The team was professional, helpful, and easy to deal with throughout the entire process. They explained everything clearly and kept me informed every step of the way. The installation went smoothly and was completed efficiently.
Heat pump hot water prices 2026
What does a heat pump hot water system cost in Victoria?
An average of $4,338 installed including the federal STC discount, per the Solar Choice Heat Pump Price Index, September 2026 release. For households that qualify for the full state incentives on an eligible locally made product, the same index puts the Victorian average nearer $2,618 replacing an electric tank. Eligibility rules apply and the figure moves with the product you pick. Budget units start near $3,000, premium CO2 systems run about $5,500 to $6,500, and running cost drops to roughly $150 to $300 a year. Figures checked 22 September 2026.
The numbers
What the Victorian market average looks like.
These are averages across a network of installers, so treat them as the middle of the market rather than a quote. The federal STC discount is already inside every figure below. The Solar Homes rebate and a Victorian Energy Upgrades discount come off on top, and how much depends on what you are replacing and whether you qualify.
| What the figure covers | Victoria | National average |
|---|---|---|
| Installed, including STCs and a basic installation | $4,338 | $4,635 |
| After the Victorian incentives, replacing gas | $2,762 | not applicable |
| After the Victorian incentives, replacing electric | $2,618 | not applicable |
Source: the Solar Choice Heat Pump Price Index, September 2026 release, checked 22 September 2026. Solar Choice publishes averages from its vetted installer network and excludes the cheapest end of the market, so a very low quote can sit below these numbers and a premium unit above them. The after-incentive rows assume a household eligible for the full Solar Homes rebate on an eligible locally made product, plus a Victorian Energy Upgrades discount. On the standard $1,000 tier the figure sits roughly $400 higher.
Why quotes differ
The unit sets the price more than the install does.
| Type of unit | Installed price | What the extra buys |
|---|---|---|
| Budget, R134a refrigerant | from about $3,000, and under $3,500 in metro areas | lowest entry price, shorter warranties |
| Mid-range | about $4,000 to $5,500 | the middle of the market, where the Victorian average of $4,338 sits |
| Premium, CO2 refrigerant | about $5,500 to $6,500 | better cold-weather performance, faster recovery, longer warranty |
CO2 range from Solar Choice's heat pump guide for New South Wales and Victoria; the wider premium end of the market runs to about $7,000 to $7,500 per SolarQuotes. Market ranges, checked 22 September 2026.
What turns a basic install into a bigger one. The first table assumes the new unit goes roughly where the old one was. The quote grows when the unit has to move, when the switchboard or the circuit needs work (common on a gas changeover, where there may be no suitable circuit at all), when a tempering valve is due, when the old tank has to be removed and disposed of, when a concrete pad is needed, or when access is tight. Each of those belongs on the quote as its own line.
Running cost
Roughly a third of an electric tank.
A heat pump moves heat from the air into the water instead of making it with an element, which is why the running cost falls so far. The gap is what pays the upgrade back, not the rebate.
| System | Running cost a year | Installed cost |
|---|---|---|
| Heat pump hot water | $150 to $300 | $3,000 to $7,500 |
| Electric resistive storage tank | $450 to $900 | $2,000 to $3,000 |
Running costs from Solar Choice's heat pump guide and installed costs from SolarQuotes, market ranges checked 22 September 2026. Electric resistive tanks don't create STCs, so that installed figure is a gross price. Your own number depends on household size, your tariff, and whether the unit runs in the middle of the day on your own solar rather than overnight. These figures compare a heat pump with an electric resistive tank: if you're on gas, the saving depends on your gas tariff and supply charge, and the walkthrough works it out from your bill.
What comes off
Three incentives, and they come off the quote.
The federal STC discount is already inside the prices on this page. On top of that, the Solar Homes hot water rebate is up to $1,000, or up to $1,400 for an eligible locally made product, for households under $150,000 combined income on a property under $3 million. A Victorian Energy Upgrades discount can apply as well. All of it is applied to your quote by the Solar Victoria Authorised Retailer in our partner network, so you are not paying full price and claiming it back later.
The full rebate rules, tiers and eligibility, and the government's own page is solar.vic.gov.au.
Common questions
Heat pump hot water cost FAQ.
How much does a heat pump hot water system cost in Victoria?
An average of $4,338 installed, including the federal STC discount and a basic installation, per the Solar Choice Heat Pump Price Index, September 2026 release. After the Victorian incentives the same index puts the average price at about $2,762 replacing a gas system and $2,618 replacing an electric one, for households that qualify for the full Solar Homes rebate on an eligible locally made product plus a Victorian Energy Upgrades discount. On the standard $1,000 rebate tier the figure sits roughly $400 higher. Budget units start around $3,000 installed and premium CO2 systems run about $5,500 to $6,500, with the top of the wider market around $7,500.
What does a heat pump hot water system cost to run?
About $150 to $300 a year, against roughly $450 to $900 a year for an electric resistive storage tank, per Solar Choice's 2026 buyer's guide. That is the reason the upgrade pays back: a heat pump moves heat rather than making it, so it uses roughly a third of the electricity for the same hot water. Your own figure depends on household size, tariff and whether the unit runs during the day on your own solar.
Why is one quote $3,000 and another $7,000?
Mostly the unit. Budget R134a systems sit at the bottom of the range and premium CO2 refrigerant units at the top, and the gap buys efficiency in cold weather, faster recovery and longer warranties. The rest is the install: where the old tank sits, whether the new unit goes in the same spot, the electrical work, and whether the plumbing needs reworking. Ask for the model number and the warranty term on the quote, because a cheap unit with a short warranty is a different purchase.
Do the rebates come off the price or arrive later?
They come off the quote, not later. The federal STC discount is already inside the Solar Choice averages on this page, and the Victorian incentives come off on top for eligible households. The amounts, the tiers and the eligibility rules are on our Victorian hot water rebate page.
Is a heat pump cheaper than replacing like for like?
Before incentives, no. An electric resistive tank runs $2,000 to $3,000 installed against $3,000 to $7,500 for a heat pump, per SolarQuotes. In Victoria the incentives close most or all of that gap for eligible households: the Solar Choice average after them is $2,618 replacing an electric tank, which is inside the resistive band. The running cost then does the rest, and the difference between the two ranges on this page works out at $300 to $600 a year, which pays back any remaining gap well inside the life of the unit.
Who installs it?
An SAA-accredited business in our partner network does the install, and the same partner is the Solar Victoria Authorised Retailer that applies the rebate to your quote. Tidy Energy does the walkthrough and the itemised quote. The unit, the tank size and the install specifics are settled before anything is ordered.
Related: the Victorian hot water rebate, how Tidy does hot water and the rebate calculator.
I truly appreciate all the assistance they provided with my queries. Their customer service was outstanding — they guided me through the entire process from start to finish and exceeded my expectations.
I had a great experience with Tidy Energy. The service was reliable, the setup process was straightforward.
I had a great experience with Tidy Energy. The team was professional, friendly, and responsive throughout the entire process. They explained everything clearly, kept me informed, and made the experience smooth and hassle-free. Highly recommend to anyone looking for a reliable and trustworthy energy company.
I had an excellent experience with Tidy Energy. Their team was professional, knowledgeable, and responsive throughout the entire process. They provided reliable service, communicated clearly, and made everything simple and stress-free. It's refreshing to work with a company that truly values its customers and delivers on its promises.
Outstanding service from start to finish! The installers were courteous, knowledgeable, and worked very efficiently. They made sure everything was installed properly and left the area clean afterward. I really appreciate how easy the whole process was. Thank you for providing such excellent service!
From the initial consultation to the final installation, the team was professional, knowledgeable, and efficient. They took the time to explain everything clearly, answered all questions, and made the entire process smooth and stress-free.
The team was professional, helpful, and easy to deal with throughout the entire process. They explained everything clearly and kept me informed every step of the way. The installation went smoothly and was completed efficiently.
I truly appreciate all the assistance they provided with my queries. Their customer service was outstanding — they guided me through the entire process from start to finish and exceeded my expectations.
I had a great experience with Tidy Energy. The service was reliable, the setup process was straightforward.
I had a great experience with Tidy Energy. The team was professional, friendly, and responsive throughout the entire process. They explained everything clearly, kept me informed, and made the experience smooth and hassle-free. Highly recommend to anyone looking for a reliable and trustworthy energy company.
I had an excellent experience with Tidy Energy. Their team was professional, knowledgeable, and responsive throughout the entire process. They provided reliable service, communicated clearly, and made everything simple and stress-free. It's refreshing to work with a company that truly values its customers and delivers on its promises.
Outstanding service from start to finish! The installers were courteous, knowledgeable, and worked very efficiently. They made sure everything was installed properly and left the area clean afterward. I really appreciate how easy the whole process was. Thank you for providing such excellent service!
From the initial consultation to the final installation, the team was professional, knowledgeable, and efficient. They took the time to explain everything clearly, answered all questions, and made the entire process smooth and stress-free.
Victoria
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