Rheem Heat Pump Hot Water System Review

Power bills linked to heating water have long been a silent killer of household budgets, consistently ranking as the second-largest segment of home energy use in Australia.

For the average Aussie family, water heating accounts for a massive 15% to 30% of the total electricity bill, depending on location and system type.

In high-consumption areas like Perth, this figure can soar even higher. The choice of a hot water system, therefore, is not a minor appliance purchase—it’s a long-term financial strategy.

The Rheem heat pump promises to completely shift this financial burden.

Who Is Rheem, and Why Does It Matter?

Rheem is an Australian manufacturing leader with over 85 years of history in the hot water industry.

This experience makes it one of the most trusted and recognisable names for reliable systems built for local conditions.

The company’s goal with the AmbiPower is to bridge its legacy of durability with the urgent demand for energy efficiency.

It matters because it offers Australian homeowners a proven and strong system to drastically cut hot water energy consumption, which accounts for up to 30% of household power bills.

Furthermore, Rheem partners extensively with plumbers and renewable energy installers across the country.

It ensures there are enough systems and experts for local installation, plus a strong after-sales support via its established national service network.

In short, choosing the Rheem brand means investing in a product backed by the largest and most reliable support system in the Australian market.

How a Rheem Heat Pump Actually Works

A heat pump operates on a completely different principle from the electric element it replaces. Think of the Rheem heat pump as an air conditioner on a reverse cycle.

Here is the simple step process:

1. The unit uses a fan to draw in warmth from the surrounding air (even very cold air contains usable heat energy). 
2. The air is then passed through an evaporator coil. This is actually where a liquid refrigerant absorbs the heat and turns it into vapour. 
3. The vapour is then compressed. This simple act drastically increases the temperature and the pressure of the vapour.
4. This super-heated gas is circulated through a heat exchanger, transferring its thermal energy directly into the water tank. 

The effectiveness of this process is measured by the Coefficient of Performance (COP).

The Rheem AmbiPower 280e achieves a maximum COP of 5.2.

This means that for every 1kW of electricity used to run the compressor, the system delivers an incredible 5.2kW of heating power to the water.

This is how it achieves over 400% efficiency compared to a standard electric heater.

What Makes Rheem Heat Pumps Stand Out?

🟥 Top-Tier Thermal Efficiency (COP of 5.2): The primary selling point is the AmbiPower’s exceptional Coefficient of Performance (COP) of up to 5.2. This places it at the peak of integrated heat pump efficiency in Australia. 

🟥 Durability and All-Climate Operation (Down to -6 degrees Celsius). Rheem engineers its products to handle the full spectrum of Australian climates. This minimises the need for the less-efficient backup electric element in cold weather.

🟥 EcoNet enabled: This is similar to having a smart and energy-efficient assistant. It is easy to monitor and control your heat pump through this EcoNet app.

🟥 Brushless DC condenser motors (BLDC): The motors are set in the efficient manner. They’re quiet and keep your system running well for years. 

🟥 The Power of the National Network: Ultimately, the biggest stand-out feature is the backing of the Rheem organisation. This guarantees that homeowners benefit from the most established supply chain in the country.

PlusOne® diagnostic & Bluetooth® 1 connectivity: This combination makes the system’s inspection and troubleshooting easy.

🟥 Variable speed scroll compressor & inverter drive: This feature really adapts to your heating and cooling requirements in real time.

🟥 Swept Wing Fan technology: For Aussies who love quiet heat pumps, the Rheem option is the best. It is designed to minimise noise significantly.

🟥 7 mm condenser copper coil 2: This coil offers better heat transfer which means better performance.

🟥 Inverted reversing valve: This feature helps your system switch between cooling and heating.

The Models:

AmbiPower MDc- 180 Heat Pump (in R513a) and AmbiPower 5kW Split Heat Pump System — Which One Suits You?

Rheem offers several configurations to suit different household sizes and site requirements.

We focus on two primary models that cater to distinct segments of the market: the compact and all-in-one MDc-180 and the high-capacity and space-saving 5kW Split System.

Ambipower MDc- 180 Heat Pump (in R513a) – The Compact size for all climates Solution

The MDc-180 is Rheem’s next-generation, integrated 180-litre heat pump, designed as a direct, drop-in replacement for traditional electric tanks in small-to-medium households.

It prioritises a small footprint and exceptional cold-climate performance. 

Specifications: Rheem Ambipower MDc- 180 Heat Pump (in R513a)

• Dimensions: (H x W),1810mm×532mm (Compact footprint)
• Capacity (Nominal): 178 L
• Operating Range: -7 °C to +43∘°C
• Noise Level: ≤ 48dB(A)
• No. of People: 1-4
• Warranty: 7 years

What we like about the MDc-180 Heat Pump (in R513a)

• An operational range down to -7 degrees Celsius makes this one of the most reliable options for cold-climate regions like Tasmania and the Central Tablelands. This helps reduce reliance on the boost element.
• The use of R513a ensures a significantly reduced Global Warming Potential compared to older R134a models.
• Its slim profile (532mm width) is excellent for tight installation spaces often found in smaller homes or units.
• Advanced wrap-around heating for uniform and faster water temperature recovery compared to older heat pump designs.

What could be better

• At ≤ 48dB (A), it’s quiet. However, it is marginally louder than some competitors that fall under bD (A).

✔️ Best for: Small households (1-4 people) or those replacing an electric system in a very cold climate where space is a challenge and reliability below zero is paramount.

AmbiPower 5kW Split Heat Pump System – Premium, Efficient & Built for full frost protection

The AmbiPower 5kW Split System is Rheem’s high-capacity and flexible heat pump solution. It separates the compact heat pump unit from the large storage tank.

This helps it address installation challenges and delivers powerful hot water recovery using the superior R290 refrigerant.

Specifications: AmbiPower 5kW Split Heat Pump System

• System Type: Split (External Heat Pump Unit, Separate Tank)
• Tank Options,315L Vitreous Enamel or 325L Stainless Steel
• COP: ∼4.5 (at 19∘°C ambient up to 5.1 in warmer conditions)
• Refrigerant: R290 (Ultra-Low GWP of 0.02)
• No. of people: 4–6 people
• Heating Capacity: 4.5kW (at 19∘°C ambient)
• Operating Range: −6∘°C to +43∘°C
• Frost Protection: Full frost protection
• Tank Warranty: 10 years

What we like about the AmbiPower 5kW Split Heat Pump System

• Installation flexibility, as the tank and heat pump unit can be separated by up to 5 meters. This is important because it allows the tank to be installed indoors (e.g., in a garage or cellar) while the outdoor unit operates efficiently. 

• It is designed for full frost protection across all Australian climates, offering robust performance in areas prone to heavy or frequent frost.

• The powerful 4.5kW module and large tank capacity ensure a high hot water recovery rate. This easily meets the peak demand of large households.

• The 10-year cylinder supply warranty is the longest Rheem offers for its heat pump range and this provides long-term confidence.

• Uses R290 which is an Ultra-Low Global Warming Potential refrigerant that sets a high standard for sustainability.

What could be better

• As a split system with a premium, high-capacity tank, the total installed cost is typically higher than that of integrated models.

• Installation requires connecting the refrigeration unit to the water tank via plumbing. This is slightly more complex than the simple ‘all-in-one’ units.

✔️ Best for: Large households (4–6 people) seeking maximum installation flexibility, high hot water capacity/recovery and the strongest system for cold climates where full frost protection and a long tank warranty are non-negotiable.

Rheem’s Smart Tech: Modes That Let You Control Every Watt 

One thing Rheem did right with the AmbiPower series is the control panel.

It doesn’t feel confusing.

You don’t sit there thinking, “Which button is going to break something?” Instead, the system gives you a handful of modes that fit real-life situations.

You pick what you want, and it does the rest.

Here’s how each one works.

🟥 Energy Saver Mode (Default)

This is the mode most people leave it on, and honestly, you can run the system for years without touching anything else.

It leans on the heat pump to do most of the work, which keeps your running costs low.

If things get chilly outside or you suddenly need a quick boost, the electric element steps in.

You get solid efficiency without stressing about running out of hot water. It’s very much a “just let it do its thing” setting.

🟥 Heat Pump Only Mode

This one is for people who want the absolute lowest running cost and are happy to trade a bit of speed for it.

The electric element sits out completely.

Everything runs off the compressor. Great if you’ve got solar and want the tank heating in the middle of the day while the sun is doing the heavy lifting.

Just know it heats slower, so back-to-back showers might push it.

🟥 High Demand Mode

Imagine visitors staying over, kids having long showers, washing machine running non-stop — chaos. This mode is for that.

Both the heat pump and the electric element fire up together, so the tank refills fast. It’s the quickest way to recover the whole system when you know you’re going to be using a lot of hot water.

🟥 Electric Only Mode

This one feels like a throwback. The heat pump turns off, and the unit heats water the old-school way — straight electricity.

It’s quick but expensive to run.

Most people only use it in a pinch, like if the weather is freezing or something needs a top-up urgently. 

🟥 Vacation / Away Mode

If you’re heading out for a few days or longer, this mode keeps the tank warm enough to stay safe while cutting down on your power use.

It doesn’t heat water you’re not going to use. Once you’re back, switching out of this mode sends it right back to normal operation. It’s that simple.

How Much Do You Save on Installing a Rheem Heat Pump

If you’ve been wondering whether a Rheem heat pump is worth the money, the short answer is: most people end up saving more than they expect.

The savings show up in two places — what you spend up front, and what you keep in your pocket every year after.

Let’s break this down.

1. The Long-Term Savings (Where the Real Wins Happen)

The biggest shift happens once the system is running. Heat pumps use far less electricity than old electric tanks. In some homes, it’s close to 70% less. That’s massive.

On average, most households keep around AUD500–AUD550 a year that would’ve gone straight to the power company.

Some save more, especially if they’re on the higher end of electricity rates or have a busy household that chews through hot water.

Yes, heat pumps cost more upfront than a basic electric tank. Everyone knows that part. But those yearly savings slowly chip away at the price difference.

Most homes hit the break-even point in three to seven years, depending on hot water usage and local energy rates.

After that, it’s just pure savings every year the unit keeps working.

2. The Upfront Savings (This Part Surprises People)

A lot of homeowners in Australia don’t realise how many financial incentives are available. And they stack.

• Federal Tax Credit:

If your Rheem model meets the required efficiency standards, you can get up to AUD2,000 back on your taxes. That instantly knocks a big chunk off the purchase.

• State and Local Rebates:

Depending on where you live, your state or even your local utility might offer additional rebates for upgrading to an efficient system.

These vary a lot, but sometimes they’re hundreds of dollars on top of the federal credit.

Put everything together, and the upfront cost can drop far lower than what people assume.

In some cases, homeowners find that the rebates bring the total cost close to — or even below — a traditional electric tank install.

Performance, Installation, and Support: What You Can Expect From Rheem

Performance Across Aussie Conditions

Australia’s climate is all over the place. You’ve got humid summers up north, icy mornings down south, and everything else in between.

Rheem clearly had that in mind when they built the AmbiPower range because these units aren’t picky about where they live.

• Strong Cold-Weather Performance

Let’s start with the colder states.

Anyone in Victoria or Tasmania knows winter can hit hard, and many heat pumps struggle once the temperature drops.

The R290 models — like the AmbiPower 280e and the 5kW Split — handle low temperatures far better than older designs.

They’re rated to keep running efficiently even when the air outside hits –6°C, which is seriously impressive.

Why does that matter?

It’s because the colder it gets, the more other systems rely on their electric element. That electric element is the expensive part to run.

The better the heat pump performs in the cold, the more money you keep in your wallet. Simple as that.

• High Efficiency in Warm Areas

Now swing over to Queensland or Western Australia, where it feels like summer lasts ten months of the year. Heat pumps absolutely thrive in these areas.

With so much warm air to work with, the AmbiPower units often reach a COP above 5.2. Simply, the system makes a lot of hot water for very little electricity.

This is where people with solar really win. The heat pump runs almost effortlessly, heating the tank fast while your panels handle the bulk of the work.

• Safety Built In

No matter the climate, Rheem keeps things stable. Every model includes the controls needed to maintain water at 60°C, which is the sweet spot for safety and for preventing bacterial issues.

And they do it without chewing through electricity like an old electric tank would.

The insulation is thick, the temperature controls are reliable, and everything feels like it was built with long-term use in mind.

Installation Experience

Replacing an existing electric storage unit with an AmbiPower heat pump is designed to be a straightforward process for certified Rheem installers.

• Integrated Units (280e / MDc-180)

These are the simple ones. Everything is built into a single outdoor unit, so most of the time it’s a straight replacement.

The installer disconnects your old tank, slides the new one in, hooks up the same plumbing and electrical lines, and that’s all. 

• Split Systems (5kW)

These take a little more coordination.

However, they also give you more flexibility. The heat pump sits outside, and the tank can go indoors or somewhere more tucked away.

You’ll usually have a plumber handling the tank and water lines and a refrigeration tech running the refrigerant piping to link the two parts.

It’s a bit more involved, but it solves the “I don’t have space for a giant cylinder outside” problem that many homes run into.

• Airflow Needs

One thing every heat pump needs is space to breathe. The unit has to pull in warm air and push out cooler air.

If it’s crammed into a tight corner or boxed in behind fencing, it won’t run efficiently.

Installers make sure there’s enough open space around it so it can do its job without recycling its own cold exhaust air.

Comparing the Rheem Heat Pump  to Other Brands

The Australian heat pump market is highly competitive, featuring both integrated (all-in-one) and split systems.

Rheem AmbiPower distinguishes itself by balancing near-top-tier efficiency with unrivalled national support and reliability.

Here is how the Rheem AmbiPower compares against key competitors:

Pros of Rheem Heat Pump Hot Water Systems

• They’re seriously efficient, especially compared to older electric tanks. Most people notice the drop in their power bill pretty quickly.
• The units hold up really well in colder states, which is something a lot of heat pumps struggle with. The R290 models don’t tap the backup element nearly as often, so you’re not losing savings in winter.
• The integrated designs are easy to install. A lot of plumbers appreciate that it’s almost a straight swap for the old tank.
• The split systems give you flexibility with placement, which helps if your outdoor area is cramped or awkward.
• They heat water fast for a heat pump, especially in warmer climates.
• They keep water at safe temperatures without wasting energy. 
• Rheem has a big installer network, so support and parts aren’t a headache.

Cons of Rheem Heat Pump Hot Water Systems

• They cost more upfront than basic electric systems, even though they pay themselves back over time.
• Like any heat pump, they need good airflow, so you can’t just tuck them into a tiny corner and forget about them.
• The split system setup involves both a plumber and a refrigeration tech, which can mean a longer installation window.
• Some people notice a bit of noise from the outdoor unit, especially at night, depending on where it’s placed.

Rheem Heat Pump Review 

⭐️ Price (Net of Rebates): 7.5 / 10

The upfront price still limits some people from buying. But once the rebates kick in, the final cost looks a lot friendlier.

With the federal credits and what many states offer, you end up paying far less than expected. For what the system delivers, the value is genuinely solid.

⭐️ Warranty & Support: 9.5 / 10

This is where Rheem really shines. The warranty is generous—up to 10 years on the tank—but the real winning piece is their service network.

If something goes wrong, there’s almost always someone close by who can fix it without leaving you waiting for weeks.

⭐️ Performance (Cold/Recovery): 8.5 / 10

A lot of heat pumps start struggling once the temperature drops, but this one keeps going.

It handles cold mornings down to -6°C without leaning too hard on the electric backup. Recovery times stay strong, too, so households don’t end up running out of hot water just because it’s winter.

⭐️ Efficiency (COP): 9.0 / 10

This unit sits near the top of the efficiency chart. With a COP up to about 5.2, it turns a tiny amount of electricity into a surprising amount of hot water.

Over the years, that adds up to real savings—honestly, one of the biggest reasons people switch in the first place.

So, is the Rheem Heat Pump Worth it?

Yes, the Rheem AmbiPower Heat Pump is an outstanding long-term investment for the vast majority of Australian households.

The worth of the system is proven through two major factors.

Financially, the AmbiPower’s COP  ≤ 5.2 drives energy savings of up to 73% on your hot water bill.

This means the investment is often paid back within 3 to 7 years through savings alone, generating pure profit for the remainder of its life.

Operationally, the value lies in reliability. Choosing Rheem guarantees you are backed by the largest service network in the country.

You get a product built for Australian extremes with excellent cold-weather performance and a long-life cylinder warranty, ensuring minimal downtime and maximum peace of mind.

Final Verdict

If you’re serious about cutting your energy bills and want hot water you can rely on, the Rheem AmbiPower heat pump is a solid pick.

Yes, the upfront cost is higher than a standard electric tank. But once you factor in rebates, federal incentives, and the long-term energy savings, the numbers start looking really good.

It’s not just about money, either.

Rheem has been in the Australian hot water game for over 85 years, so you’re getting a system built for local conditions.

Add in the nationwide installer network and long cylinder warranty, and you’ve got a setup that’s designed to last, with support you can actually count on.

FAQs