Which is most efficient hot water system for your home?

Hot water in the home is such an essential part of our lives that we often just use it without a moment's pause. It's thanks to our hot water system that we're able to do so.

Every hot water system is different, with some more efficient than others. As water heating generally comprises a quarter of the typical household energy bill, it makes sense to get a system that works best for you. So which option offers the greatest efficiency for your home?

Hot water heater efficiency - points to consider


No matter what type of system you're considering, electric, gas, heat pump or solar powered, you'll need to decide between a storage based heater or an instantaneous / continuous flow unit.

  • Storage tank heaters use a gas flame to heat the water stored in a tank as it is needed.
  • Instantaneous systems don't use a tank, and instead heats the water only when it is being used.

It's important to know that cheaper models can often be more inefficient while the more expensive options will often have greater energy efficiency.

Electric hot water systems


Case in point - an electric hot water heater is usually among the least expensive to purchase, but among the dearest to run. They are also notorious for producing high quantities of greenhouse gas emissions if the electricity powering your system comes from a non-renewable source such as coal. However if that power comes from a renewable source, such as hydro power, then an electric powered system will likely generate fewer emissions.

Gas hot water systems


Gas powered hot water heaters come available in natural gas and liquefied petroleum gas (LPG) options. Storage based systems can heat water quicker than an equivalent electric storage tank system. However due to the presence of the flame, and the fire risk that presents, the tank's insulation doesn't extend to the bottom of the tank. This can result in a greater loss of heat energy from a gas system than one powered by a different source of energy.It's important to note that a natural gas heater will produce fewer greenhouse gases than an electric powered system that doesn't derive its power from a renewable source. However a natural gas system will create more greenhouse gases than one powered by renewable electricity.

Heat pump hot water systems


Up to three times more energy efficient than conventional electric hot water heaters, heat pump hot water systems work by absorbing warm air into the system with the aid of a fan. They then direct that warm air into the system's storage tank to heat the water.

Heat pump hot water systems do still use electricity to power the system. They also rely on the right climate conditions to work, and are best suited to warmer climates.

Solar powered hot water systems


Solar hot water systems are widely considered to be the most energy efficient water heating solution. While they can be significantly more expensive to purchase upfront, you'll get that money back in the eventual energy savings and produce significantly fewer greenhouse gas emissions.

Solar hot water systems require sufficient roof space for the solar panels, and the heat of the sun. Of course, the latter isn't always available, so a gas or electric booster can help to supplement the sun's energy. Even with an electricity powered booster, your system will still be more energy efficient than one powered by a non-renewable electricity source.

All in all…


The efficiency of a hot water system varies depending on its power source.

  • Electric powered - Generally the least energy efficient of the water heating options, unless the electricity comes from a renewable source.
  • Gas powered - Natural gas heaters are more energy efficient than LPG.
  • Heat pump hot water systems - Are up to three times more efficient than an electric hot water system.
  • Solar powered - Though they are among the most expensive to purchase, they are arguably the most energy efficient water heating solution for the home.

Your local plumber will be able to provide expert service and advice when it comes to choosing the best and most efficient system for your home.


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