Electric water heaters are the most popular systems used to heat water in Canberra homes today. Electric heat pump water heaters are a much more energy efficient alternative than traditional electric storage water heaters though.

Read on as we discuss the difference between a hot water heat pump and an electric storage hot water systems, as well as compare their advantages and disadvantages. We will also look at some of the common use cases for each type of appliance and how they can help you save energy costs in your home.

Exploring the Pros and Cons of Heat Pump Water Heaters

Heat pump water heaters are becoming increasingly popular due to their energy efficiency and cost-saving benefits. These systems use less electricity than traditional electric water heaters.

Aside from that, it can reduce your hot water energy bills by up to 80%. Still, these systems have both advantages and disadvantages.

Advantage of Hot Water Heat Pump

The most obvious advantage of using a heat pump water heater is that it uses less electricity than a traditional electric one. A typical electric water heater will use 750 kWh of energy annually, while the average efficiency rate for a heat pump water heater is around 80%.

It can translate into significant savings on your energy bill over time. 

Another benefit associated with these types of water heaters is their ability to provide hot water faster than their traditional counterparts. A gas or electric tankless (unattached) hot-water system typically heats up in 2 to 3 minutes, with 95% efficiency.

Downside of Hot Water Heat Pump

A downside of a hot water heat pump is their comparatively high cost. While in the long run they can be significantly cheaper, the upfront costs put many households off investing in a hot water heat pump initially. With some government incentives in Canberra, ACT. The cost of investing in a new system is very affordable. Currently ACT households can qualify for zero interest on a new energy efficient hot water heat pump. There are also a rebate for pensioner or concession gold card holders who would also like to invest in a hot water heat pump.

The Benefits & Drawbacks of Electric Water Heaters

Electric water heaters are the favourite choice for Canberra households due to their use of electricity and lower upfront costs.

However, electric water heaters come with some drawbacks that should be considered. 

The Benefits

Electric water heaters are cheaper to install install initially than any other option.

The electric water heater is easier to install because it does not require the removal or rearrangement of gas lines or appliances. In addition, they can be installed vertically, which is beneficial for small spaces.

The Drawbacks

While a lower initial cost may put a smile on your face initially compared to investing in a hot water heat pump. The ongoing costs of energy bills and a shorter lifespan on the unit will have you wondering why you did not opt for the energy efficient system instead.


Before deciding on a new water heater for your home, you should weigh up the pros and cons of each option. For the installation, with the help of Level Plumbing, you can ensure a safe and efficient installation of your chosen model. Our experienced plumbers will help you decide which water heater is best for your home based on your budget and energy needs.

Whether you choose a heat pump or an electric water heater, Level Plumbing can make the installation process hassle-free. Contact us today to learn more about our services!