Hot water running costs

Before making a decision on which hot water system to buy, talk to a retailer about the purchase and running costs, as well as government incentives that may be available.

Choosing between electric, gas and solar

Electric hot water systems are the cheapest to buy, but the most expensive to run. A solar hot water system is more expensive to buy and install, but the running costs will be significantly lower.

Gas and electricity prices are rising, so if you have a conventional gas or electric hot water system that needs replacing, consider a more efficient gas or solar system as an investment against rising costs.

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

                  

Water Heater Type

 Star Rating

100L/Day

1-2 people

 Annual GHG emissions kg/yr

150L/Day

2-3 people

  Annual      GHG   emissions kg/yr

200L/Day

3-4 people

Annual GHG emissions kg/yr   

250L/Day

5+ people

Annual GHG emissions kg/yr

Gas storage - natural gas

 5.5

$230

 655

$305

 870

$385

 1,090  $460 1,310
 4 $275  785 $360  1,025 $445  1,260  $525 1,500

Gas instantaneous - natural gas

 7

$175

 525

$250

 750

$330

 970  $405 1,195
 5 $200  605 $295  870 $385  1,130  $475 1,390

Gas storage - LPG 

 5.5

$630

 770

$840

 1,025

$1,045

 1,285  $1,260

1,545

 4 $750  920 $980  1,205 $1210  1,485  $1,440 1,765

Gas instantaneous - LPG

 7

$475

 620

$685

 880

$895

 1,145  $1,110

1,405

 5 $550  715 $800  1,025  $1,050  1,330  $1,295 1,635

 

 

 

 

 

 

 

   

 

Electric storage - peak tariff

NA 

$690

 3,320

$960

 4,610

$1,225

5,900  $1,495 7,190

Electric instantaneous - peak tariff

 NA

$560

 2,690

$835

 4,020

$1,115

5,350  $1390

6,685

Electric storage - off peak tariff

 NA

$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

Solar/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
Solar/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

Solar/gas - LPG boosted+

 HE

$115

170

$190

 260

$280

380  $395

520

 Standard $150 215 $250  340 $380 505  $545 700

 

 

 

 

 

 

 

   

 

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
Heat pump - 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 (12.07 c/MJ), LPG (5.3 c/MJ), peak electricity (27.5 c/kWh), off-peak electricity (14.9 c/kWh).

*All gas hot water systems are star rated – the more stars the more energy efficient they are and the cheaper to run.

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Find your nearest retailer to take that next step towards being a more energy efficient household.