Heating hot water makes up around 40% of an average power bill (for households using electricity for space heating and hot water). Small improvements in energy efficiency can result in big savings.
Lowering the temperature setting
The ideal temperature setting at the hot water cylinder is 60°C (or 140°F). Higher temperatures only increase your power bill and can scald children (it only takes one second to scald a child's skin at 70°C). You will find the cylinder's thermostat under the protective lid on the side of or underneath the cylinder. It can usually be adjusted with a screwdriver. Many thermostats are not very accurate. Test that the water comes out of the tap within +/- 5°C (+/-12°F) of the temperature setting.
Tempering valves
A temperature setting below 60°C can increase the risk of legionnaire's disease. A plumber can install a tempering valve to automatically mix hot and cold water to a safer temperature, saving heating costs.
Water-saving showerheads
A water-saving, or low-flow showerhead uses less than 6-10 litres of water a minute, compared with 10-20 litres for an ordinary showerhead.
Most new showerheads for sale now are standard low-flow showerheads. A low-flow showerhead costs approximately $30, is easy to install and can be used on all pressure systems.
To test what type of showerhead you have: turn the shower on at normal shower temperature and put a bucket under it for one minute. Record the number of litres in the bucket. If it is more than 6-10 litres per minute, it is not a low-flow showerhead.
Showers instead of baths
Showers use less hot water than baths. An average bath takes 300 litres of water, while a 10-minute shower uses only 60 litres with a low-flow showerhead (100-150 litres with an ordinary showerhead).
Leaky hot water pipes and taps
Leaking hot water pipes and taps can account for high power bills. Fixing the problem is much cheaper than paying a high power bill.
Cylinder wrap
Hot water cylinders that are not A-grade cylinders (check if there is an 'A' sticker on the side of the cylinder) will benefit from extra insulation. The older the cylinder, the more it will benefit, as insulation levels have increased over the years.
A cylinder wrap costs less than $100 and saves up to $65 a year. It is easy to install yourself. It is much more economical to dry clothes on the line or in the clothes dryer than to use the heat of the hot water cylinder.
Hot water pipe lagging
Hot water pipes lose heat rapidly before they reach the kitchen, bathroom or laundry taps. To prevent the heat loss, you can simply wrap them with pipe lagging material along the whole length of the pipe. The lagging will also shorten the time you have to wait for hot water to get to your taps.
If the pipe is not accessible, wrap at least the first metre of hot water pipe coming out of the hot water cylinder. Don't forget to wrap wetback connections as well.
Gas heating
Half of the power used for electric hot water cylinders is used for maintaining the right temperature. Gas hot water heating only heats the water on demand.
If considering gas for space heating, check if gas hot water heating is a good option for you.