Vic Gov Heat Pump Hot Water System Rebates, Worth It?

LShonggie on 11/06/2024 - 14:44
Last edited 11/06/2024 - 17:42

HI all, First time posting on the forum side of things but long of the short i had a guy knock on my door today offering heat pump replacement for my hot water system. Im a bit of a sceptic especially with many government rebate programs with companies taking advantage of the government to profit off of it.

So I just wanted to understand what i am getting myself into and if it is actually worth in the long run to replace my existing Ranai instant hot water system. Ill provide as much context below to assist with providing feedback.

-2 person household, considered a large house
- i still have existing gas systems, namely stove and ducted heating for my downstairs (based off my quick research seems like I'm far away from disconnecting from gas in my current circumstances so assume i will NOT disconnect my gas for the medium term)
-I currently have solar and my power is billed on a peak usage scheme. Do let me know if providing any additional info on my solar assists with forming opinions etc.

Out of the experience with that door salesperson, i have been quoted roughly $2k upfront OR approx $38/pm for the next 6 years. im sure there are better companies and such out there but yeah, that's what really sparked the thought of all this.

Edit: It was either 2k upfront or $38/pm for 6 years my bad!

Home & Garden Hot Water System

Comments

  • geekcohen on 11/06/2024 - 14:57

    Out of the experience with that door salesperson, i have been quoted roughly $2k upfront and approx $38/pm for the next 6 years. im sure there are better companies and such out there but yeah, that's what really sparked the thought of all this.

    So payment plan for the system? $2k upfront plus $2,736 over 6 years, $4,736? That seems a lot

    —————————————————————————————————————————

    Will the new system save you money? For me, I couldn't justify it. so I am going to wait until my gas system dies and then convert my system. Unless the Government makes it free, I am just going to wait.

  • freefall101 on 11/06/2024 - 15:00
    +1

    Out of the experience with that door salesperson, i have been quoted roughly $2k upfront and approx $38/pm for the next 6 years. im sure there are better companies and such out there but yeah, that's what really sparked the thought of all this.

    That's almost $5k over 6 years. There is no loan program for solar hot water so who knows what you're signing up for with those repayments as well.

    Basically it's up to a $1k rebate, that's the only benefit. If you're anything like me (also two people in a house) actual gas usage isn't that high. We just have hot water and stove and the usage is less than $40 a month. Assuming $30 of that is hot water, $360 a year, it'd take me about 15 years to repay that quote you have.

    I've gotten a couple of quotes so far, around $3k installed for a decent heatpump hot water system down to $998 somewhat questionable flier left in my mailbox (although it's a real company, I imagine the heater would crap out in 2 years though, and they'll find all kinds of extra costs for ripping out the old gas one).

    IMO the best rebates are around removing gas heating and replacing with split systems. You can save a fair bit and they can be a lot cheaper to run

    • Jolakot on 11/06/2024 - 15:11

      Do you have more info on replacing gas heating with split systems?

      I've been looking at ripping out our old gas ducted heating and replacing with 4 split systems, had a bloke come over and give us a quote of $6000 (after rebate) which seemed ridiculous. What were you quoted?

      • freefall101 on 11/06/2024 - 16:02
        +1

        I actually had a leaking gas heater so I just tore the entire thing out without thinking about rebates. Only afterwards I looked at them and realised I missed out, but it's a $2,500 rebate for something your size - https://www.energy.vic.gov.au/households/victorian-energy-up…

        $6k probably seems about the path I was on though (or at least $8,500 without rebate). I paid $3,500 for a 8KW one installed, it was about $1,200 on getting the gas heater removed. However that was a callout fee to deal with the leaking gas, two people to remove it from inside the house, all the ducting removed (which was half a day of work) and tip fees so I felt that was pretty reasonably priced.

  • netjock on 11/06/2024 - 15:18
    +2

    Out of the experience with that door salesperson, i have been quoted roughly $2k upfront and approx $38/pm for the next 6 years

    Good stuff never grows two feet walks to your front door and knocks then gives you the hard sell.

    There is a program but I am sure it isn't that expensive.

    An electricity company sent me an email for the following. It might be useful to check. I have a 20yo 1.5kw solar system and some installers were to lazy to figure out if I can get the rebate and wanted full wack. Turned out I could get the rebase so they lost business.

    $660 Upgrade Terms and Conditions:

    This offer is available to current energy customers.
    The new hot water system will be installed in the same location as the existing unit or relocated within a 5-meter distance.
    Your electrical switchboard must comply with the current AS/NZ 3000 standard and have a dedicated hot water switch.
    Your premises must be within the service area of one of our company or subcontractor hubs. If not, a travel or freight allowance may be added to your quote.
    Your Solar Victoria rebates application must be completed and approved before we can proceed with the upgrade. Please note that the application process and timeframe are managed by Solar Victoria, and the Next Green Group cannot affect the outcome or timing.
    Additional conditions for business upgrades: the existing hot water system is an electric storage hot water system with a heating output/element of 2.4kW or more, and it must be at least 10 years old (from the date of manufacture).

  • skid on 11/06/2024 - 15:42

    The existing Rinnai gas hot water system is luxe. It'd be the last gas appliance I'd get rid of.

    The heat pump may have less operating costs but it isn't as nice. There's also the upfront cost as you've noted. Longevity is questionable too.

    If there is a way to feed the Rinnai gas water with the heat pump hot water, I'd consider it as maybe the best of both worlds?

  • o53djz7qTPY4der on 11/06/2024 - 16:32

    I just went through this. I was considering a heat pump but…

    a) costs are inflated likely due to the rebates.
    b) most heat pumps still use tanks
    c) I wanted on demand hot water as much as I want.

    Gas continuous flow. 2.3k installed. Cheaper and better.

  • JIMB0 on 11/06/2024 - 17:29
    +2

    I wouldn't do it. The units in the market are mostly cheap crap and you'd be lucky if it lasts the warranty period. They are installed quickly and cheaply by the lowest bidder which also doesn't help their longevity.

    The decent brands are over $5k and in your low usage household you'd never see a return on your money.

  • Benoffie on 11/06/2024 - 18:55
    +1

    In SA, just got an EvoHeat 270 system put in for $2580 with the WiFi unit. Full REPS and STC rebates etc. So far, totally worth it. Power usage is stupid low for the size.

  • SBOB on 11/06/2024 - 18:58

    with that door salesperson,

    Stopped reading, already know it's going to be above market price.

    If you want a new hot water system, contact well reviewed installers in your area for a quote.

  • Cheapskate Paul on 12/06/2024 - 00:04

    My advice is to never buy anything from a door to door salesperson. You will ALWAYS pay more.

  • pndl on 12/06/2024 - 08:17

    Noisy and unreliable.

Login or Join to leave a comment
Login Join