Heat pump hot water systems have gone from a niche option to one of the most asked-about upgrades we quote in Mandurah and the Peel region. Search interest across Western Australia has climbed steadily since mid 2025, and most of the questions we hear boil down to one thing: is a heat pump actually worth it for my house? This guide gives you a straight answer, including where a heat pump makes sense and where it does not.
What is a heat pump hot water system?
A heat pump hot water system is an electric water heater that moves heat rather than making it. It works like a reverse-cycle air conditioner or a fridge running backwards. A fan draws in outside air, a refrigerant absorbs the warmth from that air, a compressor concentrates it, and the heat is passed into the water stored in the tank.
Because it is moving existing heat instead of heating water directly with an element, a good heat pump produces around 3 to 4.5 units of heat for every unit of electricity it uses. A standard electric storage system produces one unit of heat for each unit of electricity. That difference is the whole reason people switch.
How much can a heat pump save compared with electric storage?
For a typical household replacing an old electric storage tank, a heat pump can cut the electricity used for hot water by around 70 per cent or more. Hot water is often one of the biggest items on a household power bill, so this is where the savings come from.
The exact saving depends on:
- How many people live in the house and how much hot water you use
- What you are replacing (an old electric storage tank gives the biggest saving)
- The efficiency rating of the unit you choose
- Whether you have rooftop solar and can run the heat pump during the day
If you already have solar panels, set the heat pump to run in the middle of the day. It then heats your water mostly from your own solar power instead of exporting that power to the grid for a small feed-in credit.
Do heat pumps work well in Mandurah’s climate?
Yes, and better than in most of Australia. Heat pumps lose some efficiency as the outside air gets colder, because there is less heat in the air to collect. Mandurah and the Peel coast have mild winters, with overnight temperatures that rarely drop near freezing, so a heat pump here spends very little of the year working against cold air.
That is a real advantage over colder inland areas, where heat pumps have to rely more on a backup element in winter. On the coast, a quality unit stays efficient all year round. Setting it to run during the warmest part of the day improves this even further.
Are there rebates for heat pump hot water in WA?
Western Australia does not run its own state rebate for hot water systems. The rebate that does apply in WA is the federal Small-scale Renewable Energy Scheme, which gives eligible heat pumps Small-scale Technology Certificates (STCs). These are normally taken off the price at the point of sale, so you see the discount on your quote rather than claiming it back later.
The value depends on the model, its efficiency and the current certificate price, and it is commonly worth several hundred dollars to over a thousand dollars on an eligible system. The scheme steps down each year and is set to end after 2030, so the same system generally attracts a slightly smaller discount each year you wait.
Rebate figures change, so the easiest way to know your number is to ask us for a quote. We include the STC discount on every eligible heat pump quote so you see the real price you will pay.
What are the downsides of a heat pump?
A heat pump is not the right choice for every house, and we would rather tell you that up front. The main things to weigh up are:
- Upfront cost. A heat pump costs more to buy and install than a like-for-like electric storage tank. The saving comes back through lower power bills over the life of the unit.
- Noise. The fan and compressor make a low hum, similar to an air conditioner’s outdoor unit. Most are quiet, but placement matters. We avoid putting them right next to bedroom windows or a neighbour’s fence.
- Space and airflow. The unit needs to be outdoors with room around it for air to move freely. A tight, enclosed cupboard will not work.
- Very low hot water use. A single person or a couple who use very little hot water may take a long time to recover the extra cost, so another system can make more sense.
Heat pump, solar or gas: which is better?
All three can be good choices. Which one suits you depends on your house and how you use hot water.
- Heat pump: the best all-rounder for most homes replacing electric storage. No roof panels, no gas connection, and very low running costs, especially paired with rooftop solar.
- Solar hot water: very low running costs with a good north-facing roof. Needs roof space and a booster for cloudy days. See our solar hot water systems in Mandurah.
- Gas: fast recovery and endless hot water with a continuous flow unit, which suits big families. Running costs depend on gas prices and whether you already have a gas connection.
If you are not sure which fits, we install all of them, so we can tell you plainly which suits your house rather than pushing one product.
How long does a heat pump hot water system last?
A quality heat pump hot water system typically lasts 10 to 15 years with basic care. Like any storage tank, the sacrificial anode inside the tank should be checked periodically, and the air filter and fan area kept clear of leaves and dust. Local water quality also plays a part, which is one reason some Mandurah homes pair their system with whole home water filtration.
What does installation involve?
Most heat pump installations are completed in a day. The old system is drained and removed, the new unit is positioned on a level base with good airflow, the plumbing is connected with a tempering valve so the water at your taps stays at a safe temperature, and the unit is connected to a suitable power supply. We also set the timer so the unit runs when it suits your household or your solar.
We install heat pump hot water systems across Mandurah and the Peel region, including Halls Head, Falcon, Dawesville and Meadow Springs. Have a look at the heat pump options on our hot water systems page.
Is a heat pump worth it? Our honest answer
For most Mandurah households replacing an old electric storage tank, yes. The mild coastal climate suits heat pumps, the running cost savings are large, and the federal STC discount takes a real chunk off the price. It is especially worth it if you have rooftop solar. It is less clear cut for very low hot water users or homes with nowhere suitable to put the unit.
If your current system is getting old, the best time to decide is before it fails, not on a cold morning with no hot water. Call us on 0499 914 900 or request a quote and we will tell you whether a heat pump makes sense for your home.
Heat pump hot water FAQs
How much electricity does a heat pump hot water system use?
A heat pump typically uses around 70 per cent less electricity than an electric storage hot water system of the same size, because it moves heat from the air into the water instead of heating the water directly.
Is there a heat pump hot water rebate in WA?
WA does not have its own state hot water rebate. Eligible heat pumps in WA receive the federal Small-scale Technology Certificate (STC) discount, which is usually applied at the point of sale and is commonly worth several hundred to over a thousand dollars.
Are heat pump hot water systems noisy?
They make a low hum similar to an air conditioner’s outdoor unit. Careful placement away from bedroom windows and neighbours’ fences, and running the unit during the day, means most households barely notice it.
Do heat pumps work in winter?
Yes. They are slightly less efficient in cold weather, but Mandurah’s mild coastal winters mean a quality heat pump stays efficient all year.
How long do heat pump hot water systems last?
Typically 10 to 15 years with basic maintenance, including periodic anode checks and keeping the fan and filter area clear.
Talk to a licensed Mandurah plumber
Call Andrew and the team at Mandurah Hot Water, or send us a message and we will come back to you.
