How to Choose the Best Hot Water System

In Australia, traditional water heating systems are increasingly considered a problem due to their high energy consumption.

As estimated by the DCCEEW, these hot water systems account for 15% – 30% of total household utility bills, which demonstrates how costly they can be. On top of that, they release about 25% of greenhouse gasses into the atmosphere, which is another major disadvantage.

To address these financial and environmental concerns, the Australian government is urging residents to switch to more modern hot water systems that promise improved comfort and convenience. Such hot water systems should also focus on reducing energy costs and environmental impact.

But how do you choose such a model with so many different options available in the market?

Here are some key considerations to help you with your hot water system search.

Understand the Types of Hot Water Systems Available

When choosing the best hot water system, begin by understanding the various types available in the Australian market.

They include:

➤ Electric Storage Hot Water Systems: These are the most common in Australia with more than 50% of households currently using them as noted by DCCEEW. The systems feature an insulated tank that heats and stores hot water promising consistent supply in households with high demand.

➤ Instantaneous Hot Water Systems: These systems deliver hot water as soon as you turn on the switch. They eliminate storage tanks making them the best choice for households where space is a constraint. They can be electric or gas-powered.

➤ Heat Pump Hot Water Systems: These systems heat domestic water using ambient heat trapped from the air or ground. They don’t rely on electric heating elements thus saving up to 70% on energy bills according to DCCEEW. They also reduce greenhouse gas emissions by up to 65% .

➤ Solar Hot Water Systems: These systems utilize sunlight energy to warm water. After the installation, they have no running costs and no known impact on the surroundings.

Consider the Costs of Available Hot Water Systems

After learning what type of hot water systems are available in Australia, you need to narrow down the cost and determine what is affordable per your budget. Here is how the costs compare according to Brisbane Plumbing and Drainag e:

Electric Storage Hot Water Systems – They are cheap to install at $1,000 – $2,000. The running costs per year can be high reaching up to $1,275.
Gas Hot Water System – The installation costs fall between $1,500 – $3,000 while the running cost is approximated at $1,369 – $1,712 annually.
Solar Hot Water System – Also expensive to install at $3,000 – $7,000, however, they boast relatively low annual running costs between $319 – $690.
Heat Pump Hot Water Systems – They can be pricey with installation costs reaching up to $3,000 – $5,000. However, they have the lowest running cost of $398 annually.

Consider Energy Source and Environmental Impact

To align with Australia’s goal of reducing greenhouse gas emission to 0% by 2050, you should choose efficient hot water systems that use clean energy sources. Common energy sources for hot water systems in Australia are:

➤ Electricity: This is used in electric heaters. Electricity can be convenient; however, it mostly comes from burning fossil fuels which is not so good for the planet.

➤ Gas: Natural gas or LPG is burned in gas hot water systems, releasing carbon dioxide thus greatly contributing to environmental pollution.

➤Sun Power: Solar heaters use energy from the sunlight, so they have no emissions. This is just clean energy, so it’s good for the planet but may be subject to climate conditions.

➤ Ambient Heat: Heat pump systems rely heavily on ambient heat from the air or ground, so there is no burning of fossil fuels meaning less environmental impact.

For details, The YourHome initiative provides emissions data for different systems, helping you make an informed choice.

Size and Capacity

After reviewing all the above, you need to assess how much hot water you need in your home. As a rule, allow for around 50 liters per person per day as Solar Victoria advises. For a family of four, a 250-300-liter system is often suitable.

However, consider your usage patterns and consult experts, as a larger tank may be needed if you frequently run multiple hot water appliances at once.

Climate and Location

When choosing the best hot water system, consider Australia’s unique climate and your location. In colder regions, gas or heat pump systems may be more efficient, while solar systems excel in sunny areas.

Similarly, electric hot water systems best suit areas connected to the grid. So, make sure to check what is available to your locality as it will greatly determine the best hot water system suitable for your home.

Maintenance and Durability

A good hot water system in Australia should have little maintenance requirements and a long lifespan. Comparing the different hot water systems available in Australia, DCM Plumbing notes that electric and gas hot water systems require frequent servicing every 6 months.

On the other hand, heat pumps and solar heaters need servicing every 1 and 5 years respectively.

In terms of durability, gas and electric pumps have a shorter lifespan. On the contrary, solar and heat pumps are more durable, lasting up to 20+ years according to Cyanergy.

Energy Efficiency

Energy efficiency of a hot water system tells you how well it can heat water while using as little power as possible. When buying a hot water system, make sure to check the energy Rating Label.

It is a measure of the system’s energy efficiency that can give you a good idea of how it will perform. More stars mean the system is more efficient.

Warranty and After-Sales Service

When purchasing a hot water system, it’s important to check the accompanying warranty. This comes handy in case anything stops the pump from delivering hot water as intended.

Warranties also reflect that the manufacturer has confidence in every claim they make regarding their products. More years on the warranty means more confidence in the product and peace of mind for you!

So, which is the Best Hot Water System?

Without a doubt, heat pump hot water systems stand as the best hot water systems in Australia.

They use ambient heat from the air to warm water instead of electrical or gas heating. This technology, according to DCCEEW, saves 70% on heating costs associated with electrical hot water systems.

It also reduces greenhouse gas emissions by 10 tonnes over its lifespan according to ACT government thus speeding the Australian government’s goal of reaching up to net 0% emission by 2050.

And thanks to its cost-savings and environmental friendliness, heat pumps technology qualifies for the Australian government and local authorities’ rebates and incentives. These further lower the cost associated with heat pumps, so they are quite affordable.

The best part about heat pump hot water systems is their low running costs.

As previously noted, you spend as little as $398 annually on your hot water system with a modern heat pump installed. Consequently, the system requires only a few years for payback – typically 4 to 6 years according to ACT – Climate Choices.

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