Slash Your Hot Water Bill By Up To 70%
My Top 7 Tips For Smarter, Cheaper Hot Water
Last Updated: 17th Apr 2025
By Finn Peacock – Chartered Electrical Engineer, Ex-CSIRO, Founder of SolarQuotes.
Me and my Reclaim hot water heat pump.
Hot water shouldn’t burn your wallet. With the right system and smart choices, you can cut your hot water bills up to 70%.
Here are my top heat pump buying tips, based on helping thousands of Australians through my website SolarQuotes.
1. Choose a Heat Pump Over Solar Hot Water
Solar hot water panels (technically called ‘solar thermal’) were great in 2005, but hot water heat pumps are the future.
My roof circa 2014 – with my solar thermal hot water system on the left, 6kW solar PV on the right.
My roof now – 20kW in total – with my old 6kW system shifted onto the southern roof.
Heat pumps are:
- Easier to install
- More efficient
- Cheaper to run
- Integrate better with solar PV and batteries
- Don’t need a gas backup
- Free up more roof space for solar panels
Even in warmer climates, roof space is valuable. A compact heat pump plus extra solar panels usually wins.
2. Only Buy Trusted Brands
Don’t risk your investment on cheap, dodgy units. Stick to heat pumps that:
– Are on our trusted brand chart
– Have at least 5 years warranty on the pump and 10 years on the tank
– Come with proven reviews from real Aussie homeowners
Avoid anything under $2,000. Cheap = noisy, inefficient, unreliable.
You can compare major brands on my heat pump comparison table.
3. Always Get Multiple Quotes
Seriously.
Get at least two (ideally three) quotes to:
- Avoid overpriced or underperforming units
- Compare warranties and energy efficiency
- Ensure you’re paying a fair market price
We can help by arranging quotes – it’s free, fast, and we’ll only refer you to installers we’ve vetted and trust.
4. Use a Timer
If you have solar panels, run your heat pump during peak sun hours (11 a.m. to 3 p.m.). That way, your water will be heated with cheap solar power.
The controller for my Reclaim, with timer functionality.
No fancy diverters needed. Just set the built-in timer.
Have teenagers? You might need a second overnight boost on a cheap tariff. Or stricter parenting. Up to you.
5. Insulate Everything
Heat loss = wasted money.
Ensure:
All pipes, valves, and fittings are insulated (it’s required by law!)
Yes – even the valves need to be insulated!
Foil-covered insulation is used for pipes in the sun
My non-foil insulation on the left is only a few years old and has already taken a beating from the sun.
Some installers can be lax. Use my reference images to check your install.
6. Don’t Accept a Dodgy Install
A great system will fail early if installed badly. Ensure:
Proper drainage (not just draining to the ground)
The system on the left drains onto the concrete – big no-no!
Solid base (not dirt)
I hope I don’t have to explain why the left image is crap.
Access for sacrificial anode replacement
You need enough space for your installer to pull out the anode when it needs replacing.
Tidy electrical cabling
Having untidy cables over the floor (especially near the drain) can be a hazard.
Enough clearance for airflow and maintenance
Heat pumps placed too close to walls, corners, or obstructions like shrubs or trees can restrict airflow, reduce efficiency, overwork the compressor, and shorten its lifespan. They also make servicing more difficult.
We’ve seen it all. A sloppy install kills performance and potentially your warranty. Don’t let it happen to you.
7. Check Your Rebates
Claiming your STCs (the federal ‘heat pump rebate’) can knock $750 off the upfront cost. Most installers include this in the advertised price.
State-based bonuses are also available:
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VIC: Up to $1,600
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SA: Up to $930
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ACT: Up to $1,500
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NSW: Up to $670
Check what’s available in your area – it could make a huge difference.
Want 3 Quotes From Trusted Heat Pump Installers?
We’ll connect you with pre-vetted professionals who:
-
Know what they’re doing
-
Won’t cut corners
-
Use the brands we trust
Click below to request your 3 free quotes and start saving on your hot water today.
About Finn Peacock
I’m a Chartered Electrical Engineer, solar and energy efficiency nut, electric car and e-bike owner, dad, and founder of SolarQuotes.com.au. My last “real job” was working for the CSIRO in their renewable energy division. Since 2009 more than 838,227 Australians have used my site to get quotes for high quality PV systems from pre-vetted solar installers.