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Hot water running costs

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A typical household uses around 40–50 litres of hot water per person per day. The table below compares the annual running costs for various types of hot water systems for a range of households.

Water heater type Energy star rating Annual energy cost Annual GHG emissions (kg/yr) Annual energy cost Annual GHG emissions (kg/yr) Annual energy cost Annual GHG emissions (kg/yr) Annual energy cost Annual GHG emissions (kg/yr)
  1–2 people 2–3 people 3–4 people 5+ people
Gas
Natural gas – storage 5.5 star rating $230 655 $305 870 $385 1,090 $460 1,310
4 star rating $275 785 $360 1,025 $445 1,260 $525 1,500
Natural gas – instant 7 star rating $175 525 $250 750 $330 970 $405 1,195
5 star rating $200 605 $295 870 $385 1,130 $475 1,390
LPG – storage 5.5 star rating $630 770 $840 1,025 $1,045 1,285 $1,260 1,545
4 star rating $750 920 $980 1,205 $1,210 1,485 $1,440 1,765
LPG – instant 7 star rating $475 620 $685 880 $895 1,145 $1,110 1,405
5 star rating $550 715 $800 1,025 $1,050 1,330 $1,295 1,635
Electric
Peak tariff – storage N/A $690 3,320 $960 4,610 $1,225 5,900 $1,495 7,190
Peak tariff – instant N/A
$560 2,690 $835 4,020 $1,115 5,350 $1,390 6,685
Off-peak tariff – storage N/A $440 3,895 $585 5,185 $730 6,475 $875 7,765
Solar
Natural gas boosted HE $45 145 $70 220 $105 320 $145 445
Standard $55 180 $95 290 $140 430 $200 595
LPG boosted HE $115 170 $190 260 $280 380 $395 520
Standard $150 215 $250 340 $380 505 $545 700
Electric boosted – peak tariff HE $175 835 $300 1,440 $455 2,185 $640 3,070
Standard $260 1,235 $405 1,950 $580 2,785 $775 3,735
Electric boosted – off-peak tariff HE $105 925 $175 1,560 $265 2,320 $360 3,195
Standard $155 1,365 $240 2,115 $335 2,955 $440 3,885
Heat pump
Peak tariff HE $180 870 $250 1,200 $320 1,535 $390 1,875
Standard $285 1,375 $395 1,900 $505 2,430 $620 2,970
Off-peak tariff HE $100 865 $135 1,175 $165 1,460 $195 1,720
Standard $155 1,370 $210 1,855 $260 2,315 $310 2,725
  • Based on energy tariffs of: natural gas (2.07c/MJ), LPG (5.3c/MJ), peak electricity (27.5c/kWh), off-peak electricity (14.9c/kWh). 
  • All gas hot water systems are star rated – the more stars the more energy efficient they are and the cheaper to run. 

Reduce your hot water costs

Regardless of the type of hot water system you use there are simple ways that you can reduce your hot water costs.


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