If your hot water system’s chewing through electricity, a heat pump could be the upgrade you need. Instead of generating heat directly like a traditional electric system, a heat pump pulls warmth from the air and transfers it into your water. It uses a lot less energy to get the job done, which can mean lower power bills without sacrificing hot water when you need it.
How does a heat pump work, and why are so many households switching over? Let’s take a look at what’s behind the tech and how it fits into everyday life.
Understanding the Heat Pump Process
To heat your water, a heat pump first draws warmth from the air. A fan pulls in outside air and pushes it over coils filled with refrigerant, which absorbs the heat, even in cooler temperatures.
The refrigerant is then compressed, which raises its temperature further. That heat is transferred to the water inside your tank, gradually warming it up for daily use. Because the system moves heat rather than generating it from scratch, it uses far less electricity than a standard electric water heater.
That makes electric heat pumps a reliable way to cut energy use while still providing consistent hot water. They work well across most climates, and for most Australian households, they’re a solid choice that delivers long-term savings.
Heat Pumps vs. Traditional Systems
Most households don’t think twice about their hot water setup until the bills spike or the hot water runs out. Choosing between a traditional electric or gas system and a heat pump can make a big difference to your running costs and energy use.
To get a better sense of how each one stacks up, let’s look at them side by side.
|
Heat Pump |
Electric/Gas System |
| How it heats |
Transfers heat from the air using a refrigerant cycle |
Electric systems use heating elements; gas systems burn fuel |
| Energy use |
Highly efficient and uses less electricity to produce the same heat |
Higher energy consumption, especially for electric models |
| Running costs |
Lower over time due to reduced power use |
Higher ongoing bills, especially with rising energy prices |
| Environmental impact |
Lower emissions, especially if powered by solar |
Gas systems produce direct emissions; electric depends on grid |
| Upfront cost |
Generally higher, but rebates may be available |
Usually lower upfront but higher in the long run |
| Best suited for |
Homes looking to cut energy use and future-proof their setup |
Those needing a lower initial cost or with limited outdoor space |
Heat pumps are a solid option for households keen to use less power without losing reliable hot water. They also fit in well with bigger-picture goals around residential heating and cooling, especially if you’re looking to make the whole home more energy efficient.
Why Heat Pumps are a Smart Choice for Australian Homes
If your power bills keep creeping up and you’re looking for alternatives, a heat pump is worth a closer look. Knowing how does a heat pump work is one thing. Seeing how it improves your setup over time is where the value really shows.
Lower your energy bills without cutting back
Heat pumps use far less electricity than traditional electric systems because they move heat rather than create it. That means you can keep enjoying hot showers without getting stung by high power costs.
Reduce your household emissions
Because they rely on surrounding air instead of burning gas or drawing heavy grid power, heat pumps produce far fewer emissions. It’s one of the simplest upgrades you can make if you’re looking to shrink your environmental footprint.
Work efficiently across most Australian climates
Most heat pumps handle everything from warm coastal air to cooler inland temperatures. They tend to hold up well in variable conditions, which makes them practical for a wide range of Aussie homes.
Can pair with solar for even bigger savings
Already got a solar setup installed? A heat pump can help you put that solar power to good use. Running your water heating on self-generated energy means even lower bills and less reliance on the grid.
Common Uses for Heat Pumps in Households
If you’re looking for a way to cut back on electricity without giving up comfort, you’re not alone. Last year, heat pump hot water installations across Australia rose by 70%.
Here’s how they’re being used in everyday homes:
- Hot water without the surge: Heating water is one of the biggest energy drains in a home, but a heat pump tackles the job using a fraction of the electricity. By drawing warmth from the air, it keeps the tank heated efficiently overnight and during cooler months.
- Whole-home heating: Reverse-cycle heat pump systems can warm your home using the same principle as their hot water counterparts – moving heat instead of making it. That means less power draw for the same cosy result, even during winter.
- Cooling with less strain: In cooling mode, a heat pump works much like a traditional air conditioner, but with higher efficiency. It pulls heat out of the indoor air and moves it outside, keeping things comfortable without overloading your energy use.
Are There Rebates for Heat Pump Installations?
If you’ve been eyeing a heat pump but hesitating at the upfront cost, a few government rebates could make things a bit easier on your wallet. Depending on what you install, you might be eligible for a discount.
Here’s what’s currently on offer in Victoria:
- Standard rebate up to $1,000: This covers 50% of the purchase price for eligible heat pump or solar hot water systems. It kicks in after any other discounts (like STCs or VEECs) have already been applied.
- Extra rebate for locally made systems: From 1 July 2025, systems that meet the locally made criteria could qualify for a higher rebate of up to $1,400. To be eligible, the product needs to be included on Solar Victoria’s approved list and must be quoted and installed on or after that date.
- How the payment works: You won’t need to chase it up yourself. The rebate is paid directly to your installer or retailer and taken off the invoice. You just pay whatever’s left after all the discounts are applied.
Rebates like these can help bring forward the payback period, especially if you’re already thinking of upgrading an older electric system. It’s worth checking with your installer to see which products qualify before you lock anything in.
If you’re still flicking the switch on an old electric system, now might be the time to think differently about how you heat your water. Heat pumps offer a smarter, low-energy alternative that’s well suited to Australian homes, and they’re picking up speed for good reason.
From installation to advice on how does a heat pump work, O'Brien Electrical & Plumbing Rowville supports Australian homes and businesses looking to improve energy efficiency.
We help set up hot water systems, handle residential upgrades, and offer commercial heating and cooling services tailored to your needs. Get in touch if you’d like help figuring out what’ll work best at your place.
FAQs
Are heat pumps suitable for cold Australian climates?
Yes, modern heat pumps are made to work efficiently in cooler regions. They can extract heat from the air at low temperatures, making them a reliable option for year-round hot water.
How much energy does a heat pump save compared to an electric system?
Heat pumps typically use up to 70% less electricity than traditional electric hot water systems. By transferring heat instead of generating it directly, they deliver consistent results with much lower energy input.
Do heat pumps require regular servicing or maintenance?
Like any home appliance, occasional check-ups help keep your system running efficiently. Our friendly team can help you plan simple upkeep, like checking components or cleaning filters, so your setup stays in good shape.
Can a heat pump run efficiently during winter?
Yes, heat pumps can still operate effectively during winter by drawing heat from the surrounding air, even when it feels cold outside. They’re built to adapt to seasonal changes without a big drop in output.
What’s the average lifespan of a heat pump system?
A well-installed heat pump system can last 10 to 15 years or longer with the right care. We’re here to help you get the most out of yours, from setup to long-term support.