Hot Water Heater
Your hot water system may not be an exciting conversation starter but simply getting the right system will reduce your energy costs at home and will play a key role in our electric future.
The humble hero
While hot water is a big energy user, it is also one of the most flexible household loads on the grid meaning it can play a big role in a more efficient and clean energy landscape. Unlike an appliance like your stove which you use at a certain time, with a good electric heat pump you can choose when your system heats your water and consumes energy.
This control can benefit both your energy bills and the grid, as your hot water tank effectively acts as a large cheap home battery. You can store energy as hot water when electricity rates are lower, or if you have solar panels you can heat your water when you’re producing solar power, making free hot water with zero emissions. When we consider all our hot water systems together, they become an important piece of technology to combat our domestic emissions.
By using more efficient electric hot water systems, and using them smarter, we can create a cheaper and cleaner electricity grid for everyone.
Types of Hot Water Systems
Heat Pumps
Recommended. Heat pumps transfer heat from the surrounding air to heat the water which makes them highly efficient, typically using up to 65-75% less energy compared to electric resistance heaters. They work best in moderate to warm climates like we have in NSW.
Generally they have a higher upfront cost. However, this is partially offset with current government rebates and they can save you money in the long run through reduced energy consumption.
Electric Resistance Heaters
Electric resistance heaters use electricity to heat an element like a large kettle. They are relatively inexpensive to purchase, install and service, however, they use roughly 3 to 4 times more electricity than a heat pump.
If you have a good-sized solar PV system then a decent solution can be installing a timer or smart device to ensure your water heats during the day, rather than the typical overnight “off peak” setting.
Gas Water Heaters
Gas systems use natural gas or LPG as a fuel source. They are relatively cheap to run however their emissions contribute to air pollution and fuel climate change which is why we do not support the installation of gas appliances. They also require venting and maintenance for safety as they are burning a combustible fuel.
Solar Thermal Heaters
Not to be confused with solar PV panels, which generate electricity, for a long time solar thermal hot water systems were considered the cheapest form of solar hot water heating in Australia. However, the hugely reduced cost of solar PV means this is no longer the case and the solar thermal system is expensive and inefficient.
Heat pumps are cheaper to run and much more efficient.
Whether it's for summer or sub-zero temperatures, heat pumps deliver efficient performance, reliable temperatures, and 50-70% lower energy bills.
Government Incentives Available
Currently there are both State and Federal Government rebates or incentives for installing heat pump hot water systems, which you are entitled to use together. These are:
Federal: Small-scale Technology Certificates (STCs) can be generated for solar hot water (most installers can claim STCs on your behalf) to reduce the cost of a system. You will receive more STCs for a more efficient hot water system.
Victoria. SolarVictoria offers a Hot Water Rebate of up[ to $1,000 for eligible hot water heat pumps. To be eligible the combined household income of all owners is lower than $210,000 and the existing owner-occupied home is valued at less than $3 million. There are a number of other conditions and the installer will be able to guide you through these. Learn More.
How much will you receive?
Unfortunately it’s not a simple amount paid to you and the system is quite complicated and not one you undertake yourself (the licensed installer does it on your behalf as they work with certificate trading schemes). How much you receive off your new heat pump system depends on a range of factors such as what you’re switching from and the efficiency of the new system you choose.
How to claim the rebates
Research what type of hot water system you may want and potential products
Connect with one or more installers for a quote and to discuss the most suitable system for you. Confirm that they are licensed to claim the rebates for you. Our list below are able to claim the rebates.
The installer will organise the installation and rebate so you receive a reduced final bill.
