How much does it cost to run a heat-pump hot water system? (2026–27)
At typical draw · official state tariffs
Typical household use (2.5 kWh a day) runs $251–$382 a year depending on your state's tariff.
Wattage basis: Compressor input 0.9–1.9 kW (Sanden CO2 ~900 W rated for ~4.5 kW of heat); annual energy ~800–1,200 kWh temperate ≈ 2.2–3.3 kWh/day.
| State | Model | Per hour | Per day | Per month | Per year |
|---|---|---|---|---|---|
| New South Wales33.1c/kWh · Ausgrid | Efficient (900 W) | $0.30 | $1.19 | $36.27 | $435 |
| Typical (1,300 W) | $0.43 | $1.72 | $52.38 | $629 | |
| High (1,900 W) | $0.63 | $2.52 | $76.56 | $919 | |
| Victoria27.5c/kWh · Jemena | Efficient (900 W) | $0.25 | $0.99 | $30.06 | $361 |
| Typical (1,300 W) | $0.36 | $1.43 | $43.42 | $521 | |
| High (1,900 W) | $0.52 | $2.09 | $63.47 | $762 | |
| Queensland28.0c/kWh · Energex | Efficient (900 W) | $0.25 | $1.01 | $30.62 | $368 |
| Typical (1,300 W) | $0.36 | $1.45 | $44.22 | $531 | |
| High (1,900 W) | $0.53 | $2.13 | $64.63 | $776 | |
| South Australia41.9c/kWh · SA Power Networks | Efficient (900 W) | $0.38 | $1.51 | $45.87 | $551 |
| Typical (1,300 W) | $0.54 | $2.18 | $66.25 | $795 | |
| High (1,900 W) | $0.80 | $3.19 | $96.83 | $1,163 | |
| Western Australia33.3c/kWh · Western Power (SWIS) | Efficient (900 W) | $0.30 | $1.20 | $36.40 | $437 |
| Typical (1,300 W) | $0.43 | $1.73 | $52.58 | $631 | |
| High (1,900 W) | $0.63 | $2.53 | $76.85 | $923 | |
| Tasmania28.0c/kWh · TasNetworks | Efficient (900 W) | $0.25 | $1.01 | $30.59 | $367 |
| Typical (1,300 W) | $0.36 | $1.45 | $44.19 | $531 | |
| High (1,900 W) | $0.53 | $2.12 | $64.58 | $775 | |
| Australian Capital Territory37.0c/kWh · Evoenergy | Efficient (900 W) | $0.33 | $1.33 | $40.44 | $486 |
| Typical (1,300 W) | $0.48 | $1.92 | $58.42 | $701 | |
| High (1,900 W) | $0.70 | $2.81 | $85.38 | $1,025 | |
| Northern Territory31.7c/kWh · Power and Water | Efficient (900 W) | $0.29 | $1.14 | $34.67 | $416 |
| Typical (1,300 W) | $0.41 | $1.65 | $50.08 | $601 | |
| High (1,900 W) | $0.60 | $2.41 | $73.19 | $879 |
This table costs a constant draw at 4 h a day. The typical-use yearly figures below use the appliance's measured energy per use (2.5 kWh per day (typical household)) instead.
Where a heat-pump hot water system costs more
- South Australia is the dearest state to run one: $0.54 an hour at 1,300 W on its 41.9c/kWh rate, against $0.36 in Victoria. Over a year of typical use that gap is $132 (52.6% more).
- By yearly running cost at typical use it ranks 6th of the 26 appliances costed on this site (1st costs the most): $302 a year at the NSW rate.
- An electric storage hot water system doing the same job uses 2,190 kWh a year at typical use, 1,278 kWh more than this one: it would cost $535 a year more in SA and $351 more in VIC.
- At the 1 July 2026 price reset, typical-use cost fell $21 in VIC (Jemena usage rate 29.7c to 27.5c/kWh) and rose $8 in WA (Western Power (SWIS) usage rate 32.4c to 33.3c/kWh).
| Rank | State | Usage rate | Typical year | Above the cheapest |
|---|---|---|---|---|
| 1 | Victoria | 27.5c | $251 | — |
| 2 | Tasmania | 28.0c | $255 | +$4 |
| 3 | Queensland | 28.0c | $255 | +$5 |
| 4 | Northern Territory | 31.7c | $289 | +$38 |
| 5 | New South Wales | 33.1c | $302 | +$52 |
| 6 | Western Australia | 33.3c | $304 | +$53 |
| 7 | Australian Capital Territory | 37.0c | $337 | +$87 |
| 8 | South Australia | 41.9c | $382 | +$132 |
Rates by state (each state's capital-city network): NSW: AER Default Market Offer 2026–27 (DMO 8); VIC: ESC Victorian Default Offer 2026–27; QLD: AER Default Market Offer 2026–27 (DMO 8); SA: AER Default Market Offer 2026–27 (DMO 8); WA: WA Government Standard Electricity Prices 2026–27 (Synergy Home Plan A1); TAS: OTTER-approved Aurora Energy Standing Offer 2026–27 (approved 25 June 2026) — Tariff 31; ACT: ICRC retail electricity price recalibration 2026–27 (ActewAGL standing offer); NT: NT Electricity Pricing Order 2026–27 (Jacana Energy standard residential). All effective 1 July 2026.
Appliance running-cost calculator
NSWHeat-pump hot water: 900–1,900 W typical range.
The compressor runs ~2–4 h/day, often timed to solar or off-peak.
- Per day (4 h)
- $1.72
- Per month
- $52.38
- Per year (365 days)
- $628.94
Tariff: 33.1c/kWh — AER Default Market Offer 2026–27 (DMO 8) for the Ausgrid network, effective 1 July 2026. Wattage basis: Hot Water Hub — heat pump running costs. Full heat-pump hot water costs in NSW →
Cutting the cost
A heat-pump system pulls warmth from the surrounding air, so it uses a fraction of the power of a plain electric element. Give it clear airflow and keep it out of tight, cold enclosures. If you have solar or a cheaper daytime rate, timing the heating cycle for the middle of the day pairs it with warmer air and your own generation. Keep the air filter clean.
Frequently asked questions
- How is the running cost calculated?
- Watts ÷ 1,000 × the electricity rate = cost per hour. A heat-pump hot water system drawing 1,300 W on NSW's 33.1c/kWh rate costs $0.43 an hour; the calculator below lets you change every input. For this appliance the yearly figure uses its measured energy per use rather than a constant draw.
- Does a higher star rating cut the cost?
- Yes. The star rating compresses the power draw or energy per use, which scales these figures directly. The low–high band in the table (900–1,900 W) roughly spans efficient to inefficient models.
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Costs use each state's representative-zone reference usage rate, effective 1 July 2026. The compressor runs ~2–4 h/day, often timed to solar or off-peak.