Heat Pump Hot Water System vs Gas Storage: The Best Choice for Melbourne Homes | Climate Green Melbourne

 

With energy prices soaring and sustainability becoming a priority, more Melbourne homeowners are rethinking how they heat their water. One of the most common questions we hear is —
“Should I keep my gas storage system or switch to a heat pump hot water system?”

At Climate Green Melbourne, we help Victorians make the switch to smarter, more energy-efficient solutions through the Victorian Energy Upgrades (VEU) Program.
Here’s a complete comparison to help you choose the right system for your home — one that saves energy, money, and the environment.

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🔹 How the Systems Work

Gas Storage Water Heaters

Gas storage systems use a burner to heat water stored in a tank. While they’ve been reliable for years, they rely on fossil fuels, making them less efficient and more expensive to run over time.

✅ Advantages:

• Heats water quickly.

• Proven and dependable technology.

• Operates even during power outages (in some models).

❌ Disadvantages:

• High ongoing costs due to rising gas prices.

• Produces significant carbon emissions.

• Shorter lifespan compared to modern systems.

• Continuous heat loss from stored water.

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Heat Pump Hot Water Systems

Heat pumps work like reverse-cycle air conditioners — they extract heat energy from the surrounding air and transfer it to the water. Because they move heat rather than generate it, they’re far more energy-efficient.

✅ Advantages:

• Uses up to 70% less energy than gas systems.

• Eligible for VEU rebates, reducing upfront cost.

• Environmentally friendly — cuts greenhouse gas emissions.

• Quiet, efficient, and long-lasting.

• Works effectively in Melbourne’s mild climate.

❌ Disadvantages:

• Slightly higher initial investment (mostly covered by rebates).

• Can be slower in extremely cold weather — though modern models perform well year-round.

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🌿 Environmental Impact

Gas systems rely on non-renewable fuels, producing carbon dioxide every time they operate.

Heat pumps, however, draw renewable energy from the air — significantly reducing your carbon footprint. When paired with solar panels, a heat pump can supply near-zero emission hot water, making it one of the most sustainable home upgrades available in Victoria.

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💰 Cost Comparison

Factor	Gas Storage Water Heater	Heat Pump Hot Water System
Initial Cost	Lower upfront	Higher, but offset by rebates
Running Cost	High and rising	Up to 70% lower bills
Rebate Eligibility	❌ Not eligible	✅ Eligible under VEU Program
Maintenance Needs	Frequent	Minimal
Lifespan	8–10 years	10–15 years
Carbon Emissions	High	Very low
Energy Efficiency	3–4 Star	5–6 Star equivalent

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⚡ VEU Rebates Make the Switch Easy

Through the Victorian Energy Upgrades (VEU) Program, you can claim generous rebates for upgrading from a gas or electric hot water system to a VEU-approved heat pump.

At Climate Green Melbourne, we make the process simple and stress-free:
✅ We check your eligibility.
✅ Handle all rebate paperwork.
✅ Supply and install approved products.
✅ Decommission your old system safely.

The result? A fully installed, efficient heat pump that saves money from day one — with no hassle for you.

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🏡 Which Option Is Right for Melbourne Homes?

For most Melbourne households, the heat pump hot water system is the clear winner.

Here’s why:
🌞 Works efficiently in all seasons.
💧 Cuts energy use by up to 70%.
🌿 Qualifies for generous government rebates.
⚡ Perfectly complements solar panels.
🏠 Future-proof choice as Victoria phases out gas reliance.

Gas storage systems, while once the standard, are quickly becoming outdated. With electricity becoming cleaner and cheaper, investing in a gas system now means higher long-term costs and fewer rebate opportunities later.

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🔧 Why Choose Climate Green Melbourne

Climate Green Melbourne is a trusted, VEU-accredited provider (Accreditation No: A2360) offering sustainable home energy upgrades across Victoria.

Here’s what sets us apart:
✅ VEU-approved brands such as Rinnai, Rheem, Reclaim Energy, Midea, and iStore.
✅ Complete rebate management and support.
✅ Licensed electricians and plumbers for every job.
✅ Fast, reliable, and professional installation.
✅ 100% Melbourne-based service and aftercare.

We’re dedicated to helping you save energy and live more sustainably — without the complexity.

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🌞 Final Verdict: Heat Pumps Lead the Way

When comparing heat pump and gas hot water systems, the difference is clear.
Heat pumps are cleaner, quieter, and more efficient — delivering long-term savings while supporting Victoria’s transition to renewable energy.

Now is the best time to make the switch and take advantage of VEU rebates before they reduce in value.

📞 1300 001 690
✉️ info@climategreen.com.au
🌐 www.climategreen.com.au

Climate Green Melbourne – Smarter, Sustainable Hot Water for Every Home. 🌿

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Frequently Asked Questions (FAQs)

Q1: Can I replace my old gas system with a heat pump?
Yes. If your old gas or electric water heater is decommissioned and replaced with a VEU-approved heat pump, you qualify for a rebate.

Q2: How much can I save on bills?
Heat pumps can reduce your hot water energy use by up to 70%, saving hundreds annually.

Q3: Will it work well in winter?
Yes. VEU-approved systems are designed for Melbourne’s colder months and perform efficiently year-round.

Q4: Are they noisy?
No. Heat pumps run quietly — similar to a household air conditioner.

Q5: How long does the installation take?
Most installations are completed within one day, including safe removal of the old system.