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Heat Pump Hot Water Systems in Melbourne

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A heat pump hot water system is the most efficient way to heat water in your home. Instead of using an element to make heat, it uses a small amount of electricity to move heat from the surrounding air into the tank, the same idea as a reverse-cycle air conditioner. That makes it up to 70 percent cheaper to run than a conventional electric storage system, and cheaper still when paired with solar. At BM Heating & Cooling we supply, install and replace the iStore heat pump range across Melbourne, size the tank to your household, and set it up tested by our licensed installers. Heat pump hot water is also eligible for federal and Victorian rebates that cut the up-front cost.

Heat Pump Hot Water, the Efficient Electric Upgrade


Switching an old electric or gas hot water system to a heat pump is one of the easiest ways to cut a household's energy bills. A heat pump does not burn gas and does not rely on a power-hungry element, so it uses a fraction of the energy for the same hot showers.

A heat pump hot water system draws warmth out of the outside air using a natural refrigerant, then transfers that heat into the water in an insulated storage tank. Because it moves heat rather than making it, it delivers around four units of heat for every unit of electricity it uses, which is where the big running-cost savings come from.

  • Up to 70% cheaper to run than a conventional electric storage system.
  • iStore range: the 180L for smaller homes and the 270L for larger households.
  • Rebate eligible: federal STCs and the Victorian VEU rebate reduce the up-front cost.
Heat pump hot water system unit for a Melbourne home

How a Heat Pump Hot Water System Works


A heat pump hot water system works like a fridge in reverse. Rather than making cold, it collects warmth from the air and puts it into your water. Here is what happens.

  • Fan draws in air: a quiet fan pulls outside air across the unit, even on cool days.
  • R290 refrigerant absorbs heat: the natural refrigerant soaks up warmth from that air.
  • Compressor: compressing the refrigerant raises its temperature further.
  • Heat exchanger: that heat is transferred into the water in the storage tank.
  • Insulated tank: the hot water is stored ready for showers, taps and appliances.
  • Timer & WiFi control: set it to heat on a schedule or through the iStore app, including during the day on solar.

The iStore Heat Pump Range


iStore makes two tank sizes to suit different households. Both use natural R290 refrigerant, run quietly at 46.6dB or less, are WiFi-ready and carry a 5-year comprehensive parts and labour warranty. Here is how they compare.

ModelHouseholdTankPower inputSize & weight
iStore 180L2–4 people180 litres0.58 kW540 x 1956mm, 93kg
iStore 270L3–6+ people270 litres0.85 kW (COP ~4.82)640 x 1956mm, 135kg

Not sure which size suits your home? We size the tank to how many people live there and how you use hot water, then recommend the right iStore model at your free quote.

Smart Controls, Solar Ready & Rebates


WiFi app control: the iStore heat pumps are WiFi-ready, so you can set schedules, monitor performance and adjust the temperature from the iStore app on your phone.

Solar ready: set the heat pump to run during the day and it uses your rooftop solar to heat the water, acting as a simple form of energy storage and cutting the running cost even further.

R290 natural refrigerant: a clean, low global-warming-potential refrigerant, quiet operation at 46.6dB or less, and a neat outdoor install.

Rebate eligible: heat pump hot water qualifies for federal STCs and the Victorian VEU rebate, which can take a large chunk off the up-front price. The amount depends on your zone and unit, so we confirm what applies to you at your quote.

Heat pump hot water unit installed outside a Melbourne home with solar panels

Why Choose Heat Pump Hot Water


Up to 70% Cheaper

A heat pump uses a fraction of the electricity of a conventional element system, cutting your hot water running costs by up to 70 percent.

iStore 180L & 270L

Two tank sizes, the 180L for smaller homes and the 270L for larger households, so you get the right amount of hot water.

Solar-Ready Smart Control

Run it during the day on your solar and control it from the iStore app, for the lowest possible running cost.

R290 Natural Refrigerant

A clean, low global-warming-potential refrigerant with quiet operation at 46.6dB or less.

Rebate Eligible

Eligible for federal STCs and the Victorian VEU rebate, which reduce the up-front cost of the upgrade.

5-Year Warranty

The iStore 180L and 270L come with a full 5-year comprehensive parts and labour warranty.

Cheaper and Cleaner Hot Water


Hot water is one of the biggest energy users in most homes, so the way you heat it makes a real difference to your bills. A heat pump uses up to 70 percent less electricity than a conventional electric storage system for the same hot water, and running it on solar during the day can lower that further. It also runs on electricity rather than gas, which suits homes moving away from gas. We assess your home, your hot water use and your solar setup, and give you honest advice on the right size and whether a heat pump is the best fit for you.

iStore Warranty

The iStore 180L and 270L heat pumps come with a full 5-year comprehensive parts and labour warranty. Our own workmanship guarantee covers the installation, and we register your system so the warranty is in place from day one.

We also handle the rebate paperwork where it applies, so the federal STC and Victorian VEU discounts are taken off your price rather than left for you to chase.

Our Heat Pump Installation & Replacement Process


1. Free onsite assessment: we check your existing system, hot water use, power supply and where the new unit can sit outside, and confirm your rebate eligibility.

2. Model recommendation & quote: we recommend the iStore 180L or 270L to suit your household, apply the STC and VEU rebates, and give you a clear, itemised quote.

3. Licensed installation: our licensed installers remove the old system, fit and connect the new heat pump, and set up the timer and app, usually in a day for a straightforward changeover.

4. Testing & handover: we commission the system, check it heats correctly, register the warranty and show you how to run the schedule and app before we leave.

Areas We Serve Across Melbourne


BM Heating & Cooling installs and replaces heat pump hot water systems right across Melbourne. From our base in the northern suburbs we regularly work through Preston, Reservoir, Coburg, Brunswick, Bundoora, Heidelberg, Ivanhoe, Northcote and Thornbury, and out to Melton and the wider metro area. See our full list of service areas or the main hot water systems page.

Warm hot water shower in a modern Melbourne home bathroom

Heat Pump Hot Water Installed by BM Heating & Cooling


Choosing the right size, installing it in a good spot and setting up the controls is what makes the difference to how much you save and how reliably you get hot water. We match the iStore model to your household and hot water habits rather than pushing one size.

Whether you are replacing a failed electric or gas system, planning ahead before yours dies, or moving your home to all-electric, our licensed installers handle it end to end, including the rebate paperwork, backed by the iStore warranty and our own workmanship guarantee.

We also install and service other trusted hot water options, so if a heat pump is not the right fit we will tell you honestly and match your home to the best system.

Heat Pump Hot Water FAQs


A heat pump hot water system uses electricity to move heat from the surrounding air into a storage tank of water, rather than using an element to make heat directly. It works like a reverse-cycle air conditioner or a fridge in reverse. Because it moves heat instead of generating it, it is far more efficient, delivering around four units of heat for every unit of electricity it uses.

A heat pump hot water system can cut your hot water running costs by up to 70 percent compared with a conventional electric storage system, because it uses far less electricity for the same hot water. Pairing it with solar can lower the running cost further. We can talk through the likely savings for your home at your quote.

We install the iStore 180L, suited to households of 2 to 4 people, and the iStore 270L, suited to households of 3 to 6 or more people. Both use natural R290 refrigerant, run quietly and come with a 5-year comprehensive parts and labour warranty. We size the tank to your household at your quote.

Yes. Heat pump hot water systems are eligible for federal Small-scale Technology Certificates (STCs) and, in Victoria, the Victorian Energy Upgrades (VEU) rebate, which can substantially reduce the upfront cost. The exact rebate depends on your zone, the unit and your circumstances, so we confirm what applies to you as part of your quote.

Yes. The iStore heat pumps are solar ready and can be set with a timer or the iStore app to run during the day, so they use your solar power to heat the water and act as a form of energy storage. This can push the running cost down even further.

The iStore heat pumps are low-noise, rated at 46.6dB or less measured at 1 metre. They are designed for outdoor installation, so the small amount of fan noise is outside the home.

The iStore heat pumps use R290, a natural refrigerant with a very low global warming potential, which makes them a cleaner choice than systems using older synthetic refrigerants.

Yes. A heat pump draws heat from the outside air and works year-round in Australian conditions, including cool Melbourne mornings. We install it in a suitable outdoor position and set it up so you have reliable hot water through winter.

The iStore 180L and 270L heat pumps come with a full 5-year comprehensive parts and labour warranty. We confirm the warranty details and register your system as part of the installation.

Get a Free Heat Pump Hot Water Quote

iStore 180L and 270L heat pumps, supplied, installed and replaced Melbourne wide, with the rebates handled for you. Free quote.
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