10 Things to Know Before Buying a Heat Pump Hot Water System

Considering purchasing a heat pump hot water system? These are 10 things you should know before making a purchase. Save a ton of money by reading before you decide.

1. Potential Savings: Up to 75% Off Your Heating Costs

While heat pumps have the potential to save you up to 75% on heating costs, your actual savings depend on several factors:

  • Unit Selection: Not all heat pumps are created equal. Energy usage and efficiency vary by model, so it’s crucial to choose a high-quality unit.
  • Current Tariff: If your existing water heater operates on an off-peak tariff, your financial savings might be less significant.
  • Unit Size: Smaller, cheaper units often struggle to meet household demands, working harder and longer, which can lead to higher energy costs. An undersized unit may also revert to using an electric element, negating potential savings.

2. Choose Quality: Not All Heat Pumps Are Created Equal

Beware of cheap, inferior products. The availability of government rebates often attracts unreliable companies offering subpar units. Historical examples, such as the “Fat Batts” insulation fiasco, highlight the risks. Stick to reputable brands and suppliers to avoid being left with no warranties and out-of-pocket expenses when issues arise.

3. One Chance with Rebates: Choose Wisely

Rebates are generally a one-time opportunity. Investing in a cheap, low-quality product could leave you without hot water and needing a costly replacement. For instance, if a $30 heat pump fails, you might face long waits for parts and ultimately spend much more on a new, reliable unit. Choose a trusted supplier and ensure proper installation to avoid these pitfalls.

4. Professional Installation: Licensed Plumbers and Electricians Only

For the safety of your home and family, ensure your heat pump is installed by licensed professionals. Incorrect installation can lead to hazards like scalding from high water temperatures or electrocution from faulty wiring. Adhering to Australian plumbing and electrical standards is essential.

5. Proper Sizing: Ensure Your Heat Pump Meets Your Needs

Many installations fail due to undersized units. Always opt for a larger capacity heat pump to avoid running out of hot water. While heat pumps use less energy, they take longer to reheat water. Oversizing helps ensure consistent hot water supply.

6. Eligibility for Rebates: What You Need to Know

Two main rebates are available in NSW for heat pumps:

  • STC Rebate: This product-specific rebate is based on the unit’s efficiency, averaging around $800 for a decent model.
  • ESC Rebate: Offering $1200 for replacing an electric water heater and $400 for a gas unit with an energy-efficient model.

7. Understanding Heat Pump Costs

Quality heat pumps are not inherently cheap, with good models typically costing $3500-$4000 before installation and rebates. However, you may be eligible for up to $2000 in rebates, significantly reducing your out-of-pocket expense.

8. Heat Pump Lifespan

A well-maintained heat pump usually lasts between 7-10 years. While they have more mechanical parts than traditional units, the tanks are comparable in longevity to electric or gas units.

9. How Heat Pumps Work

Heat pumps function similarly to reverse cycle air conditioners, but instead of heating a room, they heat water:

  • A fan draws in ambient air, passing it through an evaporator.
  • A refrigerant gas absorbs the heat from the air and is then compressed, increasing its temperature and pressure.
  • The compressed gas flows through pipes, transferring heat to the water in the tank before cooling back into a liquid, restarting the cycle.

10. Benefits of Installing a Heat Pump

  • Rebate Utilization: Take advantage of generous rebates to reduce the initial cost.
  • Energy Efficiency: Significantly lower your energy consumption and save on energy bills.

By carefully considering these factors, you can maximize the benefits of your heat pump, ensuring a reliable and cost-effective heating solution for your home.

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General Plumbing & Electrical | Hot Water Systems | Blocked Drains | Gas Fitting