Reclaim Energy Heat Pump Review Australia 2026: CO2 Technology Explained

If you’ve spent any time researching heat pump hot water systems in Australia, you’ve encountered Reclaim Energy. It’s the brand that serious buyers — cold climate homeowners, energy geeks, sustainability-focused renovators — keep landing on after working through the options. The reason is simple: Reclaim Energy builds the only Australian-designed CO2 heat pump, and CO2 refrigerant changes what a heat pump can do in cold conditions.

This review covers the specs, the CO2 technology, the price premium, and who should — and shouldn’t — buy it.

What Makes CO2 Different: R744 vs R290 and R513a

Most heat pumps sold in Australia use synthetic or semi-natural refrigerants. R290 (propane) and R513a are the two most common. Both work well. But they share a limitation: performance falls significantly as ambient temperatures drop below around 5–7°C.

CO2 — the refrigerant designation is R744 — operates differently. It has a Global Warming Potential of exactly 1. For context, R513a has a GWP of approximately 631, and older HFC refrigerants range from 1,000 to over 4,000. On environmental grounds alone, CO2 refrigerant is in a different class.

The thermodynamic reason CO2 outperforms in cold conditions is its operating pressure. CO2 systems run at much higher pressures than conventional refrigerants. This changes the heat transfer cycle in ways that maintain high efficiency at low ambient temperatures. Where an R290 or R513a heat pump might drop to a COP of 2.5–3.0 on a cold winter morning, a CO2 system like the Reclaim continues performing near its rated COP.

The practical upshot: in cold climates, the performance advantage of CO2 is real and measurable, not just a spec sheet number.

Reclaim Energy Specs

• Refrigerant: R744 (CO2), GWP = 1
• COP: 5.0 (coefficient of performance — units of heat produced per unit of electricity consumed)
• Minimum ambient temperature: -25°C
• Tank capacities: 250L, 315L, 400L
• System type: Split system — compressor unit installs outside, tank installs inside or outside
• Tank warranty: 10 years
• Compressor warranty: 6 years
• Price (250L unit): Approximately $5,000 before installation
• Total installed cost: $6,000–$7,000 depending on site

The 400L option makes the Reclaim suitable for larger households or those with particularly high hot water demand. Most families of three to four people will find the 250L or 315L adequate.

For full product specifications and current pricing, see the Reclaim 250L product page, the Reclaim 315L product page, and the Reclaim 400L product page.

Cold Climate Performance: The Key Differentiator

This is why the Reclaim Energy CO2 exists, and it’s why it commands a price premium.

Standard heat pumps are rated for minimum operating temperatures of -5°C to -7°C. In practice, their COP degrades significantly before reaching those minimums. A heat pump rated at COP 4.8 at 20°C ambient might deliver COP 2.8 at 2°C. That’s still better than electric resistance (COP 1), but it’s far from the marketed figure.

CO2 systems maintain their efficiency profile at low ambient temperatures far more effectively. At -10°C, the performance gap between CO2 and conventional heat pumps is pronounced.

Australian locations where this matters include:

• ACT (Canberra and surrounds): Winter nights regularly reach -5°C to -10°C. The ACT has some of the most sustained cold weather of any Australian capital.
• Alpine and elevated NSW: Blue Mountains, Snowy Mountains foothills, the Southern Highlands, parts of the New England Tablelands.
• Alpine and elevated VIC: Dandenong Ranges, Macedon Ranges, Yarra Ranges, and obviously the alpine resort areas.
• Elevated Tasmania: Parts of the Tasmanian midlands and highlands experience extended cold periods.

If your location regularly sees overnight temperatures of 0°C or below, the Reclaim Energy CO2 deserves serious consideration. The cold climate COP advantage translates directly into lower electricity bills during the period when your hot water system is working hardest.

Split System Design: Compressor Outside, Tank Flexible

The Reclaim is a split system. This means the compressor unit installs outdoors — on a concrete pad, bracket, or suitable external mounting — while the tank can go indoors (in a garage, laundry, or plant room) or outdoors.

This design has genuine advantages. The compressor noise stays outside, so the indoor environment is quieter than with an all-in-one unit. The tank indoors benefits from ambient warmth in winter, reducing heat loss. And the separation gives you more flexibility in where to route pipework.

The trade-off is installation complexity. A split system requires two locations, refrigerant line connections between the compressor and tank, and a more involved installation than simply placing an all-in-one unit and connecting water lines. Expect installation to take longer and cost more than an equivalent all-in-one installation.

Budget $1,000–$2,000 for installation, toward the higher end if your site has complications (long pipe runs, elevated positioning, complex access).

Price and Payback

The Reclaim Energy CO2 250L is approximately $5,000 before installation. That’s roughly:

• $2,210 more than an iStore 270L (~$2,790)
• $1,371 more than a Rheem AmbiHeat 270L (~$3,629)
• $800 less than a Sanden Eco Plus 250L (~$5,800)

The higher upfront cost needs to be weighed against running costs. A heat pump with COP 5.0 uses 1 kWh of electricity to produce 5 kWh of heat. A typical Australian household uses around 3,500 kWh per year for hot water. At COP 5.0, the Reclaim uses approximately 700 kWh per year. At COP 4.5 (Rheem), the equivalent is 778 kWh. At an electricity price of $0.30/kWh, that’s a saving of about $23/year from the higher COP alone.

That’s not a large annual figure in isolation, but the cold climate advantage means the COP gap versus non-CO2 systems widens materially in winter. In genuinely cold climates, the annual saving is larger.

Versus electric resistance storage (which uses the full 3,500 kWh at COP ~1), the Reclaim saves approximately $840/year at $0.30/kWh. On a total installed cost of $6,500, that’s a payback period of roughly 7–8 years — and the system carries a 10-year tank warranty, so you’re well within the warranty period at payback.

For a detailed cost analysis, see our heat pump hot water cost guide for Australia.

Australian Design, Local Support

Reclaim Energy designs and engineers its systems in Australia. While components including the CO2 compressor are sourced from Mayekawa in Japan, the system integration, testing, and product development is Australian. This matters for a few practical reasons.

The installer and service network understand the product. Spare parts are available locally. Warranty claims are handled domestically. For a product that’s expected to run for 15–20 years, the after-sales support chain is not a trivial consideration.

Reclaim vs Sanden CO2: How They Compare

Both Reclaim and Sanden use CO2 refrigerant. Both offer COP 5.0. Both operate to -25°C. If you’re comparing them directly, the differences are:

• Tank material: Sanden uses a stainless steel tank. Reclaim uses a high-quality enamelled steel tank with a sacrificial anode (which requires periodic inspection and replacement). The stainless steel tank requires less maintenance over its life.
• Origin: Reclaim is Australian-designed and engineered. Sanden is a Japanese manufacturer with decades of CO2 experience.
• Price: Reclaim is typically around $800 less expensive at unit level.
• Installer familiarity: In Australia, both have established installer networks. Your local installer’s familiarity and preference may tip the balance.

Neither is definitively superior. If you want stainless steel and have a strong preference for Japanese manufacturing heritage, Sanden is compelling. If you want an Australian-designed product at a slightly lower price point with equivalent thermal performance, Reclaim is the choice.

Verdict

Reclaim Energy CO2 heat pump is best for:

• Homeowners in cold climate zones (ACT, elevated NSW/VIC, Tasmania) who need reliable winter performance
• Buyers motivated by environmental impact — R744 refrigerant has the lowest GWP of any heat pump refrigerant
• Those seeking maximum efficiency and the lowest possible running costs over the system’s life
• Households with higher hot water demand who can use the 315L or 400L options

It’s not the right choice if:

• You’re in a warm climate zone (Perth, coastal QLD, Adelaide) where cold climate performance is irrelevant and cheaper heat pumps deliver similar practical efficiency
• Budget is the primary constraint — the all-in-one alternatives from iStore or Rheem deliver strong performance at significantly lower cost
• Your installation site can’t accommodate a split system (separate compressor and tank locations)

The Reclaim Energy CO2 is not the cheapest heat pump in Australia. It is one of the most capable. For buyers who need it, it’s hard to argue with.

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Further reading:

• Best heat pump hot water systems in Australia 2026 — full market comparison
• Sanden Eco Plus review — the other CO2 benchmark
• Heat pump hot water cost guide — full payback analysis
• Heat pump rebates Australia 2026 — what you can claim
• Solar hot water vs heat pump — alternative comparison