Free Hot Water Systems vs Traditional Units | The Numbers That’ll Shock You

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

1. Why should I upgrade to a free hot water system?

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.

2. How much can I save with a free hot water system?

Heat pumps can save up to $800 annually on energy bills, while solar-boosted systems are the cheapest to run long-term.

3. Do heat pumps work in cold climates like Victoria?

Yes, modern heat pumps are designed to function well even in cooler climates like Victoria.

4. What’s the environmental impact of free hot water systems?

Free systems like heat pumps and solar-boosted units can lessen the CO2 emissions compared to gas or electric systems.

5. How do I get discounts on free hot water systems in Victoria?

Through the Victorian Energy Upgrades (VEU) program, households and businesses can access rebates of up to $910 when upgrading to energy-efficient systems.

What Are Free Hot Water Systems and Traditional Units?