Hot water heat pumps are highly energy-efficient compared to traditional electric hot water cylinders or gas. This means they are cheaper to run, and can be particularly cost-effective for households that use a lot of hot water.

The technology also produces far less emissions than water that is heated using fossil fuels like piped gas or LPG.

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Considering a switch? Know your numbers

  • Upfront costs

    Around $7,000 including purchase price and installation.

  • Savings

    A hot water heat pump could save the average household around $284 each year.1 

    Find out how much your household could save.

  • Efficiency

    Around 60-75% less electricity used than conventional electric hot water systems.

  • Features

    • Energy efficient
    • Low running costs
    • Low emissions
    • Works with solar

  • Lifespan of tech

    Around 15 years

  • Install

    Can be installed outdoors, leaving you with more cupboard space. 

    Get more installation information

The benefits of hot water heat pumps

  • Low running costs — Hot water heat pumps can be around 60% cheaper to run than electric resistance hot water cylinders or piped gas water heating, and 75% cheaper than LPG.2 If you live in an area with higher electricity costs, or have solar panels on your house, the savings will be even greater. 
  • Energy efficient — A hot water heat pump system uses around a third of the energy needed by an electric resistance hot water cylinder or gas water heating.2
  • Lower emissions — Hot water heat pumps are powered by New Zealand’s highly renewable electricity grid, meaning very little carbon dioxide is emitted to power them. They can save around 7,000kg of emissions over 15 years when compared to gas or LPG water heaters.2
  • Works with solar — Emissions and costs are even lower if you can supply your hot water heat pump with solar energy from your own roof.
  • Cheapest over time — While the purchase and installation cost of a hot water heat pump is higher than other hot water heating systems, they are the cheapest option when you also consider the ongoing running costs.

How hot water heat pumps work

Hot water heat pumps work by extracting heat out of the air and transferring it into the water.

There are two main types of hot water heat pumps. The best choice for your home will depend on your specific installation needs.

  • Integrated options need to be installed outside and are combined into one single unit. This can be easier to install, depending on your home’s layout and plumbing.
  • Split options have two separate components — an outdoor unit and a separate hot water cylinder which can be installed either inside or outside. This offers more flexibility and can sometimes be retrofitted into your existing hot water cylinder.

How hot water heat pumps work

How much could you save?

Use our calculator to see how much a hot water heat pump could save you. 

  • Installing a hot water heat pump

    There are two main parts to a hot water heat pumps system: the heat pump and the hot water cylinder. The heat pump must be installed outside, and the cylinder can be installed inside or outside. You may be able get a heat pump retrofitted to your existing hot water cylinder. 

  • Find a licensed installer

    Hot water heat pumps are a relatively new technology, so it's a good idea to shop around for a plumber and electrician who have training and experience with their installation.