Short answer: A heat pump hot water system costs about $3,000 to $7,000 installed in 2026, with the federal STC discount usually already taken off. It uses around 70% less energy to heat water than an old electric storage tank. There is no extra Queensland rebate in 2026, and the federal discount gets smaller every year.
This guide covers how heat pumps work, what they cost in Brisbane, the iStore models we install, and the best way to run one with solar.
How does a heat pump hot water system work?
A normal electric hot water tank heats water with an element, like a giant kettle. That uses a lot of power.
A heat pump works more like an air conditioner in reverse. It pulls warmth out of the outside air and moves it into the water. Because it moves heat instead of making it, it uses far less electricity for the same hot water. Brisbane's warm climate suits heat pumps well.
How much does a heat pump cost in Brisbane?
SolarQuotes puts a simple swap from an old tank at about $3,000 for a budget model up to about $7,000 for a premium one. Those prices usually already include the federal STC discount.
The final price depends on:
- The size of the tank
- The brand and model
- Whether it goes in the same spot as your old system
- Any plumbing or electrical changes needed
The federal heat pump discount is shrinking
Heat pumps earn small-scale technology certificates, called STCs, the same way solar panels do. Your installer claims them and takes the value off your price.
The number of certificates depends on the model and where you live, and it falls every year until 2030. As an example, SolarQuotes lists the iStore 270L at about 15 STCs. At current certificate prices that is worth roughly $570.
The discount will be smaller in 2027 than it is now, so the same heat pump is likely to cost a little more next year.
Are there Queensland heat pump rebates in 2026?
No. Queensland's old Climate Smart Energy Savers appliance rebate has closed, and there is no state heat pump rebate in 2026. The federal STC discount is the main saving.
If you need finance, the federal Household Energy Upgrades Fund supports discounted green loans through some lenders.
The iStore heat pump
iStore is our preferred heat pump brand. We can supply other brands on request, but we like iStore for Brisbane homes because:
- It comes in 180 litre and 270 litre sizes.
- It uses R290, a natural refrigerant.
- It has a built-in timer, so you can set it to heat water while your solar is running.
- It has a 5-year parts and labour warranty.
- The 270L model works in temperatures from -7°C to 45°C, and runs at about 46 decibels, roughly as loud as a quiet fridge.
As a rough guide, a 180L tank suits smaller households and a 270L tank suits a typical family home. We will help you pick the right size based on how many people live in the house and how you use hot water.
How to run a heat pump with solar
If you have solar panels, the best setup is simple. Use the heat pump's timer to run it for about 3 to 4 hours from around 11am. That heats your water with your own solar, which is worth far more than the few cents you would get for exporting it. Our guide to Brisbane feed-in tariffs explains why.
A heat pump with a full tank of hot water also works like a small battery. The water stays hot for the evening and next morning, after the sun has gone down.
If you do not have solar, a controlled load tariff is usually the cheaper option. Energex's Super Economy (Tariff 31) and Economy (Tariff 33) tariffs supply power at a lower rate for set hours each day.
Is a heat pump worth it?
For most Brisbane homes replacing an old electric storage tank, yes. Hot water is one of the biggest energy users in a home, and a heat pump cuts that energy use by around 70%. If your old tank is near the end of its life, it is a good time to switch.
A heat pump also pairs well with the rest of an electric home: solar panels, a battery and an EV charger.
Get a heat pump quote in Brisbane
Renewlec installs iStore heat pump hot water systems across Brisbane, with the federal discount included in your quote. Our own electricians set the timer to work with your solar.
Contact us or call 07 3154 0632 to book a free site assessment.
