Heat pump hot water, explained for Australians
A heat pump hot water system heats water by pulling warmth out of the outside air, using roughly a third of the electricity of a standard electric tank. This guide covers what they cost, the rebates in your state, how they cope with winter, and the rules changing in Victoria from 1 March 2027.
Independent. Written by Daniel Kilkelly, who researches the official sources and is not an installer. Facts last checked: November 2026.
- About a thirdof the electricity of a standard electric tank
- 3 to 5Typical COP of a heat pump, according to Your Home
- up to $1,960Combined VEU and Solar Homes saving for a heat pump replacing gas in Victoria, with a locally made product
- 2030The federal STC scheme ends on 31 December 2030
Where should you start?
Your gas hot water system just died in Victoria? Read what to do when gas hot water fails, then the Victorian rebates.
Want to know what you can claim? Start with rebates by state. Every state also gets the federal STC discount.
Wondering if it is worth it? See what a heat pump costs, running costs and payback.
Ready to buy? Use the buying guide, the size guide and the installer checklist.
Which heat pump rebates are available in each state?
Every government discount for heat pump hot water, state by state, with the official source for each figure.
Heat pump hot water rebates in Australia, state by state- VICOpenVictoriaVEU and Solar Homes combined, heat pump replacing gasup to$1,560or up to $1,960 locally made
- NSWOpenNSWEnergy Savings Scheme discount, replacing electricup to$640
- ACTOpenACTRebate for concession card holders, plus loansup to$2,500
- SAOpenSouth AustraliaRetailer discounts, with amounts set by each retailerREPS
- QLDClosedQueenslandThe state rebate closed in December 2023Closed
- WANoneWestern AustraliaNo state rebate foundNone
- TASClosedTasmaniaThe zero-interest loan scheme closed in September 2025Closed
- NTNoneNorthern TerritoryNo current program foundNone
- Open
- Closed
- None
Victoria's 2027 gas hot water rule
What changes from 1 March 2027 when a gas hot water system fails, and what it means for owners, renters and landlords.
The Australian guide to heat pump hot water
Rebates by state
Every government discount for heat pump hot water, state by state, with the official source for each figure.
Victoria's 2027 gas hot water rule
What changes from 1 March 2027 when a gas hot water system fails, and what it means for owners, renters and landlords.
How heat pumps work
COP, cold weather, noise, tank sizes and the difference between all-in-one and split systems.
Costs and comparisons
What a heat pump costs to buy, install and run, and how it compares with gas, electric storage and solar.
Heat pump hot water city guides
Climate, tariffs and rebates for heat pump hot water in each capital city. Coldest month mean minimum, from the Bureau of Meteorology.
Why is everyone talking about heat pumps?
Three things are pushing Australians towards heat pump hot water. Federal certificates and state programs take a real chunk off the price. Victoria will require a failed gas hot water system to be replaced with an electric one from 1 March 2027. And homes with rooftop solar can heat a day's water with power they would otherwise export for very little.
Heating water is one of the biggest energy uses in an Australian home, so the system you choose shows up on every bill for the next decade or more. Heat Pump Hot Water Guide pulls the official figures together so you can check a quote against the facts, not a sales pitch.
How is this guide different?
Every rebate amount, eligibility rule and date comes from the official program page and is linked where it is used. Nothing here is sponsored, there are no affiliate links, and no product has been "tested" by me. When something could not be confirmed, it was left out. See the editorial policy and the full source list.
- Nothing here is sponsored
- No affiliate links
- Facts last checked: November 2026