Hot water is something most of us take for granted until the bill arrives. In many homes across NSW, hot water accounts for around 25% of total energy use. That means if your system isn’t running efficiently, it could be costing you far more than it needs to.
So how do you know if your hot water system is draining your wallet? Let’s take a closer look at the signs, the reasons behind high costs, and what you can do to fix it.
Signs your hot water system might be costing too much
There are a few clues that your system is not working as it should. You might notice:
- Your energy bills have been creeping up without any big changes in usage
- Hot water runs out quickly, even after short showers
- Strange noises from the system, like rumbling or hissing
- Water takes longer than usual to heat up
- Your system is more than 10 years old
If any of this sounds familiar, it’s a good idea to take a closer look at what’s going on.
Common reasons for high hot water costs
Old or outdated system
Older systems, especially electric storage units, are often less efficient. As they age, they lose heat through the tank and need to work harder to maintain temperature.
Poor insulation
If your system or the pipes aren’t properly insulated, they lose heat along the way. This means the system uses more energy to keep the water hot and ready to use.
Incorrect thermostat settings
If your thermostat is set too high, you’re using extra energy to heat water beyond what’s needed. In most cases, 60 degrees Celsius is enough for storage systems to avoid bacteria growth, but some people set it higher without realising.
Leaking valves or tanks
Even a slow leak can lead to extra energy use and water wastage. Leaks force the system to refill and reheat more often.
Sediment build-up
Over time, minerals and sediment collect at the bottom of storage tanks, making them work harder and reducing efficiency.
The hidden cost of electric resistance systems
Many older homes in NSW still have electric resistance hot water systems. These can be among the most expensive ways to heat water, especially if you’re on a standard electricity tariff rather than an off-peak plan.
Switching to a more efficient system, such as a heat pump or solar hot water, can cut water heating costs by up to two-thirds. Even gas systems can be more cost-effective in some situations.
What are your options?
Heat pump systems
A heat pump uses air to heat water, similar to how a reverse-cycle air conditioner works. They’re very efficient and work well in most NSW climates, even in colder areas. While they have a higher upfront cost, the savings on bills usually make up for it over time.
Solar hot water systems
These use the sun’s energy to heat water, cutting electricity or gas use significantly. They’re especially effective in sunny parts of NSW. There is a higher initial investment, but rebates and long-term savings can make it worthwhile.
Gas systems
If you have access to natural gas, an instantaneous gas system can be a cost-effective choice. These only heat water when you need it, so there’s no energy loss from storing hot water.
How to reduce costs now
If replacing your system isn’t possible right away, there are still ways to lower your costs:
- Check for leaks and have them repaired promptly
- Make sure your thermostat isn’t set higher than necessary
- Insulate your pipes to reduce heat loss
- Use low-flow showerheads and taps to reduce hot water usage
- Schedule regular servicing to keep your system running well
When should you replace your system?
A typical hot water system lasts about 10 to 15 years. If yours is reaching this age or causing frequent problems, it might be more economical to replace it rather than continue with constant repairs and high energy bills.
Getting a professional assessment is a good first step. They can tell you if a new system would save you money in the long run and help you choose the best option for your home and budget.
Heat Pump Hot Water Systems Maitland
Hot water is essential, but it shouldn’t come at a huge cost. By paying attention to the signs and understanding your options, you can keep your bills under control and make sure your system works efficiently for years to come.
If you think your hot water system is costing you more than it should, consider talking to a local expert. A quick check today could save you hundreds over the next few years. Contact our team if you need assistance with your Hot Water system.
