As a home or business owner in werribee, a hot water system is something we rely on every day. Unfortunately, they don’t always run as efficiently as we’d like. When these problems occur, the natural next step is to get your system replaced. Ideally, the new system should be effective and most importantly, energy-efficient.
This leads us to today’s topic; what is the most-efficient hot water system on the market in 2025? From electric to gas, heat pump, tankless, and solar, we’re here to help you find the most efficient and suitable option.
The Value of an Energy-Efficient Hot Water System
It’s hard to understate the value of owning an energy-efficient appliance. First things first, a more efficient system translates to lower utility bills, and is certainly useful given our current cost-of-living crisis.
Because hot water heating is one of the largest contributors to household energy use, a more efficient unit requires less energy consumption, so it is able to lower your costs and environmental footprint.
So, how exactly can you gauge a system’s efficiency? Although the power source plays an important role, the answer can also be found in its star rating, which usually ranges from one to six stars. The more stars, the more energy-efficient the system. A six-star rated system is the most efficient and will typically save you more in the long run compared to a system with a lower rating.
Finally, a higher functioning system is more reliable overall. This makes it easier to find the perfect temperature in your morning shower or consistent water pressure for multiple bathrooms
Analysing the Efficiency of Each System
With so many different styles available, it’s easy to get a little lost in the maze of options. Let’s explain how they all work and see how they stack up against each other. Of course, if you prefer to speak directly with a hot water expert in Geelong, contact us today!
Electric Hot Water Systems
How They Work:
Currently, the most common type in Victoria, Electric hot water systems heat water using electric elements that are housed in a tank. The electric elements heat the water to the desired temperature, which is then stored in the tank for use as needed. These systems (also referred to as electric storage) are typically easy to install and are ideal for smaller homes or those with moderate hot water needs.
Level of Energy-Efficiency:
While electric systems are often more affordable upfront, they can be less energy-efficient compared to gas, heat pump, and solar systems. Electric models with higher star ratings have improved energy performance in recent years, but they still use a significant amount of electricity. However, when paired with solar, this significantly lowers the ongoing costs. Of course, units with a higher star rating are also likely to be more efficient and cost-effective.
Here are some figures from 2023 to illustrate this further:
Popular Brands:
Rheem, Bosch, and Rinnai are some of the leading brands in the electric hot water system market. They all offer a range of models that cater to different household sizes and energy needs.
Installation Requirements:
Electric hot water systems are relatively straightforward to install because they only need access to the property’s electrical supply. As a result, the installation process can be quicker than that of gas or heat pump systems. However, it’s still important to ensure that the electrical system can handle the load, especially in the case of larger units.
Gas Hot Water Systems
How They Work:
Gas hot water systems use natural gas or LPG (liquefied petroleum gas) to heat water. Some models include storage tanks, while others are tankless. Overall, gas-powered systems are known for their reliability, as well as the ability to heat water quickly and provide a consistent supply.
Level of Energy-Efficiency:
Gas hot water systems are generally more energy-efficient than electric models, especially when you have access to natural gas. A gas system’s efficiency is often higher because gas burns hotter, allowing it to heat water faster. However, advancements in heat pump technology have meant that gas no longer holds the mantle as the most efficient.
Anyone looking to transition away from gas or ‘electrify’ their household should explore other alternatives. If you need help to repair, replace, or install new hot water systems in Tarneit, get in touch with us today!
Popular Brands:
Rinnai, Bosch, and Vulcan offer high-quality gas-powered hot water systems, which are well-known for their durability and performance.
Installation Requirements:
Gas systems need to be connected to your home’s gas supply, which may require additional installation work if your home doesn’t already have a gas line. Professional installation is always essential to guarantee that everything is connected safely and complies with local regulations. This will need to be handled by a licensed gas fitter.
Heat Pump Hot Water Systems
How They Work:
Heat pump hot water systems extract warmth from the air and use it to heat water. The system uses a refrigerant to absorb heat from the surrounding air, which is then compressed and transferred to the water in the tank. This process is similar to how a reverse-cycle air conditioner works but for water heating.
Level of Energy-Efficiency:
Heat pump systems are widely regarded as one of the most energy-efficient options available. These systems can be rated as high as six stars for energy efficiency, making them a top choice for homeowners looking to reduce energy costs. Overall, they are generally more efficient than standard electric systems, using about one-third of the electricity required by conventional electric models.
Popular Brands:
Brands like Rheem, Rinnai, and Stiebel Eltron all have heap pump models suitable for residential and commercial properties alike.
Installation Requirements:
Heat pump systems require installation in well-ventilated areas that will allow them to extract heat from the air. The system is often placed outside, where it can capture ambient heat. It’s essential to place the heat pump in a location with good airflow to maximise its efficiency.
Interested in heat pump systems? We offer affordable hot water installations in Footscray, Melton, St Kilda, and various other corners of Victoria. Reach out to us now for a quote!
Tankless Hot Water Systems
How They Work:
Tankless, or instantaneous, hot water systems heat water on demand, meaning they don’t store hot water in a tank. Instead, when you turn on the hot tap, cold water flows through the unit, where it’s heated by a gas burner or electric element before reaching your tap.
Level of Energy-Efficiency:
Tankless systems are very energy-efficient because they eliminate the standby heat loss that traditional tank systems experience. They only heat water as needed, which means they’re an excellent choice for smaller households or apartments with moderate water use. However, if you have multiple bathrooms or heavy water usage, you may need larger or multiple units to keep up with demand.
Popular Brands:
Rheem, Bosch, and Rinnai are the leading brands in tankless hot water systems, offering both gas and electric models.
Installation Requirements:
Tankless systems require careful sizing based on your hot water needs. They also need to be connected to the power supply (electric) or gas line (for gas models). Depending on your current plumbing system, installation can involve retrofitting or upgrading pipes. Professional installation is essential for proper functioning and efficiency.
Solar Hot Water Systems
How They Work:
Solar hot water systems use the sun’s energy to heat water. They consist of solar collectors (panels) installed on your roof that capture sunlight and convert it into heat. The heat is then transferred to water stored in a tank. These systems are environmentally friendly and offer significant savings in the long term.
Level of Energy-Efficiency:
Solar hot water systems are the most energy-efficient option for those with access to adequate sunlight. They have the potential to provide all of your hot water needs for free, relying on the sun as the primary energy source. However, their efficiency can vary depending on the climate and the amount of sunlight available. In Melbourne, solar systems can be highly effective, particularly when combined with a gas or electric booster for cloudy days.
Popular Brands:
SolarEdge, Apricus, and Rheem are some of the best-known brands for solar hot water systems in Australia. These brands provide durable, high-efficiency systems with excellent warranties.
Installation Requirements:
Solar systems require a roof with enough space and sun exposure to place the solar panels. Installation can be more complex, as it involves both the roof-mounted panels and a ground-based storage tank. Of course, professional installation is essential to ensure that everything is connected correctly and the system operates at peak efficiency.
Government Rebates
In Melbourne, there are several government rebates available to help make energy-efficient hot water systems more affordable. The Solar Hot Water Rebate, for example, offers significant discounts on solar-powered systems, while the Victorian Energy Upgrades (VEU) program offers rebates on various energy-efficient products such as heat pump systems and gas-boosted solar systems. These programs are ultimately designed to encourage residents to invest in energy-efficient technology as a part of a larger effort to reduce statewide energy consumption and lower carbon emissions.
To make the most of these opportunities, it’s important to consult with an installer who can guide you through the eligibility requirements and make sure that any paperwork is filed correctly.
5 Signs You Need a New Hot Water Service
If your hot water system is showing any of these signs, it might be time for an upgrade:
- Inconsistent water temperatures – If your water temperature fluctuates unexpectedly, it could be a sign that your system is losing efficiency.
- Water quality issues – Rusty or discoloured water is often a sign of corrosion inside the tank.
- High energy bills – A sudden increase in energy consumption could indicate that your system is no longer operating efficiently.
- Strange noises – Rumbling or popping sounds may indicate a build-up of sediment, which can affect performance.
- Frequent repairs – If you’re constantly needing repairs, it might be more cost-effective to invest in a new system.
Contact VicWide Emergency Plumbing for Hot Water Services in Melbourne
At VicWide Emergency Plumbing, we’re experts in hot water systems repair in Essendon. Whether you’re considering upgrading to a more energy-efficient system or need assistance with your current unit, we’re here to help. Our team is committed to delivering a fast, reliable service backed by years of industry experience that ensures that all of your hot water needs are met.
Contact us today for a consultation, and let us guide you to the best energy-efficient hot water system for your property.
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