A heat pump hot water system costs about $3,000 to $7,000 fully installed in Australia as at November 2026, according to CHOICE, and the cheapest models CHOICE lists start near $2,000 while premium split systems reach about $7,900. Federal Small-scale Technology Certificates (STCs) usually come off the quoted price, and Victoria and NSW add state discounts on top.
Source: CHOICE; Victorian Energy Upgrades; Clean Energy Regulator, checked November 2026.
Key facts
- As at November 2026, CHOICE puts the fully installed price of a heat pump hot water system at $3,000 to $7,000, and SolarQuotes puts it at $3,000 to $7,500 (page updated 12 November 2026).
- CHOICE’s listing of 81 priced heat pump models (8 May 2026) runs from $2,050 to $7,910, with a median of $4,156.
- The federal STC discount is usually already inside the quoted price: CHOICE says it can save $600 to $1,000, and SolarQuotes says it is almost always included in advertised prices.
- The Victorian Energy Upgrades hot water page, updated 26 October 2026, lists indicative discounts of $630 when a heat pump replaces an inefficient electric system and $560 when it replaces gas, with a $200 minimum contribution.
- Sustainability Victoria’s July 2025 figures give a heat pump running cost of about $275 a year on a peak tariff, against $1,015 for an electric storage tank, for a four person Melbourne home using 150 litres a day.
- The STC deeming period falls from 5 years in 2026 to 4 years on 1 January 2027, so the same model earns about one fifth fewer certificates next year.
How much does a heat pump hot water system cost?
Most households pay $3,000 to $7,000 installed, with the price set mainly by brand tier, refrigerant, tank size and how hard the install is. The table shows the two published ranges and the electric tank they replace, as checked in November 2026.
| System | CHOICE (installed) | SolarQuotes (installed) |
|---|---|---|
| Heat pump hot water | $3,000 to $7,000 | $3,000 to $7,500 |
| Electric storage tank | $2,000 to $3,000 | $2,000 to $3,000 |
| Solar thermal | $4,000 to $8,000 (see our solar hot water price guide) | $4,000 to $8,500 |
SolarQuotes says a good budget unit such as an iStore starts near $3,000, a premium unit such as a Reclaim runs to about $7,000, and anything under $2,000 is likely to be noisy and unreliable. Both prices assume a simple swap using the existing electrical and plumbing connections.
Heat pump hot water prices by brand
Sanden and Reclaim, the CO2 refrigerant brands, are the dearest on average, and the all-in-one propane and budget units from Dux, Haier, iStore and Quantum sit near $3,600 to $4,000. The chart averages the listed prices of every model CHOICE lists for each brand with at least three priced models.
Source: CHOICE, Best heat pump hot water systems, last updated 8 May 2026 (Solar Cobber averages). CHOICE does not say whether its listed prices include installation or STCs; compare with the installed ranges above.
View the data as a table
| Average listed price | |
|---|---|
| Sanden (4) | A$6,785 |
| Reclaim Energy (11) | A$6,385 |
| Wilson (3) | A$5,141 |
| Rinnai (11) | A$5,026 |
| Stiebel Eltron (6) | A$4,604 |
| Rheem (5) | A$4,385 |
| Thermann (7) | A$4,344 |
| Dux (6) | A$3,989 |
| Haier (4) | A$3,752 |
| iStore (3) | A$3,733 |
| Quantum (4) | A$3,625 |
Sanden and Reclaim average about $6,400 to $6,800 while the budget group averages about $3,600 to $4,000, so brand tier moves the price by roughly $3,000. The table shows one representative model per brand with a tank near 300 litres, as listed by CHOICE in May 2026.
| Model | Tank | CHOICE listed price | Noise (dB(A)) |
|---|---|---|---|
| iStore PASHW015-270LD (R290) | 270 L | $3,800 | 47 |
| Rheem AmbiPower 280e 551E280 | 280 L | $3,884 | 48 |
| Stiebel Eltron WWK 302 | 302 L | $4,500 | 45 |
| Rinnai EHPG300VM | 300 L | $4,564 | 46 |
| Wilson Aqualux R290 315L | 315 L | $5,210 | 39 |
| Reclaim REHP-CO2-315GL-V2 | 323 L | $6,390 | 37 |
| Sanden GAUS-300FQTS | 300 L | $6,488 | 37 |
The cheapest models are not the quietest. CHOICE lists noise from 37 to 54 dB(A), and the 37 dB(A) units are the Sanden, Reclaim and Thermann X split systems. Check each model’s datasheet and the Clean Energy Regulator register before buying.
How does tank size change the price?
A 251 to 330 litre tank, the size most 4 to 6 person homes buy, has a median listed price of $4,410, about $830 more than the median for tanks of 200 litres or less. SolarQuotes says 6 or more people should not go below 315 litres.
View the data as a table
| Median listed price | |
|---|---|
| Up to 200 L (17) | A$3,582 |
| 201 to 250 L (16) | A$3,990 |
| 251 to 330 L (42) | A$4,410 |
| Over 330 L (6) | A$6,255 |
Above 330 litres the median jumps to $6,255, driven by large Reclaim, Rinnai and Sanden units.
What changes the price of a heat pump hot water system?
Brand tier, refrigerant and the install site move the price more than anything else.
- Refrigerant. SolarQuotes says R134a units are cheapest and are being phased out, propane (R290) units are mid-range, and CO2 (R744) units such as Reclaim and Sanden are the dearest because they work at higher pressures.
- All-in-one or split. SolarQuotes says all-in-one units (iStore, Evoheat) are cheaper and easier to install, while split systems (Sanden, Reclaim) are slightly quieter and more efficient.
- Warranty. SolarQuotes advises at least 5 years on the compressor and 10 on the tank, and says Reclaim offers up to 10 and 15 years.
- Install conditions. Plumbing runs, switchboard capacity and where the unit sits can add cost.
How do STCs and state rebates reduce the price?
The federal STC discount takes roughly $600 off a typical quote in 2026, and a Victorian household replacing electric hot water can stack up to about $2,230 of discounts. Our STC explainer covers how certificates work.
SolarQuotes’ comparison table (12 November 2026) shows 15 to 17 STCs for most listed models in climate Zone 3, and says the difference between brands is minimal. At the Demand Manager October 2026 price of about $39.85 (also used in our solar hot water price guide), 15 STCs is about $598. The deeming period then shrinks every 1 January until 2030.
Source: Clean Energy Regulator deeming periods (6 years in 2025, 5 in 2026, 4 in 2027, 1 in 2030); STC price from Demand Manager, October 2026. Assumes the 15 STC count and the certificate price stay the same; both can change.
View the data as a table
| STC discount | |
|---|---|
| 2025 | A$717 |
| 2026 | A$598 |
| 2027 | A$478 |
| 2028 | A$359 |
| 2029 | A$239 |
| 2030 | A$120 |
The same model is worth about $120 less in 2027 than in 2026. State discounts as checked in November 2026 are below; our heat pump hot water rebate guide has the full state by state detail.
| State | Discount | Conditions |
|---|---|---|
| Victoria (Victorian Energy Upgrades) | $630 replacing inefficient electric, $560 replacing gas | Any household; $200 minimum contribution; 5 year warranty |
| Victoria (Solar Homes) | Up to $1,000, or $1,400 for locally made | Owner-occupier, household income under $150,000, home under $3 million |
| NSW (Hot Water Upgrade Incentive) | Up to $640 from electric, $330 from gas | Indicative; no income test |
| Other states | Federal STCs only (SA retailer scheme amounts not published) | See rebate guide |
Note on the Victorian total. The Victorian Energy Upgrades page says “up to $1,560” when combining Solar Homes with its discount ($1,000 plus the $560 gas figure), while another Victorian Government page (updated 24 July 2026) says up to $1,630 ($1,000 plus the $630 electric figure). The total depends on what you replace.
Solar Cobber calculation: what a heat pump costs after discounts
On a median CHOICE price of $4,410, a Victorian owner replacing electric hot water could get to about $2,180 after STCs, VEU and Solar Homes, while NSW lands near $3,170. The table is an illustration, not a quote, and assumes CHOICE’s listed price is before any discount.
| Step | Victoria (electric, Solar Homes eligible) | NSW (electric) | Elsewhere |
|---|---|---|---|
| Median CHOICE listed price (251 to 330 L) | $4,410 | $4,410 | $4,410 |
| Federal STCs (15 x $39.85) | minus $598 | minus $598 | minus $598 |
| State certificates | minus $630 | minus $640 (at most) | nil |
| Solar Homes rebate | minus $1,000 | nil | nil |
| Approximate net before installation extras | about $2,182 | about $3,172 | about $3,812 |
CHOICE and SolarQuotes say STCs are usually already in the quoted price, so do not subtract them twice. Ask installers to list STC and state lines separately.
How much does a heat pump cost to run?
A heat pump costs roughly $240 to $400 a year to run on 2026-27 regulated rates, against roughly $900 to $1,450 for an electric storage tank. Sustainability Victoria’s July 2025 figures for a four person Melbourne home put them at $275 and $1,015, and our solar hot water versus heat pump guide shows the gas comparison.
Solar Cobber calculation. Dividing Sustainability Victoria’s dollar figures by its 29.2c per kWh peak rate implies about 3,476 kWh a year for the electric tank and 942 kWh for the heat pump, which is a ratio of 3.7 and consistent with SolarQuotes’ “3 times or more” claim. Applying those kWh to the 2026-27 flat usage rate in each network gives the chart. It excludes supply charges and assumes 150 litres a day everywhere, so warmer cities will use less.
- Electric storage
- Heat pump
View the data as a table
| Electric storage | Heat pump | |
|---|---|---|
| SA Power Net | A$1,457 | A$395 |
| Essential | A$1,217 | A$330 |
| Endeavour | A$1,172 | A$318 |
| Synergy WA | A$1,156 | A$313 |
| Ausgrid | A$1,152 | A$312 |
| AusNet | A$1,112 | A$301 |
| Energex | A$972 | A$263 |
| CitiPower | A$902 | A$244 |
Adelaide’s high usage rate (41.91c per kWh on the SA Power Networks default offer) makes a heat pump save the most there, about $1,060 a year, while Melbourne’s CitiPower zone saves about $660. A cheaper time-of-use or solar soak rate cuts the heat pump cost further: the Victorian Default Offer 2026-27 solar soak rate is 16.59c to 17.65c per kWh (11am to 4pm), against off-peak rates of 21.17c to 22.60c.
How long does a heat pump take to pay back?
A heat pump replacing an electric tank pays back in about 3 to 8 years on $3,000 to $5,000 of cost, before any rebates. The chart divides an assumed up-front cost by the yearly saving in each network.
- $3,000 system
- $5,000 system
Source: Solar Cobber calculation from the running costs above and the CHOICE installed range of $3,000 to $7,000. Ignores STCs, state discounts, the cost of the old tank and price rises.
View the data as a table
| $3,000 system | $5,000 system | |
|---|---|---|
| SA Power Net | 2.8 years | 4.7 years |
| Essential | 3.4 years | 5.6 years |
| Endeavour | 3.5 years | 5.8 years |
| Synergy WA | 3.6 years | 5.9 years |
| Ausgrid | 3.6 years | 6.0 years |
| AusNet | 3.7 years | 6.2 years |
| Energex | 4.2 years | 7.1 years |
| CitiPower | 4.6 years | 7.6 years |
Payback is fastest in Adelaide and slowest in Melbourne’s CitiPower zone, because cheaper electricity shrinks the saving. Replacing gas takes longer: in the Victorian Government’s worked example in our getting off gas guide, a heat pump costs a net $1,900 after incentives and saves $400 a year, which is 4.8 years.
Which heat pump suits rooftop solar and a timer?
Any heat pump with a built-in timer suits solar, because it draws under 1,000 W and can be set to heat around midday. SolarQuotes says to set the timer for about 11am so the tank is hot by early afternoon, and that a plain timer is enough, with no diverter needed.
SolarQuotes grades each model’s timer as simple, midrange, smart or none, so ask which grade your model has; a model with no timer needs a separate time switch. Diverters do not work with heat pumps. On a time-of-use plan, see our peak and off-peak guide.
Efficiency (COP) depends on air temperature: CHOICE lists the Aquatech Dynamic/X8 at 2.5 at 0C and 5.65 at 25C, so midday running also lifts efficiency. Manufacturers test at different temperatures, so compare COP at your coldest winter temperature.
Watch: how to electrify your hot water with a heat pump
Ausgrid’s channel explains how a heat pump replaces a gas or electric hot water system.
What to check on your heat pump quote
Our quote comparison guide applies to hot water as well, and our installer directory lists local installers (we do not verify accreditation).
- Is the exact model on the Clean Energy Regulator register, and under 425 litres?
- Is the price before or after STCs, and are the STC and state lines shown?
- What are the compressor and tank warranty years, and who honours them if the installer closes?
- What is the noise rating in dB(A), and can the unit run on a midday timer?
From 1 March 2027 a failed gas hot water system in Victoria must be replaced with an electric one. Our Victorian rebate guide and NSW rebate guide cover the state rules.
FAQ
How much does a heat pump hot water system cost in Australia?
A heat pump hot water system costs about $3,000 to $7,000 fully installed according to CHOICE (updated 12 May 2026), or $3,000 to $7,500 according to SolarQuotes (12 November 2026). The STC discount is usually already included in the quoted price.
What is the best heat pump hot water system in Australia?
No independent tester ranks them, because CHOICE says it cannot test heat pump hot water systems and gives no Recommended models. SolarQuotes names iStore, Solahart and Reclaim as the top three in its 2025 installer survey, but SolarQuotes is a quote broker that sends leads to installers.
How much does it cost to run a heat pump hot water system?
About $240 to $400 a year on 2026-27 regulated flat usage rates, by our calculation for 150 litres a day, against roughly $900 to $1,450 for an electric storage tank. Sustainability Victoria puts it at $275 a year for a Melbourne family of four on a peak tariff.
Is a heat pump hot water system cheaper than gas?
Usually cheaper to run: the Victorian Government’s example saves $400 a year when a heat pump replaces gas hot water.
How much is the heat pump hot water rebate?
Federal STCs are worth about $600 to $1,000 according to CHOICE, and Victoria adds $560 to $630 from Victorian Energy Upgrades plus up to $1,000 from Solar Homes. NSW adds up to $640 when replacing electric hot water.
What size heat pump do I need?
A tank of 270 to 315 litres suits a 4 to 5 person home, according to CHOICE and SolarQuotes. Households of 6 or more should not go below 315 litres, and 1 to 2 people can use about 150 litres.
Can a heat pump run on solar power?
Yes. A heat pump draws under 1,000 W, so a built-in timer set for about 11am lets rooftop solar heat the tank. Diverters do not work with heat pumps.
Are heat pump hot water systems noisy?
CHOICE lists noise from 37 to 54 dB(A) across models; ask for the rating before you buy.
Sources
- CHOICE, Best heat pump hot water systems (model listing), last updated 8 May 2026
- CHOICE, Solar hot water: How to buy the best system for your home, updated 12 May 2026
- SolarQuotes, Heat pump hot water: choosing the right system, updated 12 November 2026
- SolarQuotes, Hot water heat pump rebates, updated 10 August 2026
- Victorian Energy Upgrades, Hot water system discounts, page last updated 26 October 2026
- Victorian Government, Latest discounts and rebates, page last updated 24 July 2026
- NSW Government, Hot Water Upgrade Incentive
- Clean Energy Regulator, Solar water heaters and air source heat pumps
- Sustainability Victoria, Running costs for water heating, July 2025
- Australian Energy Regulator, Default Market Offer 2026-27
About this guide
Written by the Solar Cobber editorial team from independent desk research checked in November 2026. Solar Cobber is a free directory that may earn referral or advertising fees from installers, and commercial relationships never affect our content. This is general information, not financial advice. To report a correction, use our contact page.
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