Things to consider when choosing a hot water heater.
Electric storage hot water systems – the most common type in Victoria – heat water with an element in the bottom of the unit and store it in an insulated tank, ready for use throughout the day. Electric hot water systems are the cheapest to buy but the most expensive to run.
A high efficiency gas hot water system is one of the most economical types of water heaters, when operated on natural gas. 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 hot water system.
A solar hot water system is more expensive to buy and install, but the running costs will be significantly lower.
A heat-pump water heater uses heat from the surrounding air to heat water in a storage tank. A heat-pump water heater uses much less electricity than an electric storage water heater, and it can provide additional economic and environmental benefits if your home has a Solar PV system that is generating more electricity than your household’s daytime demand.
The type of hot water system you have makes a big difference to your energy bills.
Compare running costs
A storage heater that is too small will continually run out of hot water, while one that is too large will be more expensive to run because it will maintain the water temperature even when it's not being used.
Similarly, a continuous flow system that's too small may not be able to keep up with your hot water demands when multiple hot water outlets are being used at the same time. Your water heater supplier will be able to help you choose the right-sized system.
If you currently have an electric hot water heater, you could replace it with:
If you currently have a gas hot water heater, you could replace it with:
When making your decision, it's important to ask your hot water retailer or plumber the right questions.
At various times, government incentives may be available for the purchase of new hot water heaters.
To find find out if there are any incentives available, visit: