With around 50% of Australian households relying on electric storage systems, these units remain the most common choice for home water heating. While they’re typically cheaper to purchase and install, running costs can vary depending on your setup. Storage systems last 10-15 years, whereas instantaneous systems can serve you for up to 20 years. For a typical four-person household, you’ll need either a 125-160L tank for a continuous rate system or 250-315L for an off-peak system.
This guide will help you understand your electric hot water system options, installation requirements, and cost considerations. You’ll also learn about available government rebates and energy efficiency standards to make an informed decision for your home.
Choosing Your Electric Hot Water System
“It is generally accepted that each person will use around 50 liters of hot water per day, and in a storage system it is good to have 1.5 days capacity.” — Solar Victoria, Victorian Government solar energy program
Electric hot water systems come in two main configurations: storage and instantaneous units. Understanding their differences helps you select the right system for your needs.
Storage vs Instantaneous Systems Storage systems heat and maintain water in an insulated tank until needed. These units typically last around 10 years and support various power types. Storage tanks need placement in sunny spots to prevent heat loss. Conversely, instantaneous systems heat water on demand without storage, accounting for 25% of domestic water heaters. These wall-mounted units save space and operate only when hot water is required.
Sizing Guide for Australian Homes For storage systems connected to off-peak electricity (10 PM to 7 AM), the sizing recommendations are:
- 250L for 1-3 people
- 315L for 3-5 people
- 400L for 5-8 people
For peak-rate connections, smaller tanks suffice:
- 25L for single person
- 50L for 1-2 people
- 80L for 2-3 people
- 125L for 3-5 people
Several factors influence system sizing:
- Number of simultaneous hot water outlets
- Family shower patterns
- Shower head efficiency
- Peak usage timing
Energy Efficiency Ratings Explained The Energy Rating Label, mandatory for electric storage water heaters, uses a star system to indicate efficiency. More stars mean better efficiency when compared to similar models. Most products receive 1-6 stars, nevertheless, super-efficient models can achieve up to 10 stars.
To calculate annual running costs: Annual cost = Total energy consumption (kWh) × Electricity tariff
For example, choosing a more efficient model could save AUD 105.13 annually, potentially accumulating to AUD 1051.33 over ten years.
Electric storage systems connected to off-peak tariffs heat water during cheaper rate periods, generally overnight. Furthermore, homes with solar PV systems can enhance efficiency by timing water heating during peak solar production. Electric instantaneous systems must connect to day-rate tariffs, potentially resulting in higher operating costs than off-peak storage units.
When selecting between storage and instantaneous systems, consider that storage units offer immediate hot water availability, whereas instantaneous systems provide unlimited supply, provided there’s constant water flow. Additionally, instantaneous units demonstrate higher energy efficiency since they only heat water when needed, eliminating standby heat losses.
Installation Cost Breakdown
“Generally, a hot water installation may cost you around $300-$750 if you are replacing the same unit of hot water with another same type of hot water unit.” — Sydney Plumbing Hot Water, Australian plumbing services company
Understanding the costs involved in electric hot water system installation helps you plan your budget effectively. A detailed breakdown of expenses reveals several key components.
System Purchase Costs Electric hot water systems range from AUD 688.05 to AUD 2,752.18, including purchase and installation. The final price depends on system dimensions, flow capacity, and energy efficiency ratings. Storage systems typically cost less upfront than instantaneous units, though operating costs vary based on usage patterns.
Professional Installation Fees Licensed plumbers charge between AUD 122.32 and AUD 183.48 per hour for installation services. Basic installations take 2-3 hours, costing approximately AUD 336.38 to AUD 1,009.13. However, costs increase if:
- Your installation requires complex plumbing modifications
- Access to installation area is difficult
- Additional electrical work is needed
- System type conversion is necessary (e.g., switching from gas to electric)
System replacements typically range from AUD 458.70 to AUD 1,070.29. Moreover, disposal of old units might incur extra charges unless included in the service package.
Available Rebates and Incentives Several government programs offset installation costs:
The Small-scale Renewable Energy Scheme offers certificates that can be traded for upfront discounts. In New South Wales, the Energy Savings Scheme provides discounts between:
- AUD 611.60 to AUD 1,024.42 when replacing electric systems
- AUD 290.51 to AUD 473.99 when replacing gas systems
Victorian households can access up to AUD 152.90 through the Solar Homes Program. Additionally, the NSW Energy Savings Scheme enables savings up to AUD 183.48 on energy-efficient upgrades.
Before finalizing your purchase, obtain multiple quotes from certified installers. Certainly, prices vary based on installation complexity, delivery requirements, and accessibility issues. Remember to factor in potential maintenance costs, as standard electric systems typically need servicing every 3-5 years for pressure relief valves and anodes.
Professional vs DIY Installation
Safety and compliance stand at the forefront of electric hot water system installations in Australia. Under Australian Standard AS/NZS 3500, licensed professionals must handle all installations to ensure adherence to legal requirements.
When to Call a Licensed Plumber Professional installation becomes mandatory as improperly installed systems risk voiding warranties. Licensed plumbers possess specialized knowledge in:
- Testing pressure valves and identifying hidden problems
- Inspecting internal components
- Evaluating household requirements
- Ensuring compliance with local regulations
DIY-Friendly Maintenance Tasks Although installation requires professional expertise, homeowners can perform basic maintenance:
- Monitor unusual noises
- Check for inadequate heating
- Inspect visible components
- Schedule annual professional inspections
Yet, attempting repairs beyond basic maintenance risks voiding warranties and creating safety hazards.
Insurance and Warranty Considerations Home insurance typically covers damage caused by unexpected events rather than wear and tear. Insurance policies often exclude:
- Issues caused by aging systems
- Damage from improper maintenance
- Problems resulting from DIY installations
Warranty coverage remains valid only under specific conditions:
- Professional installation by licensed technicians
- Regular maintenance according to manufacturer specifications
- Use of authorized parts
- Documented service records
Required Certifications In Australia, installation requirements include:
- Licensed plumber certification
- Submission of notifiable work forms
- Compliance with state-specific regulations
- Professional inspection documentation
Subsequently, plumbers must provide Certificates of Compliance (COC) to homeowners and relevant authorities. Notably, some installations might require both plumbing and electrical expertise. Electric systems often need licensed electricians for:
- Power connections
- Circuit breaker installations
- Wiring configurations
Annual professional servicing maintains peak performance and ensures compliance with Australian safety standards. Through proper maintenance and professional installation, your electric hot water system operates efficiently throughout its lifespan.
System Optimization Tips
Proper temperature settings and insulation play vital roles in maximizing your electric hot water system’s efficiency. Following Australian standards ensures both safety and optimal performance.
Temperature Setting Adjustments The Plumbing Code of Australia mandates storing water at 60°C to prevent Legionella bacteria growth. Still, delivering water at this temperature poses scalding risks. Therefore, installing a tempering valve becomes essential to regulate water temperature at different outlets.
Specific temperature requirements vary by location:
- Bathrooms and personal hygiene areas: 50°C maximum
- Early childhood centers and schools: 45°C maximum
- Nursing homes and facilities for vulnerable individuals: 45°C maximum
- Kitchen and laundry: 60°C for efficient appliance operation
Adjusting your thermostat between 60-65°C optimizes energy consumption. For instantaneous systems, set temperatures at 50°C. In colder regions, consider higher capacity units as they typically heat water up to 25°C at maximum flow rates.
Insulation Requirements Proper insulation minimizes heat loss and reduces energy consumption. Australian standards specify:
- Minimum R-value of 0.3 for circulating heated water piping in solar systems
- External piping may require increased insulation values of 0.6 or 1.0m² K/W
- Closed-cell rubber insulation for exposed hot water pipes
Key insulation considerations:
- Insulate pipes closest to water heater
- Focus on sections exposed to outside air
- Protect external insulation from weather damage
- Consider tank insulation blankets for older systems
Efficient system layout reduces thermal loss:
- Position hot water units near usage points
- Minimize pipe lengths to reduce heat loss
- Avoid excessive ‘dead water’ draw-off
- Install insulation on branch lines to maintain temperature
By implementing these optimization strategies, you can enhance system performance and reduce operating costs. Nonetheless, always consult licensed professionals for temperature adjustments and insulation installations to maintain warranty coverage and ensure compliance with safety regulations.
Conclusion
Electric hot water systems stand as crucial components of Australian households, significantly affecting both energy bills and environmental impact. Through careful consideration of system type, size, and installation requirements, you can make choices that align with your household needs while maintaining efficiency.
Storage systems offer reliability with lower upfront costs, whereas instantaneous units provide space-saving benefits and potentially longer lifespans. Proper sizing proves essential – a 250L tank suits 1-3 people, while larger households might need 400L or more.
Professional installation safeguards your investment and ensures compliance with Australian standards. Licensed plumbers deliver necessary certifications while maintaining warranty coverage. Regular maintenance and correct temperature settings maximize system performance, with stored water maintained at 60°C for safety.
System optimization through proper insulation and strategic placement reduces heat loss and operating costs. For more insights on how technology is transforming modern homes, explore our article on smart home innovation: 10 breakthroughs in modern living. Combined with available government rebates and energy efficiency programs, these measures help create an efficient, cost-effective hot water solution for your home.
FAQs
Is it legal to install a small electric hot water system myself in Australia?
No, it is not legal to install a small electric hot water system yourself in Australia. Australian regulations require all hot water system installations, including solar electric and hot water systems or instantaneous electric hot water systems, to be performed by licensed professionals to ensure safety and compliance with building codes.
What size electric hot water system do I need for my Australian home?
The size of your electric hot water system depends on your household size and usage patterns. For off-peak systems, a 250L tank is suitable for 1-3 people, 315L for 3-5 people, and 400L for 5-8 people. For instant electric hot water systems, smaller tanks are sufficient, ranging from 25L for a single person to 125L for 3-5 people.
How much does it cost to install an electric hot water system in Australia?
The cost of installing an electric hot water system in Australia typically ranges from AUD 688 to AUD 2,752, including purchase and installation. Basic installations take 2-3 hours and cost between AUD 336 to AUD 1,009. However, prices may vary based on system type (e.g., instant hot water system or traditional storage systems), installation complexity, and additional requirements.
Are there any rebates available for electric hot water system installations in Australia?
Yes, there are several rebates available for electric hot water system installations in Australia, including solar electric and hot water systems. These include the Small-scale Renewable Energy Scheme, the Energy Savings Scheme in New South Wales, and the Solar Homes Program in Victoria. These programs can provide significant discounts on your installation costs.
What temperature should I set my electric hot water system to in Australia?
In Australia, it’s recommended to set your electric hot water system’s temperature between 60-65°C to prevent Legionella bacteria growth and optimize energy consumption. This applies to both traditional systems and instantaneous electric hot water systems. However, a tempering valve should be installed to regulate water temperature at different outlets, with a maximum of 50°C for bathrooms and personal hygiene areas, and 45°C for early childhood centers, schools, and nursing homes.
Can I finance my electric hot water system installation?
Yes, you can finance your electric hot water system installation, whether you’re opting for a traditional system or an instant electric hot water system. For more tips on creating an inclusive home, check out our guide on how to make a bedroom accessible for disabled adults. Contractor Mortgage Solutions offers tailored financial advice and flexible options to help you manage the costs of home upgrades, including hot water system installations.
