Articles - Certified Energy

Heat Pump Hot Water in New Homes: Design and Energy Assessment Considerations

Written by Team CE | Oct 23, 2026, 5:27:57 AM

Heat pump hot water systems are increasingly considered in Australian new-home design, particularly where projects are planned around electric household systems. Their energy performance can make them an attractive alternative to conventional electric resistance hot water, but their integration involves more than selecting an efficient appliance.

A heat pump hot water system needs an appropriate location, access, airflow and connections. The selected system may also affect the information used in residential energy performance assessments and compliance documentation.

For architects, building designers, developers and homeowners, these considerations are best coordinated before equipment locations and construction documentation are finalised.

A heat pump hot water system should be considered as part of the building design and household energy strategy, not simply as an appliance selected at the end of the project.

In Brief

What Should Be Considered When Designing for Heat Pump Hot Water?

Heat pump hot water systems use electricity to transfer heat into stored water. Their performance and installation requirements vary depending on the selected equipment and operating conditions.

In new-home design, important considerations include system configuration, location, airflow, noise, drainage, maintenance access and connections to electrical and hydraulic services.

The proposed system should also be coordinated with applicable residential energy performance and compliance documentation, including NatHERS Whole of Home and BASIX where relevant.

The energy assessor's role is to evaluate the system under the applicable assessment methodology. Product sizing, plumbing design, electrical installation and commissioning remain separate specialist responsibilities.

Technical scope note: Heat pump hot water equipment selection, storage sizing, electrical connections, hydraulic design, temperature control, installation safety and commissioning must be addressed by appropriately qualified professionals. NatHERS and BASIX assessments do not replace those activities or certify the suitability of a particular installation.

 

How Heat Pump Hot Water Differs From Conventional Electric Hot Water

Conventional electric resistance hot water systems generate heat directly from electricity.

Heat pump hot water systems use a refrigeration cycle to collect heat from the surrounding air and transfer it into the stored water. This can allow them to deliver more heat energy than the electrical energy consumed during operation.

However, actual performance depends on factors such as ambient conditions, equipment characteristics, hot water demand, operating controls and any supplementary electric heating.

The distinction matters for residential energy assessments because different hot water technologies can produce different modelled energy outcomes. It also matters for design because heat pump systems have equipment and airflow requirements that conventional storage systems may not share.

 

1. Confirm the Intended System Configuration

Heat pump hot water systems are available in different configurations, including integrated units and split arrangements with separate components.

The selected configuration affects equipment dimensions, installation location, pipework arrangements, access and potentially noise and airflow considerations.

An integrated unit may combine the heat pump components and storage tank within one assembly. A split arrangement may allow components to be located separately, subject to the manufacturer's installation requirements.

The design team should avoid assuming that one system configuration can be substituted for another without reviewing the spatial and technical implications.

 

2. Allow for Equipment Location and Airflow

Heat pump hot water systems require suitable conditions for the heat exchange process.

For air-source systems, equipment location and airflow are particularly important. Poorly considered placement may restrict air movement or create conflicts with surrounding building elements.

The manufacturer's requirements should guide clearances, ventilation and installation arrangements. Not every heat pump system is suitable for an enclosed cupboard or unventilated internal space.

Location planning should also consider access for delivery, installation, servicing and eventual equipment replacement.

These considerations are easier to coordinate while the architectural layout and service areas are still being developed.

 

3. Consider Noise and Nearby Occupied Spaces

Heat pump equipment contains mechanical components that may generate operating noise.

Noise characteristics vary by product and operating conditions. Equipment placement should therefore consider bedrooms, living spaces, neighbouring dwellings and relevant property boundaries.

The design team should review product information and any applicable acoustic or planning requirements where relevant.

Noise considerations should not be resolved by enclosing equipment in a way that conflicts with the manufacturer's airflow or servicing requirements.

 

4. Coordinate Hydraulic and Electrical Requirements

Hot water equipment must be coordinated with the dwelling's hydraulic and electrical services.

Relevant considerations may include water supply connections, hot water distribution, drainage, condensate management, electrical supply and any supplementary heating components.

Storage sizing and the ability to meet expected household hot water demand should be established by the relevant specialist using the proposed equipment and project requirements.

Temperature control and other applicable plumbing safety requirements must also be addressed through appropriate hydraulic design and installation.

Where the project involves multiple electric household systems, electrical capacity should be reviewed in the context of the wider installation. Our electrical capacity guide explains the main questions that may require professional review.

 

5. Consider Operating Controls and Rooftop Solar

Some heat pump hot water systems can be operated using schedules or controls that influence when electricity is consumed.

For homes with rooftop solar, suitable operating arrangements may allow more hot water heating to occur during periods of solar generation.

However, the benefit depends on the selected system, household hot water demand, control capabilities and actual solar availability.

A heat pump should not be assumed to operate entirely from rooftop solar, nor should solar generation be treated as a substitute for appropriate electrical design.

Where operating controls are important to the intended project outcome, their availability and implementation should be confirmed with the equipment supplier and relevant installers.

 

6. Understand How Heat Pump Hot Water Relates to Energy Assessments

Hot water is one of the household energy uses considered in relevant residential energy assessment methodologies.

A NatHERS thermal performance assessment evaluates the dwelling's modelled heating and cooling requirements. It does not assess hot water equipment as part of the thermal star rating.

NatHERS Whole of Home considers specified household energy systems, including hot water, under its modelling methodology.

The modelled outcome depends on the applicable software, assessment settings and information available for the nominated system.

A heat pump hot water system should not automatically be assumed to produce a particular Whole of Home result without assessment.

Whole of Home modelling is not a prediction of actual household electricity bills, nor does it replace the specialist design or installation of the hot water system.

 

7. Coordinate Heat Pump Hot Water With BASIX Requirements in NSW

For applicable residential projects in New South Wales, BASIX establishes sustainability requirements and commitments that must be reflected in the project.

Hot water system selections can form part of the information used in the BASIX assessment.

Where a particular system or performance characteristic is nominated, the design and construction documentation should remain consistent with the applicable BASIX commitments.

If the hot water system changes during design or procurement, the project team should review whether the relevant BASIX assessment or certificate requires updating.

BASIX assessment does not replace plumbing, electrical or equipment installation requirements.

 

Heat Pump Hot Water Design Coordination Summary

The following table summarises the main considerations that should be addressed before a heat pump hot water system is finalised for a new residential project.

Design consideration Information to confirm Relevant coordination
System configuration Integrated or split system, dimensions and component locations. Designer and equipment supplier.
Airflow and clearances Manufacturer requirements and available installation space. Designer and installer.
Noise Equipment sound characteristics and nearby sensitive spaces. Designer and acoustic specialist where required.
Hydraulic services Connections, storage sizing, drainage and temperature control. Hydraulic designer and licensed plumber.
Electrical services Equipment supply requirements, circuits and relevant controls. Licensed electrical professional.
Energy assessment Nominated technology and required system information. Energy assessor and design team.
Compliance documentation Relevant BASIX commitments and specification consistency. Designer and relevant compliance consultant.

Responsibilities and requirements vary by project. This table supports design coordination and does not replace specialist technical documentation.

 

Heat Pump Hot Water Design Checklist

☐ Confirm the intended hot water system configuration.

☐ Allocate sufficient equipment space and maintenance access.

☐ Review manufacturer airflow and clearance requirements.

☐ Consider noise and proximity to occupied spaces.

☐ Coordinate hydraulic connections, drainage and temperature control.

☐ Confirm electrical requirements with the relevant professional.

☐ Review operating controls and solar coordination where relevant.

☐ Provide appropriate equipment information for energy assessment.

☐ Confirm relevant BASIX commitments for applicable NSW projects.

☐ Check that architectural, services and compliance documentation remain consistent.

 

Illustrative Example: Coordinating Hot Water in a New Home

Consider a proposed new home designed with reverse-cycle heating and cooling, induction cooking, rooftop solar and heat pump hot water.

The preliminary architectural drawings show a compact service area intended to accommodate the hot water equipment.

During design coordination, the selected heat pump system is found to require different clearances and airflow arrangements from those originally allowed.

The design team reviews the equipment location and updates the relevant drawings before construction documentation is finalised.

The nominated hot water system is also checked against the assumptions and commitments used in the relevant energy assessment documentation.

The example demonstrates why equipment location and energy assessment information should be coordinated rather than treated as unrelated tasks.

 

Frequently Asked Questions

Heat Pump Hot Water Design FAQs

Is heat pump hot water suitable for a new all-electric home?

It can be a suitable option, depending on the project, household demand, equipment characteristics and installation conditions. Product selection and sizing should be confirmed by the relevant specialists.

Can a heat pump hot water system be installed inside a cupboard?

Not every system is suitable for enclosed installation. Airflow, clearances and ventilation must comply with the selected manufacturer's requirements and applicable installation rules.

Does heat pump hot water affect NatHERS ratings?

Hot water systems are not part of the NatHERS thermal star rating. They may, however, affect the separate NatHERS Whole of Home assessment where applicable.

Does BASIX consider heat pump hot water in NSW?

For applicable NSW residential projects, the nominated hot water system may form part of the BASIX assessment and its associated commitments. Changes should be reviewed for potential assessment or documentation implications.

Can a heat pump hot water system operate using rooftop solar?

Some systems can be scheduled or controlled to use electricity during periods of solar generation. Actual operation depends on the selected equipment, controls, hot water demand and available generation.

When should heat pump hot water be selected during design?

The intended system type and spatial requirements should be considered before service locations and construction documentation are finalised. Exact equipment specifications should be coordinated when available.

Related Knowledge

Related Home Electrification and Energy Assessment Guidance

Home Electrification

Explore how electric household systems, building fabric and residential energy performance connect.

All-Electric Home Design Checklist

Review the main design and documentation considerations for an all-electric residential project.

NatHERS Whole of Home

Understand how household energy systems contribute to modelled residential energy performance.

BASIX Requirements in NSW

Learn how residential sustainability commitments relate to design and construction documentation.

Residential Energy Performance

Coordinating Hot Water and Energy Performance in a New Home?

Certified Energy can assist with relevant residential energy performance and compliance assessments where heat pump hot water forms part of the proposed household systems. Equipment selection, sizing, electrical and hydraulic design and installation requirements should be confirmed by appropriately qualified professionals.

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