Heat Pump Hot Water in Geelong: Is It Worth Switching? (2026 Guide)
Hot water system getting old, or wondering what to do about gas? Our team installs heat pumps across Geelong, the Bellarine and the Surf Coast, and hears the same questions: will it work here, what size, and which rebates? Here are plain answers.
Photos on this page are Reclaim Energy product photos, not a Velocity install.
The short answer
For most homes with an ageing electric or gas system, yes, it is worth a serious look. A heat pump moves warmth out of the air into your water instead of making heat directly, and the Victorian Government says it uses up to 75% less electricity than a standard electric storage system. It works best sized right, run during the day and installed by a local team you can call back.
Up to $1,000
Solar Victoria hot water rebate, or up to $1,400 for locally made
$560 to $630
indicative VEU discount, gas or electric to heat pump
11am to 4pm
Powercor solar soak window, the best time to heat water
1 March 2027
broken gas water heaters must be replaced with electric
Start with why you are switching
There is no one-size-fits-all answer, so we start with what matters to you:
- Lower running costs: electric storage tanks are the most expensive type to run.
- Getting off gas: from 1 March 2027, a gas water heater in an existing Victorian home that needs replacing must be replaced with an electric system. Switching on your own timeline beats the morning your tank fails.
- Using your solar: soaking up daytime power you would otherwise export.
- The environment: lower emissions than gas.
Run it on your daytime solar
A heat pump stores its work as hot water, so it does not need to run when you shower. Both brands we install have a timer, so with solar panels we set it to heat in the middle of the day on your own power.
No solar? Powercor, our local network, has a cheap “solar soak” window from 11am to 4pm on the Victorian Default Offer time-of-use tariff, and many retailer plans follow suit. Our heat pump cost guide shows the current rates.
Get the size right
Too small and you run short on busy mornings; too big and you pay for a tank you never use. As a general guide:
| Household | Typical tank size | Good fit for |
|---|---|---|
| 1 to 2 people | 160 to 170 litres | Units, townhouses and couples |
| 3 to 4 people | 250 to 270 litres | Most Geelong family homes |
| 5 or more people | 315 litres or more | Larger households or high hot water use |
We size every system on site, around your household’s hot water use, tariff and solar. A bigger tank also stores more solar-heated water for the evening.
Reclaim Energy CO2 heat pump and tank (product photo)
CO2 or R290: which type suits you?
Our two brands use different refrigerants (the gas that carries heat from the air to your water).
- Reclaim Energy (CO2): natural CO2 refrigerant with a global warming potential of 1. Runs from -10°C to 43°C without a booster element. The split design is very quiet, and being Australian-made it qualifies for the higher Solar Victoria rebate.
- iStore (R290): an all-in-one unit in 180 and 270 litre sizes that usually slots into your old tank’s spot. It suits smaller spaces and tighter budgets.
We will tell you honestly when the simpler option is the better call.
Noise and placement
A heat pump’s fan makes a low hum, similar to an air conditioner’s outdoor unit, so placement matters. We keep it away from bedroom windows and neighbours, with clear airflow and room for servicing.
Tight sites are common. In our East Geelong case study, the house had no driveway, so we checked the best position before installation day and mounted the outdoor unit down the side of the house. Afterwards, keep leaves clear and book a yearly check.
Heat pump rebates in 2026
Up to three incentives can stack. As a Solar Victoria authorised retailer, we include them in your quote and handle the paperwork.
- Solar Victoria hot water rebate: 50% of the price after other discounts, capped at $1,000, or $1,400 for an eligible locally made product. You must own and live in the home, with combined household taxable income under $150,000, a property valued under $3 million, a system at least 3 years old, and no earlier Solar Homes hot water or battery rebate at the address.
- Victorian Energy Upgrades (VEU) discount: indicative discounts of $630 when replacing an inefficient electric system with a heat pump, or $560 when replacing gas. The building must be at least 2 years old and the heat pump needs at least a 5-year warranty. Rentals qualify, a minimum $200 contribution applies, and it must be arranged before installation.
- Federal STCs: a point-of-sale discount on eligible systems, with no income test. Its value falls each year until the scheme ends in 2030.
Rules change, so we confirm your entitlement in writing. Our heat pump rebates guide has the full rules and claim steps.
Sources, checked 21 October 2026: Solar Victoria, Hot water rebate (page last updated 12 October 2026); Victorian Energy Upgrades, Hot water system discounts (page last updated 15 October 2026). VEU amounts are indicative and set by accredited providers.
Choose a local installer you can call back
A heat pump should last 10 years or more, so the installer matters as much as the brand. If a price seems too good to be true, it probably is. Choose an authorised retailer that will still be around for warranty and servicing.
Our own local team has installed solar, battery and hot water systems here since 2011. Going all-electric? Our Electric Homes Program page explains Geelong Sustainability’s program, where we supply solar, batteries and EV chargers. You can see all our heat pump options on our heat pump hot water page.
Common questions
Do I need solar panels for a heat pump to make sense?
No. Without solar, we set the timer to heat during your tariff’s cheapest daytime window. With solar, the same timer runs it on your own daytime power.
Will a heat pump keep up in a Geelong winter?
Yes, if it is chosen and sized well. Reclaim’s CO2 heat pumps run from -10°C to 43°C without an electric booster, which suits frosty mornings in places like Lara and Bannockburn.
Does my old hot water system have to be broken to get the rebate?
No. For the Solar Victoria rebate, the system you replace must be at least 3 years old from its purchase date. For the VEU discount, you need an existing system in a building that is at least 2 years old.
Can landlords and renters get a heat pump discount?
Partly. The Solar Victoria hot water rebate is for owner-occupiers only. The Victorian Energy Upgrades discount is open to private rental properties, so landlords and tenants can still save on an upgrade.
How noisy is a heat pump?
About as noisy as an air conditioner’s outdoor unit; Reclaim’s split design is very quiet. We place it away from bedroom windows and neighbours.
