Selecting an energy-efficient hot water system is crucial for Australian homeowners seeking to save on electricity and gas while reducing environmental footprints. However, the alphabet soup of star ratings, COP numbers, and various metrics used to measure water heater efficiency can bewilder consumers.
This straightforward guide is a handy reference to demystify the meanings behind efficiency scores. We’ll clarify the predominant ratings applied to systems across gas, electric, solar and heat pump models in clear terms. You’ll learn how to interpret stars, coefficients of performance, energy factors and more when comparing new purchases. Most importantly, understand why higher ratings directly translate into lower utility bills and smaller carbon impacts for your home.
With insight into what’s behind those numbers, efficiently powering your water heating needs becomes a simpler equation. Let us help you make an informed, money-saving decision for your next hot water appliance and provide daily tips for maximising efficiency.
Common Efficiency Ratings Used in Australia
The two main ratings used to measure hot water system efficiency in Australia are:
Star Ratings
The predominant rating shows a system’s energy performance based on actual testing. Electric and gas storage tank systems range from 1 to 6 stars, while heat pump and solar systems typically span 5 to 7 stars.
Coefficients of Performance (COP)
Indicates efficiency for heat pump hot water systems only. The higher the COP, the more efficient the system. COPs usually range from 2.5 to 5.5.
Reviewing these ratings when comparing systems allows you to gauge how effectively they convert energy into heat for the power consumed. The higher the star rating or COP, the more economical the system is to run.

Types of Hot Water Systems and Their Ratings
There are several types of hot water systems, each with different efficiency ratings:
Gas Storage Systems
Conventional gas hot water tanks carry star ratings ranging from just 1 star for basic models and up to 4.5 stars for the most efficient gas storage tanks.
Electric Storage Heaters
Tank-style electric systems see star ratings spanning 2 stars for entry models up to 5 stars for premium efficiency electric storage units.
Heat Pump Systems
Utilising heat absorption technology, electric heat pump water heaters achieve excellent efficiency with star ratings from 5 to 6 stars. Their COPs range from 3.0 to 5.5.
Solar Hot Water
Solar systems harness the sun’s renewable energy for zero emissions and stellar efficiency. Star ratings reach as high as 7 for evacuated tube models.
How Efficiency Ratings Affect Your Energy Bills

Your hot water system’s star rating directly impacts energy consumption, running costs, and greenhouse gas emissions. Systems with higher star ratings are more efficient, converting a greater proportion of the energy they use into heat. This improved efficiency leads to lower utility bills and a reduced environmental footprint.
Upgrading from a 3-star gas storage hot water system to a 5-star gas instantaneous model can save an average Aussie household up to 180annuallyongasbills. Similarly, electric water heaters, particularly heat pump model solar systems, often achieve over two additional stars. These systems, utilising renewable energy and advanced heat transfer technology, can deliver yearly savings of more than 180 annually on gas bills. Similarly, electric water heaters, particularly heat pump models or solar systems, often achieve over two additional stars.
These systems, utilising renewable energy and advanced heat transfer technology, can deliver yearly savings of more than 300.
While the initial cost for 5, 6, or 7-star systems may be higher, the significant energy consumption savings over time make them a worthwhile investment. A complete cost comparison, including the purchase price and lifetime operating expenses, helps determine the best option for your needs. Additionally, properly insulating hot water pipes can further enhance efficiency, reducing heat loss and maximising savings. Choosing an energy-efficient system lowers costs and contributes to a more sustainable future.
Factors That Impact Efficiency Ratings

Various factors can impact the efficiency of your hot water system, including:
Insulation and Heat Loss
Proper insulation minimises heat loss, helping your hot water system retain heat for longer. Quality insulation benefits solar water heaters especially, as it ensures the solar energy collected is efficiently stored. Gas hot water systems also rely on reduced heat loss to deliver consistent performance and minimise energy waste.
Installation Quality and Location
The efficiency of any system—be it gas hot water systems, solar water heaters, or electric instantaneous water heaters—depends heavily on professional installation. Proper placement also matters; externalfactors like extreme temperatures can impact performance. A well-installed system operates more efficiently and lasts longer.
Maintenance and System Longevity
Routine servicing is essential to sustaining efficiency. Neglecting maintenance can lead to reduced performance, higher energy costs, and a shorter lifespan for systems like gas hot water systems or electric instantaneous water heaters. Regular care keeps your system running smoothly.
Size of the Hot Water System
Choosing the correct size for your household is vital. Oversized systems waste energy, while undersized models may fail to meet demand. Solar water heaters, gas systems, and electric instantaneous water heaters all perform best when matched to the household’s specific needs.
Maximising Your Hot Water System’s Efficiency

Beyond choosing a system with a high-efficiency rating, there are steps you can take to maximise efficiency:
- Regularly maintain your hot water system to ensure it operates at peak performance.
- Insulate your hot water storage tank and pipes to reduce heat loss.
- Install low-flow fixtures to reduce hot water use without sacrificing comfort.
- Consider a timer or smart system that learns your schedule and adjusts heating accordingly.
Stay Energy-Efficient With The Right Water Heater
Understanding hot water system efficiency ratings is essential when selecting a new system. It can be the difference between soaring utility bills and significant savings. For Brisbane homeowners, making the right choice can be made easier with expert advice from The Brisbane Plumbers.
If you’re considering a new hot water system or seeking ways to improve your current one’s efficiency, The Brisbane Plumbers will guide you. Our team can help you understand the ratings and select your home’s most suitable, efficient, cost-effective hot water system. With our expertise, you can enjoy the comfort of hot water without the stress of high energy bills.
Contact The Brisbane Plumbers today to ensure your hot water system is as efficient and effective as possible. Let us help you make an informed decision that benefits your wallet and the environment.