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Hot water
Heating hot water can be up to 25% of your household power bill and carbon pollution. A great way to reduce these costs (and emissions) is to upgrade to an energy efficient hot water heat pump. While you may not need a new hot water system today, it is a good idea to look at the options available to you and what government rebates are available, so that when the time comes, you know what to choose.
Hot water is a big energy user, but guess what? It's super flexible in how we use it at home! Unlike your stove, which uses energy when you’re making dinner, an electric heat pump lets you decide when to heat your water and use energy.
Not only does it help you save on energy bills, it also helps the energy grid. Your hot water tank becomes like a cheap home battery. You can store up energy as hot water when electricity is cheaper. And if you've got solar panels, you can make hot water when the sun is shining, giving you free hot water with no pollution.
By using better electric hot water systems and being smart about when we use them, we can make the electricity grid cheaper and cleaner for everyone. It's a win for your pocket and a win for the planet!
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Types of Hot Water Systems
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Heat pumps use the same technology as a reverse cycle air conditioner but to heat water rather than air. This makes them highly efficient. They can use up to 75% less energy when compare to electric resistance heaters. They may cost more upfront, however this may be able to be offset with current government rebates and lower running costs in the long run.
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Electric resistance heaters work by using electricity to heat an element, similar to a big kettle. While they are budget-friendly to buy, install, and maintain, they end up consuming about 3 to 4 times more electricity compared to a heat pump. For those with a sizable solar PV system, a smart move would be to consider installing a timer or a smart device. This ensures that your water heats up during the day instead of sticking to the usual overnight "off-peak" setting. It's a smart solution that aligns with your solar power setup!
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Gas systems utilize natural gas or LPG as their fuel source. While they are reasonably cost-effective to operate, it's crucial to note that their emissions play a role in air pollution and contribute to climate change. Additionally, these systems need venting and regular maintenance for safety since they involve burning a combustible fuel.
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Distinguishing itself from solar PV panels that generate electricity, solar thermal hot water systems used to be widely viewed as the most economical option for solar hot water heating in Australia. However, the significant drop in the cost of solar PV has altered this landscape. Nowadays, solar thermal systems are no longer the cost-effective choice, as they have become comparatively expensive and less efficient. Better to use your roof for solar PV panels inc conjunction with a heat pump hot water system.
Rebates
There are currently rebates available from State and Federal (STCs) Government for installing heat pump hot water systems which you can use together. How much you might be able to get varies according to what hot water system you currently have and the new model you install. It is not a simple amount that gets paid and you will need a licensed and accredited installer who will do this on your behalf.
How to claim a rebate:
Research the type of hot water system you want.
You may like to call the manufacturer and ask if they can recommend an installer or provide a list of installers that serve your area.
Ask the installer if they are set up to claim the STCs and any other State or local rebates. Ask if they claim directly or through a third party and if so who that is.
Heat Pump Considerations
Be aware there is a huge range in price ($1,500 - $6,000 before rebates). A more expensive heat pump may be quieter, use less electricity (therefore cheaper to run), have better warranties, and use more environmentally friendly refrigerant gases. So you may find it important to consider:
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Can you control the unit via your phone or a simple control panel? Ideally if you have solar, the heat pump should be programmed to operate while your solar is generating electricity. Some options have a timer so you can set it to run when you have cheap power or are likely to be exporting power.
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What will fit with your home? A heat pump hot water unit consists of a tank and compressor (which looks like the outdoor unit of an air conditioner). If separated, the compressor must be situated outside or in a well ventilated area such as under a verandah. Check the tank size is appropriate for your household’s needs.
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Look at the COP rating, this shows how energy efficient the system is. Check what ambient (outside) temperature the COP is measured at: is it a good match for your climate zone?
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This is how fast the system will heat water as the tank is depleted.
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Cheaper systems may advertise a backup resistive element in cold outside conditions. Using it will substantially reduce the energy efficiency. There are no Australian climate zones where one is needed if you are buying a good quality heat pump brand.
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These are gases that exchange heat in the system. Many refrigerants are greenhouse gases. R744 and R290 refrigerants are environmentally friendly options, whereas others such as R410a and R134a are in the process of being phased out due to their environmental impact.
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Check the type of warranty and what it covers eg. labour, tank and parts, and how long the warranty period is for. Also consider your distance from an approved service agent.
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How noisy is the compressor unit? Look for the number of decibels (dbA). The lower the number the quieter the system. This is very important if the unit will be located near a neighbour’s window or close to a bedroom.