For too long, Hobart homes have been cold, draughty, and expensive to heat.
That’s because we traditionally relied of wood heaters and older home weren’t built with energy efficiency in mind. Nowadays, though, modern heat pumps are affordable to buy, efficient to run and loaded with smart features
So if you’ve been worried about upgrading your heating because you’re not sure what it’s going to cost, or you’re worried about making the wrong call, we’ve put together this guide about new heat pump prices and the things to consider when buying a new heat pump.
Southern Air has been been helping Tasmanian families get comfortable in their homes for years, and some of the most common questions we get asked is:
How much is a new heat pump, installed?
How much does it cost to install a heat pump in Hobart?
What is the average cost of replacing a heat pump?
Many folks simply wish to understand the approximate costs, before they get a quote and to help plan out their saving.
The honest answer is that it depends.
But this guide will walk you through everything you need to know so you can make a decision that makes sense for your home and your budget.
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How much does a Heat Pump cost in Hobart?
Most Hobart households can expect to pay somewhere between $2,000 and $6,500 fully installed.
Here’s a rough guide to help you find where you might land:
Small Heat Pump (2–3.5kW) – suitable for a bedroom or small living area – $2,000 to $3,000.
Medium Heat Pump (5–7kW) – suitable for a main living area or open plan home – $3,000 – 4,000.
Large Heat Pump (8–12kW) – Large open-plan or whole-home feel – $4,000 to 6,500.
These prices include the new heat pump unit, installation labour, refrigerant lines, electrical work, and wall brackets.
However, it pays to always ask for a quote that spells out exactly what’s included — a low advertised price that leaves out the electrical work or disposal of your old unit is probably to good to be true, leaving you with potential extra costs.
Thing to consider when pricing a New Heat Pump
The size of the Heat Pump unit
The bigger the space, the bigger (and more expensive) the heat pump you’ll need.
One of the most common mistakes we see is families buying a unit that’s too small for the job. Then the heat pump need to run flat out, using more electricity, plus this means it can wear out sooner.
A good installer will take the time to work out the right size for your room before recommending anything.
Where it gets installed
A straightforward installation on an easy-to-access exterior wall costs less than a tricky one. If pipes need to run through walls, up through the ceiling, or over a longer distance, expect to pay a little more for the extra labour and materials.
It’s worth talking through your home’s layout with us, when you’re getting a heat pump quote. This will ensure we’ll help select the ideal local and heat pump unit for you circumstances.
Associated Electrical Work
Some older Hobart homes need additional electrical work to support a new system. This is because wiring, circuits and your electrical switch board might not be up to modern standards.
A new heat pump will required a dedicated circuit or an upgraded switchboard, for example.
This can add additional costs to the total cost, so it’s worth knowing about this upfront so there are no surprises on the day.
Removing Your Old System
If you’re replacing an existing unit, there’s usually a small fee to remove and dispose of it. But again, just make sure it’s included in your written quote.
What features should I look for when buying a new Heat Pump?
Modern heat pumps have come a long way compared to many older units still found in homes today.
Here’s what’s worth knowing about:
Inverter Technology — Almost every quality heat pump uses inverter technology, which means the system adjusts its speed to hold your chosen temperature steadily rather than cycling on and off. It’s more comfortable and cheaper to run.
Reverse Cycle (Heating and Cooling) — In Hobart, your heat pump should absolutely be reverse cycle, meaning it both heats and cools. This is perfect for both the cold winters and those warmer period in summer.
Wi-Fi Control — Many units can be controlled from your phone. That means you can turn the heat on during your commute home and walk into a warm house. On a cold Hobart morning or returning from a winter holiday, this makes all the difference when returning home.
Quiet Operation — Noise ratings are measured in decibels. Premium heat pump are noticeably quieter, which matters when the unit is near a bedroom or living area.
Energy Efficiency Ratings — The more stars, the cheaper the unit is to run year-round. A higher-rated unit might cost a little more upfront, but it can save your family hundreds of dollars a year on electricity.
Air Purification and Filtration — Some models filter dust, allergens, and other airborne particles from the air. Worth considering if anyone in the family has asthma or allergies.
How does the Heat Pump brand affect the price?
Not all heat pumps are built the same way, and the brand you choose affects far more than just the sticker price — it affects how efficiently it runs, how reliably it performs, and how easy it is to get serviced down the track.
Daikin is our recommendation as a Daikin Specialist Dealer
When it comes to heat pumps, Daikin is the brand we’d point most Hobart families towards.
They manufacture their own components, which means tighter quality control than brands that piece together parts from multiple suppliers. Daikin heat pumps are quiet, highly energy efficient, and built to last in conditions just like ours.
The Daikin Cora and Daikin Alira X are two of the most popular choices for Hobart homes.
Both perform exceptionally well in cold climates which matters in Tasmania, and come with strong warranty coverage. Y
es, Daikin typically costs 10–20% more than a mid-range brand. But in our experience, that upfront investment pays for itself in reliability and running efficiency over the life of the system. Meaning you’ll actually save in running costs and possible early replacement down the reoad.
As a Daikin Specialist Dealer we also offer solid service support across Hobart, so if you ever do need a technician or a part, you’re not left waiting.
Mitsubishi Electric and Fujitsu
Both are strong, reliable brands that perform well in cold conditions. They’re generally a step below Daikin in price and quality.
Mid-Range Brands (Panasonic, LG, Samsung, )
Decent performance at a lower price point. Fine for budget-conscious families, but they may not handle Hobart’s cold snaps as well as the premium brands, and parts and servicing can be less straightforward.
Budget Heat Pump Brands
You’ll find cheaper units at some of the big box stores or through online suppliers.
They may look similar on paper, but often use lower-grade components, come with shorter warranties, and can cost more to run in the long term.
In a climate where your heat pump is working hard for a good chunk of the year, it rarely pays to cut corners on the unit itself.
How to choose the right Heat Pump Installer in Hobart
The unit is only half of the equation. A poor installation can mean reduced efficiency, unnecessary breakdowns, and — at worst — safety issues. Here’s what to look for when choosing who does the work.
Are They Properly Licensed?
In Tasmania, heat pump installers need to hold both a Refrigeration and Air Conditioning licence and an Electrical licence. Always ask, or check the Service Tasmania licence register. This isn’t something to skip over.
Do they provide a written Heat Pump quote?
Any reputable company will give you a clear, written quote before work begins.
It should spell out the brand and model, the size of the unit, what’s included in the installation, and the warranty terms. Vague verbal pricing is a red flag.
Do they offer warranty?
The unit itself comes with a manufacturer’s warranty.
Daikin offers up to five years on parts and the compressor. But what about the installation? A confident installer will back their own work, typically for one to two years. It’s worth asking.
What are other people saying about them?
Check Google Reviews and local Facebook community groups.
Word of mouth carries a lot of weight in Hobart. A company with a strong track record of happy local customers is a much safer bet than one with no local presence or reviews.
Do the size Heat Pumps properly?
A good installer doesn’t just ask what size you want. They ask about your room dimensions, ceiling height, insulation, and window configuration. This is called a heat load calculation, and it makes sure you end up with the right system for your specific home.
What About Running Costs?
The purchase price is a one-off, but electricity is ongoing.
A more efficient unit costs less to run every year — for a typical Hobart living area, a well-sized heat pump might run you $400 to $,1000 per year depending on how and when you use your heat pump.
Most of us tend to keep them running overnight, to maintain a stable temperature in the home.
And as one of the most energy efficient heat systems available, heat pumps are a great way to keep you home comfortable all year round.
Compared to old-style panel heaters or bar heaters, heat pumps are roughly three to four times more energy efficient. In other words, you get a lot more warmth for every dollar you spend on electricity.
The Bottom Line
A quality heat pump, properly installed, is one of the best things you can do for your family’s comfort in a Hobart home.
Prices typically range from $2,000 for a small basic system through to $6,500 or more for a large premium setup in a big living area.
For most Hobart families, a mid-to-large Daikin system is the sweet spot between upfront cost, running efficiency, and long-term peace of mind.
Take your time, consider getting a few quotes, ask the right questions, and you’ll be walking into a warm home for many Hobart winters to come.