Don’t drain the budget: how to save on water heating costs — SkimNews
Get the Energy newsletter
Daily energy & climate — solar, EVs, oil, the policy fights and tech bets shaping the transition. Free.
- University of Technology Sydney researchers found water costs can exceed $1,000 per year for households reliant on gas hot water systems, with efficient electric alternatives cutting those costs by 72% — and more when paired with rooftop solar.
- Water heating is the largest source of greenhouse gas emissions in an average Australian home and its second largest energy user, with most hot water use occurring in the shower, according to the Water Conservancy.
- Tim Forcey, an independent energy consultant, recommends high-efficiency showerheads using 8 litres per minute or less, down from older models using 25–50 litres per minute — with cheaper flow restriction devices available for a few dollars.
- University of Queensland research found that cutting shower time from 10 to four minutes reduces indoor water use by 25% and energy consumption by up to 15%, with modern traffic-light shower timers helping families shorten showers.
- Heat pumps can heat water for a third of the cost of gas and a quarter to a fifth of the cost of conventional electric resistive systems, per Forcey, and run even cheaper when powered by rooftop solar during free electricity periods.
- Lloyd Heathfield of the Yarra Energy Foundation urges households to plan ahead before their hot water system fails, noting homes connected to gas only for hot water pay a daily network connection fee they could avoid by going electric.
- Federal and state rebates can offset the upfront price of switching to electric hot water, with tools like Rewiring Australia's Electric Saul and Victoria's Easy Electric SEC helping households estimate savings and find available incentives.
Why it matters: For the roughly one-third of Australians showering twice or more daily, switching from gas to a heat pump could cut a $1,000-plus annual water bill by 72% — but only if households research options before an emergency replacement, since panic-buying a like-for-like unit means missing incentives worth hundreds of dollars and locking in years of higher running costs.
Ask SkimNews
