What are the benefits of an energy efficient hot water heater?

An energy efficient water heater has the potential to reduce energy bills significantly.

The table below shows the estimated average annual savings from replacing an existing water heater with a high efficiency water heater in a study of 60 existing (pre-2005) houses.

Existing Replacement Annual Savings
Gas instantaneous High efficiency gas instantaneous $46
Gas boosted solar $120
Gas storage High efficiency gas $60
Gas boosted solar water heater $190
Electric storage system High efficiency gas instantaneous $356
Gas boosted solar water heater $510

(Source: Sustainability Victoria 2017)