Your Home Electrification Steps

Electric Hot Water

Use renewable electricity or your excess solar power to generate hot water for free!

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Electric water storage is the future

While hot water is a big energy user, unlike an appliance like your stove which you use at a certain time, with a good electric heat pump you can choose when your system heats your water and consumes energy.

This control can benefit your energy bills since you can store energy as hot water when electricity rates are lower, or if you have solar panels you can heat your water when you’re producing excess solar power during the day, making free hot water with zero emissions!

Let the savings flow

Water heating is the second largest user of energy in the average Australian household. You can make significant savings by going electric, and even more with a heat pump! The numbers add up: Heating the water for a shower with a gas water heater cost about $357 per year with standard gas prices (2023). An electric heat pump water heater costs just $257 per year to provide the same hot water using grid electricity. Using rooftop solar, that water costs just $56 per year, significantly less than any other form of water heating available.

Costs & Benefits

UPFRONT COSTS
Approx. $1.5k-$4k for a
heat pump (after rebates)
AVERAGE LIFESPAN
10-15 years.
COST SAVINGS
$250+ /yr.
Increases with solar PV!
FEATURES/BENEFITS
Cheap hot water storage that
can be free with solar PV.
DIFFICULTY
Hard. Installer required.
ENVIRONMENTAL BENEFITS
3–4 times more efficient than traditional water heaters.
Significant reduction in carbon emissions.

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Learn more about electric hot water

Your next steps with electric hot water

Consider getting an energy assessment to determine how well your home is sealed and insulated, and inspect your current appliances for their efficiency. These professionals offer insights through experience and software modelling that can better educate your decisions and save you a significant amount. In Victoria, professional home energy assessments (Scorecard Assessment) are offered at a discount through the VEU program. You can find a local assessor via the national Scorecard website.

If your water heater is around 10 years old, consider replacing it before it dies so you’re not stuck in an emergency situation!

Is it tankless or does it have a storage tank? Does it use electricity, gas, or solar? If a tank, how many litres is it? How old is it? Most of this info will be printed on its nameplate, and you can also search online for the model number.

Try to get at least three quotes if you want to save money! Reputable local businesses to start your journey could include: SolarGain, O’Briens, and FutureNRG (Shepparton based but excellent product range).

Things to consider with your installer:

Electrical: Hot water systems by law need to be on their own circuit breaker which may require an electrician to install a new RCD and wiring.

Size: If you’re happy with your current water heater size in litres, look for something in a similar size or larger.

Location: Depending on the type (split or all-in-one) you will need a location ideally close to your old hot water system (to reduce costs) that has enough room. 

Install your heat pump hot water system and enjoy your energy bill savings — and the satisfaction that your shower is not going to break the bank!

Heat pump hot water FAQ's

Most manufacturers offer a size guide on their website. In general, if you’re happy with your current water heater size in litres, look for something in a similar size or larger. 

Electrify 2515 have done some excellent work in comparing benefits of common brands on the market.

In our region, common quality units include Reclaim (O’Briens) and iStore (SolarGain). 

This is not a complete list of brands to consider and we are not affiliated with any company. There are many reputable companies that make good heat pumps which are well reviewed online. For more information and reviews we recommend searching the My Efficient Electric Home (MEEH) forum on facebook.

These are two very different technologies with different power sources. Due to simplicity and efficiency, heat pump hot water is widely recognised as the best option. 

Check out this article for an overview.

The more efficient your system, the less it will cost to run. There are two ways to measure the efficiency of heat pump hot water systems – the Coefficient of Performance (COP) and the Small-scale Technology Certificates (STCs).

The COP measures how efficient a heat pump hot water system is. A higher COP means the heat pump is more efficient. For example, a COP of 4 means you get 4 units of heating or cooling for every 1 unit of electricity used. However, COP ratings vary depending on the model, the ambient temperature, and the type of refrigerant. Plus, some manufacturers provide overly optimistic COP ratings.

A more reliable indicator of efficiency is to look at STCs which are provided by the Australian Government to reduce the cost of installing an efficient heat pump hot water system. The more STCs, the more efficient the system.

The Clean Energy Regulator lists heat pump hot water models that are eligible for small-scale technology certificates under the Small-scale Renewable Energy Scheme. NOTE: Wangaratta is in ZONE 5.

STCs are claimed by installers so quotes should show the full price and reduced price once the STCs are applied by the installer.

Talk to the manufacturer or prospective installer to understand the electrical requirements. Depending on the unit, you may be able to plug into an existing powerpoint, hardwire to an existing power circuit or you might need a new dedicated circuit on your switchboard.

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The Home Electrification Guide is a tool we’ve created to help Wangaratta homeowners navigate their transition to an electrified future. It’s free and takes 2 min to complete.

Electrify Wangaratta is a community initiative. Please note: all information on this website is general in nature and does not constitute financial advice. You should consider seeking independent legal, financial or other advice to learn how information relates to your own unique circumstances.
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