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A guide to heat pumps: what are they and are they more efficient?

The technology isn’t new, yet few realise the power and efficiency of the humble heat pump.

Many Australians still rely on gas as an energy source. If you’re one of them, you may not realise there may be a more energy-efficient alternative for heating your home or water – heat pumps.

The reverse-cycle air conditioner is a great example of heat pump technology. While you might be used to cranking the air-con in summer to stay cool, using it to heat your house in winter can help you to potentially save energy. And depending on the appliance, the same efficient technology can even be used to heat your water. 

What is a heat pump and how does it work?

For heating your home, heat pump technology gathers heat from outside and warms it to a higher temperature, then moves it from one place to another. It uses a compressor and liquid or gas refrigerant (the stuff that’s in your fridge) – a substance that absorbs heat from the environment – to concentrate heat and move it around to warm your home.

It can also be reversed to extract heat from inside your house and cool it in the process. That’s how your reverse cycle air conditioner keeps you cool in summer. 

Heating water using a heat pump works on the same principle. The heat pump pulls the heat from the air around it and transfers it to the water tank to heat the water inside. 

How does a heat pump work in winter?

Heat pumps can even extract heat from the air during colder months – to explain it properly, we need a little help from science.

Air contains a high level of energy, dropping to its minimum only at Absolute Zero temperature (or minus 273 degrees celsius). As temperatures rarely drop below zero degrees celsius in Australia, the air still contains a lot of energy in the cooler months – in fact, almost as much as in summer.

Heat pumps harness this energy to heat the air or water and push it to where it needs to go in your home. y to heat the air and push it into your home.

Types of heat pumps

There are several types of heat pump technologies available.

Geothermal or ground source heat pumps: Because soil absorbs energy from the sun, the temperature underground stays consistent throughout the year. Geothermal heat pumps use the heat from under the soil to warm up your home, often by hydronic heating systems.

Air sourced heat pumps: These pumps take heat from the outside air to create warmth in your house in winter and reverse the process in summer to keep your house cool. 

Husband and wife bathing their baby

Costs to install

Heat pump hot water systems are highly efficient. However, they are a significant investment, often costing between $2,000 and $7,600 (excluding installation costs). Installation costs can vary depending on the complexity of the installation (e.g. whether you’re replacing an existing system with an upgrade or changing the energy type and/or location of the system).

Split-system, reverse-cycle air conditioners may range from around $600 to around $5,500 (excluding installation) while ducted systems can easily cost over $9,000 with installation.

When it comes to picking your system, choose wisely. For example, a system might have lower upfront costs but higher running costs – the energy star sticker can help give an indication of what each system might cost to run.  

Search online for government schemes that could help you become more energy efficient and save on your energy bills.

Why should you consider making the switch?

Save energy compared to gas heaters or conventional electric water heaters

Because they use electricity to move hot air or water from one place to another rather than to generate it, heat pumps can deliver up to 10-15 times as much energy as they use. In fact, premium heat pumps can heat a room at 600% efficiency, while gas heaters are around 50% to 95%.

For heating water, heat pump systems use electricity but far less than conventional electric water heaters. There are also a number of other hot water systems that can help you be more energy efficient.

Save on your running costs

Because they use less energy to run, heat pumps could also help you save on your energy bills. And although they may be more expensive to install, energy bill savings could pay back your investment in the long run – this will depend on your existing electricity usage, prices and other factors, so speak to a qualified supplier before making your decision.

Two for one heating and cooling

Heat pumps not only provide warmth in winter, they can also keep your home cool in summer, so you get two functions in one system.

It’s worth exploring all your options to create a more energy-efficient home. When you take control of your energy usage, you could save money and reduce your impact on the environment. And it could even increase the value of your property.

FREQUENTLY ASKED QUESTIONS

1. Do heat pumps work in cold climates Australia?

Yes, heat pumps can work well in colder climates, including Victoria, Canberra and some parts of New South Wales. Heat pumps can run efficiently using energy from the air – and can still do so in sub-zero temperatures. Some systems will work better than others in colder temperatures, so it’s worth doing your research to find the right one for your climate.

2. Is a heat pump more expensive than AC?

In terms of upfront costs, heat pumps are generally more expensive than air conditioners. Buying an air conditioner may cost up to around $5,000, whereas heat pump costs can often exceed $8,000. That’s excluding installation. Though air conditioners are cheaper upfront, heat pumps can help to provide savings in running costs over time because of their higher energy efficiency. 

3. How long do heat pumps last in Australia?

Depending on the model, heat pumps have an average lifespan of 15-20 years, with some higher quality systems lasting up to 25 years. Air conditioning units typically last for 10-15 years and sometimes, up to 20 years.

4. Is a heat pump cheaper than gas?

Heat pumps may be cheaper to run than gas, but upfront costs can be higher. For example, for a three-person household, using heat pumps with no solar can cost $230 per year on average – compared to $605 for a five-star energy rated gas heater. Plus, in some states, the government may provide rebates for switching from gas to heat pump technology if you are eligible. 

5. What are the disadvantages of a heat pump in Australia?

Depending on the heat pump system, and your location, there can be several drawbacks of using heat pumps. The high upfront costs are one of them. Though heat pumps can still operate in cold climates, their efficiency can decrease as the temperature drops. You’ll also need to consider the location of your heat pump around your home as some systems may produce noise while operating – this can vary between a refrigerator hum to a bubbling kettle. And if you have limited space, it can be hard to provide a well-ventilated area to gain optimal performance from your heat pump.

Where to start and how much could you save by going electric?


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