Best Heat Pump Hot Water Systems 2023: Installed Today Buyer’s Guide

Heat pump hot water systems became one of the most talked-about hot water upgrades in 2023, especially for homeowners replacing old electric storage tanks and looking for a more efficient electric hot water option.

The appeal is easy to understand. A heat pump uses electricity to draw heat from the surrounding air and transfer it into stored water. In the right location, this can use less electricity than a standard electric storage system while still giving the home a proper hot water tank.

But not every heat pump hot water system suits every home. The best choice depends on household size, number of bathrooms, outdoor location, airflow, condensate drainage, electrical setup, noise placement, access, climate, warranty terms, timer settings, rebate rules and whether you are ordering supply only or choosing a supplied-and-installed option where available.

This 2023 heat pump hot water guide compares the main types of systems, what to check before ordering, and which homepage-linked brands are worth comparing through Installed Today, including iStore, Rheem, Stiebel Eltron, Enviroheat, Rinnai and Aquatech / Hydrotherm.

You can compare all Heat Pump Hot Water Systems and broader Hot Water Systems online with Installed Today.

Quick answer: what was the best heat pump hot water system in 2023?

There is no single best heat pump for every home. The best heat pump hot water system is the one that suits the property, household demand and installation location.

As a practical 2023 shortlist:

The right choice should be based on size, site suitability and long-term use, not brand name alone.

What is a heat pump hot water system?

A heat pump hot water system is an electric hot water system that transfers heat from the surrounding air into stored water.

It still has a tank, but instead of relying only on a standard electric element, the heat pump uses a refrigerant cycle, fan and compressor to move heat into the water.

This makes heat pump hot water different from:

• Standard electric storage

• Instant electric hot water

• Gas storage hot water

• Instant gas hot water

• Solar hot water

A heat pump may suit customers who want:

• An efficient electric hot water upgrade

• A replacement for old electric storage

• A system that may pair well with rooftop solar timing

• Stored hot water without gas

• A larger tank for household use

• A modern alternative to standard electric element heating

The key phrase is “where suitable”. Heat pumps need the right installation conditions.

How heat pump hot water works

A heat pump hot water system works by transferring heat rather than generating all heat directly.

A simple version of the process is:

1. The fan draws in surrounding air

2. The refrigerant absorbs heat from the air

3. The compressor raises the heat level

4. Heat is transferred into the stored water

5. The tank stores hot water for household use

6. The system reheats based on timer settings, demand and operating mode

7. Backup or boost heating may operate where the model allows

Because the system depends on air movement, the outdoor installation location matters more than many homeowners expect.

Why heat pumps became popular in 2023

Heat pump hot water became popular because many homeowners wanted a more efficient electric alternative to traditional electric storage tanks.

Common reasons included:

• Rising energy cost concerns

• More homes with rooftop solar

• Interest in moving away from gas

• Replacing old electric storage tanks

• Government rebate interest

• Better heat pump product availability

• Larger family-sized heat pump options

• Improved controls and timer settings

• More awareness of efficient electric appliances

However, heat pump hot water is not automatically the best system for every home. Some properties are still better suited to standard electric storage, gas hot water or another setup.

How we compare heat pump hot water systems

A good heat pump comparison should look beyond headline energy savings.

Important comparison points include:

• Tank size

• Household size

• Number of bathrooms

• Shower habits

• Recovery time

• Outdoor location

• Airflow clearance

• Condensate drainage

• Noise placement

• Electrical requirements

• Timer options

• Solar timing suitability

• Warranty terms

• Service access

• Product dimensions

• Installation complexity

• Supply-only vs installed options

• Total replacement cost

A heat pump can be efficient and still be a poor fit if the location is enclosed, poorly drained or too close to bedrooms.

1. iStore heat pump hot water systems

iStore Hot Water Systems are commonly compared by customers wanting an efficient electric hot water upgrade.

iStore may suit:

• Family homes

• Homes replacing electric storage

• Customers with rooftop solar

• Households wanting a heat pump hot water system

• Customers comparing larger heat pump tank sizes

• Properties with suitable outdoor airflow

• Homes with suitable condensate drainage

• Supply-only customers with their own licensed installer arranged

• Eligible supplied-and-installed customers where available

iStore is often compared as a strong all-round heat pump option, especially where solar timing and household demand are part of the decision.

Before choosing iStore, check:

• Tank size

• Household demand

• Outdoor airflow

• Noise placement

• Drainage

• Electrical setup

• Timer settings

• Installation location

• Warranty terms

2. Rheem heat pump hot water systems

Rheem Hot Water Systems are often compared by customers who want a major hot water brand with heat pump options.

A Rheem heat pump may suit:

• Homes replacing old electric storage

• Customers wanting a major-brand heat pump

• Families needing stored hot water

• Homes with suitable outdoor space

• Customers comparing heat pump against electric storage

• Properties where airflow and drainage are suitable

Rheem heat pump systems can be worth comparing if you want a familiar brand, but the site still needs to suit the heat pump.

Check:

• Tank capacity

• Recovery expectations

• Outdoor location

• Airflow

• Condensate drainage

• Noise placement

• Electrical requirements

• Warranty terms

• Total replacement cost

3. Stiebel Eltron heat pump hot water systems

Stiebel Eltron Hot Water Systems are often considered by customers comparing premium electric and heat pump hot water options.

Stiebel Eltron may suit:

• Customers wanting a premium electric hot water brand

• Homes comparing long-term heat pump options

• Properties with suitable installation conditions

• Households focused on build quality and product fit

• Customers comparing heat pump alternatives to standard electric storage

Before choosing Stiebel Eltron, check:

• System type

• Tank capacity

• Installation requirements

• Electrical requirements

• Noise rating

• Outdoor placement

• Warranty terms

• Product dimensions

• Household suitability

The right model depends on the home’s hot water demand and available installation space.

4. Enviroheat heat pump hot water systems

Enviroheat Hot Water Systems may appeal to customers comparing value-focused heat pump options.

Enviroheat may suit:

• Customers comparing heat pump hot water on budget

• Homes replacing electric storage

• Households with moderate hot water demand

• Properties with suitable outdoor location

• Customers wanting an efficient electric upgrade

• Rental properties where heat pump suitability is confirmed

Before choosing Enviroheat, compare:

• Tank size

• Warranty terms

• Noise position

• Recovery rate

• Outdoor clearance

• Condensate drainage

• Electrical setup

• Installation cost

• Service access

A value-focused heat pump still needs proper installation conditions.

5. Rinnai heat pump hot water systems

Rinnai Hot Water Systems are often compared by customers who already know the Rinnai brand through gas or electric hot water.

A Rinnai heat pump may suit:

• Homes replacing electric storage

• Customers wanting a recognised hot water brand

• Households comparing heat pump against electric storage

• Properties with suitable airflow and drainage

• Homes with rooftop solar where timer settings suit

• Customers wanting to compare multiple heat pump brands before ordering

Before choosing Rinnai, check:

• Capacity

• Household demand

• Electrical setup

• Noise placement

• Outdoor space

• Drainage

• Warranty terms

• Availability

• Total replacement cost

Rinnai may also be worth comparing if you are weighing up heat pump vs gas hot water for a home already using Rinnai equipment.

6. Aquatech / Hydrotherm heat pump hot water systems

Aquatech / Hydrotherm Hot Water Systems are commonly compared by customers looking at heat pump hot water alternatives.

They may suit:

• Customers comparing energy-efficient electric hot water

• Homes replacing standard electric storage

• Properties with suitable outdoor space

• Households wanting stored heat pump hot water

• Customers comparing tank sizes and value

• Supply-only customers with their own installer arranged

Before choosing Aquatech or Hydrotherm, check:

• Tank size

• Warranty terms

• Recovery performance

• Noise level

• Installation requirements

• Condensate drainage

• Electrical needs

• Serviceability

• Total cost

The right heat pump depends on the home’s space, airflow and water use.

7. Best heat pump for replacing electric storage

Heat pump hot water is often considered when replacing an old electric storage tank.

This can make sense when:

• The home already uses electric hot water

• The outdoor location has good airflow

• Condensate drainage is available

• Noise placement is acceptable

• The electrical setup can support the heat pump

• The tank size suits household demand

• The home may benefit from daytime solar heating

• The customer wants to reduce standard electric element heating

However, a standard electric replacement may still be more practical where:

• Budget is tight

• The site is enclosed

• Drainage is difficult

• Noise placement is poor

• Access is limited

• The household needs a simple like-for-like replacement

Compare Electric Hot Water Systems if a heat pump is not the right fit.

8. Best heat pump for small homes

Small homes do not always need the largest heat pump available.

For smaller homes, compare:

• Number of occupants

• Bathroom count

• Shower habits

• Available outdoor space

• Noise placement

• Tank size

• Recovery needs

• Upfront cost

• Whether the system may be oversized

A smaller household may still choose a larger heat pump if future occupancy, rental use or hot water habits justify it, but the system should not be oversized without reason.

9. Best heat pump for family homes

Family homes need careful sizing.

For families, compare:

• Number of people

• Number of bathrooms

• Shower length

• Back-to-back shower use

• Bath use

• Laundry use

• Dishwasher use

• Morning demand

• Evening demand

• Timer settings

• Solar timing

• Recovery rate

• Backup or boost mode

A family heat pump should be chosen around daily use, not just advertised tank capacity.

10. Best heat pump for large homes and high demand

Larger homes need more than a big tank label.

Before choosing a heat pump for high demand, check:

• Number of showers

• Number of bathrooms

• Bath use

• Guest or tenant demand

• Recovery time

• Boost function

• Timer settings

• Outdoor airflow

• Electrical setup

• Whether one system is enough

Some large homes may need a larger heat pump, a different hot water strategy, or installer confirmation before ordering.

Heat pump vs electric storage

Heat pump hot water and standard electric storage both use electricity, but they operate differently.

A heat pump may be the better long-term option where the location suits. Electric storage may still be the more practical option where the site does not suit heat pump installation.

Heat pump vs gas hot water

Heat pump and gas hot water suit different homes.

A heat pump may suit:

• Homes replacing electric storage

• Customers wanting an efficient electric option

• Homes with rooftop solar

• Properties with suitable outdoor airflow

• Homes with suitable condensate drainage

• Customers moving away from gas

Gas hot water may suit:

• Homes already connected to natural gas or LPG

• Customers replacing existing gas hot water

• Homes with suitable gas pipe sizing

• Customers wanting instant gas or gas storage

• Properties where heat pump installation is difficult

Natural gas and LPG are not interchangeable, and gas work must be completed by a licensed gas fitter.

Heat pump vs instant gas hot water

Heat pump hot water stores heated water in a tank. Instant gas heats water as it flows through the unit.

A heat pump may suit:

• Homes wanting efficient electric stored hot water

• Rooftop solar households

• Properties with space for a tank

• Homes replacing electric storage

Instant gas may suit:

• Homes already set up for gas

• Customers wanting compact wall-mounted hot water

• Homes replacing existing continuous flow gas

• Properties with suitable gas pipe sizing and water pressure

Compare both options if you are deciding between electric efficiency and gas continuous flow.

Key heat pump installation requirements

Heat pump installation should be assessed before ordering.

Important checks include:

• Outdoor location

• Airflow clearance

• Condensate drainage

• Noise placement

• Electrical supply

• Access

• Base or slab condition

• Pipework

• Valves

• Tempering valve requirements

• Old unit removal

• Disposal

• Compliance upgrades

• Manufacturer clearances

A location that suited an old electric tank may not automatically suit a heat pump.

Airflow matters

Airflow is one of the biggest heat pump suitability factors.

Poor airflow can affect:

• Efficiency

• Recovery time

• Noise

• System performance

• Long-term reliability

Avoid tight or enclosed locations such as:

• Cupboards

• Poorly ventilated garages

• Tight side paths

• Under low decks

• Small enclosed courtyards

• Service cavities with limited airflow

Your installer should confirm whether the location suits the selected model.

Condensate drainage matters

Heat pumps create condensate during normal operation. This water needs to drain safely.

Before ordering, check:

• Where the condensate will drain

• Whether extra drainage work is needed

• Whether water could run across paths

• Whether the drain location is compliant

• Whether it may affect neighbours or outdoor areas

Poor drainage can create nuisance water and slippery surfaces.

Noise placement matters

Heat pumps have fans and compressors.

Before choosing the location, consider:

• Bedroom windows

• Neighbouring homes

• Boundary fences

• Courtyards

• Outdoor living areas

• Unit complexes

• Side access paths

• Noise-sensitive rooms

Even a reasonably quiet heat pump can be annoying if installed in the wrong position.

Solar power and heat pump hot water

Heat pumps can work well with rooftop solar when the setup is planned correctly.

A solar-friendly setup may heat water during the day while solar power is available.

This depends on:

• Solar system size

• Timer settings

• Electricity tariff

• Tank size

• Household usage

• Recovery needs

• Electrical setup

• Installer advice

Do not assume every heat pump automatically uses solar power in the best way. The control strategy matters.

Rebates and incentives

Heat pump hot water systems may be eligible for rebates, certificates or incentives depending on the product, location, scheme rules and installation pathway.

However, rules can change.

Before ordering, check:

• Current eligibility

• Product eligibility

• Installer requirements

• State or territory rules

• Documentation requirements

• Whether the quoted price includes an incentive

• Whether the incentive is applied upfront or claimed later

Do not choose a heat pump only because of a rebate. Choose one that suits the home even if incentives change.

Supply-only heat pump hot water systems

Supply-only ordering can suit customers who already have their own licensed installer arranged.

Supply only may suit:

• Builders

• Renovators

• Landlords

• Property managers

• Trade customers

• Customers managing their own installation

• Customers outside supplied-and-installed service areas

Supply-only product pricing generally does not include installation, valves, old unit removal, disposal, electrical work, plumbing changes, condensate drainage, base work, access upgrades or compliance upgrades unless clearly selected or included.

Before ordering supply only, your licensed installer should confirm the heat pump suits the property.

Supplied-and-installed heat pump hot water systems

Supplied-and-installed options may be available on selected products in eligible Brisbane and Gold Coast service areas where shown.

This can suit customers who want the product and installation pathway arranged together.

Before ordering supplied and installed, check:

• Service area eligibility

• Existing system type

• Installation inclusions

• Valve requirements

• Condensate drainage

• Electrical work

• Old unit removal

• Disposal

• Pipework changes

• Access

• Base or slab condition

• Compliance upgrades

• Product suitability

Do not assume every possible site requirement is included. Check the product page and selected options carefully.

Common mistake: choosing by advertised savings only

Heat pump savings depend on the home.

Running costs may be affected by:

• Household size

• Shower habits

• Timer settings

• Solar usage

• Electricity tariff

• Climate

• Airflow

• Backup element use

• Recovery demand

• Maintenance

Avoid assuming one savings claim applies to every household.

Common mistake: ignoring the installation location

A heat pump can be excellent in the right location and frustrating in the wrong one.

Check airflow, drainage, noise and access before ordering.

Common mistake: undersizing for the household

A small heat pump may look cheaper upfront but can struggle with high demand.

Check:

• Number of people

• Bathrooms

• Showers

• Bath use

• Laundry use

• Peak periods

• Recovery time

• Boost function

Common mistake: oversizing without reason

A larger tank may help some homes, but it can also cost more and take up more space.

Choose based on actual household demand.

Common mistake: assuming heat pumps are silent

Heat pumps are not silent. They make fan and compressor noise.

Noise may be fine in one location and a problem in another.

Common mistake: ignoring maintenance

Heat pumps need ongoing care.

Maintenance may include:

• Valve checks

• Relief valve operation

• Airflow clearance checks

• Cleaning around the unit

• Condensate drain checks

• Electrical checks where required

• Anode checks where applicable

• Manufacturer-recommended servicing

A heat pump that is never maintained may not perform as expected.

Common mistake: DIY heat pump installation

Hot water installation involves plumbing, electrical safety, pressure control and compliance.

DIY installation can create:

• Water leaks

• Electrical risks

• Scalding risks

• Warranty issues

• Insurance problems

• Non-compliant plumbing

• Poor performance

• Property damage

Use the right licensed professionals.

Final verdict: which heat pump hot water system should you choose?

The best heat pump hot water system in 2023 was not one single model for every home. The right choice depended on household demand, outdoor location, airflow, condensate drainage, electrical setup, noise placement, warranty expectations and budget.

For many households, iStore Hot Water Systems, Rheem Hot Water Systems, Stiebel Eltron Hot Water Systems, Enviroheat Hot Water Systems, Rinnai Hot Water Systems and Aquatech / Hydrotherm Hot Water Systems were the key homepage-linked heat pump brands worth comparing.

Start with Heat Pump Hot Water Systems if your home has suitable outdoor space, airflow, drainage and electrical setup.

Compare Electric Hot Water Systems if you need a simpler like-for-like electric replacement.

The right heat pump is not the one with the loudest marketing claim. It is the one that matches your household, your property and your installation pathway.

Long-tail FAQs

What is the best heat pump hot water system in 2023?

The best heat pump hot water system depends on the home. iStore, Rheem, Stiebel Eltron, Enviroheat, Rinnai and Aquatech / Hydrotherm are all worth comparing by capacity, warranty, airflow, drainage, noise and household suitability.

Are heat pump hot water systems worth it?

Heat pump hot water systems can be worth it where the home has suitable outdoor space, airflow, condensate drainage and electrical setup. They may use less electricity than standard electric storage in suitable conditions.

What size heat pump hot water system do I need?

The right size depends on the number of people, bathrooms, shower habits, bath use, laundry use, peak demand, timer settings and recovery rate.

Is iStore a good heat pump hot water option?

iStore is commonly compared by customers wanting an efficient electric hot water upgrade, especially where rooftop solar timing and family hot water demand are part of the decision.

Is Rheem AmbiHeat worth comparing?

Rheem heat pump systems are worth comparing if you want a major hot water brand and your property has suitable outdoor airflow, drainage, electrical setup and noise placement.

Is Stiebel Eltron a good heat pump brand?

Stiebel Eltron is often compared by customers looking at premium electric and heat pump hot water options. Check model size, installation requirements and household suitability before choosing.

Is Enviroheat a good budget heat pump option?

Enviroheat may be worth comparing for value-focused heat pump hot water. Check warranty, recovery, noise, drainage and installation requirements before ordering.

Is a heat pump better than electric storage?

A heat pump can use less electricity in suitable conditions, but electric storage may be simpler and cheaper upfront for like-for-like replacements. The better option depends on the site.

Can heat pump hot water work with solar power?

Yes, a heat pump can work well with rooftop solar when timer settings and household usage suit daytime heating. The electrical setup and installer advice matter.

Can I install a heat pump hot water system myself?

No. Heat pump hot water installation should be completed by licensed professionals. Plumbing and electrical work can create safety, warranty, insurance and compliance issues if done incorrectly.