What’s the most energy-efficient hot water system?

If you’re replacing an old hot water system, it can be tempting to simply get the same type you had before. But these days there are all sorts of different systems you can choose from, each with different running costs. It’s important to consider your options, as chances are you might be able to find a more efficient alternative.

The graph below shows the annual running costs for the most common types of hot water systems.


graph showing running costs of hot water systems
Data sourced from Sustainability Victoria Hot Water Running Costs

Both solar hot water and hot water heat pumps are the most affordable systems to run.