Housing providers need clearer guidance to make hot water systems more efficient and flexible.
Did you know water heating makes up a fifth of residential greenhouse gas emissions?
Housing providers recognise the economic and environmental benefits of upgrading to more efficient heat pump hot water technology and transitioning from gas to electricity. However, deciding on the best solution for each home can be challenging.
In addition to the many variables that can impact on decision making, such as climate zone, housing type, household size, energy tariffs and availability of rooftop solar, decision making is further complicated by market uncertainty, varying technology availability, uncertainty of tenant energy savings, and a changing policy landscape.
Building on prior work from the UTS Institute for Sustainable Futures (ISF) and others in social housing, energy upgrades and hot water demand flexibility, the project combines a market scan with pilot testing of heat pump hot water units, performance modelling and detailed analysis. This work will be used to develop a set of guidelines that can assist decision-making for housing providers.
Reducing emissions from hot water requires improving the efficiency and flexibility of electric water heaters while electrifying households currently using gas. Recent work by ISF found that phasing out gas hot water could, by 2040, provide consumers with combined annual savings of $4.7–6.7 billion, while providing flexible demand equivalent to 15–31 GWh/day of additional energy storage across the National Electricity Market.
By improving market clarity and identifying best practice solutions across a range of decision variables, this project is expected to improve provider practices, supporting a more rapid shift towards efficient, sustainable and cost-effective hot water solutions. Such practices include identifying conditions where electric resistance hot water systems should be replaced with more efficient heat pumps, identifying which heat pump products provide maximum benefits, options for electrifying gas hot water, and pathways for activating hot water demand flexibility.
Better solutions for upgrading hot water systems will reduce capital and operating costs for housing providers while reducing energy bills for social housing tenants. Electrification and improved efficiency will also reduce emissions while facilitating the transition to an electricity network powered by 100% renewable energy.
Through better understanding of the impacts of residential electrification and the adoption of different domestic water heating technologies, the project will also reduce risks associated with network infrastructure upgrades and help improve network utilisation, indirectly reducing energy bills and supporting greater uptake of solar and other renewables.
| Researchers | Client | Partners | SDGs | ||
| RACE for 2030 | NSW Land and Housing Corporation NSW Aboriginal Housing Office Ausgrid Essential Energy | This project is working towards UN Sustainable Development Goals 7 and 13.
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more information
Hot water pathways for social housing - RACE for 2030 project page