Faulty heat pump installations have been reported in Mona Vale under a New South Wales energy scheme designed to lower household power costs.
Heat Pump Initiative Faces Scrutiny
A heat pump rebate initiative launched in New South Wales in early 2022 aimed to encourage households and businesses to replace existing electric or gas water heaters with energy-efficient systems. Backed by upfront discounts rather than traditional rebates, the program enabled consumers to access heat pump systems at reduced costs, with some households paying as little as $33. Over 120,000 installations occurred within two years under the scheme, introduced during the previous Coalition government.
By mid-2023, concerns over aggressive sales practices and non-compliant installations began surfacing. The Independent Pricing and Regulatory Tribunal (IPART) issued warnings, and in June 2024, the local authorities introduced a $200 co-payment and new licensing requirements for installers.

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Installation Issues Reported in Mona Vale
In Mona Vale, at least one resident reported receiving a heat pump system through a letterbox promotion, only to experience significant operational issues. The system produced excessive noise and failed to deliver the anticipated energy savings. In another case elsewhere in the state, water was found running directly onto a powerpoint, raising safety concerns.
Audits from the NSW Building Commission later revealed that compliance levels for some hot water installations were as low as 9 per cent. Inspectors also found units lacking mandatory Residual Current Devices (RCDs), which are required to prevent electric shocks.
Policy Design and Oversight
The scheme’s structure relied on Accredited Certificate Providers (ACPs), regulated by IPART, to partner with licensed installers and apply the discount upfront. While intended to streamline access and boost sustainability, the model allowed widespread participation with limited enforcement until complaints escalated.
Discounts ranged from $400 to $670 for replacing electric systems and from $190 to $310 for gas systems. Installation costs varied based on system model, installer rates, and site conditions. However, consumers were not always informed of risks or installation quality standards.
Compliance Action and Industry Response
Following a series of media reports and complaints, the NSW Fair Trading Minister ordered a targeted compliance blitz on heat pump installations. The inspection effort focuses on sites flagged as high-risk, including those with previous reports of faulty or dangerous setups.
Consumer protection measures are now being revised, including proposals to ban door-to-door sales and require five-year warranties on installed units. Industry stakeholders, such as the Australia and New Zealand Water Heating Association, supported the crackdown and called for long-term reforms.

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Community and Political Reaction
The initiative was introduced under the former government as part of its broader cost-of-living measures, but has since become the focus of political dispute. The current government has criticised its predecessors for enabling the scheme’s rollout without sufficient oversight. Community reports, including those from Mona Vale, have brought renewed attention to the practical consequences of the policy and the risks faced by households.
What’s Next for Mona Vale and Beyond
Inspections and compliance actions are continuing, with a review of penalties and potential changes to product eligibility underway. Residents in Mona Vale and across New South Wales are encouraged to contact their installer, ACP, or Fair Trading if they encounter system issues.
The NSW Government has stated that future iterations of the scheme may include stricter installer accreditation and clearer consumer protections.
Published 10-June-2025