What electric hot water costs in each state
The calculator and table work from the energy needed to heat water from about 15°C to 60°C, which is roughly 0.052 kWh for every litre. The table assumes an electric element system heating 150 litres a day on the flat usage rate. Tank heat losses add to this, so treat it as a minimum.
| State | Rate | A month | A year |
|---|---|---|---|
| TasmaniaAurora Energy | 24.75c | $59.09 | $709 |
| QueenslandEnergex | 27.97c | $66.78 | $801 |
| Victoriaaverage of five networks | 28.2c | $67.31 | $808 |
| Northern TerritoryJacana Energy | 31.68c | $75.63 | $908 |
| New South WalesAusgrid | 33.14c | $79.11 | $949 |
| Western AustraliaSynergy | 33.26c | $79.41 | $953 |
| Australian Capital TerritoryEvoenergy network | 36.95c | $88.22 | $1,059 |
| South AustraliaSA Power Networks | 41.91c | $100.05 | $1,201 |
Electric storage vs heat pump
| Hot water a day | Electric element | Heat pump |
|---|---|---|
| 50 litres | $316 | $95 |
| 100 litres | $633 | $190 |
| 150 litres | $949 | $285 |
| 200 litres | $1,266 | $380 |
A heat pump works like an air conditioner in reverse, pulling heat from the outside air into the water. That is why it uses so much less electricity. Some models are not designed for places that regularly drop below 5°C in winter, so check the specifications if you live somewhere cold.
Hot water on controlled load
Many electric storage systems run on a separate controlled load circuit, which the network switches on at set times in exchange for a lower rate. In the AusNet Services area, the 2026-27 regulated controlled load rate is 22.11c against 31.98c for general usage.
| Set-up | Rate | A year |
|---|---|---|
| Electric element, general usage | 31.98c | $916 |
| Electric element, controlled load | 22.11c | $633 |
| Heat pump, general usage | 31.98c | $275 |
A heat pump can also run during the day from rooftop solar or on a cheap midday rate, such as the free hours of the Solar Sharer Offer.
How to cut hot water costs
Shorter showers and an efficient shower head
Showers use most of a home's hot water. Every litre saved is heat you do not pay for.
Wash clothes in cold water
Modern detergents clean well in cold water, which removes the heating cost from most loads.
Fix dripping hot taps
A dripping hot tap wastes heated water all day.
Check your tariff
If your electric system is on general usage, ask an electrician and your retailer about moving it to controlled load.
Keep the temperature safe
Storage tanks need to hold water hot enough to prevent bacteria growing, so do not turn the tank thermostat down on your own. A licensed plumber can advise on safe settings for your system.
Questions about hot water running costs
Heating 150 litres a day from about 15°C to 60°C takes around 2,865 kWh a year. On the Ausgrid reference rate that is about $949 before tank losses. On a controlled load rate it costs less.
Yes. energy.gov.au says a heat pump uses about 30% of the energy of a conventional electric hot water system, so running costs fall by around two thirds on the same rate.
energy.gov.au puts water heating at 15% to 30% of household energy use, making it the second largest segment after heating and cooling in most homes.
An electric storage system with a large enough tank usually costs less on controlled load, because the rate is much lower. A tank that runs out of hot water may need a longer-hours controlled load tariff.
It avoids tank heat losses, but it heats water at full power the moment you turn on a tap, often at the general usage rate and during the evening peak. It cannot use cheap controlled load or off-peak hours the way a storage tank can.
Sources
Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.