Best Heat Pump Hot Water Systems Australia: Buyer’s Guide

Jul 13, 2026

Heat pump hot water systems are one of the most popular options for Australian homes looking to reduce electricity use compared with standard electric storage. They can be a smart upgrade from an old electric tank, especially where the property has suitable outdoor space, good airflow, condensate drainage and solar power.

The best heat pump hot water system is not just the cheapest model or the biggest tank. It needs to suit the household size, recovery needs, installation location, noise placement, electrical supply, warranty, service access and how the system will be timed to run.

This guide explains how to compare heat pump hot water systems in Australia, which sizes suit different homes, and what to check before ordering.

Quick answer: what is the best heat pump hot water system?

As a general guide:

Household type	Heat pump size to consider	Notes
1–2 people	180L–220L	Suits smaller homes with moderate use
2–4 people	220L–270L	Good starting range for smaller families
3–5 people	250L–315L	Common family-size range
5+ people	270L–315L or larger	Depends on shower habits, baths and recovery setup
High-use home	315L or assessed option	Check timer, recovery and boost requirements

For many Australian family homes, a 250L, 270L or 315L heat pump hot water system is the best starting point. Smaller households may suit a 180L–220L option, while higher-use homes may need larger storage or a more detailed assessment.

You can compare current options in Heat Pump Hot Water Systems or browse all Hot Water Systems.

What is a heat pump hot water system?

A heat pump hot water system stores hot water in a tank and uses heat pump technology to transfer heat from the surrounding air into the water.

It still uses electricity, but unlike a standard electric storage system, it does not rely only on a resistance element as the main heat source. Most systems use a compressor, fan and heat exchanger, with an electric boost element available on many models.

Heat pumps are commonly used for:

Replacing old electric storage systems
Homes with rooftop solar
Households wanting efficient electric hot water
Family homes with suitable outdoor space
Properties where gas is not available
Homes wanting to move away from LPG or natural gas
Renovations where outdoor installation conditions suit

A heat pump can be a strong option, but it must suit the site. Airflow, drainage, noise placement, access and electrical setup are all important.

Best heat pump hot water system by household size

Best for one or two people

Smaller households may suit a 180L–220L heat pump, depending on shower use.

This range may suit:

One-person homes
Couples with moderate showers
Small units or townhouses with suitable outdoor space
Homes without large baths
Properties where daily hot water use is low
Homes wanting efficient electric hot water without oversizing

A smaller heat pump may not suit long showers, regular guests, short timer windows or high morning demand.

Best for small families

For small families, a 220L–270L heat pump is usually a better starting point.

This range may suit:

Two to four people
Moderate shower use
One or two bathrooms
Homes with solar power
Households that can run the system during the day
Replacements where a small electric tank was not enough

If showers happen back-to-back or the system is limited to a short solar timer window, a larger tank may be safer.

Best for standard family homes

For many family homes, 250L–315L is the key range to compare.

A 250L or 270L heat pump may suit families with moderate use. A 315L heat pump may be better where there are more people, longer showers, guests or bath use.

Family homes should consider:

Number of people
Number of bathrooms
Shower length
Bath use
Guest use
Morning and evening peak demand
Solar timer setup
Recovery time
Boost element settings
Whether the old system ran out

Do not choose only by tank size. A well-installed and correctly set up heat pump is more important than buying the biggest tank without checking the site.

Best for larger families

Larger families should usually consider 270L–315L or larger heat pump options.

A larger heat pump may suit:

Five or more people
Homes with teenagers
Long back-to-back showers
Two bathrooms
Regular guests
Bath use
Short-stay accommodation
Higher evening and morning demand

A 315L system gives more stored hot water buffer, but it still needs enough recovery time and suitable installation conditions.

Heat pump hot water size comparison

Size range	Best suited to	Watch out for
180L–220L	Smaller households	May be tight for families
250L	2–4 people, moderate use	Can be tight for high-use families
270L	3–5 people, normal family use	May still struggle with heavy demand
300L–315L	Larger families or higher use	Needs space, access and correct setup
Larger / assessed	High-demand properties	Must suit model, recovery and site conditions

Sizing should be based on real hot water demand, not just the number of bedrooms.

Best heat pump hot water system for solar homes

Heat pumps often work well with rooftop solar because they can usually be set to run during the day when solar generation is available.

This can help reduce grid electricity use, but the system still needs enough stored hot water for evening and morning demand.

For solar homes, check:

Whether the heat pump has timer control
Whether the tank is large enough to last overnight
Whether the timer window is long enough for recovery
Whether boost heating will be needed often
Whether the home uses most hot water at night or morning
Whether the system should run daily or only during certain periods

A larger tank may be better if the heat pump is only allowed to run during a limited solar window.

Best heat pump hot water system for electric storage replacement

A heat pump is commonly considered when replacing an old electric storage tank.

It may be a good upgrade if:

The old electric system used too much power
There is suitable outdoor space
Condensate drainage is available
Noise placement is acceptable
Electrical supply is suitable
The household wants efficient electric hot water
The system can be sized correctly

A standard Electric Hot Water System may still be better if the heat pump location is poor, airflow is restricted, drainage is difficult, or a simpler replacement is preferred.

Best heat pump hot water system for rentals

For rentals, the best heat pump should be reliable, correctly sized and suitable for the property.

A rental heat pump should be chosen around likely occupancy, not only the current tenant.

For rental properties, consider:

Number of bedrooms
Likely number of occupants
Shower and bath setup
Noise impact
Drainage
Service access
Tenant understanding of timer settings
Whether the system can recover reliably
Whether the tank is large enough for normal use

A heat pump can be a good option for rentals, but undersizing it can create repeat hot water complaints.

Best heat pump hot water system for townhouses and units

Townhouses and units need extra care because of access, noise, body corporate requirements and drainage.

Before choosing a heat pump for a townhouse or unit, check:

Outdoor installation space
Body corporate rules
Noise impact on neighbours
Condensate drainage
Access for delivery and removal
Service access
Electrical supply
Distance to bathrooms
Whether the location has enough airflow

A heat pump may not suit every townhouse or unit. In some cases, standard electric storage may be the more practical replacement.

Best heat pump hot water brands

There are several heat pump hot water brands available in Australia. The best brand depends on the model, tank size, warranty, recovery performance, installation location and household demand.

Common brand options may include:

When comparing brands, do not look only at headline capacity. Check warranty, recovery, noise, service support, installation clearances, electrical requirements and whether the model suits the household.

iStore heat pump hot water systems

iStore heat pump hot water systems are commonly compared by customers looking for efficient electric hot water and solar-friendly operation.

When comparing iStore options, check:

Tank size
Household suitability
Installation clearances
Noise placement
Timer settings
Boost operation
Warranty terms
Service access
Condensate drainage requirements

iStore may suit homes where the available tank size, installation location and household use line up properly.

Rheem heat pump hot water systems

Rheem is a well-known hot water brand in Australia with heat pump options as part of its broader range.

Rheem heat pump systems may suit customers looking for:

Recognised hot water brand support
Common residential heat pump sizing
Options to compare against standard electric storage
Family-size hot water solutions
Heat pump replacement options where the site suits

When comparing Rheem models, check tank size, warranty terms, installation requirements, recovery, noise placement and electrical suitability.

Rinnai heat pump hot water systems

Rinnai heat pump hot water systems may suit customers comparing heat pump options from a known hot water brand.

When comparing Rinnai heat pump systems, check:

Tank capacity
Household size suitability
Recovery performance
Timer settings
Noise and placement requirements
Electrical setup
Condensate drainage
Warranty terms
Access for servicing

The right Rinnai option depends on the home’s demand and installation conditions.

Stiebel Eltron heat pump hot water systems

Stiebel Eltron is commonly considered in the heat pump category, especially by customers comparing higher-spec heat pump options.

When comparing Stiebel Eltron systems, check:

Tank size
Installation location
Airflow requirements
Noise placement
Recovery settings
Warranty terms
Service access
Household demand
Electrical suitability

Stiebel Eltron may suit customers who want to compare premium heat pump options, but the site still needs to be suitable.

Enviroheat and Emerald Energy heat pump hot water systems

Enviroheat and Emerald Energy are commonly compared in the heat pump category by customers looking at value, efficiency and household sizing.

When comparing these systems, check:

Tank size
Warranty terms
Recovery performance
Noise
Installation clearances
Boost element setup
Timer controls
Condensate drainage
Whether the model suits the household’s use

Do not choose only by price. The installation location and household demand matter just as much.

Heat pump vs standard electric hot water

Heat pump and standard electric storage systems both use electricity, but they work differently.

System type	Best suited to
Heat pump hot water	Efficient electric hot water where airflow, drainage and location suit
Standard electric storage	Simple replacement where heat pump conditions do not suit

A heat pump may reduce electricity use compared with a standard electric storage system, but it needs suitable placement and setup.

Standard electric may still be better where:

The system is internal
Outdoor space is limited
Airflow is poor
Noise placement is difficult
Drainage is not practical
The household wants a simpler replacement
Upfront cost is the main priority

Heat pump vs gas hot water

Heat pump and gas hot water systems suit different properties.

System type	Best suited to
Heat pump hot water	Homes wanting efficient electric hot water, especially with solar and suitable placement
Gas hot water	Homes with suitable natural gas or LPG and compliant gas installation conditions

If the property already has gas, you may compare Gas Hot Water Systems or Instant Gas Hot Water Systems.

Natural gas and LPG are not interchangeable. Gas systems must be selected for the correct gas type and installed by a licensed gas fitter.

Heat pump recovery and boost elements

Heat pump recovery depends on the model, tank size, air temperature, airflow and settings.

Many heat pumps include an electric boost element. This can help with recovery in high-demand situations, but frequent boost use may increase electricity use.

Before choosing a heat pump, consider:

How quickly the system needs to recover
Whether the household has morning or evening peaks
Whether the system will run on a timer
Whether the boost element will be used often
Whether the tank is large enough
Whether airflow and placement will support normal operation

A heat pump should be sized and set up around real household demand.

Airflow requirements

Heat pumps need airflow because they extract heat from the surrounding air.

Poor airflow can reduce performance. Avoid locations where the unit is:

Tightly enclosed
Hard against fences or walls
In a narrow side path with poor ventilation
Recirculating cold exhaust air
Inside a space not suited to the model
Too close to obstructions
Difficult to service

Always check the installation requirements for the selected model.

Condensate drainage

Heat pumps produce condensate during operation. This water needs to drain to a suitable location.

Before ordering, check:

Whether there is a drain nearby
Where condensate will discharge
Whether pipework is required
Whether water could create a slip hazard
Whether the discharge point is compliant
Whether drainage could affect neighbours or pathways

Condensate drainage is a normal part of heat pump installation and should not be ignored.

Noise placement

Heat pumps include a fan and compressor, so they make operating noise.

Before choosing the location, consider:

Bedroom windows
Neighbouring bedrooms
Outdoor entertaining areas
Boundaries
Narrow side paths
Courtyards
Echo-prone areas

A heat pump should be placed where airflow, access and noise impact are all suitable.

Electrical requirements

Heat pump hot water systems need the correct electrical setup.

Important checks may include:

Circuit suitability
Isolator requirements
Timer setup
Solar timing
Boost element operation
Switchboard capacity
Whether the existing electric hot water circuit is suitable
Whether an electrician is required

Electrical work must be completed by a licensed electrician where required.

Rebates and incentives

Heat pump rebates and incentives can change by state, scheme, product and installation requirements.

Before ordering, check:

Whether the model is eligible
Whether the property is eligible
Whether the installation meets scheme requirements
Whether the discount is included upfront or claimed separately
Whether the old system type affects eligibility
Whether extra documentation is required

Do not rely on old rebate figures unless they are confirmed at the time of purchase.

What to compare before buying a heat pump

Before choosing a heat pump hot water system, compare:

Feature	Why it matters
Tank size	Must suit household demand
Recovery rate	Affects how quickly hot water is restored
Noise	Important near bedrooms and neighbours
Airflow clearance	Needed for performance
Condensate drainage	Required for normal operation
Boost element	Helps recovery but may affect running cost
Timer settings	Important for solar and electricity tariffs
Warranty terms	Vary by brand and model
Dimensions	Must fit the site
Service access	Needed for maintenance and repairs
Electrical requirements	Must suit the property
Installation location	Can make or break performance

Installation and compliance reminders

Heat pump hot water installation is not DIY work.

Use a licensed plumber for plumbing work and a licensed electrician for electrical work where required.

Important installation checks may include:

Tank size and dimensions
Installation location
Access for removal and installation
Water pressure
Tempering valve requirements
Isolation valves
Pressure relief valve discharge
Condensate drainage
Base or slab requirements
Electrical circuit suitability
Timer setup
Solar timing setup
Noise placement
Airflow clearances
Service access
Compliance with current plumbing and electrical requirements

Extra parts or site work may be required depending on the property. Relevant options may be available under Installation Add-Ons.

Supply-only vs supplied-and-installed

Installed Today offers heat pump hot water systems online with supply-only options across major metro areas.

For supply-only orders, you need to arrange your own suitable licensed installer. Heat pump hot water systems involve plumbing, drainage and electrical requirements, so the correct licensed trades must be used.

Supplied-and-installed options are only available where shown in eligible Brisbane and Gold Coast service areas. Availability depends on the product, location and installation conditions shown at the time of ordering.

Before ordering, confirm the system size, installation location, airflow, condensate drainage, electrical suitability and any required add-ons.

Common mistakes when buying heat pump hot water systems

Choosing only by price

The cheapest system may not be the right size, brand, warranty or fit for the property.

Ignoring airflow

Poor airflow can reduce heat pump performance and may cause issues.

Forgetting condensate drainage

A heat pump produces condensate, and that water needs a suitable discharge point.

Placing the unit too close to bedrooms

Noise placement matters for both the home and neighbours.

Choosing too small a tank

A small heat pump can run out if showers are long or recovery time is limited.

Assuming solar timing always works

Solar timing can be useful, but the tank must still last through evening and morning demand.

Relying on boost heating too often

Boost heating can help recovery, but frequent boost use may reduce the expected running-cost benefit.

Replacing like-for-like when the old system struggled

If the old system ran out, choose the new system around current demand, not just the old tank size.

Assuming every home suits a heat pump

Some homes have poor airflow, no drainage, tight access, noise issues or unsuitable electrical setup. In those cases, another system type may be better.

Final verdict

The best heat pump hot water system in Australia depends on the home, not just the brand.

For smaller households, a 180L–220L heat pump may be enough. For many family homes, a 250L or 270L heat pump is a practical starting point. For larger families, high-use homes, regular guests or solar-timer setups, a 315L heat pump may be the safer choice.

Choose a heat pump based on household demand, tank size, recovery, airflow, condensate drainage, noise placement, electrical suitability, warranty, access and installation requirements.

Where the site suits a heat pump, it can be a strong long-term electric hot water option. Where the site does not suit, a standard electric, gas or instant system may be more practical.

FAQs

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

The best heat pump hot water system is the one that suits your household size, installation location, airflow, drainage, noise placement, electrical setup and budget. There is no single best model for every home.

What size heat pump hot water system do I need?

As a guide, smaller homes may suit 180L–220L, standard family homes often suit 250L–270L, and larger or higher-use homes may need 315L or larger.

Is a 250L heat pump enough for a family?

A 250L heat pump may suit some families with moderate use. If showers are long, guests stay regularly or the system runs on a short timer, 270L or 315L may be safer.

Is a 315L heat pump too big?

A 315L heat pump may be more than needed for a small household, but it can be a good choice for larger families, higher-use homes or solar-timer setups.

Are heat pump hot water systems good with solar?

Yes, heat pumps can work well with solar when timed to run during the day, but the tank must still be large enough to cover evening and morning use.

Do heat pumps need good airflow?

Yes. Heat pumps need suitable airflow around the unit. Poor airflow can affect performance and operation.

Do heat pumps need a drain?

Yes. Heat pumps produce condensate, which needs a suitable drainage point.

Are heat pump hot water systems noisy?

Heat pumps make operating noise because they have a fan and compressor. Noise varies by model, but placement near bedrooms and neighbours should be considered.