Heat Pumps have the storage cylinder located on the ground and the heat exchange either to the side or on-top of the storage tank.
A heat pump is a little like a reverse refrigerator. It transfers the heat in the air outside of the unit to the water stored inside the heater through a heat exchange system. In the case of heat pumps, heat is a relative term as they will still work in very cold conditions at least -10 degrees Celsius, so it will still be generating hot water for you during winter nights.
These systems are eligible for Government Rebates and Incentives. Find out more