Words: Varun Godinho

The Australian & New Zealand Water Heating Association (ANZWHA) has expressed its support for new guidelines around the sale and installation of heat pump water heaters. 

These regulations include the New South Wales government’s announcement on 31 May 2025 to ban door-knocking under the Energy Savings Scheme (ESS), introduce five-year mandatory warranties for heat pump water heaters, launch a targeted compliance blitz of high-risk heat pump installations and consider measures to ensure products eligible for sale under the ESS are fit for purpose.

Heat-pump hot water systems use a refrigeration cycle to extract heat from the surrounding air. 

They then use a heat exchanger to heat water in an insulated storage cylinder and typically consume around 60 to 75 percent less electricity than a conventional electric hot water system. 

The energy efficiency comes down to the electricity being used to operate the heat pump rather than heating the water directly with an element.

ANZWHA president Ben Teeger said the association has long advocated for the reforms.  

“We look forward to continuing to work constructively with the Department of Climate Change, Energy, the Environment and Water (DCCEEW), the Independent Pricing and Regulatory Tribunal (IPART) and the Building Commission on measures designed to improve consumer experiences and protect the integrity of the Energy Savings Scheme,” Teeger said.

ANZWHA calls for reforms to go further 

ANZWHA is the peak body representing the water heating industry in Australia and New Zealand. 

Its members include manufacturers and suppliers of water heating systems, including electric, gas, solar and heat pump technologies, which have both residential and commercial applications. 

ANZWHA works with governments, regulators and other industry stakeholders to develop and advocate for policies, standards and regulations. 

In addition to the most recent directives outlined by the NSW government around heat-pump hot water systems, ANZWHA has also called for measures to support consumers in enforcing their five-year mandatory product warranty in the real world, such as through evidence of a manufacturer’s ability to honour the warranty. 

ANZWHA has pressed for unlicensed installations to be given particular attention as part of the targeted compliance blitz, especially refrigerant-coupled split system heat pumps installed prior to 1 November 2024. 

Furthermore, it has pushed for a review of the appropriateness of existing statute of limitations restrictions, given that high-risk products were likely installed earlier than current laws permit the Building Commission to take enforcement action. 

Energy-efficient water heaters like heat pumps can hold the key to lowering household energy use, energy bills and greenhouse gas emissions. “The last thing we want as an industry is for this technology to be tarnished by the actions of some unscrupulous operators, as this could negatively impact social licence for this important product in the energy transition,” Teeger said.

This article first appeared in FM