Heat Pump Hot Water: the incentives claimed for you, the old tank taken away

If your house runs an electric storage tank, a heat pump is the one hot water change that pays you back: a fraction of the electricity, incentives that come off the price on the day, and a unit that goes where the old tank stood. Across the Macarthur estates and the Austral growth corridor, where many houses have no gas and most run electric storage, it is now the default replacement rather than the alternative. Paul sizes it, sites it where the compressor will not keep anyone awake, claims the incentives and takes the old tank away.

How a heat pump makes hot water

A heat pump works like a reverse air conditioner: a small compressor pulls heat out of the outside air and moves it into the water in the tank. Moving heat takes far less energy than making it with an element, so a heat pump uses roughly a quarter to a third of the electricity of a standard electric tank for the same hot water. It still has a tank, so the showers feel the same, and most units have a backup element for the coldest mornings.

The incentives, in plain terms

Replacing an electric storage system with an eligible heat pump attracts a NSW incentive under the state's energy savings scheme and federal small-scale technology certificates. Both are claimed by us or our supplier and come off your price, so there is no form to fill in afterwards. How much depends on the unit, the tank size and the rules in force on the day, and those rules change, so Paul confirms what your house qualifies for when he quotes rather than printing a number here that will be wrong by next month.

Siting and noise

The compressor makes about as much noise as a split system outdoor unit. We put it where it has airflow, away from bedroom windows, yours and the neighbour's, with the condensate drained properly and the unit off the ground on a compliant base. On a tight block between two houses that sometimes means a different wall from where the old tank stood, and we say so before quoting.

What the installation includes

Removal and disposal of the old tank. The new unit on a compliant base, new valves, a tempering valve so the bathroom outlets stay at a safe temperature, insulated pipework, the condensate drain, and the electrical connection by a licensed electrician where a new circuit or timer is needed. Commissioning, a run-through of the controller, the compliance certificate and the incentive paperwork. Usually one day; supply sometimes adds a day for particular models.

Which houses suit a heat pump, and which do not

Suits: any house on electric storage, which is most of Narellan, Mount Annan, Harrington Park, Edmondson Park and the Austral and Leppington estates; houses with no gas connection; houses with solar, where a daytime timer lets the panels heat the water. Does not suit: a unit with the tank in an internal cupboard and nowhere outside for the compressor, a spot with no airflow, or a household set on instantaneous gas. For those we say so and quote the right alternative from the hot water systems page.

Brands

Heat pump models from Rheem, Dux, Thermann and Rinnai, chosen for the household size, the space and the noise rating, with the manufacturer's warranty on the unit and our lifetime guarantee on the workmanship.

Camden, Narellan, Oran Park and Gregory Hills

The Macarthur estates are heat pump country: BASIX homes on electric storage or a gas continuous flow unit reaching replacement age, blocks with room on a side wall, and plenty of solar. We do the Camden and Narellan hot water work from the same van and carry the common sizes.

Austral, Leppington and Edmondson Park

Many of the newer estates were built without gas, so the choice at replacement is electric storage again or a heat pump, and the incentives decide it. New builds in Austral and Leppington can go straight to a heat pump at handover if the builder's tank is undersized, which it often is.

Liverpool and the older suburbs

In Liverpool houses a heat pump replaces the electric tank in the usual way. In units it is case by case: a balcony or a courtyard can work, an internal cupboard cannot. See hot water Liverpool.

What customers say about Paul

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Heat Pump Hot Water: questions we get asked

Page updated 19 October 2026.

Where we do this work

Across Austral, Liverpool, Fairfield and the Macarthur region, see all service areas, Camden, Narellan, Oran Park, Gregory Hills, Mount Annan, Austral, Leppington, Edmondson Park, Liverpool. Suburb pages for hot water: Camden, Narellan, Campbelltown, Liverpool.