What factors affect the cost of an electric heat pump?

Here are some aspects you have to keep track of to get an idea of how much your hot water heat pump can cost.


A larger capacity will always cost you a bit extra. Depending on the size of your family and needs, you can choose the best-suited one, whether it be a smaller-capacity heat pump or a big one. However, for an average family of four, it has been observed that a 200L one will suffice if each member uses 50L of hot water a day.

Heat Pump Installation Cost

Apart from the cost of the unit, you have to factor in the installation cost. This is, again, something that cannot be determined just like that. For a bigger system in a trickier part of the house, the installer might quote you a bit extra for obvious reasons. Similarly, for a smaller capacity heat pump with an easier installation process, as the labour cost goes down, so might the installation cost.
To go with an installer who is CEC approved is definitely recommended.

Replacement Or A Brand New Heat Pump?

Whether you are replacing your current electric hot water system with a heat pump or getting an entirely new one will change the price point, given that you live in NSW or Victoria. If you are a Victorian resident, then replacing your current electric hot water system with a hot water heat pump is entirely free of cost. This is a state government-provided subsidy in order to facilitate and encourage their people to be more energy efficient.

Also, if you live in New South Wales, you can get your electric hot water system replaced with a heat pump for only $33. Again, this is a state government-provided rebate.

Interested in taking advantage of either of the rebates? Get in touch with us- click here.

Replacement & Disposal (Without Available Subsidies)

If you don’t qualify for the government rebate, then you might have to pay your installer to get your old system out of the way and disposed of properly. Disposal of hot water systems needs expert hands and supervision because it’s not an easy task. So, a factor that is in while you are calculating how much a heat pump cost to install.


Replacing an old unit with a new one of the same model is also something that some of you might be looking forward to. In that case, it will not be much of a hassle to get that done without relocation of the system. However, if you wish to relocate your heat pump to a different part of the house, that is a cost you must factor in while deciding.

Tempering Valves

If an extra tempering valve is required, your installation might cost an additional $185 or around the range. It depends on your exact heat pump model.
heat pump price
Aside from all the factors mentioned above, it is necessary to ensure proper maintenance for the unit for a longer lifespan. Proper maintenance can come in the form of cleaning your unit or checking for issues that have the potential to become a bigger threat in the future. Heat pumps are efficient pieces of technology that save money and reduce your electric bill by consuming less energy, 75% to be exact (SLA heat pump spec). So, it makes total sense for you to be aware and responsive to your heat pump.
Also, it goes without saying that investing in a good quality heat pump is the first step towards an efficient and financially sound journey. For instance, you can look through these amazing quality heat pumps for your resident from Smart Lifestyle Australia; click here.
To sum up, installation costs of a heat pump vary from house to house and region to region, depending on many other external factors. To know what it might cost you to install a heat pump on your property, claim a free consultation session with our experts today.


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