Home › Brands we install › Heat pump vs electric hot water
Heat pump vs electric hot water · Licence 332956C

Heat pump vs electric storage hot water

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.

★★★★★
Read what customers wrote, below
  • Licensed electrician, NSW 332956C
  • Based in Hurlstone Park
  • Honest, practical advice
How they work

Element versus refrigeration cycle.

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.

Which suits whom

Matching the system to the household.

!

Larger households

More hot water used each day means bigger savings from a heat pump's efficiency. This is where it tends to pay back best.

!

One or two people

Lower usage means smaller savings. A well-sized element tank on off-peak can still make sense, especially if budget is tight.

!

Homes with solar

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.

!

Tight side passage or close neighbours

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.

!

Indoor or cupboard locations

An element tank can sit in a laundry cupboard. Most heat pumps need to be outdoors or in a well-ventilated space.

!

Urgent breakdown replacement

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.

Electrical needs

What changes at the switchboard.

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.

Costs and incentives

Up-front price vs running cost.

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.

Questions

Common questions.

Is a heat pump always cheaper to run than an electric tank?

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.

Can a heat pump use my existing off-peak circuit?

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.

Are heat pumps noisy?

They make a low fan and compressor hum while running, similar to a small air conditioner. Placement away from bedrooms helps.

Will a heat pump work in a Sydney winter?

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.

Do you install the whole system?

We do the electrical work: circuit, isolation, protection, testing and compliance. The plumber connects the water side.

More

Related pages.

Related services and guides
More like this
Areas

Talk to a licensed electrician.

0421 772 661

NSW Electrical Contractor Licence 332956C · Fully insured · Since 2016 · Based in Hurlstone Park

Google reviews

What customers wrote

★★★★★
Excellent electrician Blue Link Electrical was honest, knowledgeable, and took the time to answer my questions The work was completed quickly without rushing and everything works perfectly Will be using them
Parveen EjazGoogle review · Marrickville
★★★★★
Very professional and reliable service. Blue Link Electrical were punctual, friendly, and knew exactly what they were doing. The job was completed to a high standard and the place was left clean. Highly recommend to anyone needing electrical work.
Ablish MughalGoogle review · Marrickville
★★★★★
Can't fault the service from Blue Link Electrical From first contact to job completion everything was smooth and professional Quality workmanship and great attention to detail. One of the best trades experiences I've had. Make sure you do them slowly
Abdullah EjazGoogle review · Marrickville

Shown in full, as written on our Google Business Profiles.

Free quote

Tell us what you need.

Send us a few details and we'll get back to you with a clear, upfront quote.

Prefer to talk? Call 0421 772 661

Thanks, we've got it.We'll be in touch soon. For anything urgent, call 0421 772 661.
Call Now: 0421 772 661