How Efficient Are Heat Pumps in Melbourne’s Climate?

December 3, 2025

Heat pumps are rapidly becoming the preferred hot-water and heating solution for Melbourne homes. With rising energy costs and a strong push toward sustainable, all-electric living, more households are asking the same question:


Are heat pumps actually efficient in Melbourne’s weather?


The short answer: Yes, Melbourne’s temperate climate is ideal for heat pump efficiency.
Below, we break down exactly why, how the technology works in Victorian conditions, and what real-world savings Melbourne homeowners can expect.

What Makes Melbourne’s Climate Ideal for Heat Pumps?

Heat pumps work by extracting heat from the surrounding air, and Melbourne provides ideal conditions for this process. Unlike many Australian cities with extreme temperatures, Melbourne enjoys:


  • Mild winters (typically 6°C–14°C in winter)
  • Warm, stable summers
  • Generally low humidity
  • Relatively consistent seasonal temperature shifts


These moderate conditions allow heat pumps to operate at a high Coefficient of Performance (COP), meaning the system produces more heat energy than the electrical energy it consumes.

Why does Melbourne’s winter matter?

Heat pumps remain highly efficient even in cold environments, but they perform best in climates above freezing. In Melbourne, winter rarely drops below 5°C, ensuring:


  • Fast recovery times
  • Reduced strain on the compressor
  • Lower run-time and lower energy consumption


Compared to cities with harsher winters (Canberra, Ballarat, or Tasmania), Melbourne households get 10–20% better efficiency from the same heat pump system.

Heat Pump Efficiency at Different Melbourne Temperatures

 Heat pumps perform extremely well across Melbourne’s seasonal temperatures. Even on cold winter mornings between 5–10°C, most systems achieve a COP of 2.0–3.0, meaning they still use roughly half the electricity of a standard electric hot water system. For the majority of the year, when temperatures sit between 10–20°C, heat pumps reach their optimal efficiency with a COP of 3.0–4.5, delivering excellent energy savings.


During warmer summer conditions of 20–30°C, efficiency rises even further to a COP of 4.0–5.5, making daytime operation especially effective when paired with solar. Because heat pumps don’t generate heat but instead transfer it, they can be up to four times more efficient than traditional electric or gas systems in Melbourne’s climate.

Melbourne’s Solar Uptake Boosts Heat Pump Efficiency Even More

A major advantage for Melbourne residents is the popularity of solar PV systems. When a heat pump is paired with solar, the running cost drops dramatically.


  • Run the heat pump during late morning/early afternoon
  • Use free excess solar power
  • Heat and store water cheaply for the entire day


Many households reduce hot water energy costs by 70–85% when combining solar + heat pump.

How Much Can Melbourne Households Save?

Switching from gas or electric storage to a Melbourne heat pump offers substantial long-term savings for local households. Traditional gas storage systems generally cost $350–$550 per year, while older electric storage hot water units can reach $600–$900 annually. In contrast, a modern heat pump hot water system typically runs for just $120–$250 per year, delivering far lower energy bills.


Homeowners who combine a heat pump with solar often reduce their running costs even further, paying as little as $0–$100 per year for hot water. With these major reductions in energy use, most Melbourne heat pump installations pay for themselves within 3–6 years, especially once Victorian rebates and incentives are factored in.

Victorian Rebates Make Heat Pumps Even More Worthwhile

The Victorian Government currently supports heat pump installations with incentives such as:



These incentives reduce upfront cost and shorten the payback period considerably, a strong motivator for Melbourne homeowners wanting energy-efficient solutions.

Do Heat Pumps Work Well in Cold Melbourne Weather?

Yes — and better than most people expect.

Modern heat pumps are designed to operate efficiently in low temperatures. Many models installed in Melbourne include:


  • Smart defrost cycles
  • High-capacity compressors
  • Cold-climate refrigerants
  • Insulated storage tanks


Even on cold winter mornings, heat pumps can extract heat from the ambient air and heat water with minimal energy input.

If you live in colder suburbs like Ferny Creek, Belgrave, or Macedon, a cold-climate model is recommended, but standard models still perform well across metropolitan Melbourne.

Factors That Improve Heat Pump Efficiency in Melbourne Homes

1. Correct system sizing


An undersized model will run constantly and lose efficiency. A professional assessment ensures the perfect match for your household size and hot-water usage.

2. Proper installation location


Heat pumps perform best when installed:


  • Outdoors
  • With good airflow
  • Away from bedrooms (for noise comfort)
  • In a spot with morning sun boost


3. Smart timer scheduling

Running during warmer parts of the day helps the unit operate at peak COP and works perfectly with solar.


4. Regular maintenance

Simple annual checks (filters, coils, tank flush) keep efficiency high for 10–15 years.

Thinking About Installing a Heat Pump in Melbourne?

If you’re ready to upgrade or simply want expert advice, Sunworks Eco Plumbing can help you choose the most efficient heat pump for your home and budget.


We supply and install high-efficiency heat pump systems across:


  • Inner Melbourne
  • Eastern suburbs
  • Northern suburbs
  • Western suburbs
  • Mornington Peninsula


Contact us today for a quote or consultation.

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