Reduce your hot water costs

Last updated: 31 March 2021

Hot water accounts for around 16% of the average Victorian household's energy costs. Most of the hot water is used in the bathroom, followed by the laundry and the kitchen.


Regardless of the type of hot water system you use, there are a number of common sense ways to reduce the amount of hot water you use and pay for.

  1. Install a low-flow shower head for a satisfying shower using the minimum amount of water.
  2. Take shorter showers. Use a shower timer to encourage your household to take four-minute showers.
  3. Wash your clothes in cold water where possible.
  4. Fix dripping taps.
  5. Insulate exposed hot water pipes with closed-cell rubber insulation, available from hardware stores.
  6. Service and maintain your hot water system using a licensed tradesperson according to the manufacturers instructions.
  7. Plan for your hot water system's replacement, especially if it's more than ten years old. Choose a hot water system to suit your household's needs.

Choose an energy efficient hot water system

There are a range of energy efficient hot water heaters to choose from, depending on your fuel source, household size, budget and preference for instantaneous or storage systems.

Choose the right hot water system for your needs and use it wisely, and you can save energy and lower your hot water costs.

Benefits of energy efficient water heaters

Energy efficient water heaters can reduce household energy bills significantly. The table below shows the estimated average annual savings from replacing an existing water heater with a high efficiency water heater.

Existing Replacement Annual savings
Gas instantaneous High efficiency gas instantaneous $46
Gas instantaneous Gas boosted solar $120
Gas storage High efficiency gas $60
Gas storage Gas boosted solar water heater $190
Electric storage High efficiency gas instantaneous $356
Electric storage Gas boosted solar water heater $510