Comparing the cost of a heat pump hot water service with an electric storage hot water service
Here’s what you need to consider prior to replacing your old electric storage hot water service:
- Hot water accounts for approximately 25% of your electricity bill.
- For a household that uses 200L/day that could be as much as $850* a year for an off peak electric hot water service
Is it possible to save hundreds of dollars a year by installing heat pumps?
A standard electric hot water service uses a heating element to heat the water.
The heating element is usually rated at 3.6Kw.
The Coefficient of Performance (CoP) or the amount of electricity consumed to yield a given amount of heat energy for a standard electric hot water service is 1:1 that is to say:
it takes one Kw of electricity to produce one Kw of heat energy
In the case of the a 3.6Kw heating element it uses 3.6Kw of electrical energy to produce 3.6kw of heat energy making the element 100% efficient.
This not the same for a domestic hot water heat pump.
Heat pumps with a CoP of 1:4.5, that is to say it takes one Kw of electricity and produces 4.5Kw of heat energy.
it takes one Kw of electricity to produce one 4.5 Kw of heat energy
That means heat pumps are 4.5 times more efficient at producing hot water.
They operate at 450% efficiency compared to the standard electric hot water service.
Show me the money
Putting a dollar value on the efficiency of the heat pump is simple.
If we look at the yearly bill of $850 for an electric hot water system and divide it by 4.5 being the CoP of the heat pump the cost would be $188 compared to the $850 it costs using your electric hot water system.
That’s a saving of $662.
This is a no brainer.
Keep in mind that there are some heat pumps in the market that are just not up to the task.
Any heat pump with a heating element that kicks in when the air temperature starts to fall is not a true heat pump and will cost you more.
To save money on your hot water system please call Joe Walkerden on 0418124592