Heat Pump Hot Water in the Australian Capital Territory (2026): cost, rebates and what to know
By PumpSwap. Updated 23 September 2026. How we check
In the Australian Capital Territory, a heat pump hot water system typically costs $2,300 - $4,800 installed after rebates. At ACT energy prices a four-person home pays about $284 a year to run it, against $741 for gas storage and $1,104 for electric storage. That saves about $457 a year against gas storage and $820 against electric storage, so the extra cost over a like-for-like swap is paid back in roughly 2.6 years against gas and 2.3 against electric at these averages. A premium model or low hot water use stretches that towards the 3 to 5 years most households see.
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$2,300 - $4,800
modelled installed price after ACT rebates
$284 a year
to run, four-person home, at 26c/kWh
$2,300 - $5,200
full range across 100 Australian Capital Territory suburbs
Australian Capital Territory gas rules
Gas connections banned in new buildings since March 2024. ACT was the first jurisdiction in Australia to legislate a gas ban. Full gas phase-out targeted by 2045. Low-interest loans available via the Sustainable Household Scheme.
The ACT stopped new gas connections in December 2023 and plans to end fossil gas by 2045, but there is no date by which existing gas hot water must be replaced. ACT Government, switching from gas
Are heat pumps worth it in the Australian Capital Territory?
The case rests on running cost. A heat pump moves heat from the air instead of making it, so it uses a fraction of the electricity of an element. At ACT energy prices (26c/kWh electricity, 3.5c/MJ gas), a four-person home that uses about 200 litres of hot water a day pays roughly:
| System | Running cost a year | Installed cost |
|---|---|---|
| Heat pump | $284 | $2,300 - $4,800 after rebates |
| Gas storage | $741 | $1,200 - $3,500 |
| Electric storage | $1,104 | $800 - $2,500 |
That saves about $457 a year against gas storage and $820 against electric storage, so the extra cost over a like-for-like swap is paid back in roughly 2.6 years against gas and 2.3 against electric at these averages. A premium model or low hot water use stretches that towards the 3 to 5 years most households see.
About 70% of Australian Capital Territory households are on mains gas, so for most of them the comparison is with gas storage.
In July, usually the coldest month, Canberra averages a minimum of 0.1°C at the Bureau of Meteorology's Canberra Airport station, and in January a maximum of 30.0°C. That is the coldest July minimum of any capital, so the electric boost element does more of the work here on winter nights. Bureau of Meteorology, climate statistics for Canberra Airport
Running costs are PumpSwap's model at the state average tariffs above, for a 45°C temperature rise and a heat pump coefficient of performance of 3.5. Your tariff and usage will move the numbers.
What a hot water system costs installed in Canberra and the Australian Capital Territory (2026)
| System | Installed, before rebates | Rebates |
|---|---|---|
| Heat pump | from $2,500 (brands below); $2,300 - $4,800 after rebates | Federal STCs |
| Electric storage | $800 - $2,500 | None |
| Gas storage | $1,200 - $3,500 | None |
| Gas continuous flow | $1,500 - $3,000 | None |
| Solar hot water | $4,000 - $7,500; $3,500 - $6,000 after STCs | Federal STCs |
National installed bands for the other systems come from the two 2026 cost guides in the sources below. The heat pump figures are PumpSwap's modelled prices for the Australian Capital Territory.
Modelled heat pump prices across Australian Capital Territory
| Area | After rebates |
|---|---|
| Canberra | $2,300 - $4,800 |
| Tuggeranong | $2,300 - $4,700 |
| Gungahlin | $2,300 - $4,800 |
| Belconnen | $2,300 - $4,800 |
| Weston Creek | $2,400 - $4,900 |
| Woden | $2,400 - $4,900 |
| Kambah | $2,300 - $4,800 |
| Ngunnawal | $2,300 - $4,800 |
Heat pump rebates in the Australian Capital Territory
In the ACT, a heat pump installed in 2026 gets the federal STC discount (typically $500 to $800). Home owners can also borrow $2,000 to $20,000 at 3% over up to 10 years through the Sustainable Household Scheme, and home owners with a concession card can get a rebate of 50% of the cost, up to $2,500, through the Home Energy Support Program.
The federal STC discount is typically $500 to $800 for a 2026 install and steps down every 1 January until 2030. Canberra postcodes are in Clean Energy Regulator zone 5 for air source heat pumps (and zone 3 for solar water heaters). Zone 5 is the coldest of the five, and on the regulator's register a model earns more certificates in colder zones. Clean Energy Regulator, postcode zones for solar water heaters and heat pumps
Australian Capital Territoryheat pump rebates: who qualifies, how to claim, and what is changing →Heat pump brands sold in the Australian Capital Territory
Installed prices before rebates, from PumpSwap's model. Warranty years are the maker's tank and compressor terms; noise is the quietest model's rated level.
| Brand | Installed, before rebates | Warranty (tank / compressor) | Sizes | Noise |
|---|---|---|---|---|
| MideaChina | $2,500 - $4,100 | 5 / 5 years | 170, 200, 280L | 50 dB |
| EmeraldAustralia | $2,750 - $3,750 | 7 / 5 years | 220, 270, 320L | 49 dB |
| iStoreAustralia | $2,800 - $4,400 | 5 / 5 years | 180, 270L | 49 dB |
| ChromagenIsrael | $2,800 - $4,200 | 5 / 5 years | 170, 235, 280L | 48 dB |
| HaierChina | $3,000 - $3,650 | 7 / 5 years | 195, 246, 330L | 43 dB |
| ApricusAustralia | $3,000 - $3,250 | 6 / 6 years | 260L | 43 dB |
| RheemAustralia | $3,200 - $4,800 | 10 / 5 years | 180, 270L | 47 dB |
| QuantumAustralia | $3,250 - $4,450 | 5 / 2 years | 150, 200, 270, 340L | 48 dB |
| DuxAustralia | $3,300 - $3,850 | 7 / 3 years | 200, 270, 285L | Not published |
| RinnaiJapan/Australia | $3,350 - $6,000 | 7 / 5 years | 250, 280, 340L | 45 dB |
| Stiebel EltronGermany | $3,500 - $5,000 | 5 / 5 years | 302L | 44 dB |
| DaikinJapan | $5,500 - $8,500 | 10 / 10 years | 250, 315L | 40 dB |
| SandenJapan | $6,500 - $8,000 | 15 / 6 years | 250, 315L | 37 dB |
| Reclaim EnergyAustralia | $6,600 - $8,000 | 10 / 5 years | 315L | 37 dB |
Beware of quotes that look too cheap
Because rebates come off the price, the Australian Capital Territorysees advertised "from" prices that leave out half the job. Before comparing quotes, check each one covers:
- removing and disposing of the old system, and capping the gas line if you are leaving gas
- any electrical work, including a new circuit if the switchboard needs one
- a tempering valve and the pipework changes for a new tank position
- a base or pad for the unit, and the outdoor position that keeps noise away from bedrooms
- every rebate as its own line, with the model's certificate count, so you can see what was assigned to the installer
Two installers quoting the same model can differ by more than the rebate. That is why PumpSwap sends your request to up to 3 local installers rather than showing one price.
The downsides, in the Australian Capital Territory
Noise. The outdoor unit is a small compressor and fan, and each brand's quietest model is rated between 37 dB and 50 dB, on the makers' own figures. It runs in bursts to reheat the tank, so position it away from bedrooms and a neighbour's windows, and set it to run in the day if you have solar. In the ACT the Environment Protection Regulation sets residential noise limits, measured at the boundary, of 45 dB(A) from 7am to 10pm (from 8am on Sundays and public holidays) and 35 dB(A) overnight, and the EPA applies them to hot water heat pumps. Access Canberra, installing air conditioners and heat pumps (September 2023)
Recovery time. A heat pump reheats a tank more slowly than gas, which is why sizing matters: a 270L or 315L tank suits most three to four person homes, and larger homes go bigger rather than relying on the boost element.
Cold nights. In cold weather the unit draws less heat from the air and works harder, and many models switch on an electric boost element on the coldest nights, so winter running costs sit above the annual average. In July, usually the coldest month, Canberra averages a minimum of 0.1°C at the Bureau of Meteorology's Canberra Airport station, and in January a maximum of 30.0°C. That is the coldest July minimum of any capital, so the electric boost element does more of the work here on winter nights.
Water quality. Canberra's water is soft, about 43 mg/L according to Icon Water, so scale is not a concern for tanks here. Icon Water, water quality and your appliances
Space. Most units are a single tank with the heat pump on top, taller than the gas or electric tank they replace; split systems put the compressor beside the tank and need a little more room.
Who can install a heat pump in the Australian Capital Territory
Installing a hot water heat pump in the ACT requires both an ACT licensed plumber and a licensed electrician, according to the ACT Government's heat pump buyer's guide. ACT Government, a guide to hot water heat pumps
Australian Capital Territory heat pump questions
Is a heat pump hot water system worth it in the Australian Capital Territory?
In the Australian Capital Territory, a heat pump hot water system typically costs $2,300 - $4,800 installed after rebates. At ACT energy prices a four-person home pays about $284 a year to run it, against $741 for gas storage and $1,104 for electric storage. That saves about $457 a year against gas storage and $820 against electric storage, so the extra cost over a like-for-like swap is paid back in roughly 2.6 years against gas and 2.3 against electric at these averages. A premium model or low hot water use stretches that towards the 3 to 5 years most households see.
How much does a heat pump cost installed in Canberra?
PumpSwap's modelled installed price after rebates in the Australian Capital Territory is $2,300 - $4,800, and across 100 Australian Capital Territory suburbs it runs from $2,300 - $5,200. The brands sold here start from $2,500 installed before rebates. The exact price depends on the model, your home and the installer, which is why we show quotes rather than one number.
What heat pump rebates are available in the Australian Capital Territory?
In the ACT, a heat pump installed in 2026 gets the federal STC discount (typically $500 to $800). Home owners can also borrow $2,000 to $20,000 at 3% over up to 10 years through the Sustainable Household Scheme, and home owners with a concession card can get a rebate of 50% of the cost, up to $2,500, through the Home Energy Support Program.
Does a heat pump hot water system work in Canberra's winter?
Yes. In cold weather a heat pump draws less heat from the air and works harder, and many models switch on an electric boost element on the coldest nights, so winter running costs sit above the annual average. In July, usually the coldest month, Canberra averages a minimum of 0.1°C at the Bureau of Meteorology's Canberra Airport station, and in January a maximum of 30.0°C. That is the coldest July minimum of any capital, so the electric boost element does more of the work here on winter nights. Heat pumps also earn more federal certificates in colder climate zones, because they displace more electric heating there.
How noisy is a heat pump hot water system?
Across the brands sold in the Australian Capital Territory, each brand's quietest model is rated between 37 dB and 50 dB, on the makers' own figures. Makers measure at different distances, so treat the numbers as a guide rather than a like-for-like ranking. The outdoor unit runs in bursts, mostly when hot water is being reheated, so where it sits and when it runs matter more than the number. In the ACT the Environment Protection Regulation sets residential noise limits, measured at the boundary, of 45 dB(A) from 7am to 10pm (from 8am on Sundays and public holidays) and 35 dB(A) overnight, and the EPA applies them to hot water heat pumps.
Who can install a heat pump hot water system in the Australian Capital Territory?
Installing a hot water heat pump in the ACT requires both an ACT licensed plumber and a licensed electrician, according to the ACT Government's heat pump buyer's guide.
What is changing for gas hot water in the Australian Capital Territory?
The ACT stopped new gas connections in December 2023 and plans to end fossil gas by 2045, but there is no date by which existing gas hot water must be replaced.
Sources
- Tempco Energy 2026 installation cost guide (checked 16 September 2026)
- What's The Damage hot water cost index (September 2026) (checked 16 September 2026)
- Bureau of Meteorology, climate statistics for Canberra Airport (checked 23 September 2026)
- Clean Energy Regulator, postcode zones for solar water heaters and heat pumps (checked 23 September 2026)
- Access Canberra, installing air conditioners and heat pumps (September 2023) (checked 23 September 2026)
- Icon Water, water quality and your appliances (checked 23 September 2026)
- ACT Government, a guide to hot water heat pumps (checked 23 September 2026)
- ACT Government, switching from gas (checked 23 September 2026)
- Sustainable Household Scheme, official page (checked 21 September 2026)
- PumpSwap, Australian Capital Territory heat pump rebates (every scheme with its official source)
Heat pump guides for the Australian Capital Territory
Metropolitan Australian Capital Territory
100 suburbs with local pricing
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