Heat pump vs gas hot water: what Northern Beaches homeowners need to know

For most homes, a heat pump costs more to install than gas and less to run. If you are choosing between the two for heat pump hot water on the Northern Beaches, that is the short answer. The detail is in your household, your existing system and whether you have solar. Here is how we explain it to customers.

Why hot water is worth getting right

The Australian Government says water heating is the second largest part of household energy use, somewhere between 15% and 30%. So the system you choose shows up on your bills every month (energy.gov.au).

How a heat pump works

A heat pump pulls heat out of the air to warm the water, a bit like an air conditioner in reverse. The same government guide says a heat pump water heater uses about 30% of the energy of a conventional electric system. It describes heat pumps as expensive to buy and install but cheap to run.

How gas compares

The same guide says gas hot water has medium to high purchase, installation and running costs. Continuous flow is the most common type. Gas storage tanks lose a lot of heat, which makes them particularly inefficient.

What it costs to install

Most of our heat pump installs, Rheem and iStore, come in between $4,500 and $7,500, including the plumber, before any rebates. We give you a fixed, itemised quote before any work starts. Your number depends on the unit, the site and the pipework.

What about rebates?

Heat pump hot water systems may be eligible for small-scale technology certificates (STCs) and other government rebates, according to energy.gov.au. We will not quote a dollar figure here, because the amount depends on the model and changes over time. Ask us and we will confirm what applies to your install.

Where solar fits in

A heat pump runs on electricity. If you have solar panels, you can power it from your own roof. Gas cannot do that. For a home with solar, that is often what tips the choice.

When gas still makes sense

If your gas unit works well and is not old, there is no rush to swap it. A heat pump compressor can be noisy, like an air conditioner, so where it sits matters. The government guide also notes that not all models suit places that regularly drop below 5°C. That is rarely a concern here, but we check the model for every site.

Our advice

If your system is failing or you are building, a heat pump is usually the better long-term choice. If it is working, get a quote and compare it with your current bills. We are licensed electricians with more than 20 years on the Northern Beaches, SAA accredited, and we install Rheem and iStore. Our heat pump hot water page has more on the install, and our solar battery storage page covers what to pair it with.

Talk to Joe about your home

Get in touch · 02 9913 9417