Tuesday, March 18, 2025

NSW & Victoria join forces for heat pump technology

The Victorian and NSW Governments have joined forces with industry to improve the development of heat pump technology as consumer interest rapidly grows.   

Funded by both State Governments, the industry-led Roadmap for Heat Pump Hot Water Systems in Australia, developed by Energy Efficiency Council (EEC), provides industry and governments a path forward to scale-up the heat pump hot water market. 

The roadmap includes 17 recommended actions including revising standards, end-of-life stewardship, industry training, product quality, consumer protections, minimum energy performance standards, and auditing of installations.

In the last 12 months, the uptake of heat pumps in both states has been significant, with more than 104,000 across both states, driven by the Victorian Solar Homes Program and the NSW Energy Savings Scheme. 

In Australia, water heating is a major source of household energy, accounting for around 23% of a home’s total energy use. By replacing a gas hot water system with a quality heat pump hot water system, consumers are estimated to save up to $250 per year, on top of additional savings in going all-electric.  

“We’re pleased to partner with the Victorian Government and industry to drive heat pump technology which is providing a more sustainable and cost-effective solution for households across our states,” said NSW Minister for Climate Change, Minister for Energy, Penny Sharpe.

“We want every Australian to have access to cleaner and cheaper energy and this roadmap will help us to reach that goal.”

To progress the recommendations, both governments will progress a key recommendation to develop a consultation group of industry representatives to support and oversee the development of systems and standards.

“I commend the industry on its leadership, recognising that heat pumps are a key technology that is growing rapidly in popularity, and that success of this emerging industry and technology relies on consumer confidence,” said Victorian Minister for Climate Action, Minister for Energy and Resources, Lily D’Ambrosio.

Beyond the Roadmap, both government’s advocated to urgently progress minimum energy performance standards at the recent Energy and Climate Minister’s Council meeting. Ministers endorsed this key recommendation from the Roadmap. 

For more information and to download the Roadmap, visit the EEC website at eec.org.au.

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