Being Honest About Electric Hot Water
We’ll be straightforward: electric storage hot water is generally the least efficient and most expensive option to run. For most Perth households, a heat pump or gas system will save money over time.
However, electric systems still have legitimate uses, and we install them where they genuinely make sense.
When Electric Hot Water Makes Sense
Electric hot water can be the right choice in specific situations:
Rental properties: Lower upfront cost when long-term ownership isn’t a factor
Very small households: Single person or couple with minimal hot water needs
No gas connection: Properties without natural gas where heat pump isn’t feasible
Budget constraints: When upfront cost must be minimised
Temporary situations: When you plan to upgrade in the near future
We assess each situation honestly and recommend electric only when appropriate.
Electric Storage Systems
Electric storage systems use heating elements to heat water in an insulated tank:
How they work:
- One or two elements heat water to set temperature
- Thermostat maintains temperature
- Insulation reduces heat loss
Typical specifications:
- Capacity: 50-400 litres
- Elements: 1.8-4.8 kW
- Recovery time: 1-3 hours depending on size
Running costs: Approximately $800-$1,200 annually for a typical household
Electric Instantaneous Systems
Electric instantaneous units heat water on demand:
How they work:
- High-powered elements heat water instantly
- Only operates when hot water is flowing
- No standby energy losses
Limitations:
- Very high power draw (typically 18-27 kW)
- Requires significant electrical infrastructure
- Flow rate limited by element capacity
These are generally only suitable for single-point applications (like under a sink) rather than whole-house hot water.
Running Cost Comparison
Understanding the true cost of electric hot water:
| System Type | Annual Running Cost |
|---|---|
| Electric Storage (peak) | $1,100-$1,400 |
| Electric Storage (off-peak) | $700-$900 |
| Heat Pump | $200-$350 |
| Gas Storage | $350-$500 |
Based on typical Perth household and current energy rates
Reducing Electric Hot Water Costs
If you have or choose electric, here’s how to minimise costs:
Off-Peak Tariffs
Many electricity retailers offer reduced rates for off-peak usage (typically overnight). We can configure your system to heat primarily during these periods.
Right-Sizing
An oversized tank wastes energy maintaining water you don’t use. We recommend the smallest capacity that meets your needs.
Temperature Settings
Setting your thermostat appropriately (60°C for storage, 50°C at taps) balances safety and efficiency.
Insulation
Ensuring tank and pipes are well-insulated reduces heat loss and running costs.
The Upgrade Path
Many of our customers start with electric and upgrade later. Common paths:
Electric → Heat Pump: Most practical upgrade. Significant running cost reduction. May qualify for government rebates.
Electric → Gas: Good option if gas is available. Lower running costs than electric.
Electric → Solar: Excellent for long-term savings if roof is suitable.
We’re happy to assess upgrade options at any time.
Installation Considerations
Electric installation requires:
- Adequate electrical supply
- Proper circuit and protection
- Compliant hot water delivery (tempering valve)
- Appropriate location with access for maintenance
We handle all requirements as part of installation.
Making an Informed Decision
Before choosing electric, consider:
- Total cost of ownership: Higher running costs may exceed initial savings within a few years
- Available rebates: Heat pumps may cost similar after STCs
- Future plans: Will you be in the property long enough to benefit from efficiency upgrades?
- Alternative options: Are gas or heat pump genuinely not feasible?
Our free assessment provides honest comparisons to help you decide.
We’re Here to Help
Whether you need electric hot water or want to explore alternatives, we provide honest advice based on your specific situation. Contact us for a free assessment.