Water heating is a key area for cost and energy savings. On this page you’ll find tips for energy efficiency, and considerations for installing new technology — like hot water heat pumps.  

Smarter water heating

Hot water can be one of the biggest energy costs for many New Zealand businesses — accounting for around 11% of all non-transport energy in New Zealand.1   

Older or poorly maintained systems often run less efficiently — using more energy than necessary and increasing your bills. Choosing an energy efficient system, like a hot water heat pump, or optimising the performance of your current technology can reduce your operational costs and energy use. 

On this page

Assess your current water heating system

The cheapest energy is the energy you don’t use. So, before you invest in significant upgrades to your water heating system, it pays to look at how you are currently using your hot water.

  • Current usage

    Undertaking an energy assessment can help you understand how much hot water your business uses day-to-day, and when. 

    You might notice that you use a steady stream, or experience sharp peaks in usage at different times of the day.

  • Temperature

    Only heating water to the temperature you need saves energy. Water at 60°C is hot enough to prevent the growth of legionella bacteria.

    Businesses that require higher temperatures may need an industrial heat pump to meet these needs.  

  • Existing connections

    Factor in how you currently heat your water – is it using electricity, gas, or a mixture of the two? 

    Transitioning from a fossil fuelled system often reduces the cost of maintaining a gas connection, or fuel delivery. 

Maintain your hot water system

Well-maintained water heating systems operate more efficiently, last longer, and save on your business energy costs.   

  • Do annual servicing — Check your system’s performance regularly to ensure it’s working efficiently.  

  • Improve pipework insulation —  Damaged or missing pipe insulation increases heat losses and wastes energy. Repairing or replacing missing insulation can save up to 5% of your hot water energy costs, with a payback period of less than a year.  

  • Fix leaks promptly — A single dripping tap can lose up to 200L of water per day and cost hundreds of dollars a year in water and energy (if it’s a hot water tap). Repair can be as simple as replacing a cheap washer and could save up to 20% of hot water energy use.3  

Optimise the performance of your water heating system 

Ensuring your current system is performing well and only heating water when needed can avoid wasted energy — saving on energy costs and avoiding unnecessary upgrades.  

Get expert support

Whether you are wanting to optimise your current system, or plan an upgrade, professional advice is critical.  

A qualified professional can help you undertake an energy assessment of your current system and recommend the right type or size of upgrade for your business.  

Compare running costs of water heating options

If it’s time to upgrade your water heating system, hot water heat pumps are an affordable option that can replace your existing equipment like gas califonts or instantaneous gas, fossil fuelled boilers, and older electric hot water units.

  • Hot water heat pump

    Most hot water heat pumps will deliver a coefficient of performance (COP) of around 3 to 4 — meaning they can deliver 3 to 4 times more heat energy than the electricity used.2

  • Electric storage heater

    Operating costs of a hot water heat pump are around 25% to 35% of an electric resistance unit, which require a much higher energy input to generate the same amount of heating.2  

  • Efficient gas system

    Operating costs of a hot water heat pump are around half of a gas heating system. The savings made by transitioning to electric usually offset any cost associated with electricity supply upgrades.  

Types of hot water heat pumps

Benefits of hot water heat pumps

Hot water heat pumps are by far the most efficient and economical option for business hot water needs. They offer:

  • High efficiency — A heat pump system is more energy efficient than a fossil fuel or resistance electrical system (where heat is often lost to the surrounding air). 

  • Low cost — The operating costs are around 45% to 75% of using a natural gas or coal boiler to produce the same amount of heat, which can lower your (or your tenants) operational expenditure.4 Life-cycle costs, including maintenance and capital cost, are also typically lower. 

  • Instant heating (and cooling) — Temperature can be controlled at the flick of a switch and can be turned on and off as needed or set to a timer. Some heat pumps can be used to meet both heating and cooling demands. 

  • Safer with lower maintenance — Unlike combustion boilers, no part of the heat pump is ever at a temperature significantly higher than the output temperature, making them safer to operate with lower component degradation rate. 

  • Future proof — In the near future, our electricity grid will require demand response capabilities in equipment – hot water heat pumps can offer this. 

 

  • Energy efficiency for commercial buildings  

    EECA’s commercial buildings pathway provides free tailored tools and resources for businesses to help the sector save money and be more energy efficient.  

  • Hot water heat pumps for commercial buildings

    More information for businesses looking for a low-emissions solution to meet hot water and space heating requirements 

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