Tired of high energy bills? Discover why thousands of Australian homeowners in Adelaide and Melbourne are switching to Heat Pump Hot Water Systems — the smarter, more sustainable choice when paired with solar power.
Heat pump hot water systems are quickly becoming the go-to solution for efficient, eco-friendly hot water – especially when paired with solar energy. In the last year alone, installations of heat pump hot water systems in Australia jumped by 70%, thanks to improved performance and generous rebates.
Homeowners and facility managers (from suburban Adelaide to metropolitan Melbourne) are eyeing these systems as a replacement for ageing electric or gas heaters. This guide breaks down everything you need to know – how heat pumps work, why they're ideal with solar, what incentives are available, and how Jousto's smart Energy Hub can amplify your savings.
Modern heat pump water heaters use up to 70% less electricity than traditional electric resistance systems. Instead of generating heat from scratch, they harvest ambient heat from the air to warm your water.
This high efficiency means lower energy bills – often reducing water heating costs by 50–70% compared to old electric or gas units. In real terms, many households see hundreds of dollars in annual savings.
Thanks to energy savings and rebates, a quality heat pump can pay for itself in as little as 3–5 years. Melbourne's climate, for instance, allows year-round efficient operation, and rebates can cut upfront costs by $1,000–$2,000.
Homeowners typically recoup their investment within a few winters of lower bills. In South Australia, bill reductions of ~18–30% are common when replacing old systems.
Every heat pump installed helps cut greenhouse emissions. By using renewable heat from the air, heat pumps slash carbon output versus gas burners or coal-powered electric tanks.
For environmentally conscious consumers – including community housing projects and NDIS facilities aiming for sustainability – this is a big win. Heat pumps also avoid gas combustion entirely, eliminating risks of gas leaks or toxic emissions.
The technology is proven – over 150,000 units are installed across Australia, from homes to aged care centres, with that number growing fast. Premium brands offer long warranties (often 10–15 years on tanks).
Well-maintained units can last over a decade. Users on forums often ask if heat pumps last; the answer is yes – a lifespan of 10–15 years is typical, rivalling traditional heaters.
As Australia moves towards full home electrification, heat pumps are a crucial component. They allow homeowners to eliminate gas connections entirely, creating an all-electric home that can be powered by renewable energy.
This transition is supported by government policies and rebates, making it financially attractive to switch from gas to electric heat pump systems as part of a broader sustainability strategy.
Modern heat pumps can be integrated with home energy management systems like Jousto's Energy Hub. This allows for intelligent operation based on solar production, electricity prices, and household usage patterns.
The ability to time operation during periods of excess solar production or low grid prices maximises savings and minimises environmental impact, making heat pumps a smart choice for the connected home.
A heat pump hot water system works like "a reverse refrigerator." Instead of cooling air, it extracts heat from the air and pumps that heat into water:
This Coefficient of Performance (COP) of 3–5 means free heat from the environment provides the majority of the energy.
The outcome? Lots of hot water for a fraction of the energy. For example, 1 kW of input can yield ~5 kW of heating – a 500% output – in top models. This efficiency holds especially well in mild climates like Adelaide and Melbourne, making heat pumps an excellent fit for both regions.
One of the biggest advantages of heat pump systems is how seamlessly they integrate with solar PV panels. If you have solar (or plan to add it), a heat pump maximises your solar investment:
"I already have solar hot water, do I need a heat pump?"
Traditional solar thermal hot water systems use roof collectors and often have electric/gas boosters. They save energy, but heat pumps can actually be more efficient and flexible.
A heat pump doesn't require clear roof space or plumbing to the roof, and it works day or night (storing energy when it's cheapest). Many homeowners are now replacing old solar thermal systems with heat pumps for greater year-round savings, simplicity, and better integration with home energy management.
Both Adelaide and Melbourne see strong interest in heat pump hot water, but there are local nuances:
Adelaide's Mediterranean climate (warm summers, mild winters) is ideal for heat pumps. Even in cooler months, daytime highs are usually sufficient for efficient operation. Quality heat pumps in SA operate effectively down to -10°C – and Adelaide rarely gets that cold.
South Australians also enjoy robust incentives: under the REPS (Retailer Energy Productivity Scheme) (formerly REES) and federal programs, you can get big discounts. The City of Adelaide, for example, offers rebates up to $1,000 for solar hot water heat pumps.
Combined with federal Small-scale Technology Certificates (STCs), total incentives can reach $2,000+ for eligible installations. The result? Many Adelaide homeowners replace old electric tanks for little out-of-pocket cost.
Melbourne's temperate climate includes colder winters, but modern heat pumps handle this well. It's true that cheap models struggle below ~5°C, kicking in an electric booster and losing efficiency. However, high-COP units (and CO₂ refrigerant models) thrive even in chilly conditions.
For Melbourne residents, the economic case is boosted by generous rebates: You can combine three different incentives – federal STCs (worth ~$600–$800), Victorian Energy Upgrades (VEEC, $420–$780), and Solar Victoria's heat pump rebate ($1,000) – for a total of up to $2,600 off.
This "double-dip" rebate opportunity in VIC is a major reason heat pumps are booming. With the rebates, many Victorians find a quality 250L–315L heat pump costs under $1,500 out-of-pocket.
In summary, both SA and VIC offer strong support:
Both regions also allow interest-free loans or financing on solar/energy upgrades in certain cases, which can further ease the upfront cost. Always check the latest local programs, as these incentives can update year to year.
Without any rebates, heat pump hot water systems typically range from about $2,000 to $5,000 for the unit itself (smaller 170L–200L units on the lower end, premium 300L ones on the higher end). Installation costs can add $600 to $1,400, depending on complexity.
After federal STC rebates (which nearly everyone gets instantly as a discount), the average price for a heat pump upgrade in Australia is around $4,150 including basic installation. In SA and VIC, applying state rebates brings typical out-of-pocket costs to ~$1,500–$2,500 for many homeowners.
Here's where heat pumps shine. A family of four with a traditional electric water heater might spend $800+ a year on water heating. A heat pump could slash that by around 2/3.
In fact, data from Sustainability Victoria comparing water heater types showed heat pumps as the cheapest to run annually. By consuming ~70% less energy, many users save $300–$500 per year on energy bills just from hot water.
If you have solar and run the heat pump mostly on solar power, your effective hot water energy cost could drop to nearly zero on sunny days.
Example: One Reddit user in Melbourne noted their heat pump cut their peak electricity use dramatically, and with rebates the system cost was nominal. Similarly, a Whirlpool forum member in Perth calculated that even with conservative settings, a heat pump paid for itself in about 4 years via bill savings – making it absolutely "worth it."
Heat pumps are low-maintenance. They have a fan and compressor (like an AC unit) which should be kept clear of debris. Many have sacrificial anodes in the tank to check every few years (like any storage tank).
In general, they don't require frequent servicing. Warranties often cover 5+ years on the compressor and 10+ on the tank, indicating manufacturer confidence.
Over 10–15 years, you might replace a fan or sensor, but those costs are minor compared to the savings reaped.
We supply and install premium heat pump hot water systems from leading manufacturers:
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🛒 Browse the full rangeAll heat pump systems will save you money – but Jousto takes it further. Our Energy Hub technology acts as the intelligent brain of your home's energy. Here's how it amplifies the value of a heat pump hot water system:
Jousto is not just selling a product; we deliver a service. Our team includes licensed plumbers and electricians (we do installations across SA, VIC, and beyond).
We ensure your old system is safely removed, the new heat pump is set up to code, and the smart controls are configured perfectly. Post-installation, we remain on call for support, and the Energy Hub can even enable remote troubleshooting or performance tweaks.
Why does this matter to you? It means when you choose Jousto, you're not only getting hot water – you're getting peace of mind that your hot water system is always running in the most cost-effective way possible. No other provider offers this bundle of top-tier hardware plus intelligent optimisation.
Imagine waking up knowing your hot water was heated with solar you'd otherwise waste, or with 3¢/kWh overnight wind power. That's Jousto's promise: hot water, smartly delivered.
We supply and install Heat Pump Hot Water Systems in Adelaide and Melbourne, with fast delivery and expert support across:
Wherever you are — we'll help you reduce bills, shrink your carbon footprint, and upgrade your hot water.
Here are ten frequently asked questions we often hear from Adelaide and Melbourne customers regarding heat pump hot water systems – along with concise answers:
Yes – thanks to big energy savings and rebates, heat pump systems are absolutely worth it. They use ~70% less power than old electric heaters, so you save on bills. Both SA and VIC offer incentives (up to $2k–$2.6k) that cut purchase costs.
In Adelaide's mild climate and Melbourne's well-supported market, a quality heat pump often pays for itself within 3–5 years. After that, it's money in your pocket every year.
They work by extracting heat from the air. A fan pulls in outside air, a refrigerant absorbs the air's heat, then a compressor concentrates that heat and transfers it to the water in the tank. It's the reverse of how a fridge cools.
Because they move heat rather than make it, they're super efficient – 1 unit of electricity can generate 3–5 units of heat in your water. Even in cold weather, there's enough ambient heat for the system to work (down to around -10°C for good models).
Yes, absolutely. In fact, pairing with solar is ideal. You can set the heat pump to run during the day to use your solar PV's excess energy. This means your hot water is heated "for free" by the sun.
Jousto's Energy Hub can automate this, turning on the heat pump exactly when your solar output is highest. With solar, many customers find their electric bill for hot water drops to near zero on average. It's a perfect combination for reducing grid usage and maximising solar self-consumption.
There are generous rebates in Australia:
These significantly lower the cost of a heat pump system. Check local eligibility (often if replacing an electric unit, you qualify; replacing gas has slightly different rules). Jousto helps clients navigate and claim all applicable rebates.
After rebates, most people pay around $1,500 to $3,000 out-of-pocket for a good system, including installation. The exact cost depends on the unit size/brand and installation complexity.
For example, a 250L unit might be $2,500 for the system and $800 for install = $3,300, minus say $1,500 in rebates → ~$1,800 net cost. Without any rebates, a high-end system plus install could be around $5,000.
The average national installed cost is ~$4,157 before state rebates. It's higher than a basic electric heater, but remember the running costs are far lower – so the investment pays back over time. Jousto provides upfront quotes showing the full price and then any rebates you're entitled to, so you see the final cost clearly.
Yes, modern heat pumps are designed to work year-round. In winter, they do run longer and a bit less efficiently (because the air is colder), but they will still heat your water.
For instance, many units that have a COP of 4 in summer might drop to COP 2–3 in cold winter nights – meaning they're still 200–300% efficient (2–3 times more efficient than a traditional heater).
In places like Melbourne where winter nights can approach 0°C, it's important to get a unit with good low-temp performance. Some models have a built-in electric booster that kicks in only if needed on the chilliest nights, so you never go without hot water.
As long as your unit is sized right, you won't notice any difference in availability of hot water in winter – just possibly a slight uptick in electricity use compared to summer (still much less than an electric tank would use).
They're pretty quiet. The sound comes from a fan and compressor, similar to a small air conditioner. Typically, noise levels range from 37 dB to 50 dB. 37 dB is very quiet – like a whisper or a refrigerator humming in the next room. 50 dB is a bit louder, like moderate rainfall.
Most units will be closer to the 45 dB mark. In practice, customers rarely complain about noise. If the unit is outside or in a garage, you might not hear it at all indoors. If near a bedroom window, you might hear a faint hum when it's running – but remember, it doesn't run constantly; once the water's heated, it turns off.
If noise is a concern, Jousto can recommend ultra-quiet models and placement that minimises any disturbance.
On average about 10 to 15 years, which is similar to or a bit longer than a conventional electric or gas tank. The tank portion is like any other hot water tank (glass-lined steel) and often comes with a 10-year warranty. The heat pump mechanism (compressor, etc.) might have a 5-year warranty on parts.
With proper maintenance (flushing the tank if needed, replacing anodes every few years in hard water areas), some heat pumps have been known to last 15+ years. It's good to check warranty terms of the brand you choose: e.g., Sanden offers 15 years on the tank and 6 years on the compressor, which indicates the expected longevity for high-end systems.
Jousto only installs reputable brands with solid support, so you're covered long-term.
Yes, definitely. Converting from gas to a heat pump is a common upgrade, especially as homes move towards all-electric setups. The installer will safely cap off the gas line and you might even be able to remove the gas meter eventually (saving on supply charges).
The main difference for install is running an electrical circuit to power the heat pump – Jousto handles the necessary electrical work with licensed electricians. Once installed, you'll enjoy not just lower energy bills but also the elimination of gas appliance maintenance and the improved safety of having no gas combustion in the home.
Plus, many state rebates (like in VIC) apply a bonus when switching from gas to efficient electric, because it helps reduce emissions. So you get help with the cost. In short, gas to heat pump is a wise switch that many are doing in Adelaide and Melbourne.
Jousto combines expert installation with smart technology that others don't offer. When you get a heat pump hot water system from Jousto, we don't just set and forget it – we integrate it with the Jousto Energy Hub, which intelligently controls when the heat pump runs to maximise use of solar or off-peak power.
No other provider in SA or VIC is currently offering this level of automation for hot water. Essentially, with Jousto you get:
This means a Jousto-installed system could save you more money over its life than a standard install, due to the smart scheduling. We turn your hot water system into an active part of your energy-saving toolkit, not a passive appliance. That's the Jousto difference – we marry efficiency with intelligence for unbeatable results.
Join thousands of satisfied customers in Adelaide and Melbourne who are saving money and reducing their carbon footprint.
By covering all these aspects – from technical know-how to financial incentives and smart integration – this guide equips you with the knowledge to make an informed decision on heat pump hot water in Adelaide or Melbourne.
Heat pump hot water systems are the future of efficient home energy, and with Jousto's help, you can make that future a reality today. Here's to endless hot showers, dramatically lower bills, and a more sustainable home!
As energy prices climb across the country, more Australians are looking for smarter, more sustainable ways to manage their power consumption. One of the most powerful tools in this shift? Automated smart home energy controls.
From real-time energy insights to wholesale pricing integration, this technology is giving homeowners more control than ever—cutting costs, improving sustainability, and making energy management virtually effortless.
Rising electricity bills and a growing focus on sustainability have made energy efficiency a national priority. Australians are increasingly investing in smart home devices to manage consumption and reduce waste. Government incentives have only accelerated this trend, supporting the installation of energy-efficient systems and solar technologies.
In this context, automated smart controls—devices and systems that respond dynamically to occupancy, usage habits, and real-time electricity prices—are becoming a game-changer. Not only do they reduce bills, they optimise the way we use energy, supporting grid stability and environmental targets.
Automated smart controls include devices and platforms that intelligently manage energy use. These range from smart thermostats and plugs to integrated Home Energy Management Systems (HEMS). Here’s a quick snapshot of common technologies:
Smart meters: Track usage in real-time
Smart thermostats: Optimise HVAC based on occupancy
Smart plugs and appliances: Eliminate standby energy drain
Smart lighting: Use motion sensors and schedules
Smart heat pumps: Offer efficient, programmable heating and cooling
Solar inverters and batteries: Optimise on-site energy generation
HEMS platforms: Centralise and automate control of all devices
When combined, these tools can dramatically improve energy efficiency and reduce reliance on the grid.
South Australian company Jousto is leading the charge in integrated smart energy automation. Their approach centres around automated optimisation based on wholesale electricity market signals, offering advanced tools that go beyond typical smart home solutions.
One of Jousto’s standout features is the ability to shift energy use to periods when wholesale electricity prices are low or negative. This is particularly powerful for high-use appliances like water heaters or pool pumps.
For solar-powered homes, Jousto ensures that every kilowatt counts. It automatically redirects excess solar power to appliances or batteries, and—crucially—curtails exports during negative pricing periods. This maximises on-site solar usage and avoids penalties from oversupplying the grid.
Jousto also enables intelligent battery charging during low-price periods. When energy prices spike, stored power can be sold back to the grid—offering not just savings, but the potential to earn income from energy storage.
Real-time appliance-level data gives homeowners and short-stay hosts (like Airbnb operators) granular insights into consumption. These insights can shape smarter decisions and more efficient habits.
While Jousto’s solution is comprehensive, the wider Australian market offers an array of modular smart devices. A review of top Google search results reveals growing adoption of:
Widely installed across Australian homes, smart meters provide the baseline data for most smart energy technologies. They enable time-of-use billing, track solar exports, and identify phantom loads.
Devices like Emerald’s AC Link can reduce heating and cooling costs by up to 23%. Features like geofencing and self-learning algorithms adjust temperatures based on when you're home—and when you’re not.
Modern appliances and smart plugs can be scheduled to operate when electricity is cheapest. For solar households, this often means running during daylight to consume self-generated energy.
Smart LED bulbs combined with motion sensors and scheduling can cut lighting costs by as much as 50%. While lighting isn't the biggest energy draw, the savings add up.
These high-efficiency systems replace traditional hot water and climate control solutions. In some cases, families have slashed hot water bills by up to 80%.
Home Energy Management Systems tie everything together. They monitor usage, apply automation rules, and align device operation with energy tariffs, solar availability, or grid needs. The real power of HEMS lies in integration—it enables homes to behave more like a self-sufficient microgrid.
Smart controls aren’t just theoretical. Case studies show that:
A Queensland family saved $200/year using a smart plug to manage gaming console standby.
A Hervey Bay homeowner cut energy bills by 20% using smart plugs during solar peak hours.
Households using smart thermostats have seen HVAC savings of 10–23% annually.
The Daniels family reduced hot water bills by 80% with a smart heat pump.
Smart LED upgrades cut lighting costs by 50–65%, even for councils and commercial setups.
Savings vary, but consistent patterns emerge: the more integrated the system, the higher the return.
Compared to the broader market, Jousto’s strength lies in its wholesale market integration and full-suite automation. While many solutions rely on time-of-use retail tariffs, Jousto’s ability to respond to real-time market conditions makes it one of the most advanced systems available.
It’s particularly valuable for solar-plus-battery households, where the timing of usage and storage has a massive impact on bill outcomes—and even income potential.
Despite the benefits, several challenges still face smart home energy adoption:
Upfront costs: Devices and installation can be expensive, although rebates help.
Technical complexity: Less tech-savvy users may find full system integration daunting.
Privacy and data: Smart devices raise concerns around data collection and connectivity.
Interoperability: Ensuring all devices work together seamlessly remains a challenge.
The key? Choosing the right mix of controls tailored to each household's energy usage, budget, and goals.
Looking forward, smart home energy will continue to evolve with:
AI-driven learning: Predictive energy usage patterns
Greater solar uptake: More homes adopting solar + battery solutions
Grid participation: More homes feeding power back into the grid
Standardisation: Easier integration across platforms and brands
As these trends accelerate, the role of smart automation will be central to creating affordable, resilient, and sustainable energy systems at the household level.
Smart controls are no longer just nice-to-haves—they’re becoming essential tools in the battle against high energy costs. Whether through incremental upgrades like smart plugs or full-scale systems like Jousto, Australians now have more ways than ever to take charge of their power bills and carbon footprint.
With the right strategy, any household can benefit from the shift to smart energy—and help pave the way toward a cleaner, smarter energy future for Australia.
Take control of your energy usage with smarter, automated solutions from Jousto. Whether you're just getting started or ready to fully optimise, Jousto offers the tools and tech to make it happen.
👉 Explore Jousto’s smart energy platform to learn more.
Don’t want to deal with the tech setup yourself? Jousto’s “Do It For Me” service takes care of everything—from installation to optimisation.
✅ Let Jousto do the heavy lifting and start saving sooner.
Already have solar and battery? Jousto’s platform helps you maximise your self-generated energy and profit from dynamic electricity pricing.
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