Hot Water Usage Statistics Australia

Hot water consumption is a considerable part of household energy use, utilising over 18% in terms of average. Also, it’s a major contributor to a household’s high energy costs. Hot water usage patterns need to be seen in order to plan appropriately to save on utility bills.

Environmental impacts from hot water usage are closely tied to energy use in heating water, which also means the combustion of fossil fuel and the emission of carbon gases. Data related to hot water usage provides insight that may help reduce this impact through various strategies.

Effective management of hot water usage provides a steady supply of hot water. Data helps establish the underlying causes, whether temperature spikes or lack of hot water.

Overview of Hot Water Usage in Australia

Hot water usage per household averages between 50 and 70 litres a day. Water heating is a big energy user, covering 15% to 27% of household demands depending on location. It may also contribute anywhere in the range of 7-20% of total energy used in single-family residential buildings. 

Commercial buildings in Sydney use approximately 75 million litres of water each day, while businesses use close to 19% of water supplied to the city. 

A slump in residential energy consumption has been noticed in Australia since 2009. Using data available until the end of October 2023, residential energy consumption is estimated to have reduced from 357 petajoules (PJ) in 2000 to 397 PJ in 2009 and then to 381 PJ in 2013. Additionally, it fell to 362 PJ in 2020 before a following rise later in the 2020s. Energy use for hot water increased until 2008 and then declined by 9% from 2008 to 2013.

Types of Hot Water Systems and Their Market Share

There are two main categories for hot water systems ー storage and continuous flow. Within these systems are four main setups: electric, gas, solar, and heat pumps.

Electric hot water system: It heats water using an element inside a storage tank, much like a kettle. The systems are among the cheapest but are not the most energy-efficient equipment. Around 50% of electric hot water systems are used among Australian households because of their affordability and easy installation.

Gas hot water systems: They work like electric ones but use a gas burner instead of an element. Gas systems don’t have the capacity of electric tanks since it takes a shorter time to heat the water. New households prefer gas hot water systems because of their energy efficiency and compact features. It only heats the water when necessary and has the largest market share of 45.59% in 2023.

Solar hot water system: It heats the water using solar panels, making it a ‘green’ option. They are usually installed in new houses and are connected to electricity or gas during cloudy days. Australia has witnessed a revolution in the adoption of solar energy with government initiatives and increased public awareness about sustainability. Over the forecast period from 2025 to 2029, the market is expected to grow at a compound annual growth rate (CAGR) of 13.15%.

Heat pumps: They are also energy-efficient and work similarly to a reverse fridge. It pulls heat from the air instead of heating the water. It is forecast that from 2025 to 2030, the Australian heat pump water heater market will see a high growth in demand and uptake of these technologies, with a compound annual growth rate of 12.1%.

State-by-State Hot Water Statistics

Hot water systems represent a significant share of the energy used in Australian households, with estimates of typical energy consumption sitting between 15% and 27. This makes it the second-largest component of household energy use.

Here’s a rundown of hot water use in each Australian state:

New South Wales

NSW has the biggest energy consumers, from water heaters to space heaters or air conditioners. The bathroom accounts for more than half of hot water use, while the laundry gets about a third, and the kitchen the rest. The hot water systems mainly used in the state are electric, gas, solar, and heat pump systems.

Victoria

Hot water systems comprise about 18% of energy consumption in Victorian homes. Most households have gas (68%) as their main energy source for their hot water system. Particularly, 76% of Melbourne households use gas, and 47% of regional Victorian households use gas to heat their hot water. On the other hand, 2.8% of Victorian households use solar energy in their hot water system (5.1% in regional Victoria).

Queensland

As of October 2009, 99.9%, or 1,652,600 households, hot water systems were present in nearly all of Queensland. Solar hot water systems in the state generate approximately 80% sun energy and only rely on a booster when the water temperature is low.

Western Australia

Water heating in homes is responsible for 32.7% of energy use in Perth. In WA, 59 to 69% of households across all tenure types used gas hot water systems. The other common option is an electric hot water system, which makes up roughly 50% of all existing water heaters across Perth. 

South Australia, Tasmania, Northern Territory, ACT

Solar hot water systems are only used by 3% of households in South Australia. Tasmania is the second-biggest energy consumer, with 25% of the energy in an average home going to heat water. In the ACT, hot water is about 15% of energy use. 

Each year, about 6,000 hot water systems are replaced in the ACT. Based on location, water heating is the second largest segment of household energy use, comprising anywhere from 15% to 27% of energy consumption. Hot water can also be responsible for up to 21% of the electricity bill in the Northern Territory.

Cost of Heating Water in Australia

The country’s average annual running cost of electric hot water systems is about $615. This is quite more expensive to run than gas hot water heaters, which cost about $330 a year. However, these costs are subject to variations.

Hot water systems come in different types, with different downright and running costs. However, electric systems tend to cost less to buy, between $300 and $1,500, but gas systems can be the costliest to operate. Running gas systems can cost from $900 to $2,000. Heat pump systems cost $2,500 to $4,000, and solar systems are the costliest, ranging from about $2,000 to $7,000 or more.

Australian households continue to endure the soaring energy costs of running gas and electricity for heating water. Gas prices have increased up to $750 per year since 2020, directly impacting the cost of heating water. Overall, inflation has driven prices up an average of 22%, with gas and electricity costs jumping sharply.

Electricity prices differ for the peak and off-peak hours. Another source sees a peak rate of 43.6513 cents per kWh from 4 pm to 9 pm each day. Also, it shows a shoulder rate of 30.1246 cents per kWh from 9 pm to 9 am each day and an off-peak rate of 27.5561 cents per kWh.

Heat pump hot water systems save as much as 60-70% vs traditional gas and electric hot water systems on energy/hot water bills. Another option to reduce reliance on fossil fuels and lower energy bills is to integrate electric hot water systems with solar panels. The University of Technology Sydney (UTS) Institute for Sustainable Futures (ISF) found that if gas water heaters were phased out completely, there would be annual savings ranging from $4.7–6.7 billion by 2040.

Choosing the right type of hot water system can save you hundreds of dollars on your energy bills. Contact Link Plumbing and get advice from our experts about the best hot water system for your specific needs. We also conduct installation and maintenance to ensure you’re getting the most out of your hot water system and ensure your family’s safety.

Call us today at 0412 056 027, and we’ll keep your hot water system working properly. Our professionals will ensure that you’ll have uninterrupted hot water usage whenever needed.

Trends and Future Outlook

Advanced heat pumps and battery storage will transform how hot water systems are used in Australia. Many of these advancements are fueled by increased focus on sustainability, higher energy prices, and government backing via tax incentives and rebates.

Heat Pump Technology

Heat pump technology is fast becoming the country’s popular solution for hot water systems. They work by pulling heat from the surrounding air and using it to heat water, making them much more energy-efficient than conventional gas and electric water heaters.

Energy Efficiency: Heat pumps are three to four times more efficient than conventional electric heaters, consuming up to 75% less electricity. They do this by turning 1kW of electricity into 4kW of heat.

Cost Savings: Households can save 70% or more on water heating bills by switching to heat pumps.

Environmental Benefits: Since heat pumps use surrounding air to heat water, they lower greenhouse gas emissions, supporting Australia in its goal of net-zero emissions by 2050.

Government Incentives or Programs

Many state and territory governments provide incentives and programs to promote the adoption of efficient hot water systems in their regions. They are designed to help save on energy consumption, decrease greenhouse gas emissions and save families money on their energy bills.

Small-scale Technology Certificates (STCs): You can reduce the upfront cost of your new, energy-efficient systems by using small-scale technology certificates (STCs). Each megawatt-hour of renewable electricity produced or displaced by an eligible system creates one STC. The actual number of STCs issued depends on the installation date, location, and deeming period of the system.

NSW Energy Savings Scheme: The NSW government offers heat pump hot water rebates for replacing existing electric or gas water heaters with eligible heat pump systems. The rebate amount varies depending on energy saved but averages around $500 for gas replacements and $950 for electric replacements.

Solar Victoria Rebate and the Victorian Energy Upgrades (VEU): This program offers residents up to a $1,000 discount that conducts up to 50% of the installation costs.

Sustainable Building Standards and Energy Ratings

A range of regulations, codes, and rating systems promote environmentally responsible building design, construction, and operation. These standards focus on reducing environmental impact, establishing more effective treatment of resources, and ensuring that construction projects enhance the overall health and well-being of the community.

The National Construction Code (NCC) provides basic requirements for building design, construction and performance. It includes sustainability provisions, focusing on energy efficiency, water conservation, and environmental sustainability. It details specific requirements for building envelope design, insulation, glazing, lighting, and HVAC systems that will minimise energy usage and greenhouse gas emissions.

The Green Building Council of Australia (GBCA) created the voluntary, nationwide Green Star Rating System that assesses projects based on various categories, such as energy, water, materials, and indoor environment quality. It encourages sustainable design, construction and operations practices by granting increased performance bonuses on buildings that reach a very high level of sustainability.

The National Australian Built Environment Rating System (NABERS) energy and water efficiency ratings for buildings allow building owners, tenants and prospective purchasers to make informed decisions.

Frequently Asked Questions

1. Which hot water system is most cost-effective?

For most households, a solar hot water system is the most efficient and cheapest to run.

2. Are solar systems always recommended in sunny states?

Solar hot water systems work best in sunny climates with a lot of sunlight year-round. Systems work well in areas that catch much sun, such as Queensland. By harnessing energy from the sun, these systems can deliver a significant percentage as much as 80%, of household hot water needs, lessening dependence on electricity or gas.

3. How often should I service my hot water system?

Minor services should be performed once a year, while major services should be performed every fifth year. Regular checks, such as annual inspections (including checks of hot water faucets), are recommended to keep the system healthy.

4. Are government rebates available for upgrading to efficient systems?

Energy efficiency incentive rebates and other schemes are available through the Australian Government, as well as state and territory governments.

5. Does water usage differ significantly between states?

The amount of water used in the various Australian states differs widely based on climate, industry, and regional water management practices.