Heat Pump Hot Water: Is It Worth It in the Hunter?

Short answer: for most Hunter homes that heat water with an electric storage tank now, yes. A heat pump uses roughly a third of the power to heat the same water, and NSW and federal incentives usually take a big share off the purchase price. It works through a Maitland winter, and it pairs well with solar. It's less of a win if you already have cheap mains gas and a newer gas system, or a household that uses very little hot water.

Here's how a heat pump works, what it costs and when it's worth it.

How heat pump hot water works

A heat pump works like your fridge running backwards. A fan draws outside air over a coil filled with refrigerant. The refrigerant soaks up heat from the air, a compressor concentrates that heat, and it's passed into the water in the tank.

The point is that it moves heat rather than making it. An electric element turns one unit of electricity into one unit of heat. A heat pump typically puts three to four units of heat into the water for every unit of electricity it uses. That ratio is why the power bill drops.

There are two common designs:

• All-in-one: the fan and compressor sit on top of the tank. One unit, one spot, the most common choice for a house.
• Split: the compressor sits in a separate outdoor unit, like an air conditioner, connected to the tank. Useful when the tank needs to be somewhere the fan unit can't go.

What it costs to run

Hot water is often one of the biggest single uses of power in a home. Swapping an electric storage tank for a heat pump cuts that part of the bill by roughly two thirds. The exact saving depends on how many people are in the house, your tariff and how you set the timer.

Two settings make the biggest difference:

• Run it in the middle of the day. The air is warmest, so the heat pump works most efficiently.
• Run it on your solar. If you have solar panels, a heat pump on a daytime timer heats your water with power you'd otherwise sell back for very little. In practice, the hot water ends up almost free.

What it costs to buy

A heat pump costs more up front than a like-for-like electric tank. That gap is what the rebates are for, and with them the difference often shrinks to the point where the power saving pays it back within a few years.

The installed price depends on the size of the tank, whether it's all-in-one or split, and whether it goes where the old system was. You get a fixed quote, including removal of the old tank, before anything is booked.

The heat pump hot water rebate in NSW

There are usually two incentives, and they stack.

• NSW Energy Savings Scheme. Replacing an old electric or gas storage hot water system with an eligible heat pump can earn energy savings certificates. They're usually taken off the price by the installer rather than claimed by you.
• Federal small-scale technology certificates (STCs). Eligible heat pumps earn these too, again usually taken off the price at the point of sale.

The values of both change with the market and the rules change from time to time, so any figure written here would be out of date before long. We check what you qualify for on the day we quote and show it as a line on the price.

Will it work in a Hunter winter?

Yes. Maitland and Cessnock get cold mornings and the odd frost, but modern heat pumps keep heating well below that. They run a little less efficiently on a cold night, which is another reason to set the timer for the middle of the day. Most models also have a backup element for the rare day it's needed.

Where it goes, and the noise

A heat pump hums while it runs, about as loud as the outdoor unit of a split-system air conditioner. So placement matters:

• Not under a bedroom window, yours or the neighbour's
• Somewhere with airflow, not boxed into a tight cupboard
• Close to where the old system was, if possible, to keep the pipe run short
• Somewhere a plumber can reach for servicing

In older Maitland cottages, especially heritage homes in Morpeth and Lorn, we can often put it down the side of the house where it can't be seen from the street.

When a heat pump isn't the best choice

• You already have mains gas and a newer continuous-flow gas system. It's compact and never runs out, and a heat pump saves less against it.
• A very small household that uses little hot water. The saving is smaller, so the payback is longer.
• Nowhere suitable to put it, with no airflow or no room away from bedrooms.

In those cases we'll tell you, and recommend what does suit. If you keep gas, keep the appliances serviced, and know what to do if you smell gas. Our hot water system replacement page covers gas, electric and solar too.

What if the old tank is indoors?

Plenty of homes built in the 1970s and 80s, like the brick homes around Rutherford, have the electric hot water tank in a laundry cupboard or under the house. An all-in-one heat pump can't go there, because the fan needs a steady supply of outside air and somewhere for the cooled air to go.

The usual answer is to move the system outside, as close as possible to the old spot, and run new hot and cold pipes to it. That adds a few hours and some pipe to the job, and it frees up the cupboard. Where there's no room outside for a whole unit, a split system puts only the compressor outdoors, and some models allow the tank to stay inside. We check which suits the house when we quote.

How long installation takes

A straight swap, with the heat pump going where an outdoor electric tank stood, usually takes half a day. Moving the system, running new pipes or adding a circuit for it can stretch that to a full day. The power supply to the old tank is often fine for the new one, but some models need their own circuit, which is a job for an electrician, and we organise that as part of the quote.

You're without hot water only for the hours we're working. The new tank then takes a few hours to heat from cold, so a morning installation usually means a hot shower that evening.

Looking after a heat pump

A heat pump needs very little. Keep leaves and garden beds clear of the fan so it can breathe, and have the relief valve and the anode checked every few years, the same as any storage tank. The tempering valve that keeps tap water at a safe temperature should be tested too. If the unit starts to sound louder than it used to, or the water isn't as hot, ring before it fails completely.

Switching over

If your old tank is still working, a heat pump can be planned for a convenient day. If it has already failed, we can often fit one quickly, because we carry common models. Either way, you get the price, the rebate shown as a line on the quote, and a straight answer about whether it's worth it for your house.