The NSW government rebate on heat pump hot water heaters is available now. Since 14 April 2023 the ESS rebate has covered a range of household upgrades including changing to heat pump or solar hot water heating systems.
This rebate is one of many reasons for your home or business to make the jump to an air sourced heat pump water heating system.
- Heat pump hot water systems will heat your water faster.
- As well as the convenience, you save money by not having to run your water for a long time while it heats up.
- Heat pumps are a cleaner alternative, with a better environmental impact than other types of hot water systems, as they produce less greenhouse gas emissions.
- Heat pumps provide an efficient solution as they just use the air in your home to heat your water supply, so they work well in isolated locations and you don’t need to rely on external fuel supplies like wood or coal
- Heat pumps can reduce your short-term energy costs, and government rebates mean you can save on your utility costs even in your first year.
- Heat pumps can reduce your energy costs even more long-term – you can save 55% to 80% on your energy costs over many years compared to standard electric storage or gas hot water systems, and heat pumps have a long average service life of 12–15 years.
- Heat pumps work well for large households of more than five people, offering greater cost savings, and about three times the energy efficiency of a conventional electric hot water heater since they just use electricity to drive the compressor and the fan.
- Heat pumps are easy to install and can be located outside, saving time, money and disruption to your home.
- A federal government rebate will cover air sourced heat pumps – see the website for more details on how the Small-scale Renewable Energy Scheme (SRES) can help with the purchase cost.
- The NSW rebate will save you even more when installing air sourced heat pumps – see the website for more details on how the NSW Energy Saving Scheme (ESS) can help with the purchase cost. Before work begins, you need to engage one of the approved suppliers who operate throughout NSW and will provide the ACP nomination form.
What to look at when buying heat pump water heaters
Different types of heat pumps
The most popular type of heat pump is the air sourced heat pump, but other methods of heating water include water source heat pumps or ground water heat pumps.
Heat pump capacity and storage
Choosing a heat pump model with greater capacity to heat water and store it is more important if you have a large household and want to be assured of hot water when you need it.
Long-lasting heat pumps
Make sure you avoid buying a heat pump model that is cheap but not durable. These models often use low quality materials for the tank and tank lining.
If the climate where you live is more adverse for heat pumps – such as cold, dry regions – your heat pump needs to work harder, so buying a robust model is even more important to avoid breakdowns and inconvenience. Look for features that will ensure effective cold climate operations, including frost protection functions.
To guide a value for money purchase consult the Choice heat pump hot water system comparison.
Heat pump warrantees for product and installation
Make sure your chosen model includes a product warrantee. Look for warrantees with maximum coverage to minimise financial risks if you do experience mechanical faults. A suitable warrantee would cover the following – Tank 5 Years, Compressor 2 years, Parts 2 years.
Warrantee coverage of on-site labour for one year, for example, also provides protection for the initial installation.
Working out how much a heat pump will cost
You can work out the initial product costs of different heat pump models using online searches.
Bear in mind that your choice should suit your household needs – an inappropriately large or small tank size could cost you more over time.
Factoring in average running costs for the year is very important. Heat pump systems are known to be expensive upfront but cheap to run once installed.
Installation costs can vary depending on the size of the model, difficulty of the site and associated work needed, so contact experienced installers like Curran Plumbing & Electrical in advance for advice and quotes.
One great advantage with heat pumps being a modern eco-friendly option for heating water is that they are supported by government schemes. The NSW government ESS rebate is a good example. It brings down the purchase cost of a heat pump that replaces existing gas or electric systems through a certificate trading scheme.
Curran Plumbing and Electrical works with approved suppliers of heat pump hot water systems and can recommend the best Australian-made models for your home.