Google AI


Modern Australian

Using electric water heaters to store renewable energy could do the work of 2 million home batteries – and save us billions

  • Written by: David Roche, Research Director - Strategic Energy Collaborations, University of Technology Sydney
Using electric water heaters to store renewable energy could do the work of 2 million home batteries – and save us billions

Australia’s energy transition is well under way. Some 3 million households have rooftop solar and sales of medium-sized electric cars are surging. But as we work towards fully electric households powered by renewable energy, have we overlooked a key enabling technology, the humble electric water heater?

a smart electric water heater
By storing solar energy as hot water, a smart electric heater can effectively act as a household battery. Shutterstock

About half of Australian households use electric water heaters, while the rest use gas. So what’s so great about electric water heaters?

Electric water heaters offer a cheap way to store large amounts of energy, in the form of hot water. A heater with a 300-litre tank can store about as much energy as a second-generation Tesla Powerwall – at a fraction of the cost.

Our research at the UTS Institute for Sustainable Futures has found Australians could use household electric water heaters to store as much energy as over 2 million home batteries of that kind. This could eventually save over A$6 billion a year on our energy bills while getting us closer to net-zero carbon emissions.

Our report, published today and funded by the Australian Renewable Energy Agency (ARENA), recommends that, to halve emissions by 2030 and reach net zero by 2050, we urgently need policies to rapidly replace gas water heaters with “smart” electric water heaters. Smart heaters can be switched on and off in response to changes in electricity supply and demand across the grid.

This means these heaters can soak up excess “off-peak” renewable energy, particularly from solar, and so help us solve two key problems at once. They can help reduce and eventually eliminate greenhouse gas emissions. And they can make our electricity grid more stable by providing flexible demand that helps balance out the fluctuating supply from renewable sources.

Cutting emissions

There are three main types of electric water heater. A conventional “resistance” heater uses electricity to heat water directly. Solar water heaters use sunlight and electricity, but have become less popular as newer “heat pump” units emerged. These collect heat from the air and “pump” it into water. A heat pump uses three to four times less electricity than a resistance heater.

Back in 2010, a resistance electric water heater typically produced around four times more emissions than its gas equivalent. Heat pump emissions were about the same as for gas. That’s because electric water heaters use a lot of electricity, and most of it came from burning coal.

As we generate more electricity from renewables, this picture is changing dramatically. Australia’s energy market operator, AEMO, publishes regularly updated pathways to a clean-energy future. In the most likely outcome, the “step-change scenario”, gas will become the most greenhouse-intensive water-heating option by 2030.

By 2040, once the transition to a renewable electricity system is largely complete, emissions from resistance and heat pump water heaters will be much lower than for their gas counterparts.

Graph showing projected emissions from 3 kinds of water heaters: electric resistance, heat pump and gas
The projected emissions intensity of resistance and heat pump water heaters in NSW will soon be much lower than for their gas counterparts. Results for Queensland, Victoria and the ACT are similar to those for NSW. Author provided

Water heaters can last 15 years or more. So the stock of heaters in our homes for the next two decades depends on what we install today. Replacing gas heaters with electric heaters should therefore be an immediate priority in our energy transition.

Our work explored a range of scenarios, each with a different mix of water-heating technologies. One was a business-as-usual baseline where gas water heaters remain prevalent. In alternative scenarios gas is phased out over the next 10–20 years.

We found that replacing gas with electric water heating would not only help us get to net-zero emissions sooner, it would save us money.

Gas is expensive and unlikely to get much cheaper. Abundant renewables offer an excess of cheap electricity that water heaters can help soak up. Embracing this opportunity could save over $6 billion a year on our energy bills by 2040.

Graphs comparing stock of different water heater technologies across the NEM from 1990 to 2040 In our modelling of the National Electricity Market, business-as-usual policy (left) locks in costly and high-emissions gas units for decades to come. In our rapid electrification scenario (right), electric water heaters rapidly replace gas units. Author provided

Boosting grid stability

Solar and wind are now the cheapest technologies we’ve ever had for generating electricity. But to maintain a stable electricity system, we need to match demand with the fluctuating supply from renewable sources. Batteries offer a partial solution, but are still relatively costly.

Electric water heaters offer a much cheaper way to store large amounts of energy and provide the demand flexibility the grid needs.

Our research found that, compared to the business-as-usual baseline, a scenario that emphasises demand flexibility using smart electric water heaters could provide an extra 30GWh of daily flexible demand capacity. That’s the equivalent of over 2 million home batteries across the National Electricity Market, which supplies electricity to eastern and southern Australia.

Back to the future for water heating

Since the 1950s, “off-peak hot water” has seen Australian electricity providers turning household water heaters off during the day and on at night to better match demand and supply. In return, customers received heavily discounted prices.

In recent decades we’ve moved away from off-peak electric hot water, as incentives dwindled and more homes connected to natural gas.

As we electrify our hot water, which technology should we embrace: resistance or heat pump? The answer is both.

Our research explored the trade-off between highly flexible resistance water heaters versus highly efficient but less flexible heat pumps.

Heat pumps use less electricity and cost less to run. Where electricity prices are high or power flow is limited, using heat pumps makes sense. However, they have a higher upfront cost and are not suited to all homes. Many apartments, for example, lack access to suitable outdoor space.

And because they use less electricity, heat pumps offer less flexible demand. As renewables, particularly solar, increasingly power our grid, the ability of resistance electric heaters to soak up excess “off-peak” renewable energy is a big advantage.

With the right policies and market reforms, we will all benefit from a system that once again rewards customers with cheap off-peak electricity in exchange for network operators being able to switch our water heaters off and on as needed.

Authors: David Roche, Research Director - Strategic Energy Collaborations, University of Technology Sydney

Read more https://theconversation.com/using-electric-water-heaters-to-store-renewable-energy-could-do-the-work-of-2-million-home-batteries-and-save-us-billions-204281

Pool and Deck Design: How to Plan the Perfect Outdoor Living Space for Your Sydney Home

For many Australians, the backyard is where life happens. Summer barbecues, weekend swims and long evenings outdoors are all part of the lifestyle, ...

Is Solar Pool Heating Worth It? What Sydney Homeowners Should Know

There's nothing quite like a backyard pool on a hot Sydney day. But once autumn rolls in, many pools sit unused for months because the water is simp...

Planning a Luxury House Move: A Week-by-Week Timeline for Prestige Sydney Homes

Selling or buying a prestige home is a major milestone. Whether it's a waterfront residence in Birchgrove, a grand Federation home in Haberfield or ...

Downsizing or Upgrading Your Caravan? Here's How to Sell It Without the Hassle

Selling a caravan can feel like a major task, especially when you are unsure about its value, paperwork, or how to find a buyer. Whether you are dow...

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...