Uh oh. Has your hot water system died?
Our thoughts go out to you. Often, hot water systems offer little warning as to when they’re ready to leave us. All that you’ll know is that, suddenly, you’re dealing with cold showers for days on end.
Rest easy – there are other options. In fact, the most savvy customers allocate energy well ahead of time to understanding the hot water system replacement options best-suited to their specific needs, circumstances and budget.
In this article, we’ll help you do exactly that. We’re going to take a look at some of the most important things to consider when updating or installing your brand-new hot water system, such as:
- The types of hot water systems available on today’s market
- The most-efficient types of hot water systems
- The cost of installing different types of hot water systems
- The ideal location(s) for a hot water system installed within a residential setting
Ready? Let’s get cracking.
What types of hot water systems are available?
The most common types of hot water system currently installed in Victorian homes are gas and electric systems.
Both gas and electric systems offer instantaneous (no storage capacity) and storage options (include water storage facility for providing larger volumes of hot water).
However, gas and electric systems are by far the least-efficient options available on today’s market.
When it comes to updating or replacing the hot water system you currently have in your home, as well as assessing the best hot water options for a new build, you have a number of options, including:
- Solar hot water systems: These systems use solar collectors (such as a solar PV panel system on your roof) to absorb energy from the sun to heat water. They can be either passive or active, and they can be installed on the roof or on the ground, depending on your home and the amount of space you have available. Solar hot water systems are environmentally friendly and can provide significant cost savings over time, but they usually involve a higher upfront cost.
- Heat pump hot water systems: By far the most efficient systems on the market. These use electricity to move heat from the air or ground to heat water and can provide significant energy savings over time – however, heat pump hot water can be more expensive to purchase and install upfront.
- Gas hot water systems: These hot water systems use natural gas or propane to heat water and are available in both instantaneous and storage options. They are generally less expensive to install than solar or heat pump systems, but are usually less efficient and can produce greenhouse gas emissions.
- Electric hot water systems: These use electricity to heat your water, and are available in storage options. Electric hot water systems are relatively inexpensive to purchase and install, but they can be less efficient than other types of systems and can result in high energy bills.
What is the most efficient type of hot water system?
While new builds offer the opportunity for thorough consideration of options available to customers, we understand that efficiency is not always your most immediately important consideration when replacing your hot water system.
Sometimes, such as in the case of investment property maintenance, you might be looking for an emergency replacement option that offers you the least upfront cost-related impact, as well as minimum downtime.
However, we encourage you to consider this as your opportunity to make a better-informed and more efficient choice. In fact, opting for a more energy-efficient hot water system is likely to save you lots of time, energy, maintenance and cash in the long-run, making both solar and heat pump systems appealing options for all kinds of homeowners.
Here, we’re going to focus on the huge range of benefits surrounding heat pump hot water systems, and the ways in which they can improve the efficiency (and otherwise) of your home.
According to the Australian Government’s Department of Industry, Science, Energy and Resources (DISER), the main benefits of heat pump hot water systems include:
- Energy efficiency: Heat pump hot water systems are highly energy-efficient and can save up to 75% on energy costs compared to electric hot water systems. According to the DISER, heat pump systems can reduce greenhouse gas emissions by up to 70% compared to electric hot water systems.
- Cost savings: Over the lifetime of the system, heat pump hot water systems can save homeowners thousands of dollars on energy bills. The typical household can save around $400 per year on energy bills by using a heat pump hot water system (DISER).
- Durability: Heat pump hot water systems are durable and can last for up to 15 years or more with proper maintenance. They have fewer moving parts than traditional hot water systems, which means there is less chance of breakdowns or repairs.
- Access to government incentives: The Australian Government offers various incentives and rebates for the installation of heat pump hot water systems, including the Small-Scale Technology Certificates (STCs) scheme, which can provide financial assistance to homeowners. The DISER can provide further information on available incentives for heat pump hot water systems on their website.
- Environmentally friendly: Heat pump hot water systems are environmentally friendly and produce fewer greenhouse gas emissions than traditional hot water systems. According to the DISER, heat pump hot water systems are one of the most energy-efficient and environmentally friendly hot water systems available.
Regardless of rebates, are you feeling concerned about what this incredible technology might cost?
How much does heat pump hot water cost to install?
Rest easy knowing that a heat pump hot water system may now be more cost-effective and accessible than you previously thought.
The cost of installing a heat pump hot water system in Australia varies depending on various factors such as the brand, size, installation location, and additional plumbing and electrical work required for the job.
However, in general, the upfront cost of a heat pump hot water system is higher than that of a gas or electric hot water system.
According to the DISER, the average cost of purchasing and installing a heat pump hot water system is between $2,500 and $4,500. We can compare this to the average cost of purchasing and installing a gas hot water system, which is between $900 and $2,000, and an electric hot water system, which often lands at between $500 and $1,500.
Although the upfront cost of a heat pump hot water system is higher than that of a gas or electric system, it can provide significant long-term cost savings on energy bills. Again, DISER estimates that the typical household can save around $400 per year on energy bills by using a heat pump hot water system instead of an electric hot water system.
Pair this with a brand-new solar system and membership to a Virtual Power Plant (VPP) program like G Store’s VPP partnership with Simply Energy, and you could even start earning monthly credits of up to $900 – just like this VPP customer.
It is important to note that these cost estimates are averages and can vary depending on various factors such as the location, size of the system, and installation requirements. It is recommended to consult with a professional, trusted installer like our award-winning G Store Hot Water team to secure a more accurate cost estimate best-fit for your specific needs.
Interested? You can read more here about what our G Store Hot Water team considers to be the best hot water systems available on today’s market.
Where should a hot water system be installed?
Just like solar panels, water systems can be installed in various locations in your home or new build, depending on the type of system you choose (see above) and the layout of the property.
Here are a few common locations customer choose when we advise them on the best-possible solutions for their circumstances:
- Inside the house: Many hot water systems are installed inside the house, such as in a dedicated hot water cupboard or a laundry room. This is a convenient location for the system as it provides easy access for maintenance and repairs.
- Outside the house: Some hot water systems can be installed outside the house, such as on an external wall or in a covered outdoor area. This is a suitable location for systems that require ventilation or for properties with limited indoor space.
- In the roof space: Some properties have hot water systems installed in the roof space, particularly in areas with limited indoor or outdoor space. This location can be suitable for systems that are designed for indoor or outdoor use, but it can be difficult to access for maintenance or repairs.
- Under the house: Some hot water systems can be installed underneath the house, particularly in properties with raised foundations or crawl spaces. This location can be suitable for systems that require ventilation or for properties with limited indoor or outdoor space, but it can be difficult to access for maintenance or repairs.
Unsure what’s going to work best for you?
With over 15 years of expertise in the art of advising on safe, efficient and super- high-quality hot water systems, your G Store team can help you with that.
Ready to get started on your journey towards better, more reliable hot water? Read more now at our Learning Centre, or give our friendly, award-winning Hot Water team a call today on 1300 766 940 for your obligation-free consult.
We can’t wait to speak with you!