Home » Is a Heat Pump Water Heater Better than an Electric Instant Water Heater for Australian Homes? 

Is a Heat Pump Water Heater Better than an Electric Instant Water Heater for Australian Homes? 

Is a Heat Pump Water Heater Better than an Electric Instant Water Heater for Australian Homes? 

According to YourHome’s, Aussie households drain around 10.5% of the country’s total energy, and the Australian Bureau of Statistics reports that 23% of this goes towards water heating.

Keeping this in mind, Australians should consider more efficient water-warming alternatives that reduce energy costs while availing hot water as needed.  

Among these, two options stand out: heat pump water heaters and electric instant water heaters. So, which of the two is the best for Australian homes?

Read on, and you will be able to answer this question yourself! 

Understanding Heat Pump Water Heaters and Electric Instant Water Heaters

A Heat Pump Water System:

It is an appliance that warms water using thermal energy from the surrounding air. To achieve this, it uses the same operating principle as a refrigerator but in reverse. So, instead of dumping heat into the surroundings, it collects heat using a refrigerant.

The heat is then transferred to water, warming it up. The warmed water is stored in tanks ready for use as needed. The entire process only needs electricity to move heat – not create it. 

Electric Instant Water Heaters:

Electric instant water heaters (continuous flow or demand-type water heaters) directly heat cold water as it passes through them without storing hot water in a separate tank. These units provide hot water on demand while only consuming power when operating. 

Heat Pump Water Heaters Vs. Electric Instant Water Heaters 

1. Efficiency

Heat pump hot water systems use less power than electric instant water heaters. This is because heat pump hot water systems don’t need any resistance electric heating elements to generate warm water. Instead, they capture heat from the air using a special refrigerant and only use electricity to transfer it. 

On the contrary, electric instant water heaters rely solely on resistance electric heating elements to produce heat to warm water. These heating elements can consume up to 70% more electricity than those needed to move heat in hot water heat pumps. 

For an Australian looking to save, heat pump hot water units are best. In addition to consuming only 30% energy, they can save you up to $350 per year compared to traditional electric storage water heaters, as the Australian Renewable Energy Agency notes.

2. Environmental Impact

Heat pump water heaters are even better for the environment than electric instant water heaters. The International Energy Agency reports that heat pumps can help lower greenhouse gasses by up to 20%. Why? Because they use renewable energy in the form of heat found in the air, unlike electric water heaters, which depend entirely on electricity made from coal or oil. 

Even though water heaters require some electricity to move heat, they use less of it than traditional electric water heating methods. This results in considerably reduced greenhouse gas emissions. 

3. Installation Costs

Installing a heat pump water heater in Australia is more costly than installing electric instant water. As per Energy Australia, purchasing and installing electric instant water heaters requires around $1000-$2000. On the other hand, purchasing heat pumps without installation requires between $3000 and $4000. 

The cost of a heat pump hot water system is higher because of their quality, complex installation process, and extra component requirements. Fortunately, the Australian Government offers rebates to anyone installing qualified heat pump hot water systems. 

These rebates and incentives cover a certain percentage of the total costs, so you won’t have to bear it all alone. In the case of electric instant water heaters, there are no rebates, so you will bear all the costs!

4. Lifespan and Durability

Modern heat pump water heaters generally exhibit greater durability and longer lifespans than electric instant water heaters. But how? Well, heat pump systems utilize fewer electrical resistance heating elements; therefore, they experience reduced wear and tear. This boosts their expected lifespan up to 10 to 15 years according to Solar Analytics

On the flipside, electric instant water heaters have a resistance heating element that could be subject to more wear and tear, shortening their life span to around 8 to 12 years. 

5. Versatile Operating Mode

Some advanced heat pump hot water systems feature hybrid or dual mode functionality, allowing users to switch seamlessly between heat pump and electric heating modes. Such flexibility ensures consistent hot water availability regardless of unforeseen factors like a power blackout.

Moreover, the ability to revert temporarily to electric heating mode grants peace of mind during increased hot water demand or when extra warmth is needed. While electric instant water heaters deliver instant hot water, their focus on immediate heating limits operational versatility.

Final Thought

Both electric and heat pump water heaters provide eco-friendly water-warming options, yet heat pumps are a preferable option for Aussie households. Yes, there’s a more significant initial investment, but in the long-term they provide lower energy bills, possible government incentives, dependability, and durability which make them a smart investment.

Don’t miss out on those sweet benefits—get a heat pump water system today. Trust us, your future self will be grateful!

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Hot Water Hub

Hot Water Hub is your number one source for hot water systems in Australia. With best products, pricing, and customer service, we aim is to offer you the most reliable hot water services for your home and business.

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