36% of Australian houses come with a hot water electric storage system; their use costs an average of $820/year. In contrast, high-efficiency heat pumps can do the same job for the same house for approximately $185/year.
Thus, although the initial cost of a heat pump is higher than that of an electric storage system, its lower running costs save the average homeowner up to $635/year.
So, heat pump owners see their system pay for itself within 5-10 years and save an average of $3,100-$6,300 over its 15-year lifetime.
Even the 45% who use gas heaters (whose running costs are lower than the usual electric storage hot water system) can still pay $200 more per year than they would with heat pumps. That’s $3,000 more over the course of their system’s lifetime.
And this difference is only likely to grow; changes in the gas market mean that most of our gas resources are now exported overseas, making gas much more expensive for Australian residences.
The heat pump technology used is very efficient. For instance, the input of 1kW of electricity produces at least 3kW of heating capacity.