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Cost to run a heat-pump hot water system in New South Wales (2026–27)

NSW reference tariff · 33.1c/kWh

$0.43 per hour at 1,300 W

Typical use (2.5 kWh a day) ≈ $302/year on the Ausgrid rate.

Source: AER Default Market Offer 2026–27 (DMO 8), effective 1 July 2026

Heat-pump hot water cost in NSW at 4 h/day, 365 days/year (33.1c/kWh)
Model bandPer hourPer dayPer monthPer year
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

The headline annual figure uses this appliance's measured energy per use (2.5 kWh per day (typical household)) rather than a constant draw — the table shows constant-draw costs at your chosen hours.

Appliance running-cost calculator

NSW

Heat-pump hot water: 900–1,900 W typical range.

The compressor runs ~2–4 h/day, often timed to solar or off-peak.

$0.43 per hour · $629/year at your settings
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 →

The same appliance in other states

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

What does a heat-pump hot water cost per hour in NSW?
$0.43 at the typical 1,300 W draw on NSW's reference rate of 33.1c/kWh (Ausgrid network). Efficient models run $0.30, high-draw models $0.63.
How is this calculated?
Watts ÷ 1,000 × the tariff = cost per hour, then × hours × days for the period figures. Every figure on this page uses NSW's 2026–27 reference rate — change the assumptions in the calculator above.
Is the tariff here what I actually pay?
It's the AER Default Market Offer 2026–27 (DMO 8) usage rate for the Ausgrid network — the government reference. Your market offer may be a little under it; your zone may differ. See NSW rates by zone.

Related

Sources — figures current as at 17 July 2026.

The compressor runs ~2–4 h/day, often timed to solar or off-peak.