Hot water pathways for social housing

Chief Investigators

David Roche (UTS)

Purpose of project

The project addresses the challenge of upgrading domestic hot water systems in social housing to make them more efficient and flexible. 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 of 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.

Impact of project

Domestic water heating is responsible for around a quarter of Australian household energy and a fifth of residential greenhouse gas emissions. 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 pumps 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 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.

Project partners – industry and research

UTS (Lead), NSW Land and Housing Corporation, NSW Aboriginal Housing Office, Ausgrid, Essential Energy

Industry Reference Group members

NSW Land and Housing Corporation, NSW Aboriginal Housing Office, Ausgrid, Essential Energy, Energy Efficiency Council (EEC), UNSW, Solar Victoria, Housing Communities Australia, NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW)