Having a water heater system is common in every Australian household. Although installation needs to be properly planned and suitable fuel type has to be considered before set up.
Whether it’s electric, gas, or solar, think about which hot water system fits your family. Check the system size due to the number of households and the kind of flow you need. And most definitely, learn about installation cost and running cost for your budget.
To make it easier to find a cost-effective and efficient hot water system, here’s a comparison that can help you decide whether an electric, gas, solar or heat pump is the right choice.
Electric water heater
It is the most common type of system that is used in Victoria. This kind of hot water system works with an electric-powered element that sits at the base of the water tank and is ready to use throughout the day.
- Installation cost: The estimated cost is around $200 to $2000
- Running cost: $700 to $925 annually energy cost
When it comes to installation, this system is the cheapest of them all. Most large electric storage hot water systems are linked to control load tariffs and do most of their heating at off-peak periods, which helps lessen your energy bills.
Even though it is the cheapest installation process, electric water heaters are the most expensive long-term hot water system if continuously used. Also, this system may have high greenhouse gas emissions since most of it does not come from renewable sources of energy such as solar PV, wind, or hydro schemes.
This is the most economical type of water heater when powered by natural gas. It uses a gas burner to regularly heat and keeps water in a tank at 60°C. Additionally, continuously flowing systems use a burner that lights up when water is required.
- Installation cost: The estimated cost is $800 to $2000
- Running cost: $300 to $665 annually energy cost
Only a few greenhouse gas emissions are produced by this system. Also, depending on where you live, gas systems are typically thought to have lower usage rates than electricity, which makes them more affordable in the long run.
This system is actually only practical if you are linked to the main gas supply since using LPG bottles costs higher and is at risk of running out of water. Gas hot water systems must be installed outside, or if within, they must have an exhaust vent.
Heat pumps are operated with a fan that gives warm air into the system and transfers it to the water storage tank. It works like a refrigerator in reverse. Instead of pumping out hot air to keep the water cold, it pumps hot air inside to heat the water.
- Installation cost: The estimated cost is $2500 to $4000
- Running cost: $160 to $385 annually energy cost
One of the most energy-efficient hot water options are heat pumps. They are reported to be around three times more efficient than conventional electric water heaters, despite the fact that they require electricity to operate.
Only warm settings are really ideal for heat pumps. Even though some heat pumps have boosters, buying a heat pump at a higher price won’t help much if the climate isn’t right. They are also considered unreliable, and typical servicing expenses are high.
Solar water heater
This system requires panels installed on the roof to produce heat from the sun and the water inside the tank is warmed and maintained by this heat. Systems can be heated to a temperature of 60 °C by electric or gas boosters when the solar technique is unable to produce enough heat. Split-system or combination solar water systems are both possible.
- Installation cost: The estimated cost is around $2000 to $7000
- Running cost: $65 to $365 annually energy cost
Solar water heaters are commonly known as the most environmentally friendly system. The running cost of it is significantly lower than the other types. When accredited, you may be eligible for STC Rebates from the Federal Government since you contribute to the Clean Energy Regulators.
The installation process of this system is more expensive than the others. Some solar hot water systems might be less reliable on cloudy days, but the majority of models will switch to backup heating using natural gas or electricity if the water isn’t hot enough.
The ASAG Reverse Mortgage — Fund your water heater system installation
Installation and the annual costs of each hot water system are too costly, especially for seniors who are indeed the beneficiaries of a water heater system. If you don’t have enough budget for the installation and annual cost we may have an option just for you.
The Australian Seniors Advisory Group team supports Australian retirees in their retirement years. With the use of one of our equity release solutions, the ASAG Reverse Mortgage, you don’t have to worry about cold water early in the morning. We are here to help you fund setting up the best water heater system for you through the use of equity in your home to supplement all your Day-to-day expenses in retirement without any regular repayments.
We can assist you with more details on how our reverse mortgage works. Our lines are open on 1300 002 724 and at email@example.com so you can contact us or send your enquiries about our equity release facility.
You can also get started by using our free tool below to assess the available equity in your home.