Why locals are switching to heat pump hot water

As energy prices continue to rise, more local households are reassessing everyday energy use, including the cost of heating water.

Hot water is one of the largest ongoing energy expenses in most homes, yet it rarely attracts the same attention as heating or air conditioning.

For one local homeowner, the numbers were enough to prompt a change.

Vijay replaced his ageing gas storage hot water system with a heat pump unit in late 2023, working with renewable energy company Powrhouse.

A review of his energy bills over the following year showed his annual gas costs dropped by about $550 after removing the old system.

Electricity use increased slightly, but only marginally. While Vijay has rooftop solar and runs his system during the day, Powrhouse founder Tim Johnston said savings are not limited to solar households.

“There’s a common misconception that heat pump hot water only works if you have solar,” he said.

“That’s simply not the case. The systems are far more efficient than traditional gas or electric storage units, so households can still see meaningful savings without solar.”

Heat pump systems draw warmth from the surrounding air to heat water, using significantly less energy than traditional gas and electric systems.

The overall saving in Vijay’s case is estimated at about $540 per year for his two person household.

Mr Johnston said his own family of four, which does not have solar, was saving about $600 annually after making the switch.

Installation costs can start from about $1,200, with average installations around $1,800 depending on site conditions and the system chosen. In some cases, households are recouping that upfront cost within a few years through lower running costs.

Savings vary depending on household size and usage patterns, but as energy prices continue to rise, more local homeowners are weighing up whether upgrading their hot water system makes financial sense.

Residents interested in estimating potential savings can use the calculator at powrhouse.au or request tailored advice directly through the website.

For more information, contact the Powrhouse team at www.powrhouse.au or 0401 324 961.

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