Heat pump hot water systems work by using the same principle as a split system air conditioner: they extract heat from the surrounding air and use it to heat water. These systems run on electricity, but they use a fan to circulate air through a refrigerant gas, which helps to heat the water. As a result, heat pump hot water systems can produce the same amount of heat as a standard electric storage system while using up to 74% less electricity.

Due to their reliance on the outdoor ambient air temperature, these units are required to run during the day when the weather is at its optimal and to allow enough time to heat. This is great for those who want to use the systems inbuilt timer to offset some of their excess solar PV generation instead of selling it back to the grid and/or switch to the time of use tariff (TOU). You can learn more about the time-of-use tariff and how to use it to your advantage here. As solar feed-in tariffs decrease and gas prices rise, homes are looking at ways to absorb the excess solar during the day to run appliances within the home and/or disconnecting all gas appliances in the home to save the supply charge.

A heat pump uses between 0.5-1kW to heat per hour, compared to a standard 250lt electric storage tank which uses 3.6kW – that’s more than 3x the electricity for the same outcome and equates to around $800 per year in running cost savings when you make the switch!

For heat pump installations we can claim two rebates, STC & REPS. STC is short for Small Scale Technology Certificates which is a federal government initiative and the second, REPS, is short for the Retailer Energy Productivity Scheme. This scheme is a South Australian initiative to try to get households to move towards more energy-efficient hot water. All rebates we can claim on your behalf as point-of-sale discount and will be included in your quote.

For a detailed explanation on how all types of hot water systems (including heat pumps) work see here: https://www.yourhome.gov.au/energy/hot-water-service

Heat pump hot water systems are an efficient technology which for many homes will save money and energy. This is not to say they are perfect for every South Australian home, but with the right set up they can provide significant savings.

We recommend that customers on a time-of use tariff, or who have a moderate sized PV system (or both!) consider a heat pump option for their hot water, but to beware of some of the cheaper options in the market. Checking the warranty, electricity usage and online reviews on the unit before purchasing can save you the hassle of getting the wrong product. Even customers who do not have time-of-use tariff or a solar system are still likely to see savings on their electricity bill but should always ensure their timer is set during daylight hours to maximise system efficiency.

Not sure if it’s right for you? Contact our team for free advice, we always welcome a chat and if you feel comfortable, you can provide copies of your existing gas/electricity bills to get more personalised advice.