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The Department of Climate Change, Energy, the Environment and Water is developing a Consultation Regulation Impact Statement (CRIS) to assess the impacts, costs, and benefits of options to improve the energy efficiency of heat pump water heaters (HPWH) for the Australian residential market. 

These water heaters have a range of energy efficiencies and are not yet regulated under the Greenhouse Energy and Minimum Standards (GEMS) Act.

To address the growing demand for HPWHs, the Energy and Climate Change Ministerial Council (ECMC) agreed last year to fast-track the implementation of Minimum Energy Performance Standards. This demand has come from consumers moving towards more energy efficient water heaters. A range of government incentive schemes has also boosted sales and market interest. 

In parallel, the department is also undertaking laboratory testing of different HPWH. The results are being used to develop a suitable test method in collaboration with the water heater industry. This test method will be included in the CRIS.

An initial draft of the HPWH CRIS is expected to be completed in the first half of 2025. We will seek feedback on the CRIS through public consultation including open information sessions. This process will play a crucial role in shaping future policy options for regulating HPWHs. 

For more information read the ECMC Meeting Communique for 19 July 2024 on energy.gov.au.