Hot water is essential to our daily life, from taking showers to cleaning the dishes and laundry. Yet, water heating can be an expensive endeavor for many Australian houses. The Department of Industry, Science, Energy, and Resources estimates that hot water accounts for up to 25 percent of the average household’s energy consumption. If you’re wanting to minimize your energy costs and save money, there are a number of ways to increase the efficiency of your hot water usage. In this post, we will discuss the top cost-saving strategies for hot water that will help you lower your energy consumption and save money.

Ways to Reduce the Cost of Hot Water at Home

1.) Choose the Correct Hot Water System

An inefficient hot water system is one of the primary factors in high hot water expenses. If your household’s hot water system is obsolete or not designed to match your demands, you may be squandering a substantial amount of energy and money. Consequently, selecting the appropriate hot water system is crucial. In Australia, there are various types of hot water systems available, including:

Electric storage
Gas storage
• Continuous flow

Each of these systems has benefits and drawbacks, and the ideal option for you will depend on your household’s hot water consumption, budget, and location. It is vital to conduct research and consult a specialist in order to identify the best hot water system for your home.

2.) Use Low-Flow Fittings

Installing low-flow fixtures is a second method for reducing hot water use. Showerheads, faucets, and toilets with low-flow rates can considerably cut water usage without affecting water pressure. For instance, a low-flow showerhead can lower your water consumption by up to 50 percent, resulting in substantial savings on your hot water costs. Installing low-flow fixtures is a cheap and simple approach to reducing your hot water consumption.

3.) Utilize cold water whenever possible

When possible, you should use cold water to save money. There are numerous activities that do not require hot water, including laundry and dishwashing. By using cold water for these tasks, you can save money and reduce your consumption of hot water. Moreover, consider washing your items in cold water to preserve the colors and fabrics while minimizing your hot water usage.

4.) Fix Leaks and Leaky Faucets

Leaky pipes, faucets, and showerheads can waste a substantial amount of hot water and raise your energy costs. The Department of Industry, Science, Energy, and Resources estimates that a leaking faucet can waste up to 20,000 liters of water annually. Hence, it is crucial to patch any leaks immediately. In certain instances, a leaky faucet or pipe may necessitate the assistance of a professional plumber.

5.) Reduce the hot water temperature

Decrease the temperature of your hot water to save money on your hot water expenditures. According to the YourHome website of the Australian government, decreasing the temperature of your hot water from 60°C to 50°C can save up to 15% on your energy expenses. In addition, a decrease in the temperature of hot water can assist prevent scalding and lessen the likelihood of accidents. Nonetheless, it is crucial to consult a specialist in order to determine the ideal temperature for your hot water system.

6.) Shorten Your Showers

Taking shorter showers is a further method for saving money. According to the Department of Industry, Science, Energy, and Resources, a one-minute reduction in shower duration can save up to $30 annually on energy costs. Consider utilizing a timer or a low-flow showerhead to cut down on your shower duration.

7.) Maintain Your Hot Water System

Maintaining your hot water system might result in significant savings on energy expenditures. A hot water system that is not properly maintained can lose efficiency, requiring it to work more to heat water and increasing your energy costs. Here are some strategies to maintain and assure the efficiency of your hot water system:

• Check the temperature and pressure relief valve frequently to verify it is operating properly.
• Every 5 to 7 years, you should have a professional service for your hot water system.
• Insulate your pipes carrying hot water to reduce heat loss.
• Once a year, drain and flush your hot water system to remove sediment accumulation.
• Consider installing a timer to regulate your hot water system’s operation.

8.) Upgrade Your Hot Water System

If your hot water system is old or out of date, it might be time to upgrade to a more efficient model. Newer hot water systems are made to use less energy, which can save you money in the long run. When upgrading your hot water system, here are some things to think about:

• Look for systems with a high rating for how well they use energy (e.g. 5-star rating).
• Think about the size of the system that will work best for your home.
• Compare the cost of the system to the amount of money you could save on energy costs.
• Look into rebates and other incentives that can help you pay for a new system.

9.) Use a Hot Water Circulation Pump

A hot water circulation pump moves hot water through your plumbing system so that you can get hot water right away without having to run the tap for a long time. This can save water and cut down on the time it takes to get hot water. Over time, this can save energy.

10.) Consider a Solar Water Heating System

A solar water heating system could be an excellent investment if you’re seeking for a long-term method to reduce hot water costs. Solar water heaters utilize the sun’s energy to heat water, reducing your need on gas and power for hot water.

Although the initial cost of a solar water heater can be significant, the savings over time can be enormous. A solar water heater can reduce your hot water costs by up to 50 percent on average, and the system can pay for itself within a few years.

In addition to saving money, solar water heaters are environmentally friendly because they emit no greenhouse gases. By purchasing a solar water heater, you may lower your carbon footprint and contribute to the preservation of the environment.


There are numerous strategies to reduce your hot water expenses. By adhering to these guidelines, you can cut your usage and lower your expenses while still receiving the necessary amount of hot water. There are solutions for everyone, ranging from basic adjustments like lowering the temperature and repairing leaks to more substantial investments like installing a solar water heating system.

By making informed decisions and being conscientious of your hot water consumption, you can save money and benefit the environment. Thus, adopt these strategies immediately and observe the difference in your hot water cost!

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