A heat pump water heater moves heat from the outside air into your water, so it uses much less electricity than an element tank. We size it, choose the spot with you and do the electrical work ourselves, with the plumbing and any gas disconnection done on the same visit by licensed trades.
When to get it checked
Your old tank is near the end
Rust at the base, a damp patch underneath or a relief valve that never stops dripping. Plan the change now, not on a cold morning with no hot water.
Gas hot water that's getting old
From 1 March 2027, a gas hot water system in an existing home that breaks and can't be repaired must be replaced with an electric alternative. Planning ahead gives you time to choose.
An element tank on a big bill
A plain electric tank turns electricity straight into heat. If hot water is one of the biggest lines on your bill, a heat pump is worth pricing.
Solar going back to the grid at midday
A heat pump on a timer can heat water while your panels are producing, using power you'd otherwise export.
Building, renovating or moving the laundry
New homes, extensions and laundry moves are the easiest time to plan the placement, plumbing and circuit together.
Why it happens
5 common causes
Boxed in without airflow
Squeezed under a deck or into a tight corner, a heat pump breathes its own chilled exhaust, works harder and heats more slowly.
Next to a bedroom window
The fan and compressor hum while they run. Beside a bedroom, yours or a neighbour's, that's what people notice first.
Left on the old overnight circuit
Many electric tanks were wired to an off-peak circuit that switches on at night, the coldest part of the day for a heat pump.
Sized to what fits, not what you use
Tank size should follow how many people shower, when and for how long, not the size of the old tank.
A switchboard without room
The new circuit needs a free position and safety switch protection. A full or old board may need work first.
What the job covers
What we usually do on this job. Your quote confirms it for your place.
- Hot water use and household size reviewed
- Location checked for airflow, drainage and noise
- Switchboard and supply checked
- Dedicated circuit with safety switch protection
- Isolator fitted beside the unit
- Old unit drained and removed
- Water connected by a licensed plumber
- Timer set around your solar or tariff
- Certificate of Electrical Safety issued
Your options, explained
Integrated heat pump
Low disruption- Best for
- Most homes replacing an outdoor tank
- How it works
- The fan, compressor and tank sit together in one unit, usually on the old tank's base or a new one nearby.
- Worth knowing
- The simplest to install and service. The spot has to suit airflow and the neighbours.
Split heat pump
Medium disruption- Best for
- Tight side paths, garages or noise-sensitive spots
- How it works
- The tank stays in one place and a separate outdoor unit does the heating, joined to it by pipework.
- Worth knowing
- More freedom on placement and quieter at the tank, with more parts to install.
Electric storage tank
Low disruption- Best for
- A like-for-like swap where a heat pump won't fit
- How it works
- A new element tank goes on the existing circuit, often on off-peak.
- Worth knowing
- Simple to fit, but it uses far more electricity. See our electric hot water replacement page.
The people behind the work
One local team for electrical, heating and cooling, based in Altona Meadows, with 19 years in the industry.
Licensed electrical contractor (REC 38187)See more team photos
Worth knowing before you book
- Plan before it fails
- A planned change gives you time to choose the spot and the size.
- Airflow matters
- A boxed-in unit works harder and heats more slowly.
- Gas rules from 2027
- Failed gas hot water in existing homes must be replaced with electric.
What affects the price?
The right scope depends on your installation. These are the details we check so your quote is useful, with any additional work explained before it proceeds.
Tank size and type
An integrated unit is generally simpler to fit than a split system, and the tank size follows your household's hot water use.
Same spot or a new one
Reusing the old tank's spot keeps pipe and cable runs short. Moving it for airflow or noise adds plumbing, a base and a longer cable.
The circuit and switchboard
A dedicated circuit, isolator and safety switch protection are part of most installs. A board with no room or old fuses may need an upgrade first.
What's coming out
Removing an electric tank is straightforward. A gas unit needs its supply capped by a licensed gasfitter, and sometimes a flue removed and the roof made good.
How it's switched
Moving off an off-peak circuit, or adding a timer to suit solar, changes the electrical scope.
Before the visit
- Record current tank details and the number of regular occupants.
- Describe shower habits and any existing hot-water shortages.
- Ask who completes each trade’s work and what is included in the total price.
How it runs
- 1
Send photos
The old unit, its label, the spot and your switchboard.
- 2
Size and quote
Tank, location and circuit, priced before we start.
- 3
Install
Old unit out, new unit in, circuit and isolator wired.
- 4
Set and certify
Timer set, controls shown, certificate issued.
Step by step, in more detail
5 steps
Start with what you have
Send photos of the current unit and its label, where it sits and your switchboard. Tell us how many people live there and whether you have solar.
Size it and choose the spot
We match the tank to your household, then find a spot with open airflow, a level base, a drain and service access, away from bedroom windows.
Check the board, then quote
We check the switchboard, the circuit route and the supply. Your price names who does the plumbing, any gas disconnection and the electrical work.
Install
The old unit is drained and removed. A licensed plumber connects the water and a licensed gasfitter caps any gas, while our electricians run the circuit and fit the isolator.
Set up and hand over
We test the circuit and safety switch, run the system, set the timer, show you the controls and issue your Certificate of Electrical Safety.
What is safe to do, and what to leave to us
Safe for you to do
- If the hot water safety switch trips, reset it once. If it trips again or won't reset, leave it off and call a licensed electrician.
- Keep bins, plants and stored gear clear of the unit so it can draw air.
- If water is leaking near electrical parts, keep clear and switch the circuit off at the switchboard only if it's safe to reach.
Leave these to us
- Opening the unit's covers, the isolator or the switchboard. Electrical work isn't a DIY job, even small ones.
- Running a heat pump from an extension lead or a power point.
- Disconnecting or adjusting a gas water heater. Unlicensed gasfitting is illegal and potentially fatal.
- Touching the sealed refrigerant circuit. Only licensed technicians can handle refrigerants.
When to get us in
- Your current tank is rusting, leaking or getting old
- You have gas hot water and want to switch before it fails
- You're building, renovating or moving the laundry
- You have solar and want to use more of it at home
- A rental needs its hot water replaced
More detail
How a heat pump heats water
A fan draws outside air across a coil, refrigerant inside the coil picks up its warmth, and a compressor lifts that heat to a useful temperature before passing it into the tank. It moves heat rather than making it, so it uses much less electricity than an element heating the water directly.
It works less efficiently as the air gets colder. July at Laverton averages a minimum of 5.2 °C, so we usually set the timer to run through the warmer part of the day, and many models carry a backup element for the coldest mornings.
The electrical side, done by our own team
A heat pump water heater needs its own circuit from the switchboard, protected by a safety switch. Energy Safe Victoria's guidance on the Wiring Rules says every final sub-circuit in a home, the hot water circuit included, needs RCD protection. Most manufacturers also call for an isolating switch beside the unit.
Hot water services are non-prescribed electrical work, so you receive a Certificate of Electrical Safety, and your copy must reach you within 30 days. If the switchboard itself has to be replaced to fit the new circuit, the power can't go back on until a licensed electrical inspector has checked it.
Timers, solar and off-peak
Older electric tanks often run on an off-peak circuit that switches on overnight. That suits an element, but night is the coldest part of the day for a heat pump. With solar, we usually set it to heat through the middle of the day on your own power. Without solar, we set it around your tariff and routine and explain the trade-off.
If the old tank was on a controlled off-peak circuit, we check how that circuit is switched and whether it should stay that way for the new unit.
Choosing the spot
A heat pump needs fresh air in, room for its chilled exhaust to get away, a level base, a drain for condensation and access for servicing. It hums while it runs, a little like an air conditioner's outdoor unit, so we keep it away from bedroom windows, yours and the neighbours'.
On narrow blocks, such as Yarraville's small Victorian and Edwardian houses, the side path can sit close to the house next door. A split unit, with the noisier part placed further away, can help there.
Local rules and conditions
Victorian requirements and local conditions that shape this job, with the sources listed at the foot of the page.
Gas hot water from 1 March 2027
Victoria's new building and plumbing rules say a gas hot water system in an existing home must be replaced with an electric alternative when it breaks and can't be repaired. Owner-occupiers can keep gas heating and cooking. The regulations list exemptions, including where the change would mean altering a main switchboard or distribution board.
Rentals and hot water
A failed hot water service is on Victoria's legal list of urgent rental repairs. From 1 March 2027, a rental hot water system that permanently fails must be replaced with an energy-efficient electric system, and a failed gas system can't be replaced with another gas one.
New homes go all-electric
New homes that need a planning permit have had to be all-electric since 1 January 2024, and from 1 January 2027 all new homes must be built all-electric. Wyndham's planned growth areas include Wyndham Vale and Manor Lakes, so many new homes nearby will be built without gas hot water.
Useful reading
Guides to read before you decide, with checklists and questions to bring to the quote.
- Going all-electric in a Melbourne homeHot water, heating and cooking don't have to go electric at once. How to stage the move off gas, check the switchboard once and time each step.
- Planning a switchboard upgrade without surprisesWhat the electrician needs to check, how to compare the scope and what to organise before the power goes off.
- Certificates of Electrical Safety explainedWhat a Victorian COES records, how prescribed and non-prescribed work differ, when your copy should arrive and why it belongs in your house file.
- Landlords: heating, cooling and electrical obligations in VictoriaA rental provider's map of the heating, switchboard, safety check and repair duties on a Victorian rental, and what the 2027 energy standards change.
Common questions
Questions people ask about this
- Should my heat pump hot water run during the day or overnight?If you can choose, run it during the day.
- What is the off-peak or timer switch on my switchboard?It controls an off-peak circuit, usually for electric storage hot water and sometimes for slab heating or a pool pump.
- Is ice on my heat pump hot water unit normal?A light frost on the heat pump's fins on a cold morning is normal.
- Can a rental's failed gas hot water be replaced with gas after March 2027?No.
From the blog
- Does heat pump hot water need maintenance?A heat pump water heater needs little attention, but airflow, the condensate drain and new noises are worth watching. Here's what owners check and who does the rest.
- Heat pump or electric storage hot water: which suits your household?A heat pump wins for most households with an outdoor spot where it can breathe. An electric tank still makes sense in a few situations. Here is how to tell.
- What affects the cost of heat pump hot water installation?Tank size, where the unit goes, gas capping by a licensed gasfitter, a new circuit and removal of the old unit all shape the job. Here's what to check in a quote.
Sources for the rules and local facts on this page
17 sources, with the date each was checked
- 1.Department of Transport and Planning (Victoria): Victoria’s new Building and Plumbing Amendment Regulations 2025 have been finalised, advancing Victoria’s shift toward all-electric buildings. From 1 January 2027, all new homes and most new commercial buildings will be… Accessed 30 September 2026.
- 2.Department of Energy, Environment and Climate Action (Victoria): From 1 March 2027, if a gas hot water appliance breaks and cannot be repaired, it must be replaced with an electric alternative. No requirement to upgrade gas space heating or stovetop gas cooking to electric, however… Accessed 30 September 2026.
- 3.Chief Parliamentary Counsel Victoria (Victorian Legislation): (3) Subregulations (1) and (2) do not apply to a person if— (a) there is insufficient space available in the building or no suitable outdoor space associated with the building to install or replace the reticulated gas… Accessed 30 September 2026.
- 4.Consumer Affairs Victoria: Anything on this list is legally defined as an urgent repair: burst water service blocked or broken toilet system serious roof leak gas leak dangerous electrical fault flooding or serious flood damage serious… Accessed 30 September 2026.
- 5.Consumer Affairs Victoria: From 1 March 2027, when an existing hot water system permanently fails and can't be repaired, rental providers must replace it with an energy-efficient electric hot water system. Accessed 30 September 2026.
- 6.Consumer Affairs Victoria: It cannot be replaced with another gas system after 1 March 2027. Accessed 30 September 2026.
- 7.Department of Energy, Environment and Climate Action (Victoria): from 1 January 2024, new homes requiring a planning permit are required to be all-electric Accessed 30 September 2026.
- 8.Victorian Electoral Commission (2023 electoral structure review fact sheet): New housing developments are planned in residential growth areas including Truganina, Tarneit, Wyndham Vale and Manor Lakes, as well as near activity centres and public transport. Accessed 30 September 2026.
- 9.Energy Safe Victoria: Clause 2.6.3.2.2 requires all final sub-circuits in a domestic installation be protected by a residual current device (RCD). A hot water service is included in this requirement Accessed 30 September 2026.
- 10.Energy Safe Victoria: For electrical installation work performed within your electrical installation including but not limited to lights, power points, air conditioning, hot water service etc. Accessed 30 September 2026.
- 11.Energy Safe Victoria: The electrician has eight business days after the work is completed to have that work inspected by a licensed electrical inspector (LEI). If an electrician replaces a main switchboard at a property, power cannot go back… Accessed 30 September 2026.
- 12.Bureau of Meteorology: Mean minimum temperature (°C) 14.0 14.4 12.7 10.0 7.8 5.9 5.2 5.7 6.8 8.4 10.3 12.2 9.5 81 1943 2026 Accessed 30 September 2026.
- 13.Victorian Heritage Database (Heritage Council Victoria); entry maintained by Maribyrnong City Council: The general character of the Yarraville Residential Precinct is that of small Victorian & Edwardian single-storey detached housing with mainly weatherboard and some brick wall cladding, corrugated iron roofing, front… Accessed 30 September 2026.
- 14.Energy Safe Victoria: Locate your electricity box outside your home and check whether the safety switch has tripped. If it has tripped, reset the switch. If the switch won’t reset, call a licensed electrician. Accessed 30 September 2026.
- 15.Energy Safe Victoria: Electrical work isn’t a DIY job, even for small jobs such as changing power points or light switches. Accessed 30 September 2026.
- 16.Energy Safe Victoria: Gas and electricity are inherently dangerous and it’s illegal and potentially fatal for unlicensed and unqualified people to undertake any gasfitting or electrical work. Accessed 30 September 2026.
- 17.Department of Climate Change, Energy, the Environment and Water (DCCEEW): It's illegal to release regulated refrigerants into the air. This is because some refrigerants can stay in the atmosphere for decades or more and can be thousands of times worse for climate change than carbon dioxide… Accessed 30 September 2026.
