Whether your hot water heater has stopped working or you’re planning ahead for a growing family, choosing a new hot water system is an important financial decision.
Around a quarter of the average Australian household’s energy consumption goes to heating water, making it a significant expenditure. Reducing the amount of energy required (or finding alternative ways) to heat water is a smart way of reducing your power bills while increasing the efficiency of your home.
Depending on the size of your family, your existing setup, and the layout of your home, there are many factors that determine the best hot water system for your needs. Let’s break them down.
When do you need a new hot water system?
The first step in working out which type of hot water system you need, is knowing when you need one. Renew Energy customers typically invest in a new hot water system when:
- You don’t feel you’re getting enough hot water for the amount you’re spending on electricity.
- Whoever’s last to the bathroom each morning has to endure a cold shower.
- You get enough hot water for your family, but not for any visiting
- You’ve got a baby on the way—so your clothes washer will be working overtime.
- Your hot water heater only works sporadically.
If any of those sound familiar, let’s look at the factors to consider next.
Choosing gas vs. electric hot water system
Traditional residential hot water systems come in two categories: gas and electric. In Australia, particularly in Perth, about 62% of homeowners use gas, with the remainder split almost evenly between solar and electric hot water systems.
Gas hot water systems
Gas-powered water heaters often have higher initial costs than their electric counterparts, but usually save you money in the long run, with gas being cheaper and more efficient. To install a gas-powered water heater, your home needs gas fuel lines and venting, making them popular among older homes which are typically already equipped for this.
Electric hot water systems
Electric water heaters typically have lower initial costs, require little maintenance, and heat water quickly. They’re a good option if you’re concerned about installing a gas line in your home—and benefit from not requiring venting. Although gas-powered models offer greater fuel efficiency, electric hot water systems still offer high energy factor ratings.
Choosing instant vs. storage hot water systems
Both gas and electric hot water systems work in two ways: instant or storage. Instant (or “continuous flow”, “on-demand”, “tankless”) heats water on demand, while storage hot water systems heat a large amount of water in a tank and keep it at a consistent temperature until you need it. Both have their pros and cons.
Instant water heaters
Instant hot water heaters are more efficient than storage heaters and take up far less space. You can tuck them away in a cupboard or hang them on a wall. The water runs into the heater from one side, where the system heats it instantly as it passes through the unit. It then delivers hot water for as long as you need it—only using gas or electricity when you run the hot tap.
The downsides are that instant hot water heaters have a higher initial cost and if hot water is typically needed at more than two points at a time, this may not be the best option.
Storage hot water systems
Storage hot water systems have a large tank with a programmable thermostat. When the water drops below the set temperature, a heating element (a burner for gas, an element for electric) will heat the water back up. If you don’t use much water, you can keep the heat of the tank lower. If you use more hot water, you can crank up the temperature and mix with cold at the tap.
Your hot water storage tank will typically store between 135L and 170L (although smaller and larger containers are available), making them an excellent choice for regular high use demands.
Solar hot water systems
Cheaper than traditional electric and safer than gas, solar hot water systems are a great option for sunny climates—helping you slash your energy bills, recover the cost of your investment, and reduce your carbon footprint.
Solar hot water systems typically come in two designs, roof mounted and ground mounted. Both setups require solar panels on your roof paired with a water storage tank, but the former uses a passive heat exchange system with a roof mounted tank, while the latter uses an electric pump with your water tank stored on the ground.
Installing a solar hot water system means you keep the storage tank outside, helping save floor space. They typically last between 10-20 years, and while they won’t collect energy after the sun goes down, they retain residual heat in the tank, while a booster will come on if needed. You can find out more about the benefits of solar hot water systems on our dedicated page.
Other deciding factors
Up-front vs. ongoing costs
Like all decisions regarding your new hot water system, the total cost comes down to a number of factors, including:
- The type of system you are replacing, whether it’s electric, gas, or solar.
- The type of system you’ve chosen to install.
- Whether or not your current setup meets Australian Standards.
- Where you’re installing your system and if any renovation is needed.
We firmly believe that you should choose the most efficient system, not the cheapest. Efficient systems will pay for themselves over time, while cheap systems often go wrong and can cost a fortune in repairs.
For example, if you replace an old, inefficient hot water system with a new, energy-efficient one, your savings can offset the cost of replacement. And, if you opt for a solar hot water system, you can recoup the added expense over the system’s lifetime and enjoy even more ongoing savings.
Three types of capacity
Selecting the right size hot water heater comes down to three factors: how much hot water your family needs; how quickly that system heats the water (its first-hour rate/FHR); and how much storage space is required in your home. The key is in finding the right balance between all three. Also take into account that newer hot water heaters tend to be larger than old models, because they have more insulation, so take that into account regarding storage.
Maximise your long term hot water system savings
Whether you choose gas, electric, or solar, choosing the right hot water system for your family’s needs can help you maximise your long term savings. There’s no one size fits all solution, and while prices vary widely, we believe it’s better to make a decision based on functionality, capacity, warranties, and ongoing returns.
Renew Energy has a system to suit your hot water needs. We use only the most trusted brands and install the very best systems using quality workmanship. On top of the standard manufacturer’s warranty on the system, we provide a 5-year warranty on all labour we perform.
Contact us today for a free expert consultation to find the best water heating system for your needs.