How Much Does a Heat Pump Cost to Install

Heat pumps are such devices that combine technology with efficiency and provide you with a smart water heating system that costs a fraction of the amount which it would have otherwise. An average household already pays a huge amount for the electric bill, and energy-hungry water heating systems are accountable for a big chunk of that bill. So, it’s undoubtedly a smart decision to install a heat pump for hot water and lower energy bills.
With that being said, its only natural for you to wonder how much does a heat pump cost to install? Any hot water system installation cost can be around about $2500 to $5500 for the unit. But keep in mind that this is not a definite amount because there are a lot of other attributes that heavily influence this number.  

Also, there are government rebates available in NSW and Victoria that can potentially bring this huge number almost down to ZERO if you choose to go with an efficient hot water heat pump replacing your old demanding electric system.

Factors That Affect Heat Pump Hot Water System Prices

Here are some aspects you have to keep track of to get an idea of how much is a heat pump and what can influence heat pump cost.


A larger capacity will always cost you a bit extra. Depending on the size of your family and needs, you can choose the best-suited one, whether it be a smaller-capacity heat pump or a big one. However, for an average family of four, it has been observed that a 200L one will suffice if each member uses 50L of hot water a day.

Heat Pump Installation Cost

Apart from the cost of heat pump hot water system, you have to factor in the installation cost. This is, again, something that cannot be determined just like that. For a bigger system in a trickier part of the house, the installer might quote you a bit extra for obvious reasons. Similarly, for a smaller capacity heat pump with an easier installation process, as the labour cost goes down, so might the installation cost.
To go with an installer who is CEC approved is definitely recommended.

Hot Water System Replacement?

Whether you are replacing your current electric water heater with a heat pump or getting an entirely new one will dictate the heat pump price point, given that you live in NSW or Victoria. For more assistance, check out hot water system rebate for NSW. If you are a Victorian resident, then replacing your current electric hot water system with a hot water heat pump is entirely free of cost. This is a state governmentprovided subsidy in order to facilitate and encourage their people to be more energy efficient. 

Also, if you live in New South Wales, you can get your electric hot water system replaced with a heat pump as part of the government rebate as well. 

Interested in taking advantage of either of the rebates? Get in touch with us- click here.

Replacement & Disposal (Without Available Subsidies)

If you don’t qualify for the government rebate, then you might have to pay your installer to get your old system out of the way and disposed of properly. Disposal of hot water systems needs expert hands and supervision because it’s not an easy task. So, factor that in while you are calculating how much does a heat pump cost to install.


Replacing an old unit of water heater with a new one of the same model is also something that some of you might be looking forward to. In that case, it will not be much of a hassle to get that done without relocation of the system. However, if you wish to relocate your heat pump to a different part of the house, that is a cost you must factor in while calculating heat pump prices. 

Tempering Valves

If an extra tempering valve is required, your installation might cost an additional $185 or around the range. It depends on your exact heat pump model.
heat pump price
Data sourced from Sustainability Victoria’s Hot Water Running Costs 2020 and compares running costs of a 5.5-star gas storage system, 7-star gas instantaneous system, electric storage off-peak system, high-efficiency solar gas boosted system, high-efficiency solar electric boosted system, high-efficiency hot water heat pump on off-peak tariff.
Aside from all the factors mentioned above, it is necessary to ensure proper maintenance for the unit for a longer lifespan. Proper maintenance can come in the form of cleaning your unit or checking for issues that have the potential to become a bigger threat in the future. Heat pumps are efficient pieces of technology that save money and reduce your electric bill by consuming less energy, 75% to be exact (SLA heat pump spec). So, it makes total sense for you to be aware and responsive with your heat pump.
Also, it goes without saying that investing in a good quality heat pump is the first step towards an efficient and financially sound journey. For instance, you can look through these amazing quality heat pumps for your residence from Smart Lifestyle Australia; click here.
To sum up, installation and hot water system price vary from house to house and region to region, depending on many other external factors. To know what it might cost you to install a heat pump on your property, claim a free consultation session with our experts today. 
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