Typical running costs, per year
A four-person household using around 200L of hot water a day: gas storage roughly $850–$1,200, electric resistive $1,100–$1,500, and a heat pump $250–$400 on a flat tariff — or as little as $60 if it runs on daytime solar.
Payback
After rebates, a supplied-and-installed heat pump usually lands between $1,500 and $3,500. Against $900+ of annual savings, most homes break even in 3–5 years and keep saving across a 12–15 year service life.
Rebates by region
| Program | Typical value | Notes |
|---|---|---|
| Federal — STCs | $700 – $1,200 | Small-scale Technology Certificates, usually deducted from the quote up front. |
| Victoria | Up to $1,000 | Victorian Energy Upgrades plus Solar Victoria hot water rebates for eligible households. |
| New South Wales | $300 – $1,200 | Energy Savings Scheme discounts applied at point of sale by accredited providers. |
| South Australia | Up to $1,000 | Retailer Energy Productivity Scheme (REPS) activity discounts. |
| Queensland & others | Varies | STCs apply nationwide; check current state and council programs with your installer. |
Amounts are indicative and change regularly. Your installer confirms eligibility before you commit.