Case study: replacing an aging storage tank with a heat pump in Melbourne

We know homeowners need fast, clear answers about replacing an ageing storage tank with a high-efficiency heat pump to cut energy bills and improve daily comfort.

In Melbourne, we assessed a home where an old electric storage unit drove up running costs and gave uneven supply. Our project replaced the unit with a modern heat pump system that supports renewables and lowers household emissions.

We provided end-to-end service: inspection, tailored advice, professional installation and commissioning. Alongside better reliability, the customer received clear billing and usage information so they could manage gas and electricity exposure.

For urgent advice or a prompt assessment, contact us on 1800 571 216 or visit our page about repairs and replacements for local installations at hot water repairs West Melbourne.

Key Takeaways

  • Replacing old storage tanks with a heat pump cuts energy use and emissions.
  • We deliver full-service installation, commissioning and customer guidance.
  • Electrified systems pair well with rooftop solar to reduce bills.
  • Clear metering and billing stop surprises for residents on shared networks.
  • We are available 24/7 and use trusted brands for durable outcomes.

Project overview: upgrading a Melbourne home’s hot water system for efficiency and reliability

We were asked to assess an ageing storage installation and propose a reliable, energy-efficient replacement for a suburban Melbourne home. The customer wanted clear information on costs, a system that reduced energy use and a supply that worked at peak times.

Client brief and objectives

The brief focused on three priorities: reduce energy consumption, stabilise bills and ensure 24/7 hot water availability. We agreed performance targets with the customer so expected savings and comfort were measurable.

Site conditions and existing storage system

The site had an older electric storage unit showing temperature dips and rising operating cost. Intermittent supply disrupted morning and evening routines and caused wasted water due to long run times to taps.

EWON reports on embedded networks guided our concern for billing transparency. Customers often face confusing combined charges and delayed backbilling, so we planned improved metering and clearer billing information as part of the upgrade.

Planning constraints and success criteria

Limited plant space and the existing plumbing layout influenced storage sizing. The customer preferred to reduce gas reliance and support efficient electric operation with the potential for solar pairing.

  • Success criteria: better energy performance, faster delivery to fixtures and clearer usage data.
  • Reliability approach: select reputable brands and materials for long-term support.
  • Communication: transparent timelines, costs and ongoing 24/7 service support.

For full details on our services and options, see our replacement and repair services. For emergency service or clear cost information call OnCall Emergency Plumbers on 1800 571 216.

Hot water case study: assessment, solution design, and heat pump installation

Our first step was to collect billing and appliance data to map real household demand and supply gaps. We checked recent electricity and gas invoices, counted fixtures and verified meter accuracy to protect billing transparency.

Baseline assessment and usage data

We modelled daily and weekly usage to size storage and recovery rates. This ensured the new system met peak draws without wasting energy.

Solution design and installation steps

We selected a heat pump water heater matched to Melbourne conditions and planned zoned storage with tempering valves. Installation covered decommissioning the old heater, safe disposal, plinth mounting, flow and condensate connections, controls setup and commissioning.

A well-lit, meticulously detailed interior scene depicting the installation of a modern, energy-efficient heat pump system in a residential setting. The foreground showcases the heat pump unit, its sleek design and prominent placement showcasing its role as the central focus. The middle ground features technicians diligently working on the installation, their tools and equipment neatly organized. The background depicts the surrounding space, with clean, minimalist furnishings and ample natural light flooding the room through large windows, creating a bright, airy atmosphere. The overall composition conveys a sense of professionalism, efficiency, and a commitment to sustainable home energy solutions.

Why a heat pump over gas or resistance

Higher efficiency lowers electricity use and aligns with net zero goals. Real-world monitored systems can reach a COP ~3.4 and cut electricity by about 68% versus resistance units, as shown in recent research and field examples.

  • We implement monitoring and training at handover.
  • We coordinate delivery, plumbing, controls and commissioning.
  • Our licensed Melbourne team offers 24/7 support and warranties.
Phase Baseline Design Expected outcome
Energy metric High electricity use Heat pump + zoned storage COP ~3.4; ~68% less electricity
Supply reliability Temperature dips Upper-tank priority and controls Stable delivery at fixtures
Customer handover Confusing bills Meter checks + monitoring Clear billing and training

To discuss an assessment or book our team call OnCall Emergency Plumbers on 1800 571 216 or see our page for hot water repairs Black Rock.

Results, performance data and lessons learned from the heat pump water heater project

Measured performance confirmed the new system met our targets for efficiency and reliability across a full year.

A stainless steel heat pump water heater sits prominently in the foreground, its sleek lines and modern design suggesting efficient energy performance. Behind it, a cutaway view reveals the internal components - compressor, heat exchanger, and controls - all working in harmony to capture ambient heat and transfer it to the water tank. The background is filled with a softly glowing, blue-tinted grid of performance graphs and technical diagrams, conveying the wealth of data and analytics available to monitor the system's operation. Bright, directional lighting illuminates the scene, casting dramatic shadows and highlights that emphasize the technological sophistication of this cutting-edge home energy solution.

Energy consumption and efficiency

We recorded an annual COP of ~3.4, which translated to a major drop in electricity consumption versus resistance heating. Zoned storage and priority controls helped keep delivery temperatures steady while reducing run times.

Cost outcomes and clearer billing

With monitoring in place, bills became predictable and easy to explain to the customer. Accurate metering avoided disputed line items and limited the risk of later credits or adjustments.

Comfort and reliability over time

Customers reported faster delivery to taps and consistent temperatures during peak morning and evening periods. Seasonal tuning of controls maintained performance across the year.

Quality materials and ongoing support

We used reputable brands for the heater, pump and valves and installed robust insulation to cut losses. Our 24/7 post‑install service helps customers keep the system running and protects long‑term savings.

  • Energy consumption fell significantly; monitored savings matched real‑world expectations.
  • Storage optimisation preserved comfort without increasing electricity use.
  • Simple maintenance (filters, condensate, tempering valves) keeps efficiency high.
Metric Observed Benefit
COP ~3.4 Lower electricity consumption
Electricity reduction ~68% Material savings over the period
Billing Monitored & accurate Predictable costs for the customer

Lessons learned: position the unit for shortest pipe runs, insulate supply lines and set clear handover data so customers can track savings and request adjustments quickly.

For help with assessment or service, contact OnCall Emergency Plumbers on 1800 571 216.

Conclusion

A clear, measured upgrade can protect comfort and reduce bills for Melbourne households. A well‑designed heat pump system improves hot water delivery, lowers energy exposure and delivers ongoing savings when paired with quality installation and materials.

We emphasise clear information, proper metering and thoughtful design so customers avoid confusing bills and enjoy steady heat at taps. Monitored installations that are right‑sized and tuned after commissioning show the best outcomes compared with basic resistance options.

Plan your next step now: request an inspection, discuss options and confirm the most effective pathway for your property. For fast assistance, quotes or scheduling across Melbourne, contact OnCall Emergency Plumbers on 1800 571 216. We thank you and welcome your questions — our 24/7 team is ready to help.

FAQ

What prompted the upgrade from an ageing electric storage tank to a heat pump in Melbourne?

We replaced the aged electric storage unit because rising electricity bills and intermittent supply were affecting reliability. The household wanted improved efficiency, stabilised bills and continuous availability of hot water, so we recommended a heat pump water heater paired with appropriately sized storage to meet daily demand while lowering energy consumption.

How did we assess the home’s baseline energy use before recommending a solution?

We audited historical electricity bills, measured daily hot water demand and monitored peak usage times. This gave us clear data on consumption patterns and enabled accurate sizing of the heat pump and storage to optimise performance and reduce running costs.

Why choose a heat pump water heater instead of gas or resistance heating?

Heat pumps deliver higher efficiency through a greater coefficient of performance (COP), cutting electricity use compared with resistance elements. They offer demand flexibility, lower operating costs over time and better alignment with net zero goals—especially when paired with renewable electricity like rooftop solar.

What installation steps did we follow to ensure system reliability?

We removed the old tank, installed the heat pump unit in a ventilated outdoor space, fitted a matched insulated storage cylinder, integrated smart controls and completed electrical and safety checks to Australian standards. We also tested system performance and instructed the household on operation and monitoring.

How much energy savings can customers expect after the upgrade?

Savings vary by household, but we typically see a 50–70% reduction in water-heating electricity compared with electric resistance tanks. Actual results depend on usage patterns, system sizing and climate; we provide monitoring tools to track performance and validate savings over time.

Will the system provide reliable hot water year-round, including winter?

Yes. Modern heat pump water heaters maintain stable temperatures even in Melbourne winters, though COP drops slightly in colder weather. We mitigate this with correct sizing, insulated storage and smart controls to ensure consistent comfort and faster delivery.

What brands and components do we recommend for durability and serviceability?

We prefer established manufacturers with strong Australian support networks, such as Rinnai, Rheem and Stiebel Eltron for cylinders and heat pump units. Selecting reputable brands helps ensure component longevity, available spare parts and professional post-installation service.

How do installation and ongoing costs compare to keeping the old system?

Upfront installation typically costs more than simple repairs to an old tank, but lower operating costs and potential government rebates shorten payback time. We provide a clear cost-benefit estimate including expected savings, available incentives and projected return on investment.

Can the new system integrate with solar PV or time-of-use electricity tariffs?

Absolutely. Heat pumps work well with solar PV and can be scheduled to run during low-rate periods or peak solar production. Integration reduces net grid consumption and further improves economics, especially on time-of-use plans.

What maintenance is required to keep the system performing well?

Regular checks include annual service of the heat pump, inspection of sacrificial anodes and pressure relief valves, and monitoring of insulation and controls. Routine maintenance by certified technicians helps preserve efficiency and extends system life.

How long does a professional installation usually take?

Most domestic upgrades are completed in one to two days, depending on site access, electrical upgrades and any modifications to plumbing or mounting locations. We plan the work to minimise disruption and complete safety testing before handover.

Who should customers contact for a personalised assessment and quote?

We encourage homeowners to contact accredited installers or licensed plumbers experienced with heat pump systems. We can provide a tailored site assessment, sizing recommendation and transparent quote based on measured usage and site conditions.

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