Both run on electricity, but they heat water in very different ways. A conventional electric storage tank uses a heating element; a heat pump moves heat from the surrounding air into the water, so it uses much less electricity for the same hot water.
Replacing an old tank? Ring 0421 772 661 and we'll check the circuit, tariff wiring and location before you decide.
A standard electric storage system is simple: an insulated tank with a heating element and a thermostat. Many Sydney homes run these on an off-peak or controlled-load tariff, so the element heats overnight when power is cheaper. They are compact for the volume of water, quiet, and have very little to go wrong beyond elements, thermostats and the tank itself.
A heat pump works like a reverse-cycle air conditioner running in heating mode. A compressor and fan pull warmth out of the outside air and transfer it into the water. Because it moves heat rather than making it, it typically uses a fraction of the electricity of an element tank. The trade-off is a higher purchase price, a fan and compressor that make some noise, and more parts that can need service over the years.
More hot water used each day means bigger savings from a heat pump's efficiency. This is where it tends to pay back best.
Lower usage means smaller savings. A well-sized element tank on off-peak can still make sense, especially if budget is tight.
A heat pump can be timed to run in the middle of the day, soaking up your own solar. An element tank can do this too, but uses more of it.
Heat pumps need airflow around the unit and make a low hum. Placement next to a bedroom window, yours or next door's, needs thought.
An element tank can sit in a laundry cupboard. Most heat pumps need to be outdoors or in a well-ventilated space.
A like-for-like element tank is often the quickest swap. A heat pump may need a change of location or circuit, so allow a little more planning.
Both need a dedicated circuit with suitable protection. Many older electric tanks are on a controlled-load circuit switched by the meter or a relay. Some heat pumps are happy on that circuit; others want continuous power and use their own timer, especially if you want them to run off solar during the day. Check the manufacturer's installation manual, and we will check how your existing circuit is wired and metered.
In older Inner West homes, the hot water circuit is often still on a ceramic fuse without RCD protection. Upgrading the hot water system is a good time to bring that circuit up to date, and sometimes the whole switchboard. Our heat pump hot water electrical guide explains the circuit side in more detail.
Plumbing and any refrigerant work belong to the plumber and, where needed, a licensed refrigeration technician. We handle the electrical isolation, circuit, protection and testing, then issue a Certificate of Compliance for Electrical Work.
A heat pump usually costs more to buy and install, and saves on running costs over time. How quickly it pays back depends on your usage, tariff, solar and any incentive you qualify for. NSW and federal programs have offered incentives for heat pump water heaters; check current eligibility on official government sites before you commit, because programs change. We don't quote rebate amounts and we are not a rebate provider.
It generally uses much less electricity for the same hot water. Whether total costs come out lower depends on purchase price, usage and tariff, so look at your own situation.
Sometimes. Some models are designed to work on controlled load, others need continuous supply. Check the manual and we'll confirm how your circuit is wired.
They make a low fan and compressor hum while running, similar to a small air conditioner. Placement away from bedrooms helps.
Yes. Sydney's climate is mild enough for air-source heat pumps; they can slow down on very cold mornings, which is one reason to time them for daytime.
We do the electrical work: circuit, isolation, protection, testing and compliance. The plumber connects the water side.
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