Thursday, January 15, 2026

Victoria and NSW Partner with Industry to Advance Heat Pump Technology

The governments of Victoria and New South Wales have joined forces with industry leaders to improve heat pump technology development as consumer interest grows. Both states have funded the “Roadmap for Heat Pump Hot Water Systems in Australia,” developed by the Energy Efficiency Council (EEC).

The roadmap outlines 17 recommended actions, including revising standards, industry training, and improving consumer protections. In the past year, over 104,000 heat pumps have been installed across both states, driven by state-led incentive programs.

Heat pump hot water systems are seen as a more energy-efficient alternative to traditional water heating methods. The release states, “By replacing a gas hot water system with a quality heat pump hot water system, consumers are estimated to save up to $250 per year, on top of additional savings in going all-electric.”

To implement the roadmap’s recommendations, both governments plan to establish a consultation group of industry representatives. They have also advocated for minimum energy performance standards at a recent Energy and Climate Minister’s Council meeting.

Victoria’s Minister for Climate Action and Energy and Resources, Lily D’Ambrosio, commented on the initiative: “I commend the industry on its leadership, recognising that heat pumps are a key technology that is growing rapidly in popularity, and that success of this emerging industry and technology relies on consumer confidence.”

NSW Minister for Climate Change and Energy, Penny Sharpe, emphasized the partnership’s goals: “We’re pleased to partner with the Victorian Government and industry to drive heat pump technology which is providing a more sustainable and cost-effective solution for households across our states. We want every Australian to have access to cleaner and cheaper energy and this roadmap will help us to reach that goal.”

For more information, interested parties can visit the EEC website at eec.org.au.

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