Most Efficient Hot Water Systems in Australia

Tired of taking cold showers in the morning or paying high energy bills for your hot water usage?

In this article, we’ll explore the most efficient hot water systems available in Australia, from solar-powered and heat pump systems to tankless and storage tank options.

We’ll also discuss how to pick the most efficient type for your household’s needs and budget, as well as ways that can help you save money and reduce your environmental impact.

Get ready to upgrade your hot water game and say goodbye to unwanted cold showers and high energy bills for good!

What makes a hot water system efficient?

An efficient hot water system is one that uses less energy to heat water and provides the desired amount of hot water when needed.

Factors that contribute to the efficiency of water heating systems include the type and size of the system, the energy source used, insulation, and the flow rate.

By choosing an efficient hot water system, households can save money on their energy bills and reduce their greenhouse gas emissions.

Most efficient hot water systems in Australia by type

1. Solar hot water systems

Why it’s efficient?: Solar hot water systems are incredibly efficient, using energy from the sun to heat water, which in turn reduces reliance on grid electricity or gas.

They typically have a storage tank to store hot water for use at a later time, but newer models can also use an in-line booster to ensure a constant supply of hot water.

These systems are a cost-effective and environmentally-friendly option for many households across Australia.

Who it’s best for?: Households with a moderate to high hot water demand, typically 3-4 people, and have access to suitable roof space with unobstructed sunlight for the solar panels. Also, people who are interested in reducing their environmental impact and reliance on fossil fuels.

Average price: The average price of a solar hot water system can range from around $3,000 for a basic system to $7,000 or more for a high-efficiency system with a larger storage tank and in-line booster.

Government rebates and incentives are available for eligible households, which can significantly reduce the upfront cost of a solar hot water system.

2. Heat pump hot water systems

Why it’s efficient?: Heat pump hot water systems can be efficient because they use electricity to extract heat from the air, which is then used to heat water stored in a tank.

This process uses less energy than conventional electric hot water systems, resulting in lower energy bills and greenhouse gas emissions.

Who it’s best for?: Households with a moderate to high hot water demand, typically 3-4 people, without access to suitable roof space or natural gas in order to use other types of systems.

It’s important to note that households with low hot water demand or those living in colder climates may find heat pump systems less suitable, as they may not be able to operate efficiently in these conditions.

Average price: The average price of a heat pump hot water system can range from around $2,500 for a basic system to $4,500 or more for a high-efficiency system with a larger storage tank.

3. Instant gas hot water systems

Why it’s efficient?: Instant gas hot water systems can be efficient because they only heat water when it’s needed, eliminating the need for a storage tank and reducing energy waste.

They also use natural gas or LPG as the energy source, which is typically less expensive than electricity. Newer models can have higher energy efficiency ratings, reducing both energy bills and greenhouse gas emissions.

Who it’s best for?: Households with a low to moderate hot water demand, typically 1-2 people, and have access to natural gas or LPG and prefer an on-demand supply of hot water without the need for a storage tank.

Average price: The average price of an instant gas hot water system can range from around $1,000 for a basic system to $2,000 or more for a high-efficiency system with additional features such as temperature control or remote activation.

4. Tankless electric hot water systems

Why it’s efficient?: Tankless electric hot water systems can be efficient because they only use electricity when hot water is needed, eliminating the need for a storage tank that requires continuous heating.

However, the cost of electricity and the size of the system can impact the overall efficiency and cost-effectiveness of electric hot water systems.

Who it’s best for?: Small households with low to moderate hot water demand, typically 1-2 people, and have limited space or no access to gas connections.

Average price: The average price of an electric hot water system in Australia can range from around $500 to $1,500 for a basic storage tank system, while high-efficiency heat pump systems can cost you $3,000 or more.

5. Gas hot water systems

Why it’s efficient?: Gas hot water systems can be efficient because they use natural gas or LPG to heat water on demand.

Newer models of gas hot water systems can also have high energy efficiency ratings, reducing both energy bills and greenhouse gas emissions.

Keep in mind that the efficiency of a gas hot water system can depend on the cost of gas in the area and the size of the system.

Who it’s best for?: Households with a moderate to high hot water demand, typically 3-4 people, and have access to natural gas or LPG.

Average price: The average price of a gas hot water system can range from around $800 to $1,150 for a basic storage tank system.

Most efficient hot water systems in Australia by brand

1. Rheem hot water systems

Why it’s efficient?: Rheem hot water system products offer a range of high-efficiency options, including heat pump, gas, and solar systems.

Their heat pump hot water systems have an energy efficiency rating of 7 stars, while their solar hot water systems use a range of advanced technologies to maximise energy efficiency.