Case Study: Daikin Heat Pump Installation in Hectorville, SA

When an ageing hot water system begins producing discoloured water, replacing it is not simply a matter of finding another tank of the same size.

It is an opportunity to reconsider how the household’s hot water will be produced for years to come and how available incentives can be used to choose a better long-term solution.

The Customer’s Concern

The customer initially contacted Energy Loop after noticing rust-like discolouration in the hot water produced by their existing electric storage water heater.

They asked:

“Our current electric water heater has recently started producing water that looks like it contains rust. We would like to replace it with a 315L system. What would you recommend, and approximately how much would it cost?”

Rust-like discolouration does not automatically confirm that the tank has corroded internally. The water supply, pipework and condition of the existing system may all need to be considered.
However, when this occurs in an ageing electric water heater, it is a sensible reason to have the system professionally assessed before it fails completely.

Understanding the Household Before Recommending a Product

The customer originally asked for a 315L replacement, but our recommendation went beyond matching the size of the existing tank.

Before proposing a system, the Energy Loop team considered:

• The household’s daily hot water requirements

• The capacity of the existing water heater

• The age and condition of the current system

• The property’s plumbing and electrical requirements

• The available installation space

• Expected electricity consumption

• Product warranty and manufacturer support

• Potential STC and South Australian REPS incentives

• The long-term value of the new system

After reviewing these factors, we recommended replacing the conventional electric storage water heater with a Daikin 315L Heat Pump Hot Water System.

Why Upgrade from an Electric Water Heater to a Heat Pump?

A conventional electric storage water heater primarily uses an electric heating element to heat the water.

A heat pump water heater works differently. It extracts heat energy from the surrounding air and transfers that energy into the stored water. As a result, it can use substantially less electricity than a traditional electric resistance water heater.

For a household that already needs to replace an ageing system, available incentives can make this an ideal time to upgrade to more efficient heat pump technology rather than installing another conventional electric water heater.
However, deciding to install a heat pump is only the first step.

With many heat pump hot water products now available at widely different price points, customers must also decide which product offers the right balance of efficiency, reliability, warranty protection and long-term support.

Why Did We Recommend Daikin?

From a distance, many heat pump systems may appear similar. Most include a storage tank, a heat pump unit and an advertised energy-saving benefit.
However, the long-term ownership experience can vary considerably.

At Energy Loop, we do not assess a heat pump solely by its advertised price. We also consider:

• The manufacturer’s experience with heat pump technology

• System design and construction

• Energy performance

• Warranty terms

• Technical and after-sales support

• Access to parts and servicing

• Suitability for the household

• The quality and compliance of the installation

For this Adelaide home, we recommended the Daikin 315L Heat Pump Hot Water System.

Established Heat Pump Experience

Daikin has more than 100 years of experience in air conditioning and heat pump technology. This engineering background was an important consideration when selecting a system intended to provide hot water to the household every day.

CO₂ Heat Pump Technology

The Daikin hot water system uses R744 CO₂ refrigerant and heat pump technology to extract energy from the surrounding air and transfer it into the water.
Daikin states that its hot water heat pump technology can be up to six times more efficient than traditional electric or gas water heaters, depending on the application and operating conditions.

Long-Term Manufacturer Support

A hot water system is not a short-term household purchase. The product may be required to operate every day for many years.
For that reason, warranty coverage, access to technical support, parts availability and the manufacturer’s ability to assist after installation are important parts of the decision.
Daikin supports its heat pump hot water systems with a 10-year parts and labour warranty, subject to the applicable warranty terms and exclusions.

Suitable Capacity

The 315L capacity was selected to match the household’s hot water requirements and the customer’s requested replacement size.

Specialist Installation and Support

Even a high-quality heat pump must be correctly installed and commissioned.
Positioning, airflow, pipework, electrical requirements, drainage, system settings and accessibility can all affect the performance and serviceability of a heat pump hot water system.
Energy Loop managed the process from initial assessment through to installation, commissioning and customer handover.

Using STC and REPS Incentives Wisely

Eligible heat pump hot water installations may receive an upfront financial benefit through Small-scale Technology Certificates, commonly known as STCs.

Eligible South Australian households may also receive additional assistance through the Retailer Energy Productivity Scheme, or REPS.

REPS availability and the value of any offer can depend on the customer, property, existing water heater, selected product, participating provider, approved activity and available program funding. Eligibility must therefore be assessed before installation.

These incentives can reduce the upfront price difference between entry-level heat pumps and more established premium systems.

This creates an important decision for the customer.

Some products may already be relatively inexpensive without a significant incentive. When STC and REPS assistance is available, focusing only on the lowest possible out-of-pocket price can be tempting.
However, the cheapest subsidised system does not necessarily provide the best long-term value.

The incentives are connected to an eligible installation under the rules operating at that time. Customers should not assume that the same incentives or the same level of assistance will still be available if the system has to be replaced again in the future.

Our advice is simple:

Use available incentives to invest in a better long-term system, not simply to make the cheapest system even cheaper.

The purchase decision should consider more than today’s installation price. It should also consider expected energy consumption, product reliability, warranty protection, manufacturer support and the potential cost and inconvenience of replacing the system again.

For this customer, the available STC and REPS incentives helped make a Daikin heat pump hot water system a more accessible long-term investment.

The Installation

Our team removed the customer’s existing electric storage water heater and prepared the site for the new Daikin 315L heat pump system.

The work included:

• Assessment of the existing installation

• Safe disconnection and removal of the old electric water heater

• Preparation of the new installation area

• Installation of the Daikin 315L heat pump hot water system

• Required plumbing and electrical work

• System commissioning and operational testing

• Explanation of the controller and basic system operation

Careful attention was given to compliance, system accessibility, performance and the overall finish of the installation.

The Result

The customer has now upgraded from an ageing conventional electric water heater to a modern Daikin 315L heat pump hot water system.
More importantly, they used the available incentives as an opportunity to invest in a better-supported, energy-efficient long-term solution rather than allowing the lowest upfront price to determine the decision.

This project reflects the way Energy Loop approaches every recommendation.
We do not begin with the cheapest product. We begin by understanding the household, the existing equipment, the installation conditions and the customer’s long-term expectations.
We then explain the available products and incentives so the customer can make an informed decision.

Planning to Replace an Electric Hot Water System?

If your existing hot water system is ageing, producing discoloured water or becoming increasingly expensive to operate, consider exploring your options before it fails completely.
Energy Loop can help you:

• Assess your existing water heater

• Select an appropriate tank capacity

• Compare suitable heat pump products

• Check potential STC and REPS eligibility

• Understand upfront price versus long-term value

• Arrange professional supply and installation

STC values, REPS offers and eligibility requirements can change. Any available incentive must be confirmed through a formal assessment and quotation before installation.

Contact Energy Loop to discuss a Daikin heat pump hot water system for your Adelaide home.