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:
Compare models, check rebates, and find the perfect system for your home in just minutes.
🛒 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!
Small businesses in Australia are grappling with rising electricity prices, and a surprising number are overpaying for power unnecessarily. Much of this stems from staying on default electricity contracts known as Standing Offers, misunderstanding complex tariff structures, and not utilising energy-saving strategies or technology. Fortunately, these challenges are solvable.
By taking charge—through regular comparison of energy plans, conducting energy audits, investing in energy-efficient upgrades, and exploring innovative tools like Jousto—businesses can reduce their electricity bills and boost their bottom line. This blog dives into the core reasons for overpayment and outlines practical, actionable solutions tailored to the unique needs of Australian small businesses.
The rising cost of living in Australia isn’t just affecting households—small businesses are equally burdened. Electricity costs have become a critical operational expense, eating into profit margins and challenging long-term viability.
In many industries, electricity expenses now outweigh fuel and stock costs, making power prices a top priority. What’s more troubling is that many business owners are unaware they’re overpaying by hundreds or even thousands of dollars a year due to avoidable factors. This blog will uncover those causes and present a clear roadmap to reverse the trend.
One of the biggest contributors to inflated energy bills is the Standing Offer—a default plan assigned when businesses fail to negotiate or renew their energy contracts. These rates are typically higher than Market Offers, yet over 147,000 small businesses remain on them.
Regulated prices such as the Default Market Offer (DMO) and Victorian Default Offer (VDO) serve as price ceilings but often don’t represent the best deal available. Many businesses get stuck on these plans after:
Moving premises
Letting an old contract expire
Never comparing options to begin with
This complacency leads to overspending, as retailers rarely offer their best deals to passive customers.
Electricity billing is notoriously confusing. Between flat rates, time-of-use tariffs, and demand charges, it’s difficult for business owners to know what they’re really paying for. Of particular concern are demand charges—fees based on your peak energy usage in a billing cycle, not your overall consumption.
This means a short period of high usage can trigger hefty fees, even if your overall energy use is modest. Many businesses don’t even realise they’re on a tariff with demand charges or how they can be avoided.
Australia’s energy market is subject to global fuel prices, domestic supply issues, and regulatory changes. The cost of updating poles, wires, and integrating renewables into the grid is frequently passed on to consumers, causing unpredictable bill increases.
Though regulators cap prices with the DMO and VDO, these are not guaranteed to be affordable—only a reference point, not a bargain.
Another trap is the so-called "loyalty penalty", where customers who stay with the same provider often pay more than new customers. Discounts and incentives are routinely reserved for new sign-ups, leaving long-term clients with outdated and expensive plans.
Other contributing variables include:
Business size – larger operations naturally consume more
Location – different regions have different network tariffs
Hours of operation – businesses that run during peak times face higher charges
Understanding these unique conditions is essential for tailoring the right cost-saving strategy.
The most straightforward cost-saving step? Stop accepting the default. Use government comparison websites like:
Victorian Energy Compare
These platforms allow you to compare plans based on your actual usage. The average small business can save up to $1,160 per year by switching to a better Market Offer.
Tip: Set a calendar reminder to compare plans once a year.
An energy audit helps identify inefficiencies in your business. Auditors will:
Analyse past bills
Examine lighting, HVAC systems, and appliances
Recommend changes based on your operations
Government grants and rebates are often available to subsidise audit costs. The long-term savings can be substantial, especially when inefficiencies go unnoticed for years.
Some of the highest ROI upgrades include:
LED lighting (up to 75% more efficient)
High-efficiency HVAC systems
Energy-rated refrigerators and appliances
Smart thermostats and timers
Insulation and draught sealing
Many of these qualify for tax deductions under the Small Business Energy Incentive, making the upfront investment more affordable.
Australia’s solar conditions are ideal, and the cost of solar panels has dropped significantly. For small businesses:
Rooftop solar can slash daytime electricity usage
Battery storage allows usage of solar energy at night or during peak times
Feed-in tariffs may provide additional income
Federal and state governments regularly offer solar rebates and incentives, making this option increasingly attractive.
Understand your usage patterns. If your peak usage is predictable, consider:
Time-of-use tariffs if you can shift work to off-peak hours
Load shifting to reduce demand charges (e.g., staggering equipment start times)
Staff education to reduce energy waste
Even small behaviour changes can reduce demand charges, often the most punishing part of your bill.
Stay informed about:
The Small Business Energy Incentive (bonus tax deductions)
State-based rebate schemes
Energy audit subsidies
These schemes can cover a significant portion of your upgrade or audit costs. Check your local government’s website or contact an energy broker for up-to-date information.
Energy brokers can:
Compare dozens of retailers on your behalf
Negotiate custom pricing
Help switch providers with minimal hassle
They understand tariff structures and market trends, saving you time and ensuring you’re not missing better deals.
Small changes can add up:
Turn off appliances when not in use
Use energy-saving modes on electronics
Adjust thermostats by 1–2 degrees
Maintain equipment to ensure efficiency
Maximise use of natural light
These practices require no capital investment but can cut electricity usage by 5–15%.
If your business is committed to sustainability, GreenPower allows you to:
Purchase energy from 100% renewable sources
Reduce carbon footprint
Appeal to environmentally conscious customers
Though slightly more expensive, the brand credibility and customer trust it builds can be worth the investment.
Jousto is a smart energy management platform designed for small businesses. It offers:
Real-time tracking of energy usage at appliance-level
Automation to optimise usage around wholesale energy pricing
Peak usage insights to help manage demand charges
Solar optimisation tools for businesses with rooftop systems
For businesses in short-term rentals (Airbnb, etc.), Jousto can automate control of appliances across multiple tenants and ensure energy use is tracked and minimised.
By automating the optimisation of energy usage and offering deep insights, Jousto acts as a digital energy manager, helping businesses save money without extra staff or time.
Electricity costs no longer need to be a fixed burden for Australian small businesses. With the right strategies in place—regular plan comparisons, strategic investments, behavioural changes, and smart technology like Jousto—it’s possible to dramatically reduce power bills.
What’s critical is taking that first proactive step. Review your current energy plan today, and start exploring the many opportunities available. The savings aren’t just financial—they’re a competitive advantage that can set your business apart in a tough economic landscape.
If you’re ready to stop overpaying and start optimising your energy use, Jousto offers the tools and services to make it happen. Whether you want to manage your energy actively or leave it to the experts, there’s a solution tailored to your business needs.
Based in South Australia? Discover how Jousto helps businesses in your area cut power bills and maximise efficiency with localised support.
👉 Explore commercial energy services in Adelaide
Prefer a hands-off approach? Jousto’s “Do It For Me” service automates everything—tracking usage, adjusting appliance schedules, and slashing unnecessary costs.
👉 Let Jousto manage your energy for you
Want to dive deeper into what Jousto can do? From real-time energy tracking to solar optimisation and demand charge management, Jousto makes energy smarter and more affordable.
👉 See how Jousto can help your business
Don’t let high electricity bills hold your business back. Take control today—with Jousto.