Hot Water System
Hot water is an essential part of every Australian home, making up nearly 18% of household energy bills. In commercial settings, these costs can be even higher. For Victorian households and businesses, the good news is that the Victorian Energy Upgrades (VEU) program offers free hot water systems, helping cut costs and reduce environmental impact.
This blog will break down the real numbers behind free hot water systems and compare them with traditional units. You’ll discover how much you can save and why upgrading makes financial and environmental sense. By the end, you might be surprised at how much money you’re leaving on the table!
What Are Free Hot Water Systems and Traditional Units?
Free Hot Water System Upgrades (Eligible Under the VEU Program)
- Heat pump hot water systems: These use ambient air to heat water, making them energy-efficient. Since they use 75% less energy compared to electric water heaters, this can be a lifesaver for you.
- Solar hot water systems: These use solar panels to capture energy and heat water, often supported by an electric or gas booster for cloudy days.
Traditional Hot Water Systems
- Electric hot water systems: These store heated water in a hot water tank and continuously use electricity to keep it warm. They are cheap to install but expensive to run.
- Gas storage systems: These heat water using natural gas and store it in a tank, but they suffer from heat loss, making them inefficient in colder climates.
Quick Comparison Table
| System Type | Efficiency | Running Costs | Carbon Emissions | Lifespan |
| Heat Pump System | High | Low | Very Low | 15+ years |
| Solar Hot Water Systems | High | Very Low | Near Zero | 20+ years |
| Electric Water Heater | Low | High | High | 10-15 years |
| Gas Storage Heater | Medium | Medium | Medium | 10-12 years |
Cost Comparison: Upfront vs Long-Term Savings
Upfront Costs (Including VEU Rebates)
Under the Victorian Energy Upgrades VEU program, Victorian households can access free hot water systems or significant discounts on heat pump water heaters. Some households may only need to pay a minimum contribution (varies by installer, typically under $500) for a high-efficiency heat pump or solar-boosted system.
Here’s how costs compare:
| System Type | Standard Cost | VEU Program Discount | Final Cost to You |
| Heat Pump Hot Water | $3,000 – $4,500 | Up to $3,200 | $0 – $200 |
| Solar Hot Water Systems | $3,500 – $5,000 | Up to $2,500 | $500 – $1,500 |
| Electric Hot Water Systems | $1,500 – $2,500 | No rebate | $1,500 – $2,500 |
| Gas Storage Heater | $1,500 – $3,000 | No rebate | $1,500 – $3,000 |
Long-Term Energy Savings
Switching to a heat pump system or solar hot water system can save you up to $800 annually on your energy bill. Below is a projected savings chart over 10 years:
Annual Savings Over Time (Heat Pump vs Traditional Electric Water Heater)
Year 1: $800
Year 2: $1,600
Year 3: $2,400
Year 4: $3,200
Year 5: $4,000
Year 6: $4,800
Year 7: $5,600
Year 8: $6,400
Year 9: $7,200
Year 10: $8,000
By year 10, you could save up to $8,000, covering the system cost multiple times.
Energy Consumption: How Much Power Do They Use?
| System Type | Energy Use Per Year (kWh) | Energy Reduction(%) |
| Electric Hot Water Systems | 4,500 kWh | Baseline |
| Gas Storage Heater | 3,000 kWh | ~35% lower |
| Heat Pump Hot Water | 1,200 kWh | ~75% lower |
| Solar Hot Water Systems | 500-1,000 kWh | ~80-90% lower |
Be it heat pump units or solar hot water systems, you can see drastic differences in your household energy use after installing them, giving you a sustainable and money-saving lifestyle.
Carbon Footprint Breakdown
What is the environmental impact you are bringing by upgrading a system like this?
A traditional hot water heater emits approximately 2.5 tons of CO2 annually. In contrast, a heat pump system or solar hot water system can reduce that to almost zero.
| System Type | Annual CO2 Emissions (tons) |
| Electric Hot Water Heater | 3.0 |
| Gas Storage Heater | 2.5 |
| Heat Pump Water Heaters | 0.8 |
| Solar Hot Water Systems | Near- Zero |
Lessen your home’s carbon footprint promising a sustainable future, aligning with Victoria’s goal of cutting emissions by 50% by 2030.
Real-Life Case Studies
Example 1: Residential Home in Melbourne
- Old System: Electric hot water heater (4,500 kWh/year)
- New System: Heat pump hot water (1,200 kWh/year)
- Annual Savings: $800
- Carbon Reduction: 2.2 tons per year
Example 2: Small Business in Victoria
- Old System: Gas storage heater
- New System: Solar hot water
- Annual Savings: 36% reduction in water heating costs
Government Incentives and Rebates in Victoria
The Energy Upgrades VEU Program offers free hot water system replacements for eligible Victorian households.
How to Apply for a Free Hot Water System Upgrade
- Check eligibility: If you have an inefficient electric or gas system, you qualify.
- Choose a certified provider: Ecofoot’s accredited team will provide easy heat pump installation suited to your home’s or business’s needs. For many homes, attractive rebates help make the upgrade very affordable, while many commercial spaces can enjoy a complimentary installation experience.
- Schedule an installation: A professional installs the system at little or no cost.
Myths About Free Hot Water Systems
- Myth: “I will run out of hot water with a heat pump system.”
- Fact: Modern pump hot water systems have hot water tanks designed to store and heat water efficiently.
- Myth: “Efficiency heat pumps don’t work in cold climates.”
- Fact: Newer Victorian energy-efficient hot water system models work even in low temperatures.
The Shocking Verdict
A free hot water system upgrade under the Victorian Energy Upgrades VEU program is a no-brainer. You save on upfront costs, cut your energy bill, and reduce your carbon footprint. Contact Ecofoot today to see if you qualify for a free hot water system upgrade!
Frequently Asked Questions
Upgrading to a free hot water system like a heat pump or solar-boosted unit can save you hundreds annually on energy bills with VEU rebates and reduce your carbon footprint.
Heat pumps can save up to $800 annually on energy bills, while solar-boosted systems are the cheapest to run long-term.
Yes, modern heat pumps are designed to function well even in cooler climates like Victoria.
Free systems like heat pumps and solar-boosted units can lessen the CO2 emissions compared to gas or electric systems.
Through the Victorian Energy Upgrades (VEU) program, households and businesses can access rebates of up to $910 when upgrading to energy-efficient systems.
Other Related Blog
Energy-Efficient Electrification Victoria Will Change Your Next Home Renovation—Here’s How
VEU Updates
Learn More
VEU Updates When you think of a home renovation, chances are you picture a kitchen revamp, maybe some polished timber flooring, or even a splash of fresh colour on the wall
How an Eco-Friendly Hot Water Upgrade is Your First Step to Net Zero 2050
Hot Water System
Learn More
Hot Water System We humans often act like every resource on this blue planet is ours for the taking. But that mindset is dangerous because nature has limits. Push Earth into sat
LED Lighting Benefits You Can Feel, Not Just See (And Yes, They’re Rebate-Eligible in Victoria!)
Lighting
Learn More
Lighting What started as a simple lighting upgrade is now reshaping entire spaces. These days, LEDs are even used in wellness treatments — from mood lighting to skin t
Strengthen Victoria’s Power Grid with VEU Hot Water Upgrades
Hot Water System
Learn More
Hot Water System Victoria’s power grid has come under increasing strain in recent years. With climate pressures, growing population demands, and energy costs, it’s more impo
Are Instant Hot Water Heaters Eligible for Victorian Rebates? Only If You Know This Rule
Hot Water System
Learn More
Hot Water System Many buyers pick these systems.Wonder why?Instant hot water heater systems, also known as tankless water heaters or continuous flow systems, are increasingly po
How Your Water Heater Installation Affects Your Business’s VEEC Points and Long‑Term Savings
Hot Water System
Learn More
Hot Water System Water Heater Installation for Your Business Staff amenities, kitchens, laundry or washrooms, your business’s water heater installation directly impacts operat
Start Your Journey To Energy Independence!
