Water heating electrification, like space heating, can also save households money, energy, and emissions. Water heating is the second largest energy use of appliances in the average Australian household. It makes up 24% of the average appliance load, and 8% of the total energy use if vehicle fuels are included.
There are a significant number of gas water heaters in use in Australia. Approximately 45% of water heaters are gas, 45% are electric resistive, and the remaining 10% are a combination of solar water heaters and heat pump water heaters.
Using a heat pump water heater provides significant efficiency gains. On the existing electricity grid, the cost of water heating is roughly halved when using a heat pump compared to a natural gas water heater. With financed solar panels and a home battery providing the energy, the costs fall even lower to around 3 times less than gas heating costs.