Further Sweetening the Deal

Upgrading anything usually means a greater investment. However, the best part about upgrading your traditional hot water systems to a heat pump hot water system is that it’s heavily subsidised.  

The Australian government doesn’t leave you alone. Rather, it holds your hand through it and makes the switch more convenient.

Depending on where you live and the type of system you’re upgrading, there are various rebate programs offered at the state or federal level.

These can help lower the upfront cost of a heat pump hot water system by $800 to $2,000 or more.

For instance, the Victorian Energy Upgrades program in Victoria provides qualified families with substantial incentives.

Energy-saving programs are also available in South Australia and New South Wales. When combined with Small-scale Technology Certificates (STCs), the net cost can occasionally be reduced to less than $1,000.

You can check with authorised installers like E-Green Electrical or government websites to verify your eligibility.

A heat pump with solar equals maximum efficiency 

A heat pump hot water system is a logical addition to any rooftop solar system. 

Heat pumps can be easily scheduled to run during sunny periods, utilising your excess solar power to heat your water almost for free. This is in contrast to conventional electric heaters that rely on grid electricity. 

Isn’t this the epitome of energy independence?

It’s no surprise that this combination is becoming a typical feature in an increasing number of energy-efficient homes. 

It is also worth pointing out that a heat pump system significantly lessens your dependency on the grid, even if you do not yet have solar. 

Better for the Planet, Too

Making the move to a heat pump is a step towards a lower-carbon lifestyle in addition to saving money. 

Research by the Australian Energy Foundation reveals that a heat pump can reduce a household’s annual carbon emissions by up to tonnes when a gas water heater is replaced. That would be the same as removing a small automobile from the road. 

A significant component of Australia’s transition to net-zero goals will be the phase-out of inefficient gas appliances. And hot water is a simple place to start. 

So, Is the Switch Worth Making? 

If your hot water system is more than ten years old or if your energy expenses have been getting higher, it most certainly is a switch worth making!

Owing to greater energy savings, the initial investment (even in the absence of rebates) is typically recovered in a matter of a few years. It then becomes an obvious choice when you consider the various rebates offered by the Australian government. 

Timing, however, is crucial.

A lot of individuals only consider hot water when their outdated system malfunctions, which frequently results in hasty judgments and lost opportunities. By planning, you may select a system that favours the environment, your comfort level, and your budget as well. 

Conclusion: An Effective Hot Water Hack 

In an era when almost every Australian home is concerned about energy costs, it’s important to consider why you should pay more than necessary. 

Supported by science, research, and common sense, heat pump hot water systems are not just a technological fad but a smart upgrade choice.

Whether you’re remodelling, replacing an outdated unit, or simply trying to find methods to save money, this is one alteration that can truly have an impact. 

All that remains to be determined is whether you will be the one to inform your neighbours about it.