How Much is a Heat Pump Hot Water System?

As energy costs continue to rise, businesses across Australia are seeking more efficient and sustainable solutions for their hot water needs.

For business owners looking to upgrade, a new hot water system, particularly our heat pump hot water system at KUGA Electrical, offers significant benefits.

These systems are known for their cost-effectiveness and energy efficiency, providing various incentives and rebates available to support the transition to solar.

But how much does a heat pump hot water system cost, and what should businesses consider before making the investment?

Let’s explore the key aspects of these systems, including costs, rebates, and potential savings.

What is a Heat Pump Hot Water System?

A heat pump hot water system is an advanced technology that extracts heat from the surrounding air to heat water. Unlike traditional water heaters that generate heat directly, a heat pump transfers existing heat, making it significantly more energy-efficient.

Hot water heat pumps come in various types, including air-source, ground-source, and hybrid systems. Air-source heat pumps draw heat from the air, ground-source systems extract heat from the ground, and hybrid systems combine both methods for optimal performance. These systems typically use up to 70% less energy than conventional electric water heaters, providing reliable hot water while reducing greenhouse gas emissions. The innovative features, such as smart technology, further optimise performance and save costs, making hot water heat pumps a sustainable and eco-friendly choice for businesses looking to reduce their carbon footprint.

LEARN MORE ABOUT OUR COMMERCIAL HEAT PUMPS

For more information on Heat Pump Hot Water Systems, read this guide from Sustainability Victoria.

How Much Does a Heat Pump Hot Water System Cost?

The cost of a heat pump hot water system can vary depending on several factors, including the size of the system, the brand, and the complexity of the installation. When comparing a heat pump unit to a conventional electric hot water system, it’s important to consider both the initial purchase price and the long-term energy savings. Heat pump units, which come in various types such as integrated and split systems, are generally more energy-efficient and can significantly reduce electricity bills over time. However, the upfront cost of purchasing a heat pump unit can be higher than that of a conventional electric system.

Generally, the cost can be broken down into two main components: the equipment itself and the installation.

Equipment Costs

For a commercial setup, mid-range heat pump systems with a capacity of under 200 litres typically start around $2,000. These systems often include a hot water tank, which plays a crucial role in heating water efficiently. The hot water tank stores and maintains the heated water, allowing the heat pump to operate more effectively compared to conventional electric systems. This results in significant energy savings and benefits for households.

Larger systems, such as those with a 250-300 litre capacity, can range from $2,500 to $4,000+.

Installation Costs

Installing a heat pump hot water system in a commercial setting usually requires both a plumber and an electrician. Hot water system installation is known for its energy efficiency and cost-effectiveness, making it an attractive option for eco-conscious consumers. If the installation involves replacing an existing electric water heater, the costs may be as low as $1,000. However, more complex installations, such as those requiring a new electrical circuit or additional plumbing work, can increase the installation costs to $1,400 or more.

Additional factors, such as the location of the installation, accessibility, and any required upgrades to the electrical system, can further influence the total cost.

Available Rebates and Incentives

Victorian Energy Upgrades (VEU)

In Victoria, businesses can access rebates through the VEU program. This program offers incentives for energy-efficient upgrades, including heat pumps. Eligible businesses can receive significant rebates under the Accredited Providers program to generate Victorian Energy Efficiency Certificates (VEECs). Each certificate is one tonne of greenhouse gas emissions prevented from entering our atmosphere.

NSW Energy Saving Scheme (ESS)

In New South Wales, the ESS program provides rebates for upgrading to energy-efficient systems. Businesses switching from gas or electric water heaters to heat pumps can benefit from these rebates, which are based on the amount of energy saved by the upgrade.

Register with us now to confirm your eligibility for a FREE upgrade commercial heat pump for your business.

Unlocking Potential Savings

One of the most compelling reasons to invest in a heat pump hot water system is the potential for long-term savings.

Due to their high energy efficiency, heat pumps can significantly lower energy bills. As we’ve mentioned, businesses switching from traditional electric water heaters to heat pumps can save up to 70% on their water heating costs. Additionally, the reduction in greenhouse gas emissions can improve a company’s environmental credentials, which is increasingly important in today’s business environment.

Over time, the savings on energy bills can more than offset the initial investment, making heat pumps a cost-effective solution for commercial hot water needs.

Is it Worth the Investment?

Investing in a heat pump hot water system is not just about reducing energy costs—it’s a strategic move towards sustainability and long-term savings.

Similar to a split system air conditioner, a heat pump hot water system operates with a separate heat pump unit working in conjunction with a hot water tank. This parallel highlights the efficiency and operational mechanisms shared by both systems.

With the availability of government rebates and incentives, the initial cost can be significantly reduced, making heat pumps a smart choice for businesses looking to lower their operating expenses and carbon footprint.

If you’re ready to explore how a heat pump hot water system can benefit your business, contact us today at KUGA Electrical for a tailored quote and to learn more about the available rebates.