Consultation on the proposed regulation on E3 Heat Pump Water Heaters is closed.

We thank everyone who provided feedback.

Consultation overview

On 2 October 2025, the Department released a Consultation Regulation Impact Statement (CRIS) on Heat Pump Water Heaters (HPWH) and the introduction of Minimum Energy Performance Standards (MEPS) for HPWH in Australia and New Zealand. This was a joint consultation with the New Zealand Energy Efficiency and Conservation Authority (EECA).

The consultation for the HPWH CRIS closed on 31 October 2025.

The department thanks all of those that took the time to participate in this consultation.

Consultation process

The department sought input on the policy options outlined in the CRIS. The CRIS contained several consultation questions and options for consideration, including on MEPS, information provisions and testing options.

To assist the consultation, the department held an online forum as an opportunity for Australian stakeholders to discuss the proposed policies on 21 October 2025.

Submissions received

A total of 30 submissions on the CRIS were made to DCCEEW and EECA. Of these submissions, 24 came from Australia and 6 from New Zealand, although some suppliers with operations in both countries made their submissions directly to Australia. Submissions were from HPWH suppliers, manufacturers, industry associations, as well as government and non-government organisations.

The department has reviewed all submissions received. The submissions indicated strong support for Option 3: introducing MEPS for HPWH as soon as practicable, followed by mandatory information provisions at a later stage.

Issues raised in the submissions included: timing of the implementation of MEPS and the need to develop laboratory testing capacity, the use of international standards, defining the scope of the regulation, information requirements, controls for legionella and noise testing.

These submissions were considered during the drafting of the Decision Regulation Impact Statement (DRIS). The DRIS was approved by Ministers at the Energy and Climate Change Ministerial Council (ECMC) meeting on 16 December 2025.

Visit ECMC Meeting Communique, and energyrating.gov.au for more details.

Next steps

A draft GEMS Determination on HPWH will be released for public comment in 2026. 

The department is preparing the submissions for publication. Please contact GEMSProductReview@dcceew.gov.au if you have any questions.

The E3 Program

This work is being progressed through the Equipment Energy Efficiency (E3) Program. The E3 Program integrates energy efficiency standards and labelling requirements for equipment and appliances.  This cross-jurisdictional program is run by:

• the Australian Government

• Australian state and territory governments

• the New Zealand Government.

Current stage

  • Consultation opens
    closed

    2 October 2025

  • Australian online information session
    closed

    21 October 2025

  • Consultation closes
    closed

    31 October 2025

Upcoming stages

  • Release of exposure draft for consultation
    pending

    TBA

Contact
GEMS, Department of Climate Change, Energy, the Environment and Water