Reclaim Energy, Daikin, and Stiebel Eltron are all premium heat pump hot water systems, but for most Australian homes Daikin offers the best balance of efficiency, cold-weather performance, warranty support, and long-term value. Still the best choice depends on your climate, household size, energy goals, and budget. While all three deliver significant energy savings compared to traditional electric storage systems, they differ in refrigerant type, operating temperature, warranty coverage, and installation requirements.
We install all three at TempcoFRH Energy Solutions, here is an honest, experience-grounded breakdown.
How a Heat Pump Hot Water System Works
A heat pump transfers heat from the surrounding air into your hot water tank instead of generating heat directly. Because it moves heat rather than creating it, it uses far less electricity than a conventional electric hot water system.
The efficiency measure is the Coefficient of Performance (COP): a COP of 5 means the system produces 5 kWh of heat for every 1 kWh of electricity consumed. That is five times more efficient than a standard electric hot water system running at COP 1.
Daikin Heat Pump Hot Water
Daikin is the world’s largest air conditioning manufacturer. Their CO2 heat pump range, the EKHHP series, positions itself at the premium end of the Australian market and brings serious engineering depth to hot water.
Technology and Efficiency
The EKHHP series uses CO2 (R744) refrigerant with a Global Warming Potential of just 1 and zero Ozone Depletion Potential. The nominal COP is 6.15 on the latest models, one of the highest efficiency ratings currently available in Australia. The system operates from -26°C to +52°C without a supplementary electric boost element, which matters greatly in cold climates where lesser systems fall back to expensive resistive heating overnight.
System Design
The EKHHP is a split system: the outdoor compressor and indoor tank are separate units. The compact outdoor unit is engineered to fit through standard access doors and features Blue Fin anti-corrosion coating for longevity in coastal and humid environments. The built-in weatherproof controller sits on the unit itself, making commissioning and servicing straightforward. Available tank sizes in Australia are 250L (EKHHP250) and 315L (EKHHP315).
Noise Level
The outdoor unit operates at approximately 40 dBA, comparable to a quiet library. That is well within comfortable range for placements near living areas or boundary fences.
Warranty
The EKHHP series carries a 10-year parts and labour warranty across the entire system, both compressor and tank. No other brand in this comparison matches that coverage, and it reflects genuine confidence in the engineering.
Installed Price
Daikin heat pump hot water systems are installed from around $5,500 for the 250L model, with the 315L reaching approximately $8,500 before government incentives. Federal Small-scale Technology Certificates (STCs) and applicable state incentives reduce that figure: ask us about current eligibility when you get your quote.
For a detailed look at what installation involves in our region, see our guide to hot water installation costs.
Reclaim Energy Heat Pump Hot Water
Reclaim Energy is an Australian company that designs and engineers its CO2 heat pump systems locally, with Mayekawa compressors sourced from Japan and tanks manufactured in Australia. The brand has earned strong installer trust, particularly for cold-weather reliability and quiet operation.
Technology and Efficiency
Reclaim Energy uses CO2 (R744) refrigerant and delivers a COP of around 5.0, producing over five units of heat for every unit of electricity consumed. The system is rated to operate down to -25°C, which means it maintains full efficiency through the kind of winter conditions common across the Southern Highlands, where standard R290 systems would be leaning on their backup element by 2am.
System Design
Reclaim Energy is also a split system, giving you flexibility to site the compressor away from bedrooms or neighbouring fences while placing the tank indoors in a garage or laundry. The Wi-Fi controller supports scheduling to align with solar generation or off-peak tariffs. Glass-lined enamel tanks are available in multiple sizes, with a stainless steel tank option for households where water chemistry makes corrosion a long-term concern.
Noise Level
The Reclaim Energy compressor is rated at 37 dBA, one of the quietest heat pump systems in Australia. For homes where the unit needs to sit close to a property boundary or near a bedroom, that rating is a genuine practical advantage.
Warranty
The Wi-Fi model carries a 10-year parts and labour warranty on the compressor, paired with a 10-year tank warranty on stainless steel tank configurations. The standard (non-Wi-Fi) compressor warranty is 7 years. Warranty service travel is covered up to 25 km from the nearest technician, with additional charges beyond that distance.
Installed Price
Reclaim Energy systems are installed from approximately $6,000 to $7,000 before incentives, a modest premium over entry-level Daikin. Federal STCs and applicable state rebates apply: confirm current eligibility at quote time.
If you are weighing up heat pump hot water against other options, our article on heat pump vs instantaneous gas covers the running cost comparison in detail.
Stiebel Eltron Heat Pump Hot Water
Stiebel Eltron is a German manufacturer with over 100 years of experience in energy systems, operating directly in Australia since 2012. Their hot water heat pump range offers European engineering and straightforward installation for households in milder climate zones.
Technology and Efficiency
Stiebel Eltron currently has two product lines in Australia. The newer SHP-O Plus uses R290 refrigerant (propane) with a GWP of just 0.02 and achieves a COP of 4.27 for the 200L and 4.21 for the 300L. The older WWK series (WWK 222/H and WWK 302/H) reaches COPs of 3.94 and 3.58 respectively. The SHP-O Plus is rated to -6°C before efficiency drops and the backup element takes over. For most temperate Australian climates, that is fine. For the Southern Highlands in winter, it is not.
System Design
Both the SHP-O Plus and WWK series are all-in-one systems: the compressor mounts on top of the tank, so everything installs in one location. This simplifies installation and reduces pipework, but gives you less flexibility on placement compared to a split system. The SHP-O Plus connects via a standard 10A plug, works with the MyStiebel app, includes a 1.5 kW backup element, and is SG Ready for solar system integration.
Noise Level
The SHP-O Plus is rated at 40.7 dBA, measured at 3 metres. That measurement distance is more generous than the 1-metre standard used by Daikin and Reclaim Energy, so a direct comparison overstates the SHP-O Plus advantage slightly. The WWK series runs at 45 dBA.
Warranty
For domestic use, the SHP-O Plus and WWK series carry a 5-year warranty on the cylinder and condenser, and only 2 years on the sealed refrigeration system including the compressor. The T&P relief valve is covered for 1 year. That compressor coverage is significantly shorter than either Daikin or Reclaim Energy, which is worth factoring in when comparing total cost of ownership. Stiebel Eltron may also apply transport charges for installations more than 30 km from the nearest authorised technician.
Installed Price
The SHP-O Plus series retails from approximately $3,300 to $4,100 for the unit before installation, placing it at the accessible end of the premium heat pump market. Total installed cost will vary with site complexity and local labour.
Wondering how long your new system should last? Our guide to how long a hot water system lasts covers realistic lifespan expectations across different technologies.
Reclaim Energy vs Daikin vs Stiebel Eltron: Key Differences
Cold-Weather Performance
Both Daikin and Reclaim Energy use CO2 refrigerant and maintain efficiency well below 0°C. Daikin rates its system to -26°C, Reclaim to -25°C. Stiebel Eltron’s SHP-O Plus uses R290 and is rated to -6°C, after which the system falls back to resistive electric heating. In the Southern Highlands, where frosts from May through August are common across Bowral, Moss Vale, and Bundanoon, that crossover point is hit regularly, and every hour on the electric element costs you meaningfully more than the heat pump would.
Warranty Coverage
Daikin’s 10-year full system warranty (parts and labour, compressor and tank) is the strongest in this comparison. Reclaim Energy matches it on the compressor for the Wi-Fi model, with a 10-year tank warranty on stainless steel. Stiebel Eltron’s 2-year compressor coverage is a significant gap when you are buying a system expected to run for 12 to 15 years.
Noise
Reclaim Energy at 37 dBA is the quietest. Daikin’s outdoor unit runs at around 40 dBA. Stiebel Eltron’s SHP-O Plus is rated at 40.7 dBA at 3 metres. All three sit well within acceptable levels for residential installation. Reclaim has the clear edge for noise-sensitive placements close to fences or windows.
Split System vs All-in-One
Daikin and Reclaim are split systems, meaning the outdoor compressor and indoor tank install separately. You control where the noise goes, but the installation involves more pipework and planning. Stiebel Eltron’s all-in-one design is simpler to install, useful where outdoor space is tight, but you lose placement flexibility.
Running Costs
A Daikin EKHHP at COP 4.5 (conservative operating figure) brings annual hot water costs to around $260 for a 3 to 4 person household. Reclaim Energy at COP 5.0 tracks similarly or slightly below that. Stiebel Eltron at COP 4.21 is competitive in mild weather, but the gap widens in winter when CO2 systems maintain their COP and R290 units shift load to the backup element.
Side-by-Side Comparison
| Daikin EKHHP | Reclaim Energy CO2 | Stiebel Eltron SHP-O Plus | |
|---|---|---|---|
| Refrigerant | CO2 (R744) | CO2 (R744) | R290 (Propane) |
| COP | Up to 6.15 (nominal) | Approx. 5.0 | 4.21 to 4.27 |
| Operating Range | -26°C to +52°C | -25°C to +43°C | -6°C to +40°C |
| Tank Sizes | 250L, 315L | 250L, 315L, 410L+ | 200L, 300L |
| System Type | Split system | Split system | All-in-one |
| Noise Level | ~40 dBA | 37 dBA | 40.7 dBA (at 3m) |
| Compressor Warranty | 10 years P&L | 10 years P&L (Wi-Fi model) | 2 years (sealed system) |
| Tank Warranty | 10 years | 10 years (stainless tank) | 5 years |
| Solar Compatible | Yes | Yes (app scheduling) | Yes (SG Ready) |
| Est. Installed Price | $5,500 to $8,500 | $6,000 to $7,000 | $3,300 to $4,100 + install |
| Origin | Japan / global | Australian designed, JP compressor | Slovakia (EU) |
| Best For | Cold climates, best warranty | Quiet, cold climates, Aus brand | Milder climates, simple install |
Choosing the Right System for Your Home
For anyone in the Southern Highlands, Southern Tablelands, or Goulburn region, this is the deciding factor. Winter nights regularly drop to and below 0°C from May through August. CO2 systems from Daikin and Reclaim Energy maintain their rated efficiency at those temperatures. R290 systems fall back to the electric element, and that is where you start paying for the cheaper upfront price. If you are in a milder coastal zone or installing a system at a weekend with low winter demand, Stiebel Eltron becomes more relevant.
Final Verdict: Which System Is Right for You?
Choose Daikin if: you want the strongest warranty available (10 years, full system), genuine CO2 cold-weather performance down to -26°C, and the backing of the world’s largest air conditioning manufacturer. Our first recommendation for primary residences in the Southern Highlands and Tablelands.
Choose Reclaim Energy if: you want an Australian-designed CO2 system with the lowest noise rating of the three, flexible tank placement options, and a 10-year warranty on the stainless steel tank. A strong fit for elevated areas where cold-weather efficiency and quiet operation are priorities.
Choose Stiebel Eltron if: you are in a milder climate zone or at a secondary property, want a compact all-in-one installation with European build quality, and prefer a lower upfront unit cost. A practical option where installation simplicity matters more than cold-weather peak efficiency.
Talk to TempcoFRH About Your Hot Water Upgrade
We install heat pump hot water systems across Australia. Our team will assess your home, climate, and household usage, then recommend the right system, with a clear, itemised price before anything is committed.
Frequently Asked Questions
What does COP mean in practical terms?
COP stands for Coefficient of Performance. A system with a COP of 5 produces 5 kWh of heat for every 1 kWh of electricity it uses. In everyday terms, a heat pump at COP 5 costs approximately one-fifth as much to run as a standard electric storage hot water system of the same tank size.
Do heat pump hot water systems perform well in Southern Highlands winters?
CO2-based systems like Daikin and Reclaim Energy do, yes. Both are rated to operate below -25°C without a backup element, well beyond anything our winters typically produce. R290 systems like Stiebel Eltron’s SHP-O Plus are rated to -6°C, after which they shift to resistive electric heating. For our local climate, we consistently recommend CO2 systems.
How much can I save compared to gas or electric storage hot water?
A conventional electric storage system costs around $900 to $1,000 per year to run for a typical household. A heat pump at COP 5.0 brings that down to approximately $180 to $280 per year depending on your tariff and usage. Gas hot water sits around $700 per year. Solar PV integration can reduce the figure further.
What government assistance is available for heat pump hot water in NSW?
Federal Small-scale Technology Certificates (STCs) reduce the installed cost of eligible systems, with the value depending on your climate zone and system size. NSW also has state-based energy efficiency incentives. Amounts and eligibility change, so we recommend confirming what applies at the time you request a quote. We will verify current schemes for you at that point.
What is the difference between a split system and an all-in-one heat pump?
A split system has a separate outdoor compressor and an indoor tank, letting you place the noisier unit away from bedrooms or neighbours. An all-in-one system has the compressor mounted on the tank: simpler to install but with less flexibility on siting. Daikin and Reclaim Energy use split configurations. Stiebel Eltron’s SHP-O Plus is all-in-one.
How long will a heat pump hot water system last?
With correct sizing and periodic servicing, most heat pump hot water systems run for 12 to 15 years. The compressor is generally the limiting factor, which is why warranty coverage on that component is worth scrutinising carefully before you buy.