Hot Water in Victoria

Hot water is a major energy consideration for households in Victoria, where the cooler climate increases daily demand and makes system efficiency especially important. With an average winter temperature of just 8°C, Victorian homes often require systems that can perform reliably in cold conditions while keeping running costs manageable. Traditional electric storage and gas instantaneous systems have long been common across the state, but rising energy prices and a push toward sustainability are shifting demand toward more efficient solutions. Heat pump systems, in particular, are becoming increasingly popular due to their ability to extract heat from the air, even in cooler months, making them a strong performer in Victoria's climate. Many households are also investing in solar hot water systems, taking advantage of the state's solid solar resource to reduce long-term energy bills

When selecting a hot water system in Victoria, households should consider factors such as energy efficiency, upfront vs. lifetime costs, home insulation and airflow, available rebates, and the compatibility of their existing plumbing or power setup. Heat pumps offer significant savings thanks to their high efficiency, while solar hot water systems provide long-term cost benefits where suitable roof space and orientation are available. Gas instantaneous systems remain an option in properties already connected to gas, although many homes are transitioning away from gas as part of wider electrification trends. With more than 2.7 million dwellings across Victoria, choosing the right solution can make a meaningful difference to both comfort and household energy use.