Change your business hot water system to heat pump
Replacing your old gas hot water system with a heat pump system is an excellent way to reduce running costs and utilise renewable energy.
According to Sustainability Victoria, heat pump systems use 60–75% less electricity than traditional electric systems. Additionally, they can be programmed to heat water during the middle of the day, acting like a thermal battery and storing excess solar energy.
The best returns on investment can be achieved by heavy hot water users, ranging from small businesses such as hairdressers, massage therapists, or gyms who use a lot of hot water, through to food manufacturers or others who require industrial amounts of high temperature water for cleaning. Any business can benefit from replacing a gas hot water system, as this enables the use of clean renewable energy for hot water and is another step towards getting rid of your gas connection.
What to look for
This Heat pump how water systems guide from Renew will help you know what to look for when you’re buying a heat pump. The guide is primarily aimed at residential users, but the basic principles apply for businesses. In fact, most smaller businesses use the same hot water systems as homes.
Quality
Invest in a high-quality heat pump system suitable for your business needs. Cheaper systems may have lower efficiency and slower recovery rates, potentially leading to hot water shortages. The extra reliability and better backup service that typically comes with higher end systems also ensures you don’t run out of hot water at a critical time. If your business depends heavily on hot water, a reliable system is worth the extra upfront cost.
Natural refrigerants
Choose products that use natural refrigerants such as CO2 (R744) and Propane (R290). They are much better for the environment, having a significantly lower global warming potential when/if they are released into the atmosphere. They also pose no risk of creating the ‘forever’ per- and polyfluoroalkyl substances (PFAS) that some man-made refrigerants create during production and when exposed to ultraviolet light in the atmosphere.
Hot water systems based on water usage
Minimal Hot water users
If you barely use any hot water, for example a small office that just has handwashing and a few coffee cups, a heat pump might not be the best answer, especially if you don’t have much (or any) outdoors space. In this case, the small 60L or 80L under-sink electric hot water systems are usually the best choice. You should ensure that they are being powered by 100% renewable electricity though, by either installing solar or signing up to a 100% renewable provider.
If this is you, don’t let a salesperson talk you into installing a cheap heat pump. The tiny amount of hot water consumed means only a minute amount of energy is saved, while the energy that goes into the manufacture, shipping and installation of the heat pump is large. A small electric system is also likely to last much longer than a cheap heat pump.
Small hot water users
Businesses using systems in the 120–450L range can opt for a drop-in replacement heat pump. Work with a reputable supplier to select the right size and quality for your needs. The Darebin Energy$mart program can assist with guidance and rebates up to $1,000.
Medium hot water users
Larger offices, accommodation venues, or sites with complex hot water systems (e.g., ring mains) should consult experienced plumbers or engineers. A well-designed heat pump system can deliver substantial energy and cost savings.
Costs
Heat pump systems have a higher upfront cost but are significantly cheaper to operate. Domestic-sized systems typically range in price from about $2000 to $4000+, excluding installation but also attract significant rebates from State and Federal governments. You may also be eligible for the $1000 rebate from Darebin Energy$mart– see below. Rebates can make the cost of upgrading to a mid-range system competitive to replacing like-for-like or sometimes even cheaper.
Financial support
The Darebin Energy$mart program can help you upgrade your hot water system to an efficient heat pump. We can offer guidance, connections to reputable installers and up to $1,000 on top of the Victorian government rebates for businesses to upgrade.
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