Best Heat Pump Solution for Hot Water: How to Choose the Right System for Your Home

Nov 30, 2024

A heat pump hot water system can be a practical solution for homes wanting an efficient electric alternative to standard electric storage hot water. Instead of relying only on an electric element to heat water, a heat pump uses electricity to move heat from the surrounding air into the water stored in the tank.

The best heat pump solution depends on your household size, daily hot water use, outdoor space, airflow, condensate drainage, electrical supply, access, noise placement and whether the system will suit your home’s usage pattern.

Installed Today helps customers compare heat pump hot water systems, including medium heat pump hot water systems from 200L to 280L, large heat pump hot water systems over 280L and Wi-Fi enabled heat pump hot water systems.

Supply-only ordering is available across major Australian metro areas, with selected supplied-and-installed options available on eligible products in Brisbane and Gold Coast service areas where shown.

Quick Answer

The best heat pump solution for hot water is the one that matches your household demand and installation location.

A heat pump hot water system may suit you if:

You are replacing an older electric storage hot water system
The home does not have natural gas or LPG
You want an efficient electric storage-style hot water option
There is suitable outdoor space
The unit location has clear airflow
Condensate drainage can be managed
Electrical supply is suitable
Noise placement will not create issues
The tank size suits the household’s daily hot water use
Solar PV timer operation may suit your usage pattern

A heat pump is not automatically the best option for every property. If the unit is placed in a poor airflow location, near bedrooms, without suitable drainage or in a spot that is difficult to access, performance and practicality can suffer.

What Is a Heat Pump Hot Water System?

A heat pump hot water system is a storage hot water system that uses heat from the surrounding air to warm water inside a tank.

It works using a refrigeration-style process. The system extracts heat from the air, transfers it through a compressor and heat exchanger, then uses that heat to warm the stored water.

Most domestic heat pump hot water systems include:

Storage tank
Compressor
Fan
Evaporator
Heat exchanger
Controller
Condensate drain
Electrical connection
Plumbing connections
Backup or boost heating, depending on the model

Heat pumps still use electricity, but they can use it differently from a standard electric storage system.

How Does a Heat Pump Water Heater Work?

A heat pump water heater works by moving heat rather than simply generating heat.

The basic process is:

The fan draws surrounding air across the evaporator
Heat is absorbed from the air
Refrigerant carries that heat through the system
The compressor increases the heat level
Heat is transferred into the water tank
Condensate is produced and drained away
Stored hot water is supplied to the home when needed

This is why outdoor location, airflow and drainage are so important. A heat pump needs access to air and a safe way to manage condensate.

Why Choose a Heat Pump Hot Water System?

A heat pump hot water system may be worth considering where the home and installation location suit the technology.

Potential benefits include:

Efficient electric hot water in suitable conditions
A practical option for homes without gas
A storage-style system for everyday household hot water
Potential compatibility with solar PV timer operation
An alternative to standard electric storage
A possible option for homes moving away from gas
Medium and larger tank sizes for different households

Actual running costs and savings vary by household use, tariff, timer settings, climate, tank size, installation location and system model. Avoid choosing a heat pump based only on a generic savings claim.

Heat Pump Hot Water vs Standard Electric Storage

A standard electric storage system uses an electric element to heat water in a tank. A heat pump also stores hot water in a tank, but uses heat from the surrounding air as the main heat source.

Electric Storage May Suit:

Simple like-for-like replacements
Homes where outdoor heat pump placement is not suitable
Locations with poor airflow
Homes where condensate drainage is difficult
Customers wanting a familiar storage tank
Properties where noise placement is a concern

Customers comparing standard electric options can browse electric hot water systems, including 250L electric hot water systems, 315L electric hot water systems and 400L electric hot water systems.

Heat Pump Hot Water May Suit:

Homes wanting an efficient electric storage-style system
Properties with suitable outdoor space
Homes with clear airflow around the unit
Locations where condensate drainage is practical
Homes without natural gas or LPG
Customers replacing older electric storage systems
Solar PV homes where daytime timer operation suits usage

The right choice depends on the home, not just the product type.

Best Heat Pump Hot Water Systems to Compare

There is no single best heat pump hot water system for every Australian home. The right choice depends on tank size, household demand, installation location, noise placement, access, electrical requirements and product availability.

Below are heat pump hot water options customers can compare through Installed Today.

iStore 270L Heat Pump Hot Water System

The iStore 270L Heat Pump Hot Water System may suit households comparing a medium heat pump hot water system around the 270L size range.

It may suit:

Medium households
Homes replacing older electric storage systems
Properties with suitable outdoor space
Solar PV homes where timer operation suits usage
Customers wanting a heat pump hot water option with practical storage capacity

Before ordering, check airflow, condensate drainage, electrical suitability, access and noise placement.

Rheem AmbiHeat 270L Heat Pump Hot Water System

The Rheem AmbiHeat 270L Heat Pump Hot Water System may suit customers wanting to compare a heat pump option from a well-known hot water brand.

It may suit:

Medium household hot water demand
Homes comparing Rheem heat pump options
Customers replacing electric storage
Outdoor locations with suitable airflow
Properties where drainage and access are practical

Rheem heat pump suitability should be checked against household usage, outdoor location and electrical requirements.

Rinnai Enviroflo V2 250L Heat Pump Hot Water System

The Rinnai Enviroflo V2 250L Heat Pump Hot Water System may suit customers comparing a 250L heat pump system.

It may suit:

Small to medium households
Homes with suitable outdoor space
Customers wanting a Rinnai heat pump option
Properties replacing a similar electric storage capacity
Homes where airflow and condensate drainage are suitable

A 250L system may not suit every family, especially where long showers, baths or simultaneous hot water use are common.

Rinnai Enviroflo GR-Series 280L Heat Pump Hot Water System

The Rinnai Enviroflo GR-Series 280L Heat Pump Hot Water System may suit households comparing a larger medium heat pump tank.

It may suit:

Medium to larger households
Homes with higher daily hot water use
Properties with suitable outdoor location
Customers comparing larger Rinnai heat pump models
Homes where airflow, drainage and noise placement have been checked

Tank size should be selected based on real hot water demand, not only the number of people in the home.

Rinnai Enviroflo GR-Series 300L Heat Pump Hot Water System

The Rinnai Enviroflo GR-Series 300L Heat Pump Hot Water System may suit larger households comparing higher-capacity heat pump hot water systems.

It may suit:

Larger families
Homes with multiple bathrooms
Higher hot water demand
Properties with suitable outdoor installation requirements
Customers comparing large heat pump options

Larger heat pumps need suitable space, access, drainage and electrical supply. They should not be chosen without checking household usage and installation conditions.

Enviroheat 250L Heat Pump Hot Water System

The Enviroheat 250L Heat Pump Hot Water System may suit customers comparing a 250L heat pump option for everyday household use.

It may suit:

Small to medium households
Homes replacing older electric storage
Properties with suitable outdoor airflow
Customers comparing value-focused heat pump systems
Locations where condensate drainage can be managed

As with any heat pump, noise placement, access and electrical suitability should be checked before ordering.

What Size Heat Pump Do You Need?

Heat pump sizing depends on how the household actually uses hot water.

Consider:

Number of people in the home
Number of bathrooms
Shower length and frequency
Whether showers run at the same time
Bath use
Kitchen and laundry use
Existing system size
Whether the old system ran out of hot water
Recovery time
Timer settings
Solar PV timing
Peak usage periods
Incoming water temperature
Installation location

As a general guide:

Around 250L may suit some small to medium households
Around 270L to 280L may suit many medium households
Around 300L and above may suit larger households or higher hot water demand

These are general comparisons only. A household with fewer people but long showers may use more hot water than a larger household with shorter showers.

Medium vs Large Heat Pump Hot Water Systems

Installed Today separates heat pump systems into practical size categories.

Medium heat pump hot water systems from 200L to 280L may suit many standard household replacements where demand is moderate.

Large heat pump hot water systems over 280L may suit homes with more bathrooms, more occupants or heavier daily hot water use.

A larger tank can provide more stored hot water, but it also needs more space and may cost more upfront. The right size should balance comfort, efficiency, budget and installation practicality.

Heat Pumps and Solar PV

A heat pump hot water system may work well with solar PV where timer operation and household usage line up.

Solar PV pairing may suit homes where:

The heat pump can run during daytime solar generation
Timer settings suit the household
The system has enough stored hot water for evening use
Electrical setup is suitable
The installer confirms the configuration

Solar PV does not automatically make every heat pump the right choice. The home still needs the right tank size, recovery time, installation location and usage pattern.

Customers interested in control features can also compare Wi-Fi enabled heat pump hot water systems, where suitable.

Heat Pump Airflow Requirements

Heat pumps need access to air to operate properly.

Poor airflow can affect performance, recovery and efficiency.

Avoid locations that are:

Fully enclosed
Too close to walls
Inside tight cupboards
Under low covers without clearance
Blocked by stored items
Too close to fences without adequate spacing
Poorly ventilated

Outdoor location and clearance requirements should be checked against the manufacturer’s instructions.

Condensate Drainage

Heat pumps produce condensate during operation. This water must drain safely and legally.

Before ordering, check:

Where condensate will drain
Whether the location has suitable drainage
Whether drainage work may be required
Whether the unit could create nuisance water
Whether the system is near paths, foundations or neighbouring areas
Whether a plumber needs to provide drainage provisions

Condensate drainage is easy to overlook but important for a suitable installation.

Heat Pump Noise Placement

Heat pumps include fans and compressors, so location matters.

Before choosing a unit location, consider whether it will be near:

Bedrooms
Neighbouring bedrooms
Living areas
Boundary fences
Narrow side paths
Courtyards
Townhouse walls
Units or shared spaces

A location may be convenient for pipework but poor for noise. Check product details and confirm placement with a licensed installer.

Electrical Requirements

Heat pump hot water systems require electricity.

Before ordering, confirm:

Electrical supply suitability
Circuit requirements
Switchboard suitability
Whether electrical work is needed
Whether a timer or control setup is required
Whether solar PV timing is planned
Whether a licensed electrician is required

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

Heat Pump vs Gas Hot Water

A heat pump and a gas hot water system suit different homes.

Heat Pump May Suit:

Homes without gas
Customers wanting an efficient electric storage-style system
Properties with suitable outdoor space
Homes with clear airflow and drainage
Customers moving away from gas
Solar PV homes where timer operation suits usage

Gas Hot Water May Suit:

Homes with existing natural gas or LPG
Customers wanting gas storage or instant gas
Properties with suitable gas pipe sizing
Homes with suitable water pressure
Customers wanting compact continuous flow hot water

Customers comparing gas alternatives can browse gas hot water systems, instant gas hot water systems and 26L instant gas hot water systems.

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

Heat Pump vs Solar Hot Water

Heat pumps and solar hot water can both be considered by households looking beyond standard electric storage, but they have different requirements.

Heat Pump May Suit:

Homes with unsuitable roof conditions
Shaded properties
Homes where roof access is difficult
Customers replacing electric storage
Properties with outdoor ground-level space
Homes where condensate drainage can be managed

Solar Hot Water May Suit:

Homes with suitable roof orientation
Minimal shading
Suitable roof pitch
Safe roof access
Suitable roof structure
Correct booster setup
Practical maintenance access

Solar hot water often still needs electric or gas boosting for cloudy weather or high-demand periods. STCs, rebates and incentives can change, so eligibility should be confirmed before choosing a system based on rebates.

Heat Pump vs Instant Electric Hot Water

Heat pump hot water and instant electric hot water are very different.

A heat pump is usually a storage-style system designed for whole-home hot water.

An instant electric hot water system is often better suited to point-of-use applications such as:

Hand basins
Small sinks
Offices
Kitchenettes
Workshops
Low-demand fixtures

Instant electric is not automatically suitable for whole-home shower use. Some systems can require high electrical capacity, dedicated circuits or three-phase power.

Are Heat Pumps Suitable for Businesses?

Heat pump hot water may suit some small business or light commercial applications, but sizing and suitability need more careful checking than a standard home.

Business use may involve:

Higher daily hot water demand
Peak usage periods
Staff amenities
Kitchen or washdown requirements
Recovery time requirements
More frequent use
Access and drainage limitations
Commercial compliance requirements
Different warranty or product suitability considerations

Installed Today is focused on online supply of hot water systems, water filters and pumps, with selected supplied-and-installed options on eligible products in Brisbane and Gold Coast service areas where shown. For complex commercial applications, confirm suitability with a licensed installer or hot water specialist before ordering.

Rebates, STCs and Incentives

Some heat pump hot water systems may be eligible for STCs, rebates or incentives depending on the product, location, installation details and current program rules.

These programs can change.

Before choosing a heat pump based on incentives, check:

Current eligibility
Product type
Installation location
Installer requirements
Whether the advertised price already includes incentives
Documentation requirements
Whether supply-only orders qualify

Do not choose a heat pump based only on a possible rebate. The system must still suit the household, installation location, electrical supply, drainage and access.

Running Costs and Savings

Heat pump hot water systems can be efficient in suitable conditions, but running costs vary from home to home.

Running costs can be affected by:

Household hot water use
Shower length
Number of occupants
Tank size
Timer settings
Solar PV timing
Electricity tariff
Local climate
Installation location
Airflow
Maintenance condition
Booster use
Whether the system is correctly sized

A heat pump that is poorly located, undersized or used outside its ideal conditions may not perform as expected.

Installation Requirements

Heat pump installation can involve plumbing and electrical work.

A licensed installer may need to check:

Outdoor location
Airflow clearance
Condensate drainage
Electrical supply
Switchboard suitability
Existing pipework
Valves
Temperature control requirements
Access for installation
Access for future service
Noise placement
Old unit removal
Compliance requirements

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

Maintenance for Heat Pump Hot Water

Heat pump maintenance depends on the model, water quality, usage and manufacturer instructions.

Maintenance may include:

Checking for visible leaks
Keeping airflow areas clear
Checking condensate drainage
Monitoring unusual noise
Checking hot water performance
Inspecting valves
Following manufacturer servicing guidance
Checking electrical components where required
Cleaning or inspecting filters where applicable
Ensuring the unit remains accessible

Do not attempt electrical, refrigerant or plumbing repairs yourself. Licensed trades should complete work where required.

Brisbane and Gold Coast Considerations

Brisbane and Gold Coast homes can be well suited to heat pump hot water where outdoor space, airflow and drainage are available.

Common local considerations include:

Narrow side access
Outdoor noise placement
Condensate drainage
Heat pump airflow
Existing electric storage replacements
Solar PV timer use
Coastal exposure on the Gold Coast
Slab or base condition
Electrical supply
Switchboard capacity
Access for old unit removal
Compliance upgrades
Townhouse or body corporate requirements

Selected supplied-and-installed options are available on eligible Installed Today products in Brisbane and Gold Coast service areas where shown. Availability depends on the product, address and installation requirements.

Supply-Only vs Supplied-and-Installed

Installed Today offers supply-only ordering across major Australian metro areas. This can suit customers who already have a licensed installer organised and want to order the product online.

Selected supplied-and-installed options are available on eligible products in Brisbane and Gold Coast service areas. Availability depends on the product, address and installation requirements.

For supply-only products, the listed product price generally covers the product only.

It does not usually include:

Installation labour
Plumbing alterations
Electrical work
New valves
Pipework changes
Drainage changes
Condensate drainage work
Tempering valve upgrades
Pressure limiting valve upgrades
Expansion control valves
Old unit removal
Disposal
Compliance upgrades
Concrete bases or slab work
Relocation of the system
Rebate administration
Site assessment

For heat pump systems, confirm outdoor location, airflow, drainage, electrical requirements, noise placement and household sizing with a licensed installer before ordering.

Common Heat Pump Buying Mistakes

Choosing Only by Rebate

A rebate may reduce the upfront cost where eligible, but the system must still suit the home.

Ignoring Airflow

Heat pumps need clear airflow to operate properly. Tight, enclosed or poorly ventilated spaces can affect performance.

Forgetting Condensate Drainage

Heat pumps produce condensate, and that water needs somewhere suitable to drain.

Installing Too Close to Bedrooms or Neighbours

Noise placement matters, especially in narrow side paths, townhouses and compact blocks.

Choosing the Same Size as the Old System

If the old system ran out of hot water, replacing it with a similar capacity may not solve the issue.

Not Checking Electrical Requirements

Some installations may require electrical work or circuit checks.

Assuming Heat Pumps Are Always Best

Heat pumps can be a great fit in suitable homes, but they are not automatically right for every property.

Before Ordering Checklist

Before choosing a heat pump hot water system, check:

How many people live in the home?
How many bathrooms are used daily?
Are showers used at the same time?
Does the household use a bath?
Did the old system run out of hot water?
Is a 250L, 270L, 280L or 300L system more suitable?
Is there outdoor space for the unit?
Does the location have clear airflow?
Can condensate drainage be managed?
Is the unit near bedrooms or neighbours?
Is electrical supply suitable?
Is solar PV timer operation being considered?
Is access suitable for delivery and installation?
Is the existing base or slab suitable?
Is old unit removal included or separate?
Is the product supply-only or supplied-and-installed?
Has a licensed installer confirmed suitability?

Frequently Asked Questions

What is the best heat pump solution for hot water?

The best heat pump solution depends on household size, tank capacity, outdoor location, airflow, drainage, electrical supply and noise placement. Popular options to compare include iStore, Rheem, Rinnai and Enviroheat heat pump hot water systems available through Installed Today.

Is a heat pump hot water system worth it?

A heat pump can be worth considering if you want an efficient electric storage-style system and the property has suitable outdoor space, clear airflow, condensate drainage and electrical supply.

What size heat pump hot water system do I need?

Size depends on household demand. Around 250L may suit some small to medium households, while 270L to 300L systems may suit larger or higher-demand homes. Shower habits and simultaneous use matter as much as household size.

Can a heat pump work with solar panels?

A heat pump can work well with solar PV where timer settings, household usage and electrical setup suit daytime operation. This should be confirmed with a licensed installer or electrician.

Are heat pump rebates available?

Some heat pump hot water systems may be eligible for STCs, rebates or incentives depending on current program rules, product type, location and installation details. Eligibility can change and should be checked before purchase.

Are heat pump hot water systems noisy?

Heat pumps have fans and compressors, so noise placement matters. Check product details and avoid placing the unit near bedrooms, neighbouring bedrooms or tight acoustic spaces where possible.

Can a heat pump hot water system be installed indoors?

Most domestic heat pump hot water systems need outdoor space and clear airflow. Installation location must follow manufacturer instructions and be confirmed by a licensed installer.

Is a heat pump better than gas hot water?

Not always. A heat pump may suit homes without gas or customers wanting an efficient electric storage-style option. Gas hot water may suit homes with natural gas or LPG, suitable gas pipe sizing and suitable water pressure.

Does supply-only pricing include installation?

No. Supply-only pricing generally covers the product only. It does not usually include installation labour, plumbing work, electrical work, valves, drainage, old unit removal, disposal or compliance upgrades unless clearly listed.

Final Word

A heat pump hot water system can be a strong option for homes wanting an efficient electric storage-style hot water solution. The right model depends on household demand, tank size, outdoor location, airflow, condensate drainage, electrical suitability, access and noise placement.

Installed Today makes it easy to compare heat pump hot water systems, including medium heat pump hot water systems from 200L to 280L, large heat pump hot water systems over 280L and Wi-Fi enabled heat pump hot water systems.

For supply-only orders, confirm suitability with a licensed installer before purchasing. For eligible Brisbane and Gold Coast products, check whether a supplied-and-installed option is available where shown.

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