Heat Pump Hot Water Systems
Why Choose Hogan for Your Heat Pump Installation
Mike Kearney has been installing and servicing hot water systems across Newcastle for 27 years. He holds licences as an Electrician, Plumber, Gas Fitter and Refrigeration Mechanic, the full set required to install and maintain a heat pump correctly. Jamie Gartsky brings the same multi-licence capability to every job.
Because we hold all the required licences in-house, we never use subcontractors. You deal with the same qualified technicians from quote through to installation and beyond.
What sets us apart:
- NSW and Federal Government rebates automatically deducted from your invoice. No paperwork, no chasing
- All plumbing, electrical and refrigeration work done by our own licensed team, no subcontractors
- We review your electricity bill to dial in the optimal timer settings for maximum savings
- Free written quotes from a licensed tradesman, not a salesperson
- 27 years servicing Newcastle, Lake Macquarie, Maitland and the Central Coast
What is a Heat Pump Hot Water System
A heat pump hot water system heats water by extracting warmth from the surrounding air rather than generating heat from electricity or gas directly. A small compressor transfers that warmth into your stored water tank. The result is a system that uses 70 to 75 per cent less electricity than a standard electric hot water unit.
The technology works in all conditions: cold days, overcast skies, overnight. It is often described as a reverse cycle air conditioner applied to water heating. Models suited to the NSW climate operate effectively from minus 5 degrees up to 45 degrees ambient temperature.
For households with solar panels, a heat pump can be timed to run during peak solar generation, reducing running costs further. It is a practical upgrade that typically pays for itself within three to five years depending on the system replaced.
Why Heat Pump Hot Water Makes Sense in 2026
Energy costs in NSW have continued to rise. A heat pump running on off-peak power or excess solar costs a fraction of what a standard electric or gas system costs to operate. For a four-person household replacing an ageing electric storage unit, the annual running cost saving is typically between $700 and $1,200 depending on usage and tariff.
Government rebates make the switch even more affordable. The NSW Energy Savings Scheme and Federal
Government Small-scale Renewable Energy Scheme both apply to qualifying installations. Combined, these rebates can reduce the installed cost by $800 to $1,600 depending on the system replaced and the brand chosen. We handle all the paperwork and deduct the rebate from your invoice on the day.
Heat pumps are also eligible for rebates when replacing gas, solar or older heat pump systems, not just electric. If your current system is eight or more years old, you are very likely eligible.
Professional Heat Pump Installation, Newcastle and Surrounds
Heat pump systems involve plumbing, refrigeration and electrical work. All three disciplines require separate licences. Many installers are licensed in only one or two. Our team holds all three, which means we manage the entire installation without bringing in outside contractors.
We supply and install the following brands:
Rheem
reliable mid-range performance, strong warranty support in Australia
iStore
efficient and quiet, well suited to coastal NSW conditions, excellent smart timer controls
Envirosun
strong performer in mixed climate regions, good integration with solar PV
Apricus
quality European-engineered systems, well regarded for longevity
Every installation includes system testing, timer configuration against your electricity bill, and a walkthrough of how to operate the system for maximum efficiency.
We also service, re-gas and repair all major brands including Saxon, Quantum, DUX Aeroheat and Chromagen, not just the brands we install.
Replacement and Upgrade Options
- Electric storage tank to heat pump (typically the most cost-effective rebate scenario).
- Gas hot water (storage or continuous flow) to heat pump, all electrical work included.
- Older or inefficient heat pump to a modern, higher-efficiency unit.
- Solar hot water system to heat pump. Simpler to maintain, no roof components
How Heat Pump Hot Water Systems Work
A heat pump moves heat rather than generating it. Refrigerant inside the unit absorbs warmth from the outdoor air, even on cold days, because the refrigerant itself is colder than the surrounding air. The compressor then raises the temperature of the refrigerant and transfers that heat into your water storage tank. This cycle repeats until the tank reaches its set temperature.
Because the system is moving heat rather than creating it, electricity consumption is approximately one third of a conventional electric storage system. That efficiency ratio is called the Coefficient of Performance, or COP. Modern heat pumps typically achieve a COP of 3 to 5, meaning for every 1 kW of electricity used, 3 to 5 kW of heat energy is produced.
The system operates through the night, in rain and on overcast days. If your home has rooftop solar, we can configure the timer to run during your peak solar export window, effectively heating your water for free.
Cost and Rebates: What to Expect in 2026
Heat pump systems vary in price depending on brand, tank capacity and installation complexity. The table below gives a general guide for standard residential installations in Newcastle and surrounds. All prices include NSW and Federal Government rebates automatically applied.
Scenario
Approx. installed cost (after rebates)
Typical rebate saving
Frequently Asked Questions
How long does a heat pump hot water system last?
Do heat pump systems make noise?
What maintenance does a heat pump need?
Can a heat pump be installed indoors?
Are heat pump systems effective in winter?
Installation Gallery
Heat Pump Brands We Supply
Click on a brand for more information:
Explore Other Services
Need reliable climate and water solutions? Hogan Hot Water and Air Conditioning specializes in the installation, repair, and maintenance of all major systems. Whether you are looking for an energy-efficient heat pump or a powerful split system AC, our team offers expert guidance and free quotes. Serving the Greater Newcastle and Central Coast regions with speed and integrity.
