Frequently asked heat pump questions?

A heat-pump water heater uses much less electricity than an electric storage water heater.

This is because it only requires electricity to drive the compressor and the fan, instead of using electricity to heat the water directly, with an electric element.” source:

The system uses renewable energy to generate hot water without the need for a solar panel, and produces hot water with 80% greater efficiency than a traditional electric hot water unit. The systems work day and night, rain, hail or sunshine!

The hot water system uses Heat Pump technology, similar to an air-conditioner or fridge operating in reverse:

  • A fan draws in air containing ambient heat, which converts the internal refrigerant liquid to a gas.
  • A compressor then pressurizes the gas, creating heat, which is then used to heat the water inside the tank.
  • After heating, the gas reverts back into a liquid and starts over again.
Heat pump systems require airflow, very similar to a split system a/c unit, which is why they need to be installed outside. You are still eligible for the rebate, you only have to pay for the relocation of services (water and power) to an external location for the new system. Relocations range from $499-$999 depending on roof access, the distance of relocation.
We currently service all of Victoria and New South Wales. We will be expanding this to other areas across Australia, feel free to register your interest now and we’ll be in touch when we’re in your area!

If you currently have an electric or gas hot water heater, your best option is to replace it with a heat-pump hot water heater, rather than replacing like-for-like. There are government incentives available to upgrade to a more efficient heat-pump hot water heater. Contact us for more information

There are three different government rebates that Victorian households can access when upgrading to an efficient heat pump hot water system. 

  • Federal Government Small-scale Technology Certificates (STCs): STCs for heat pump hot water systems in Victoria are worth $1,040.Small-scale Technology Certificates (STCs) are federal government heat pump hot water rebates available for authorised hot water heat pump installations. STCs function similarly to a point-of-sale discount, lowering the purchase price of a heat pump hot water system. 

The value of STCs is determined by a zoning system used throughout Australia. When compared to the rest of Australia, Victorians receive the highest STC rate for a heat pump system. 

Victorian Energy Efficiency Certificates, or VEECs, are available to all Victorian families and companies who convert from an inefficient electric or gas hot water system.  Those who switch from antiquated electric-resistive hot water systems will receive the most bang for their buck with their VEECs. This is because ancient electric hot water systems emit the greatest glasshouse gases. 

In addition to the federal government’s STC rebates for heat pump hot water systems, VEECs are available.  They function similarly to STCs as a point-of-sale discount. 

Victorians are eligible for both the VEEC and STC rebates. Upgrades from an old electric hot water system to a heat pump hot water system are eligible for rebates. 

# VEECs 

Value of VEECs 

STC rebate 













Electric Heat pumps are becoming popular because they are energy-efficient – they don’t depend on fossil fuel usage to produce cool and warm air. This means that consumers will use less gas and electricity with heat pumps compared to other systems, as well as less money. This will help reduce greenhouse gas emissions, taking the pressure off both the planet and your budget. 

Moving to a heat pump means you can avoid the volatile prices associated with gas. If you are using Liquefied Petroleum Gas (LPG) or electric heating, you could see a reduction to your energy bill if you move to a heat pump.

Electric Heat pumps are significantly more efficient than traditional boilers and use cleaner electricity, so will reduce your home’s carbon footprint. A heat pump takes heat at a low temperature from the air or ground, increases that heat to a higher temperature and transfers it into your home to provide heating and hot water.

To be eligible for the Solar Homes Program, you must be the owner-occupier of a property valued at under $3 million, with a combined household taxable income below $210,000 per year. The property address should not have received a rebate under this program before, and the heat pump water heater to be replaced must be at least three years old from the date of purchase. 

  1. Register your details on the contact form on the Heat Pump page .
  2. A team member will call to confirm your details, your eligibility for the free install and answer any questions you may have. We can then schedule a day and time for your installation.
  3. Start saving money every time you have a shower!
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