There are attractive rebates to reduce the upfront cost of heat pump hot water systems including the federal STC rebate and state rebates in NSW and Victoria. Like many rebate driven industries, these incentives attract ‘rebate chaser’ organisations who seek to capitalise on the extra demand with the lowest cost solution they can put together.
This has triggered many of the major manufacturers to publicly demand minimum energy performance standards (MEPS) for heat pump hot water systems like the ones that exist for other hot water products.
Given the rebates can only be accessed once, we believe it makes sense for all consumers to install a good quality system that will last. As part of our due diligence in onboarding new heat pump installers to the Solar Choice network, we ensure we are recommending the right companies who are not cutting corners.
When it comes to putting together a cheap heat pump quote, it is not only the product quality that can be sacrificed. In this article we talk about some of the common problems with installation or design that come up with cheap heat pump installs that we have heard from reputable installers, our customers and the Australian Water Heating Forum – and how to avoid them!
In a heat pump hot water system, the heat pump (sometimes called ‘the compressor’) is the engine that heats the water. When recommending a heat pump solution in terms of compressor size and water tank capacity, a plumber should consider the following:
Number of people at the property
Typical hot water usage patterns
Number of bathrooms
Distance of the heat pump to the kitchen and bathrooms
If a compressor or water tank is undersized, the only problem isn’t that you’ll continually run out of hot water. An undersized compressor may also need to run for a long time to get the water back up to the target temperature, particularly in winter. This means it is more difficult for the owner to operate the heat pump during solar panel generation hours or during off-peak tariffs which will increase costs for user.
Additionally if a heat pump is working for many hours every day, it will inevitably shorten the expected lifespan of the system.
How to reduce these risks:
Check and compare the compressor input electrical rating of any brands you are considering which should appear on the datasheet
One shortcut companies can take to save money and lower costs is by using unqualified labourers to complete the work. This happens across most trades and plumbing is no different.
Incorrectly installed hot water systems present a fire and safety risk to your home and its occupants.
In most cases, a heat pump installation will require both a qualified plumber and qualified electrician to partake.
Unless a heat pump can operate from a regular 3 pin, 10 amp power point and there is one located near your hot water unit, an electrician will need to provide the electrical connection for the heat pump system. In some very simple cases, a plumber can get by with a ‘restricted electrical licence’.
Sending two different installers to site is costly, particularly for companies who use sub-contractors to do their physical work. This increases the incentive to take shortcuts.
How to reduce these risks:
Ask the installing company to provide evidence of their plumbing and electrical qualifications prior to committing to an install. These licences should have photos so you will know who to expect on the day of install
Ask the provider if they have in-house plumbers and electricians or whether they will be using sub-contractors
3. Not installing to manufacturers specifications
It is important to install the hot water system in line with the manufacturer’s specifications to ensure the system is operating safely and efficiently and for your warranty to remain valid.
Some common problems we hear about with heat pump hot water installations is not following the instructions on airflow clearance or installing on uneven surfaces.
Airflow requirements for all-in-one heat pumps typically vary from 0.2 to 1 metre on each side and around 0.3 metres above the unit. On uneven surfaces it is nearly always required to install a concrete slab to ensure the device remains flat.
The manufacturers instructions also have requirements on how the heat pump is transported. Like fridges, the heat pump should always be transported upright. If the water heater is tilted, it should be left to rest for the refrigerant gas and the lubricant oil to settle before it is turned on.
How to reduce these risks:
Download and read the installation manual for the heat pump you have selected and highlight any issues before the installation occurs – these are usually easy to find online
Install a heat pump brand that your installer is familiar with
4. Not installing to plumbing codes
On the plumbing side, it is important that every heat pump hot water system includes a tempering valve which combines some cold water with the hot water to ensure people are not harmed or scalded by the water when it comes from a faucet. Additionally, heat pumps will emit some water from their condensation and overflow pipe during their normal operation. This water should be run to a stormwater drain, a down pipe or an overflow relief gully (ORG) nearby.
These requirements take additional time but are important to ensure your system is safe, lives out its expected life and has no disturbance to neighbours.
How to reduce these risks:
Get multiple quotes and get a breakdown of any additional costs. Be wary of quotes that don’t call out specific additional requirements and if the sales representative is unable to sufficiently answer how their solution complies to relevant codes.
If there’s no nearby downpipe or stormwater drain near where you are installing your hot water system, ask the installer how they plan manage the emitted water
5. Not installing to electrical codes
Getting an electrician and a plumber to site costs money. Plumbers with a restricted electrical licence can complete ‘like-for-like’ changeover of hot water systems, however in most cases there will be more electrical work required than this licence allows for.
Most heat pump hot water systems should be installed on a dedicated circuit, with an isolator switch and a RCBO installed at the switchboard. Be careful that these requirements are not missed to avoid the cost of bringing an electrician to site.
Some heat pumps may be able to run from a regular 3-point power socket, but it is still recommended for this to be on a dedicated circuit.
How to reduce these risks:
Check the installation manual for what electrical requirements your particular heat pump requires. Installation manuals can usually readily be found online.
Ask your installer to confirm what work is required to complete the electrical connection.
Conclusion
If installed well, a heat pump hot water system will provide many years of efficiently created hot water for homeowners and provide an attractive electricity and carbon saving. Unfortunately if not done correctly, adverse outcomes can scare customers away from heat pumps.
The Heat Pump installers on our network have been thoroughly checked by our onboarding team and we are confident they are trustworthy. We recommend you do your own due diligence on the installing company and the hot water product, especially on quotes that seem too cheap or are sourced outside of Solar Choice’s network.
Compare heat pump quotes from pre-vetted installers
Jeff has consulted on over 20MW of commercial solar projects, ranging from SMEs to ASX top 100 companies. Jeff has also provided independent advice to 100s of residential solar, battery and EV charging customers across every state in Australia. He holds an MBA from the Australian Graduate School of Management and is an expert in business strategy and financial analysis.
