How much does it cost to run an electric storage hot water system? (2026–27)
At typical draw · official state tariffs
Typical household use (6 kWh a day) runs $602–$918 a year depending on your state's tariff.
Wattage basis: Standard single-phase element = 3.6 kW; daily energy ~6 kWh is the study-backed midpoint (Adelaide University 410-home study).
| State | Model | Per hour | Per day | Per month | Per year |
|---|---|---|---|---|---|
| New South Wales33.1c/kWh · Ausgrid | Efficient (1,800 W) | $0.60 | $2.39 | $72.53 | $871 |
| Typical (3,600 W) | $1.19 | $4.77 | $145.06 | $1,742 | |
| High (4,800 W) | $1.59 | $6.36 | $193.42 | $2,322 | |
| Victoria27.5c/kWh · Jemena | Efficient (1,800 W) | $0.49 | $1.98 | $60.13 | $722 |
| Typical (3,600 W) | $0.99 | $3.96 | $120.25 | $1,444 | |
| High (4,800 W) | $1.32 | $5.27 | $160.34 | $1,925 | |
| Queensland28.0c/kWh · Energex | Efficient (1,800 W) | $0.50 | $2.01 | $61.23 | $735 |
| Typical (3,600 W) | $1.01 | $4.03 | $122.46 | $1,470 | |
| High (4,800 W) | $1.34 | $5.37 | $163.28 | $1,960 | |
| South Australia41.9c/kWh · SA Power Networks | Efficient (1,800 W) | $0.75 | $3.02 | $91.73 | $1,101 |
| Typical (3,600 W) | $1.51 | $6.04 | $183.47 | $2,203 | |
| High (4,800 W) | $2.01 | $8.05 | $244.62 | $2,937 | |
| Western Australia33.3c/kWh · Western Power (SWIS) | Efficient (1,800 W) | $0.60 | $2.39 | $72.80 | $874 |
| Typical (3,600 W) | $1.20 | $4.79 | $145.61 | $1,748 | |
| High (4,800 W) | $1.60 | $6.39 | $194.14 | $2,331 | |
| Tasmania28.0c/kWh · TasNetworks | Efficient (1,800 W) | $0.50 | $2.01 | $61.19 | $735 |
| Typical (3,600 W) | $1.01 | $4.03 | $122.37 | $1,469 | |
| High (4,800 W) | $1.34 | $5.37 | $163.16 | $1,959 | |
| Australian Capital Territory37.0c/kWh · Evoenergy | Efficient (1,800 W) | $0.67 | $2.66 | $80.88 | $971 |
| Typical (3,600 W) | $1.33 | $5.32 | $161.77 | $1,942 | |
| High (4,800 W) | $1.77 | $7.10 | $215.69 | $2,590 | |
| Northern Territory31.7c/kWh · Power and Water | Efficient (1,800 W) | $0.57 | $2.28 | $69.34 | $833 |
| Typical (3,600 W) | $1.14 | $4.56 | $138.68 | $1,665 | |
| High (4,800 W) | $1.52 | $6.08 | $184.90 | $2,220 |
This table costs a constant draw at 4 h a day. The typical-use yearly figures below use the appliance's measured energy per use (6 kWh per day (typical household)) instead.
Where an electric storage hot water system costs more
- South Australia is the dearest state to run one: $1.51 an hour at 3,600 W on its 41.9c/kWh rate, against $0.99 in Victoria. Over a year of typical use that gap is $316 (52.6% more).
- By yearly running cost at typical use it ranks 4th of the 26 appliances costed on this site (1st costs the most): $726 a year at the NSW rate.
- A heat-pump hot water system does the same job on 913 kWh a year at typical use, 1,278 kWh less than this one: that is $535 a year less in SA and $351 less in VIC.
- At the 1 July 2026 price reset, typical-use cost fell $49 in VIC (Jemena usage rate 29.7c to 27.5c/kWh) and rose $19 in WA (Western Power (SWIS) usage rate 32.4c to 33.3c/kWh).
| Rank | State | Usage rate | Typical year | Above the cheapest |
|---|---|---|---|---|
| 1 | Victoria | 27.5c | $602 | — |
| 2 | Tasmania | 28.0c | $612 | +$11 |
| 3 | Queensland | 28.0c | $613 | +$11 |
| 4 | Northern Territory | 31.7c | $694 | +$92 |
| 5 | New South Wales | 33.1c | $726 | +$124 |
| 6 | Western Australia | 33.3c | $728 | +$127 |
| 7 | Australian Capital Territory | 37.0c | $809 | +$208 |
| 8 | South Australia | 41.9c | $918 | +$316 |
Rates by state (each state's capital-city network): NSW: AER Default Market Offer 2026–27 (DMO 8); VIC: ESC Victorian Default Offer 2026–27; QLD: AER Default Market Offer 2026–27 (DMO 8); SA: AER Default Market Offer 2026–27 (DMO 8); WA: WA Government Standard Electricity Prices 2026–27 (Synergy Home Plan A1); TAS: OTTER-approved Aurora Energy Standing Offer 2026–27 (approved 25 June 2026) — Tariff 31; ACT: ICRC retail electricity price recalibration 2026–27 (ActewAGL standing offer); NT: NT Electricity Pricing Order 2026–27 (Jacana Energy standard residential). All effective 1 July 2026.
Appliance running-cost calculator
NSWElectric hot water: 1,800–4,800 W typical range.
The element heats ~3–5 h/day, often overnight on controlled load; daily energy spans ~2 kWh (single person) to ~10 kWh (large family).
- Per day (4 h)
- $4.77
- Per month
- $145.06
- Per year (365 days)
- $1,741.69
Tariff: 33.1c/kWh — AER Default Market Offer 2026–27 (DMO 8) for the Ausgrid network, effective 1 July 2026. Wattage basis: Same Day Hot Water — hot water electricity use. Full electric hot water costs in NSW →
Cutting the cost
If you have a standard electric tank, ask your retailer about a controlled-load (off-peak) tariff so it heats overnight at a cheaper rate. Insulate any exposed hot-water pipes, fix dripping hot taps promptly, and fit water-saving showerheads, since most of the cost is heating shower water. Set the thermostat to a safe, sensible level rather than scalding hot. Going away for a while? Switch it off at the tank.
Frequently asked questions
- How is the running cost calculated?
- Watts ÷ 1,000 × the electricity rate = cost per hour. An electric storage hot water system drawing 3,600 W on NSW's 33.1c/kWh rate costs $1.19 an hour; the calculator below lets you change every input. For this appliance the yearly figure uses its measured energy per use rather than a constant draw.
- Does a higher star rating cut the cost?
- Yes. The star rating compresses the power draw or energy per use, which scales these figures directly. The low–high band in the table (1,800–4,800 W) roughly spans efficient to inefficient models.
Related
- Ducted aircon
- Split-system aircon
- Portable aircon
- Ceiling fan
- Reverse-cycle heating
- Electric heater
- All appliances
- Appliance calculator
- Same Day Hot Water — hot water electricity use
- State reference tariffs (per-zone determinations)verified
Costs use each state's representative-zone reference usage rate, effective 1 July 2026. The element heats ~3–5 h/day, often overnight on controlled load; daily energy spans ~2 kWh (single person) to ~10 kWh (large family).