Today, everyone is looking for more efficient appliances. And for good reason – they save you money and reduce your energy usage, so you’re doing your part for the planet. When it comes to choosing an electric hot water system, efficiency is everything too. Whether you’re looking to reduce energy consumption, lower your power bills, or make a sustainable choice for the environment, selecting the right system makes all the difference. But which system is the most efficient? In this article, we’ll find the answer once and for all.
Comparing electric hot water systems
The graph below compares the efficiency, energy consumption, operating costs, and environmental impact of different hot water systems, including heat pumps, standard electric storage, instant electric (tankless), and gas water heaters. While traditional electric and gas systems remain common, they consume more energy and produce higher emissions. Instant electric heaters offer some efficiency improvements but still require significant electricity.
However, research clearly shows that hot water heat pumps outperform all other options, which use up to 75% less energy by leveraging heat from the air rather than generating it directly. This makes them the most cost-effective and environmentally friendly choice for long-term savings and sustainability.
In fact, Sustainability Victoria confirms it. The site reports that hot water heat pumps “…are the most efficient hot water systems on the market.” Now, let’s explore how efficient these systems are and how they could save you money.
What is a hot water heat pump?
A hot water heat pump works by extracting heat from the surrounding air and using it to heat water. Instead of generating heat directly like traditional electric water heaters, it uses a heat transfer process similar to how a refrigerator works—but in reverse. This makes it significantly more energy-efficient than conventional electric or gas-powered systems.
Why is a hot water heat pump the most efficient choice?
They use up to 75% less energy
Unlike standard electric water heaters that rely on resistive heating elements, heat pumps move existing heat rather than creating it. This results in energy savings of 60–75% compared to traditional electric storage heaters.
They have lower running costs
Because they use less electricity to produce the same amount of hot water, heat pumps have much lower operational costs. While the initial purchase price may be slightly higher than a standard electric system, the long-term savings on energy bills easily make up for it.
They are more environmentally friendly
Hot water heat pumps produce fewer greenhouse gas emissions compared to conventional electric or gas-powered water heaters. Since they primarily use renewable heat from the air, they reduce reliance on fossil fuels and help homeowners cut their carbon footprint.
They have a longer lifespan
Hot water heat pumps typically last 10–15 years or more, making them a long-term investment in energy efficiency. With proper maintenance and repairs, they outlast standard electric hot water systems, which generally need replacing every 7–10 years.
Government rebates and incentives
To encourage the adoption of these sustainable systems, Australian homeowners can take advantage of government rebates, including Victorian Energy Efficiency Certificates (VEECs), which can save up to $3,000 by reducing greenhouse gas emissions, Small-scale Technology Certificates (STCs), offering up to $1,000 in savings based on the renewable energy offset over time, and Solar Victoria Rebates, which provide a $1,000 incentive for upgrading to a solar hot water heat pump, supporting a greener and more sustainable future.
The smarter choice
If you’re looking for the most efficient electric hot water system, a hot water heat pump is the clear winner. With drastically lower energy consumption, reduced environmental impact, and long-term savings on energy bills, it’s a smarter and more sustainable choice. Plus, with government rebates and a longer lifespan, the initial investment pays off in the long run.
We are here to handle everything for you. From helping you choose the best system for your needs to installing high-efficiency hot water heat pumps, we’ve got it covered. We also offer repair and maintenance for existing systems, as well as the replacement of outdated systems with more efficient models. We’ll even take care of your rebate to ensure you save more upfront. Get in touch to make the switch to a smarter, more sustainable hot water solution today.
