Air-Conditioning & Refrigeration Equipment Manufacturers Association of Australia (AREMA) is calling for urgent reform on incentives for hot water heat pumps. New South Wales and Victoria, supported by initiatives taken by the government, have created programs to support electrification and net zero by providing rebates to home and business owners who install hot water heat pumps.

AREMA claims there are a few key flaws within these programs. It suggests that some of the equipment on the market has inherent risks and is being installed by an untrained partner. AREMA also states that some of the hot water heat pumps for sale simply don’t give the electricity savings and hot water indicated, and unscrupulous and untrained people are selling and installing products to an unsuspecting population to obtain the incentives.

Though engaging on these issues with governments for the past few years, there have yet to be any forthcoming reforms.

AREMA argues that if reform is not made this year, then the incentive programs must be put on hold until issues are resolved.

AREMA has outlined what it believes needs to happen. Product standards for safety and minimum energy performance must be put in place. The trade needs to be trained and licensed, including knowledge and skills in both plumbing and refrigeration. There also needs to be a robust compliance regime to ensure questionable products and people are kept out of the market.

Though recognising there are well-engineered hot water heat pumps on the market and competent technicians, AREMA says they are in the minority. AREMA continues to push for reform.