Buying guide · Victoria · Updated 2026
Everything worth knowing before you buy a heat pump
No jargon, no waffle. Just how these things work, what size you need, what they actually cost to run in Victoria, and every rebate you can stack on top. We sell heat pumps — so we'll also tell you straight where our picks land and why.
The basics
A heat pump doesn't make heat — it moves it
An old electric tank burns a kilowatt of power to make a kilowatt of heat. A heat pump grabs warmth that's already in the outside air and pumps it into the tank, so one kilowatt in gives you three to five out. That ratio is the COP, and it's the single number that drives your bill.
Fan pulls air in
Ambient air passes over an evaporator, even at 5°C on a Ballarat morning.
Compressor squeezes it
Refrigerant is compressed, which spikes its temperature well above the water.
Coil heats the tank
The hot refrigerant loops around or through the tank and dumps its heat into the water.
Hot water on tap
Stored at 60°C+, sanitised against legionella, ready when the shower goes on.
Sizing
Get the tank size right and everything else gets easier
Oversize it and you're paying to keep water hot that nobody uses. Undersize it and someone cops a cold shower on a Sunday morning. Match it to peak demand, not total daily use.
Rule of thumb: allow roughly 50–60 L of stored hot water per person, then round up one size if you've got a bath, a spa, or everyone showers within the same hour.
System types
Integrated or split — which suits your place?
All-in-one (integrated)
Compressor sits on top of the tank as a single unit. Cheaper to install, fewer things to go wrong, and it drops straight onto the old unit's slab in most swaps.
- Lowest install cost
- Half-day changeover
- One warranty, one service call
Split system
Compressor lives away from the tank, linked by refrigerant lines. Handy when the tank is indoors, the side passage is narrow, or noise near a bedroom is a genuine problem.
- Quieter inside the home
- Tank can go in a garage or laundry
- Costs more to install
Refrigerant
The gas inside decides efficiency and clearances
You'll see three on the Victorian market. None of them is wrong — they just suit different homes.
R290 (propane)
GWP 3Best efficiency, gets water to 60–70°C without an element, tiny climate impact.
Flammable, so clearance rules around windows and doors are stricter.
R134a
GWP 1,430Been around for yonks, plenty of service techs know it and parts are easy to get.
Older refrigerant — not recommended where newer low-GWP alternatives are available. High global warming potential and usually needs a boost element.
CO₂ (R744)
GWP 1Excellent in genuinely cold spots and delivers very hot water.
Higher upfront cost and fewer models on the VIC rebate list.
Running costs
What a Victorian household typically spends per year
Rough figures for a four-person home using about 200 L of hot water a day at Melbourne tariffs. Your bill moves with your retailer, your usage and whether you've got solar.
Indicative only — based on typical Victorian usage and retail tariffs. Use the savings calculator on the home page for numbers closer to your own household.
Rebates
What you can stack in Victoria
Three separate schemes, and they work together. Replacing a working gas or electric storage unit is what unlocks the biggest one.
Solar Victoria
$1,000 standard · $1,400 locally made
Hot water rebate for eligible owner-occupiers and rental providers replacing an old system. Only approved locally-made models receive the higher amount.
VEECs (VEU)
~$650
Victorian Energy Upgrades certificates, taken off your invoice at the point of sale.
STCs (federal)
~$700
Small-scale Technology Certificates, assigned to the installer and discounted upfront.
Stacked, that's roughly
$2,350 standard stack · up to $2,750 locally made
Amounts vary by product, postcode and the system you're replacing, and scheme values change through the year. We check your eligibility and lodge the paperwork as part of the job — the discount comes off your quote, not as a cheque later.
Installation
What the sparky and plumber need on the day
Clearances
Room to breathe around the fan — usually 300–500 mm at the air intake and discharge, more for R290 units near windows and doors.
A solid, level base
Existing concrete slab is ideal. If the unit's moving, budget for a new pad or bearers.
Power and circuit
A dedicated circuit is common. Older switchboards sometimes need an RCD or a spare pole.
Drainage and tempering
Condensate needs somewhere to go, and a compliant tempering valve keeps delivery at 50°C.
Neighbour noise
Keep the unit off shared boundaries and away from bedroom windows where you can — it saves awkward conversations later.
Timers and solar soak
Set the run window for the middle of the day if you have panels. Free heat beats cheap heat.
Before you sign
The eight-point checklist
Run any quote — ours included — through this before you commit.
- 1Tank size matched to your household — not the biggest one on the shelf
- 2COP measured at a Melbourne-like temperature, not a 20°C lab figure
- 3Sound rating under 50 dB if the unit sits near a bedroom or a neighbour's fence
- 4Tank warranty (5–10 yr) AND compressor warranty listed separately
- 5Approved on the Victorian Energy Upgrades product register
- 6Installer is licensed plumbing + electrical, and does the rebate paperwork
- 7A real service network in Victoria — parts within days, not months
- 8Written quote that includes removal of the old unit and any tempering valve
FAQs
Questions we get asked every week
Yes. Modern units are rated to keep working down to roughly -7°C to -10°C ambient. Efficiency drops on the coldest mornings, so a good unit either uses a smarter refrigerant like R290 or briefly kicks in a boost element. What matters is the COP at 7°C, not the headline figure.
Know what you want? Let's price it up.
Tell us your household size and what you're replacing, and we'll come back with a fully installed price with every rebate already taken off.