What’s the Difference Between Cheap and Premium Heat Pumps?

Did you know that hot water systems play a significant role in the energy consumption of your home, typically constituting between 20-30% or more of total energy use?

While solar hot water and heat pump systems are now regarded as the most eco-friendly, energy-efficient alternatives to traditional gas or electric systems, a crucial decision lies in choosing between cheap and premium heat pumps.

In this comprehensive guide, our team delves into the distinctions, implications, and considerations involved in venturing into the world of heat pumps.

Let’s get started with the foundations.

What is a heat pump?

Unlike traditional heating systems, a heat pump utilises renewable energy to heat water at home. Commonly used as an alternative to solar panels, it is particularly beneficial for households where solar panels might not be suitable or for those already equipped with solar panels.

A heat pump employs technology similar to that present in refrigerators or air conditioners. It draws heat from a specified source, such as the ambient air, geothermal energy stored in the ground, or adjacent water sources. Subsequently, it intensifies and conveys the heat to the desired location, heating your water or facilitating your hydronic heating/cooling system.

What can a heat pump do?

A heat pump can be used for a variety of applications within both home and workplace, including:

  • Heating your hot water
  • Heating your pool
  • Facilitating your hydronic heating/cooling

…and much more.

More recently, the Victorian market for heat pumps has witnessed a revolution, with heat pumps swiftly becoming the favoured choice for the systems mentioned above. But what sets apart the cheaper options from their premium counterparts?

What is the difference between cheap and premium heat pumps?

There are a number of key differences between cheap and premium heat pumps, including:

  • Technology and efficiency
  • Warranty and reliability
  • Noise level
  • Environmental impact

Let’s take a look at each of these in more detail:

Technology and efficiency

Premium heat pumps boast advanced technology, leading to higher efficiency. With improved running costs, these systems often operate as inverters, reducing energy consumption and maintaining water temperatures at a fraction of the cost.

While cheaper heat pumps may have lower upfront costs, their efficiency tends to lag behind, impacting your savings and costs over the long-term.

Warranty and reliability

One of the significant distinctions between cheap heat pumps and their premium counterparts lies in the warranty and reliability.

Premium heat pump systems from reputable companies in Victoria often come with extended warranties, providing peace of mind for years to come. For instance, companies like Reclaim Energy and Sanden, both stocked by G Store, offer warranties ranging from 10 to 15 years, ensuring a reliable and durable investment.

Cheaper alternatives, on the other hand, typically offer shorter warranties, potentially meaning you’ll need to replace or repair your heat pump much earlier than expected.

Noise level

Talk to any heat pump owner and they’ll tell you that noise is a crucial factor in the process of heat pump selection.

Higher-end heat pumps are engineered to operate quietly, offering a more pleasant experience for homeowners, and especially when the pump is installed near sleeping or living quarters.

While noise might not be a significant concern for everyone commencing their heat pump journey, premium heat pump units tend to have noise levels as low as 37dB, providing a quieter solution compared to some budget-friendly alternatives that hover around 50dB.

Environmental impact

The environmental impact of cheaper heat pumps is another consideration.

Premium heat pump models, with their higher efficiency, contribute to a lower overall carbon footprint. Cheap heat pumps for sale in Victoria may not only be less energy-efficient but could also produce less hot water, potentially impacting not only the environment but your bottom line as well.

Is there a rebate for heat pumps in Victoria?

In Victoria, homeowners have the opportunity to leverage Solar Victoria’s new hot water rebate, formerly known as the solar hot water rebate. This rebate, amounting to up to $1,000, is available to eligible homeowners and applicable to eligible heat pump and hot water systems. However, the rebate is subject to certain criteria:

  • The homeowner must be the owner-occupier of an existing property
  • The combined household taxable income of all owners should be less than $210,000 per year
  • The property’s value should be under $3 million
  • The property address must not have received a hot water rebate or a solar battery rebate under the Solar Homes Program
  • The hot water system to be replaced should be at least three years old from the date of purchase

It’s important to note that households cannot receive the same Solar Homes rebate more than once. This implies that if a homeowner has previously received a hot water rebate, they cannot avail another rebate for the same property.

Unsure about your eligibility? G Store can help! Just give us a quick, obligation-free call on 1300 137 567 and we’ll help you out.

What factors are involved in choosing a heat pump?

When faced with the decision of choosing the right heat pump, various factors come into play. Here are what we consider to be the essential considerations to guide you in making the best decision:

Aligning your expectations and budget

Understanding your needs related to the heat pump (e.g. swimming season, hot water usage patterns, preferred temperature etc.), as well as your budget, is the initial step. While most people end up aligning their expectations with their budget, it’s crucial to ensure realistic expectations within financial constraints. If you need

Researching the CoP

The CoP measures the efficiency of a heat pump. A higher CoP indicates greater efficiency, and it’s essential to evaluate CoP at different temperatures. Some heat pumps may excel in warmer weather but prove less efficient in cooler climates.


Heat pump prices vary, with eco models offering shorter warranties and lower costs, while premium models come with extended warranties and higher price tags. Careful consideration of the long-term running costs versus the initial purchase price is essential, as is having a proper understanding of the heat pump rebates in Victoria for which you may be eligible.

Location of install

Heat pumps require proper ventilation, and their placement should factor in noise considerations. Additionally, the system’s location should facilitate adequate air circulation to prevent inefficiency.

Style, size and appearance

Heat pumps come in diverse designs, with considerations for aesthetics and practicality. The choice between large or front intakes, side discharges, or compact units depends on personal preferences and practical needs.

The pros and cons of different heat pumps

Both cheap and premium heat pump models have their own pros and cons. Let’s take a look at these in-depth:

Pros of premium heat pumps

  • Efficiency: Premium heat pumps are typically more efficient, offering substantial energy savings
  • Reliability: Extended warranties and better build quality contribute to the reliability of high-end heat pumps
  • Operating temperature range: Premium systems often operate efficiently at lower temperatures without the need for an electric booster.

Cons of premium heat pumps

  • Cost: Higher upfront costs can be a deterrent, although the long-term savings offset the initial investment
  • Affordability: Affording premium systems might be challenging for some homeowners, impacting their ability to invest in energy-efficient solutions.

Pros of budget heat pumps

  • Initial Cost: Budget-friendly options require less initial investment, making them accessible to a broader range of homeowners
  • Low upfront payments: Some businesses offer free or low-cost systems, funded through government rebates

Cons of budget heat pumps

  • Reliability and efficiency: Shorter warranties, potential inefficiency, and slower operation may result in higher long-term costs
  • Service quality: Cheaper systems might come with limited after-sales service and support, leading to potential delays and additional expenses.

Which heat pump in Victoria is right for me?

The decision between cheap and premium heat pumps for sale in Victoria is a choice that ultimately boils down to personal priorities, budget constraints, and long-term goals.

If upfront costs are manageable and you’ve taken into account the rebates for which you’re eligible, investing in a premium heat pump with superior efficiency and extended warranties becomes a very wise choice indeed, ensuring significant savings for years to come.

Wrapping up

Have you been searching for info on the best heat pumps for sale in Victoria plus the brands and models we stock and recommend here at G Store?

Visit our Learning Centre’s collection of heat pump articles and guides today, check out our range of heat pumps online, or give our award-winning G Store team a call today on 1300 137 567 for free, generous advice regarding all of your questions.

We can’t wait to speak with you.

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