In a cost-of-living crisis, every cent counts. When it comes to hot water systems, there are many options with varying costs and requirements; it can be confusing to determine whether a system running off renewable energy (with typically more expensive upfront costs) will save you in the long term.
Hopefully, this article will clear things up for you. If you require more specialised advice, do not hesitate to reach out to Same Day Hot Water Service’s friendly and knowledgeable support team, who have been in the business of helping people find their best hot water solutions for over 30 years.
Hot water systems are advanced technology that provides your house with instant hot water either in a storage tank system or heated as required when passed through a continuous flow system. These are called instantaneous water heaters.
There are a range of systems available, let’s get into it.
One of the most common choices, an electric hot water system works like an electric kettle (tank) or by passing through a copper heat exchanger (instantaneous). Despite boasting long lifespans and easy installation processes, they can be more expensive to run than gas hot water, unless paired with solar panels and other energy-saving features.
Gas hot water systems heat water using natural gas or liquefied petroleum gas (LPG) rather than electricity. This makes them an economical choice for households, as they are often among the most affordable hot water solutions. They can also be energy-efficient, particularly in homes where hot water accounts for a significant portion of electricity usage.
Solar hot water systems are an important investment in reducing carbon emissions and energy bills by utilising the bright Australian sunshine. Though these storage systems rely on the sun to provide a hot water supply, you will only note a minimal reduction in efficiency when during prolonged periods of overcast weather, as all solar hot water systems come with a backup booster.
Important to note is that solar hot water systems can be more expensive to purchase up-front, but provide long-term savings. They are thus suitable for households with high hot water usage.
Heat pump hot water systems are the latest type of water heater thanks to new technology that draws heat from the air or ground to keep your water hot. It’s therefore a highly efficient option that does not rely on current greenhouse gas emissions or come with high running costs as electric models.
There are three main fees you need to be aware of when deciding the type of hot water system best for your household: the purchase price, installation costs (including any required labour and materials) and additional costs such as disposal fees for old systems.
Each hot water system has its pros and cons. For example, solar water heaters are the most expensive upfront, but you will generally make up that cost over years of having significantly lower energy bills.
On the other hand, the cheapest to buy and install is an electric storage system, with a downside that they will contribute 25% of your energy bill in ongoing running costs.
Gas hot water systems have high installation fees that require professionals, but since natural gas is cheap, will not cost your wallet as much, but rather your carbon footprint.
Various state governments like New South Wales and Victoria provide rebates to incentivise moving to a more energy- and cost-efficient hot water system: solar. The Australian Government’s Household Energy Upgrades Fund is also applicable for any renovation, upgrades of one or multiple technologies to environmentally friendly options, knock-down rebuilds and purchasing energy-efficient appliances.
Similarly, manufacturers may have promotions or their own rebates when purchasing their products over other systems. At Same Day Hot Water Service, we stock Australia’s largest range of water heating tanks, systems and heat pumps that are efficient reliable and long-lasting for any budget.
As with any appliance, regular maintenance of your old or new hot water system will help prevent costly repairs and premature replacements. There are some basic maintenance tasks that you can attempt yourself, but many common recurring problems require annual professional inspection, such as:
Consider the cost of replacement parts and labour fees when deciding which is the best hot water system for your household. Look for a system with a good warranty and after-sales support.
For the best bang for your buck, a hot water heater must match your household’s needs, and to do so compare capacity to consumption when considering:
Energy-efficient hot water systems have a high Energy Factor (EF) rating. Continuous flow gas water heaters rated above five stars are among the most efficient.
When you think of a hot water system, the type that comes to mind first is a storage tank. Storage hot water systems, as the name suggests, store hot water in a tank, which can be more cost-effective for homes.
The other, less common option is a continuous flow hot water system which heats water only when needed, providing a continuous supply. Though a popular choice for those keen to save electricity lost in keeping storage water warm, a large household may not receive enough hot water to meet simultaneous needs (like if the dishwasher, washing machine and showers are running at the same time).
The size and type of system selected will depend on how much water your household uses daily. Smaller homes need far less hot water than larger ones or even commercial applications. An average family of four will require a storage tank size between 125 to 315 litres.
However, if your home or workplace does not have the required physical space available, then alternatives may be considered. For example, installing low-pressure taps will reduce the amount of water the property uses.
Regular maintenance can help extend the system’s lifespan and reduce energy consumption. Most hot water systems are built to last between 10 to 15 years, so you want to make your purchase last.
Installing a tempering valve will reduce scalding risks and save energy by eliminating the waste of hot water. It reduces the hot water’s temperature to a safer heat before reaching your outlets by mixing some cold into the storage tank.
Similarly, the Australian government recommends using a timer or thermostat to optimise hot water usage and reduce energy consumption.
Washing clothes in cold water and waiting for full loads between turning on the dishwasher and washing machine is another handy way to reduce the drain hot water can have on your bills.
Based on current gas prices, gas storage systems are the cheapest water heaters to operate, but they have the highest installation fees. However, when considering the length of your occupancy and budget, a pump hot water system will be worth the initial costs due to its long lifespan.
Gas hot water systems have an up-front price range of $750 to $1,600.
Electric hot water systems can be bought for $450 to $1,800.
Solar hot water systems will cost you initially $4,000 to $8,000, and heat pump water heaters will put you back $3,000 to $4,000 initially.
These prices exclude installation costs.
Most electric hot water systems have the option to run at off-peak electricity times, which are tailored to your household preference. These electric water heaters are storage hot water systems, where water is stored in a separate tank and kept hot at all times.
Insulating pipes and heaters and using low-flow water fixtures can also bring down costs, but solar water heaters or heat pumps are the most cost-efficient heaters.
Need a hand deciding the right hot water system for your home? Contact Same Day Hot Water Service for our friendly, expert advice about what makes a quality, efficient system and what size, and energy source is best for you.