Why Heat Pumps Are Quietly Replacing Gas Hot Water Across Victoria
Mathew Cole • October 4, 2025

Why Heat Pumps Are Quietly Replacing Gas Hot Water Across Victoria

White appliance with

If you’ve noticed more people talking about heat pumps lately, there’s a good reason  they’re fast becoming one of the smartest upgrades for homes across Victoria.


At O’Brien Electrical & Plumbing Warrnambool, we’ve been fitting more Emerald Energy heat pumps this year than ever before. Customers are starting to realise that getting off gas isn’t just about being “green” it’s about making your home more efficient, cheaper to run, and future-proof for the years ahead.


The simple reason people are switching

For years, most homes in Warrnambool, Terang, and Koroit have run gas hot-water units without a second thought. However, gas prices have jumped, and the state government has made it clear that new homes will be electric-only moving forward.

That’s where heat pumps come in. Instead of burning gas to heat water, they extract heat from the air and use it to warm your tank  essentially a reverse air conditioner. It means you’re not paying to create heat you’re just moving it.

That’s why they’re up to 70% cheaper to run than traditional systems.

Emerald Energy – an Aussie brand built for Aussie conditions

We work closely with Emerald Energy, an Australian company that designs heat pumps specifically tailored to our local climate.

 Their 270/320-litre system is one of the most efficient on the market  quiet, reliable, and simple to service.

A few reasons we like them:

  • They perform well even in cold South-West Victorian mornings.
  • They’re eligible for Victorian government rebates, making them even more affordable.
  • They connect easily with solar power systems using your own free energy to heat your water.

We’ve installed dozens of them around Warrnambool, and the feedback’s been the same every time: “It just works.”

The rebate makes it an easy decision

Right now, homeowners can access up to $1000 off the cost of a heat pump through the Solar Victoria Hot Water Rebate — plus potential VEEC savings on top of that.

For most households, this means you can replace an old gas or electric storage unit and save hundreds each year on running costs.

We handle the rebate application from start to finish, so you don’t have to chase paperwork or wonder if you qualify.

Pair it with solar and keep your energy in your hands.

The real magic happens when you pair your heat pump with solar.

During the day, your panels can power the heat pump, meaning you can heat your water for free.

Add a battery system and you’ve got a complete cycle of energy independence:

  • Solar creates the energy
  • The battery stores it
  • The heat pump uses it efficiently

That’s what we call a smart energy setup and it’s what we’re building at our new Energy Hub in Terang every day.

Local homes leading the way.

We recently replaced an old gas storage unit in Terang with an Emerald Energy 320 heat pump. The customer’s gas bill dropped by more than 30% the first month and that was before they added solar.

In Terang, another family decided to go all-electric with solar, a battery, and a heat pump. Their house now runs almost entirely off their own energy. No gas bills, no surprises, just steady savings and comfort.

That’s the future we’re seeing right across the region practical, proven systems that give control back to homeowners.

The takeaway

If you’re still running a gas hot-water system, now’s the time to look at your options.

With rebates available, energy costs rising, and new rules coming into effect for gas connections, it makes sense to make the move sooner rather than later.

We’re happy to help you determine which system suits your home, identify the rebates you qualify for, and maximise the benefits of your investment.

Pop into the Energy Hub in Terang or into our Warrnambool office for a look at the Emerald Energy range, or give us a call at O’Brien Electrical & Plumbing Warrnambool.

Let’s work out the best way to get your home running smarter  and leave those gas bills behind for good.



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