HEAT PUMP HOT WATER SYSTEMS

ABOUT HEAT PUMP HOT WATER SYSTEMS
Heat pump hot water systems work similarly to that of a split system air conditioner, by taking hot air from its surroundings, and using that to heat water. They operate on electricity, but are assisted by the fan which runs the air through a refrigerant gas to help heat the water, reducing the amount of electricity required by up to 74% to produce the same amount of heat as a standard electric storage systems.
However, for some South Australian consumers this may not directly translate to financial savings. Due to their reduced electricity usage & reliance on the temperature, most manufacturers recommend to only connect a heat pump hot water system to your general use electricity tariff instead of the cheaper overnight controlled load tariff that a standard electric hot water system would be connected to. This generally means the savings are minimal if left on this tariff structure, or sometimes you will even be paying more.
There is an exception for this however, if you have already moved your property onto the time-of-use tariff. With the use of either an external timer, or the timer feature built in to units such as the iStore or Rheem heat pumps you are able to set your heat pump to primarily operate during the cheapest tariff period of the day. You can learn more about the time-of-use tariff and how to use it to your advantage here.
For a detailed explanation on how all types of heat pump hot water systems work see here: https://www.yourhome.gov.au/energy/hot-water-service
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PROS AND CONS
OUR RECOMMENDATIONS
Heat pump solar hot water systems are an efficient technology which in some specific situations can save money and energy, however in South Australia our lack of time of use electricity tariffs in most properties, and cooler climate overnight mean that some consumers end up running the system for longer hours at a more expensive cost. Additionally, heat pump systems generally come with the lowest warranties on the market so the overall lifetime of your system is likely to be shorter.
We have found that South Australian consumers who opt for a cheaper, budget heat pump generally end up spending more on electricity and maintenance of heat pump systems than a comparable sized solar, gas or quality heat pump system, and as such generally do not recommend them for Adelaide homes. We recommend that customers on a time-of use tariff, or who have a moderate sized PV system (or both!) look into a heat pump as an option for their hot water, but to steer clear of some of the cheaper options in the market and to always check the warranty, electricity usage and online reviews on the unit before purchasing.

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