SEA installs heat pump hot water systems from iStore and Madimack. A heat pump water heater uses a refrigeration cycle to move heat from the surrounding air into the water. According to energy.gov.au, heat pump water heaters use 30% of the energy of a conventional electric hot water system.
How an iStore heat pump works (from iStore’s owner’s manual):
- A fan draws outside air across the evaporator.
- The refrigerant (R290, also known as propane) absorbs the heat and evaporates.
- A compressor pressurises it into a hot gas.
- A condenser coil wrapped around the tank transfers that heat into the water.
As at November 2026, eligible heat pumps can create federal small-scale technology certificates (STCs), usually taken as a discount on the price, and eligible households in Victoria and the ACT may also qualify for state rebates. See Is there a rebate for heat pump hot water? Find out more on our heat pump page.
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