Hot water systems account for approximately 25% of household energy use. Installing the most efficient system will help you unlock significant savings.
Electric heat pump water heaters are easily the most energy efficient option, consuming only 23% of the annual energy required by gas hot water and conventional electric resistant models (Rewiring Australia). Similar to a split system aircon, heat pumps absorb the warmth in the air and transfer it to heat water.
How do I select the right heat pump?
To find out more about upgrading your hot water system, including approved suppliers and selecting a system to suit your needs, visit the NSW Climate & Energy Action website.
This website also contains an Energy Savings Tool which will help you estimate the money you will save by upgrading to a range of energy efficient electrical products including a heat pump water heater.
What financial support is available?
If you have solar, switching to a heat pump is a no-brainer! You can heat your water for free from the sun.
Your heat pump may be eligible for incentives under the Small-Scale Renewable Energy and Energy Savings Schemes which will be arranged by your installer and provided as an upfront discount.
In addition, Council is currently offering a rebate to eligible households and small businesses for the installation of heat pump water heaters as part of round 3 of our Sustainability Rebates Program.
Sustainability Rebates Program eligibility criteria:
Only available for households and small businesses in the Shellharbour LGA
Installation must be completed from 1 July 2026 until 30 June 2027
Rebates are not available for new developments or installations on assets or land owned or controlled by State Government entities.
Must be installed by a licensed tradesperson and meet all compliance and installation standards
See Council’s Sustainability Rebate Program Guidelines for full terms and conditions.