Heat pump hot water cylinder NZ: is it worth it? Cost, power use and which to buy
What a heat pump cylinder costs, how much power it saves for 1 to 2, 3 to 4 and 5 or more people, how many years the extra price takes to come back, and which model fits: Haier HP200M1U1, HP250M1U1, HP330M1U1 and the HP300 split, Rheem AmbiPower, Rinnai HydraHeat and Thermann 270.
Last reviewed 2026-10-28
Short answer: for most owner-occupied homes, yes. Water heating is about 30 percent of a New Zealand home's energy use (EECA), and a heat pump does it with roughly a third of the power. At 42 c/kWh a household of 3 to 4 saves about $700 a year against a standard electric cylinder, and the saving grows every time power prices go up. The rest of this page is the working, so you can check it against your own bill.
How a heat pump cylinder saves power
Power use and running cost by household
Yearly hot water energy from EECA's guide, at MBIE's national average of 42 c/kWh:
| Household | Electric cylinder | Heat pump | Saving a year | Over 10 years |
|---|---|---|---|---|
| 1 to 2 people | 1,500 kWh, $630 | 500 kWh, $210 | $420 | $4,200 |
| 3 to 4 people | 2,500 kWh, $1,050 | 833 kWh, $350 | $700 | $7,000 |
| 5 or more | 3,000 kWh, $1,260 | 1,000 kWh, $420 | $840 | $8,400 |
Power prices keep rising, and the saving rises with them
MBIE's national average went from about 39 c/kWh in February 2026 to 42 c in May. Regions run from the mid 30s to around 50 cents. For 3 to 4 people:
How long until it pays for itself?
The extra product price, divided by the yearly saving. Product prices only, supply only, so this is the shortest case: the installation of a heat pump costs more than a like-for-like cylinder swap, and that difference adds to it.
| Household | Heat pump | Electric of a similar size | Extra cost | Years on product price |
|---|---|---|---|---|
| 1 to 2 people | Haier HP200M1U1 $3,830 | Rheem MPVE 31218015 $1,290 | $2,540 | about 6.0 years |
| 3 to 4 people | Haier HP250M1U1 $4,090 | Thermann 250L $1,870 | $2,220 | about 3.2 years |
| 5 or more | Haier HP330M1U1 $4,360 | Rinnai ME280590E30 $2,980 | $1,380 | about 1.6 years |
Haier cover the heat pump parts and labour for 5 years and the cylinder for 7, so on these numbers the saving has usually covered the extra product price well inside the warranty. For an installed quote in Auckland, ask us and we will run your numbers.
Which heat pump cylinder?
| Model | Litres | Suits | Rated COP | Works down to | Noise | Warranty cylinder / parts | Price incl GST |
|---|---|---|---|---|---|---|---|
| Haier HP200M1U1 | 200 | - | 4.49 at 20°C air | -7°C | 43 dB at 1 m | 7 yr / 5 yr | $3,830 |
| Haier HP250M1U1 | 250 | Up to 4 people | 4.48 at 20°C air | -7°C | 43 dB | 7 yr / 5 yr | $4,090 |
| Haier HP330M1U1 | 330 | 5+ people | 4.00 at 20°C air | -7°C | 47 dB | 7 yr / 5 yr | $4,360 |
| Haier HP300S2-F7 | 300 | - | - | -15°C | 52 dB at 1 m | 7 yr / 5 yr | $3,650 |
| Rheem AmbiPower MDc-180 (A551180C5) | 180 | - | - | - | - | 7 yr / 1 yr | $4,710 |
| Rheem AmbiPower 280e (A551E280R5) | 280 | - | 5.2 at 19°C air | -6°C | - | 7 yr / 1 yr | $5,940 |
| Rinnai ME275685E20H | 275 | 2–5 people | 4.7 at 19°C air | - | 45 dB(A) | 7 yr / 5 yr | $5,990 |
| Rinnai ME340685E20H | 340 | 2–7 people | 4.7 at 19°C air | - | 45 dB(A) | 7 yr / 5 yr | $7,310 |
| Thermann 270THMB36 | 270 | - | - | - | - | 5 yr / 1 yr | $5,700 |
Rated COPs are measured by each maker at slightly different conditions, so they are close but not directly comparable.
- Haier HP200M1U1 ($3,830): 1 to 3 people. Can reuse an existing 15A cylinder circuit.
- Haier HP250M1U1 ($4,090): up to 4 people, the size we fit most. Recovers 42 litres per hour. Can reuse an existing 15A cylinder circuit.
- Haier HP330M1U1 ($4,360): 5+ people. Dedicated 20A circuit required — hardwired only, and at 710 mm across it wants a poured pad.
- Combo kits: the Haier cylinder with the valve set, SimpleFix seismic brackets and base pad in one box: 200L $4,350, 250L $4,660, 330L $4,970.
No room outside? The split system
The Haier HP300S2-F7 split ($3,650) keeps the 300 litre tank inside and puts only a 780 w x 545 h x 286 d unit outside. It works down to -15°C, the widest range we stock, with 52 dB at 1 m at the outdoor unit.
Does it work in winter?
Yes, with less efficiency. The Haier monoblocks work down to -7°C, the Rheem AmbiPower 280e to -6°C, the Haier split to -15°C. Below that, or on a very cold morning, the backup element takes over, so you still have hot water, at element running cost for those hours. Auckland rarely gets near those temperatures. The yearly figures above already use EECA's real-world factor rather than the summer-test COP.
Where it goes, and what it needs
- Outside, on a firm base, with open air around it. Pavers suit the HP200 and HP250; the HP330 wants a poured pad.
- Clearance above to pull the anode for its service check. See the anode.
- Noise: 43 dB for the HP250 at its rated point. Like an air conditioner outdoor unit, keep it away from a bedroom window if you can, and check the neighbour's side.
- Not beside LPG bottles: a heat pump is an ignition source and cannot sit in the bottles' hazardous area. See gas hot water.
- Electrical: the HP200 and HP250 can reuse an existing 15A cylinder circuit; the HP330 needs a dedicated 20A circuit.
- Connecting it is restricted plumbing work, plus an electrician for the supply.
Who a heat pump does not suit
- Selling within a couple of years: the saving goes to whoever pays the power bill.
- A rental where the tenant pays the power, unless you are upgrading for other reasons.
- A very small hot water user, where a small saving takes a long time to cover the extra price.
Delivery
Heat pumps are delivered free anywhere in New Zealand. Outside Auckland, email us before ordering a Haier so we can check stock at your nearest branch.
More: all heat pump cylinders, the running cost working in full, 250 litre electric against heat pump. Prices include GST and are supply only.