Rheem vs Daikin: Which Heat Pump Is Better? (2026)
Quick Verdict
Daikin is the more efficient choice with a higher COP rating, meaning lower running costs over time, while Rheem is more budget-friendly with a lower upfront cost starting from $3,200.
Side-by-Side Comparison
| Feature | Rheem | Daikin |
|---|---|---|
| Price range (installed) | $3,200 - $4,800Lower | $5,500 - $8,500 |
| COP (efficiency) | 3.5 | 4.5Higher |
| Tank warranty | 10 years | 10 years |
| Compressor warranty | 5 years | 10 yearsLonger |
| Noise level | 47dB | 40dBQuieter |
| Annual running cost | ~$338/yr | ~$263/yrLower |
| Refrigerant type | R134a | R134a |
| Country of manufacture | Australia | Japan |
| Australian made | Yes | No |
| Best for | Homeowners who want a reliable, well-supported mid-range option from a trusted Australian brand | Homeowners wanting the absolute best performance and warranty, especially in cold climates |
Price Comparison
Rheem starts from $3,200 installed (before rebates), while Daikin starts from $5,500. That is a difference of roughly $2,300 at the entry level. Rheem is the more budget-friendly option upfront, though Daikin may deliver savings through lower running costs over time. Both prices are for fully installed systems before government rebates and STCs, which can reduce the out-of-pocket cost by $1,000 to $3,000 depending on your state.
Efficiency Comparison
COP (Coefficient of Performance) is the key efficiency metric for heat pumps. A higher COP means more heat output per unit of electricity consumed. Rheem achieves a COP of 3.5, while Daikin reaches 4.5. The Daikin is 29% more efficient, which translates to roughly $75 less per year in running costs. Over a 10-year lifespan, that efficiency advantage adds up to approximately $750 in savings.
Warranty Comparison
Rheem offers a 10-year tank warranty and 5-year compressor warranty. Daikin offers a 10-year tank warranty and 10-year compressor warranty. Both brands offer the same tank warranty length, so warranty coverage is comparable.
Noise Comparison
Noise is an important consideration, especially for suburban installations where the unit may be close to bedrooms or neighbouring properties. Rheem publishes 47dB for its quietest model, and Daikin publishes 40dB. The Daikin is quieter at 40dB. At under 40dB, this is comparable to a quiet library and unlikely to cause any disturbance.
Climate Suitability
The type of refrigerant a heat pump uses significantly affects its performance in cold weather. Rheem uses R134a refrigerant, while Daikin uses R134a. Both units use the same refrigerant type, so cold-weather performance should be comparable. R134a performs well in moderate climates but may lose some efficiency in very cold conditions.
Pros and Cons
Rheem
Pros
- Well-known trusted brand
- Wide installer network
- Integrated design (simpler install)
- Competitive pricing
- Australian made and owned
Cons
- Shorter warranty than premium brands
- Lower COP than Sanden/Reclaim
- Noisier than split systems
- R513a refrigerant, not the CO2 used by the premium split systems
Daikin
Pros
- Best-in-market 10yr parts AND labour warranty
- CO2 refrigerant (heats to 90C, no boost needed)
- Quietest outdoor unit in market (40dB)
- Works down to -26C
- Highest STC allocation due to CO2 efficiency
Cons
- Most expensive option in market
- Split system requires more complex installation
- Newer to the Australian hot water market
- Not Australian-made
Which Should You Choose?
Choose Rheem if...
- You want a lower upfront cost (from $3,200 vs $5,500)
- You're in Victoria (models on Solar Victoria's locally made list = higher rebate tier of $1,400 vs $1,000)
Choose Daikin if...
- You want the best efficiency and lowest running costs (COP 4.5 vs 3.5)
- Quiet operation matters to you (40dB vs 47dB)
- You want lower annual running costs (~$263/yr vs ~$338/yr)
Buying in Victoria? Stack up to $2,700 in rebates
Whichever brand you pick, Victorian households can stack the Solar Victoria Hot Water Rebate ($1,000-$1,400), the Victorian Energy Upgrades discount ($500-$2,000), and federal STCs ($500-$1,200) ahead of the 1 March 2027 gas ban deadline. Rheem has models on Solar Victoria's locally made list, which qualify for the higher $1,400 tier.
Heat pump guides
- Every Australian heat pump rebate, with the dated changes
- The best heat pump hot water brands in Australia
- Heat pump hot water cost in Australia
- Victoria heat pump rebates
- New South Wales heat pump rebates
- Queensland heat pump rebates
- South Australia heat pump rebates
- Australian Capital Territory heat pump rebates
- Western Australia heat pump rebates
- Tasmania heat pump rebates
- Northern Territory heat pump rebates
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