Household Water Heater Energy Use Running Costs and Emissions

Estimated Household Water Heater Energy Use,
Running Costs and Emissions, Victoria
Based on energy price projections, 2005-2015
Report to the
Sustainable Energy Authority Victoria
by
George Wilkenfeld and Associates Pty Ltd
May 2005
GEOR GE WILKENFELD AND ASSOC IATES Pty Lt d

EN ERGY POLICY AND PLANNING CONSULTAN TS
PO Box 934 Newtown NSW 2042 Sydney Australia
Tel (+61 2) 9565 2041 Fax (+61 2) 9565 2042 e-mail: geosanna@ozemail.com.au
Contents
CONTENTS ................................................................................................................................................2
BACKGROUND ..........................................................................................................................................3
Energy Prices......................................................................................................................................3
Greenhouse gas emissions ..................................................................................................................4
The Water Heating Task .....................................................................................................................5
WATER HEATER CHARACTERISTICS .........................................................................................................7
Electric................................................................................................................................................7
Natural Gas and LPG .......................................................................................................................12
Solar..................................................................................................................................................12
RESULTS .................................................................................................................................................15
References.........................................................................................................................................19
WaterHeaterRunningCostsVictoria(GWA)V5 with results table 2

Background
This study estimates the annual energy costs of water heating for households in
Victoria, by combining:
• Estimates of annual energy demand for various household sizes, water heating
energy forms and water heater technology types, by George Wilkenfeld and
Associates (GWA); and
• Estimates of projected marginal household energy prices in Victoria over the period
2005-2015, by McLennan Magasanik Associates (MMA 2005).
MMA’s energy price estimates were forwarded to GWA by the Sustainable Energy
Authority Victoria (SEAV), who commissioned the present study as well.
This study also estimates the annual greenhouse gas emissions associated with the
consumption of energy by water heaters of various energy forms and technology types.
The terms of reference did not include the capital or installation costs of water heaters,
so it is not possible to reach conclusions regarding the life cycle costs of alternative
means of water heating based on this study alone.
Energy Prices
The MMA price projections represent the price for energy use by a water heater of that
energy form to a household in Victoria. The price projection for each energy form is
relatively constant throughout the period 2005-2015, so it is reasonable to use a simple
average value. The 11-year average values reported by MMA are summarised in Table
1. (The ‘discount’ LPG scenarios differ in the ways in which the value of a first-year
discount is allocated to LPG end uses).
Only five energy prices are used in the present study:
• LPG (a simple average of the four LPG prices estimated by MMA)

• Discount LPG (the average of the four discount LPG prices estimated by MMA)
• Natural gas
• Peak rate electricity; and
• Off-peak rate electricity (the time division between peak and offpeak is in Table 2).1
This is a reasonable simplification, given that there is no overlap between the ranges:
the clear order of price (from highest to lowest) is peak rate electricity, full price LPG,
discount LPG, off-peak electricity and natural gas. Given the number of assumptions
about water heater performance behind each set of running cost assumptions, further
1
MMA also calculated weighted electricity prices for some electric water heater types based on their
estimate of the ratio of operating hours in the peak and off-peak rate periods under which electricity to
that type of water heater is likely to be supplied. As we independently estimates the share of operating
hours in peak and off-peak periods for each electric water heater type in the present study, it would be
inconsistent to use an electricity price that is already time-weighted, so only MMA’s base day-rate and
off-peak price estimates are used.

differentiating the price assumptions would not increase the value of the findings –
indeed, it could falsely suggest greater precision than is in fact possible.
Table 1 Projected energy price estimates, Victoria 2005-2015 (averaged)

$/GJ delivered c/MJ delivered c/kWh delivered
(MMA) (present study) (present study)
LPG marginal - medium price 34.94 3.48 12.51
LPG marginal - high price 36.66
LPG marginal - low price 33.37
LPG marginal - P&G 34.06
LPG flat discount - prop. hot water 28.12 2.76 9.94
LPG flat discount - all hot water 27.59
LPG variable discount - prop. hot water 27.64
LPG variable discount - all hot water 27.11
Elec marginal offpeak 20.63 2.06 7.43
Elec marginal peak 52.26 5.23 18.81
Natural gas marginal 11.97 1.20 4.31
Combined electricity 22.89 NA NA
Table 2 Time divisions, peak and off-peak rates of electricity supply

Tariff Weekdays Weekends Hrs/wk % of week
Peak 7am-11pm None 80 48%
Off-peak 11pm-7am All 88 52%
168
Greenhouse gas emissions
The greenhouse gas emissions associated with consuming an additional unit of

electricity, LPG or natural gas in Victoria are summarised in Table 3. The marginal
emission factors indicate the additional greenhouse gas emissions of using or avoiding
an additional unit of energy. For electricity, marginal emissions are significantly lower
than average emissions, since a larger share of new generation projects are expected to
be natural-gas fired than the current generation mix, which is dominated by brown coal.
For natural gas and LPG, the marginal emissions are identical to the average emissions.
Table 3 Greenhouse gas emission factors, Victoria 2005-2015 (averaged)

At point of Indirect Fuel cycle
final use
kg CO2- kg CO2- kg CO2- kg CO2-e/
e/GJ e/GJ e/GJ kWh
Electricity Average, Victoria (a) NA 386.7 386.7 1.392
Electricity Marginal, Victoria (b) NA 307.4 307.4 1.107 (c)
LPG Marginal and average, Australia (a) 59.4 7.8 67.2 0.242
Natural gas Marginal and average, Victoria (a) 51.9 11.7 63.6 0.229
Source: (a ) Greenhouse Challenge Factors and Methods Workbook, Australian Greenhouse Office,
Version 4, 2004. (b) Australian Greenhouse Office, Marginal Intensity projections for use in Greenhouse
Gas Abatement Program (GGAP) proposals, excel files dated June 2003 (downloaded Feb 2005).
Includes allowance for regional loss factors (c) Average over period; range is from 1.027 to 1.163

The Water Heating Task
The quantity of energy delivered by a water heater depends on the quantity of energy in
the hot water that is drawn off and the temperature rise between the cold feed water and
the draw-off.
Hot water use for personal washing would be expected to increase in proportion to the
number of people in the household, all else being equal, but for uses such as cooking,
clothes washing and dishwashing, consumption is not linearly related to the number of
persons. Water heaters manufacturers estimate 50 litres per person per day, with extra
bathrooms and hot-water using clothes washers counted as additional persons.
Calculations of hot water energy requirements in Australian Standards assume a

standard delivery temperature of 60°C at the water heater outlet and average household
use of 200 litres per day. However, to test energy use in smaller and larger households
than the average, deliveries of 120 litres and 300 litres per day are also examined.
Table 4 indicates one way in which these various assumptions could be reconciled with
the actual average Victorian household size of 2.53 persons in 2005 (ABS 3236.0).
This would imply a weighted average hot water consumption of about 198 litres, very
close to the ‘medium’ household.
Table 4 Indicative hot water use per person per day

Category of Litres/day hot Average litres hot Share of
household water delivery Persons/HH water/person/ households
day
Small 180 1.3 92 21%
Medium 200 2.5 80 64%
Large 300 4.4 68 15%
Weighted average 198 2.53 78 100%
Average cold water temperatures vary from place to place in Australia, and from month
to month in a given location. There are several guides to the cold water temperatures to
be used in calculating water heater energy consumption, especially for solar water
heaters, the performance of which is particularly sensitive to the daily heating task.
Some guides publish averages for larger regional ‘zones’ and some for specific cities.
AS 4234 Solar water heaters and the Office of the Renewable Energy Regulator
(ORER) divide Australia into 4 main zones. Northern Victoria is in Zone 3 and
Melbourne in Zone 4. ORER uses Adelaide water temperatures to represent Zone 3 and
Melbourne data for Zone 4. AS4234 uses the same cold water temperatures as ORER
for Zone 4, but quite different ones for Zone 3 (Figure 1).
A calculation aid developed by the solar water heater manufacturer Solahart (SCF) uses
specific town data, including Melbourne (Zone 4) and Mildura (Zone 3).2 Figure 1
illustrates the monthly average cold water temperature curves relevant to Victoria in
these three sources, and Table 5 summarises the annual average temperatures. There
are considerable differences in the three estimates. The SCF set is selected for use in
2
SCF, or Solar Contribution Finder, Revision 1.2.141, Solahart 2003 (downloaded April 2005).

this study because the data are specific to Victoria (the ORER Zone 3 data are in fact
based on Adelaide). The average cold water temperature difference between northern
and southern Victoria (2.5°C) lies between the difference implied by AS4264 (3.2°C)
and the smaller difference implied by ORER (1.3°C). The daily water heating tasks
calculated from the average and extreme cold water temperatures in Table 5 and the
standard delivery temperature of 60°C are summarised in Table 6.
Figure 1 Cold water temperatures, Victoria
30.0
25.0
Degrees cold water temperature
20.0
Zone 3 - ORER
Zone 3 (AS 4234)
15.0 Zone 4 (AS 4234, ORER)
Mildura (Z3)
Melbourne (Z4)
10.0
5.0
0.0
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Table 5 Annual average cold water temperatures by zone, Victoria

AS4234 ORER (website) SCF
Zone 3 (Mildura) 17.6 15.8 16.3
Zone 4 (Melbourne) 14.5 14.5 13.8
Difference 3.2 1.3 2.5
Lowest winter month avg water temp 8 8 8
All values °C
Table 6 Average daily water heating tasks, northern and southern Victoria
120 l/day delivery 200 l/day delivery 300 l/day delivery
Zone 3 (Mildura) 22 37 55
Zone 4 (Melbourne) 23 39 58
Peak winter day (Zone 4) 26 44 65
All values MJ/day

Water heater Characteristics
The method for calculating the running costs and greenhouse gas emissions for each
water heater type is straightforward:
1. Begin with the daily energy delivery task in Table 6;

2. Estimate the conversion efficiency, storage losses and/or solar contribution for each
technology type
3. From (1) and (2) above calculate the delivered thermal energy
4. Add any ancillary electric loads, such as standby and combustion air fans (for
mains-connected gas units) and pumps (for heat pumps and split solar designs)
5. Calculate total annual electricity and fuel (NG or LPG) consumption
6. For electricity, estimate the share of energy delivered in peak and off-peak time
periods
7. Apply the price estimates in Table 1
8. Apply the marginal greenhouse gas factors in Table 3.
The calculations are detailed in an accompanying file [Water Heating Costs VIC
V4.xls.].
As there are 6 water heating tasks in Table 6 there are 6 sets of outputs, plus a
composite output representing a whole of Victoria average.
The following sections detail the technical assumptions regarding each water heater
type, using Zone 4 energy consumption values for illustration.
Electric
The assumptions for electric water heaters (summarised in Table 7) are as follows:
• Capacities are selected to match the daily delivery (eg the storage capacity of off-
peak units must be larger than the average daily load).
• The standing heat loss for each capacity is taken from AS/NZS 1056:2-2004, on the
assumption that the model just meets the MEPS level in force from October 2005;
• The annual loss factor adjusts the actual standing loss to the tested standing loss, on
the assumption that the average storage temperature of off-peak water heaters drops
during the day and the heat loss is less than the tested heat loss;
• The electric element is assumed to operate at 100% conversion efficiency;
• Single element off-peak water heaters are assumed to operate entirely in the off-
peak period (ie that the time clock or other means of control is accurate). Dual
element units are assumed to operate 10% of the time within that period, so both
types use day-rate as well as off-peak rate electricity and so face different weighted
electricity prices.;
• The annual running cost is calculated by multiplying the kWh delivered to the water
heater by the weighted average electricity price (last column in Table 7).

Table 7 Assumptions for electric water heaters (Zone 4)
Household Elements Delivery Daily kWh/24 Annual kWh/yr kWh/yr % eff- Daily hrs % of heat Peak rate Weight- Weight- $/yr
category (litres) use/ hrs loss loss delivered iciency Heating 7am- % of ed ed
capacity loss factor (3.6 kW) 11pm energy(a) c/MJ c/kWh
Off-peak electric Small 1 250 0.5 2.44 0.90 802 3154 75% 2.4 0.0% 0% 2.06 7.43 $ 234
Medium 1 315 0.6 2.72 0.90 894 4815 81% 3.7 0.0% 0% 2.06 7.43 $ 358
Large 1 400 0.8 2.93 0.90 963 6844 86% 5.2 0.0% 0% 2.06 7.43 $ 508
Off-peak electric Small 2 250 0.5 2.64 0.95 915 3268 72% 2.5 10.0% 7% 2.29 8.24 $ 269
(dual element) Medium 2 315 0.6 2.92 0.95 1013 4934 79% 3.8 10.0% 7% 2.29 8.24 $ 407
Large 2 400 0.8 3.13 0.95 1085 6967 84% 5.3 10.0% 7% 2.29 8.24 $ 574
(a) share of electricity supplied during peak hours at peak rate, given time divisions in Table 2
Table 8 Assumptions for gas (NG and LPG) storage water heaters (Zone 4)
Household Delivery Daily Useful Combust Maint MJ/yr kWh/yr Task $/yr $/yr $/yr
category (litres) use/ Energy Effic- rate effic- NG LPG LPG
capacity (MJ) iency MJ/hr iency (disc)
Natural gas storage Small 90 1.3 8470 75% 0.64 16889 4691 50% $ 202 $ 587 $ 466
– 3 star efficiency Medium 135 1.5 14116 75% 0.74 25282 7023 56% $ 303 $ 879 $ 698
No electricity Large 170 1.8 21174 75% 0.81 35349 9819 60% $ 423 $ 1,229 $ 976
Natural gas storage Small 90 1.3 8470 80% 0.20 12326 3424 69% $ 148 $ 428 $ 340
– 5 star efficiency Medium 135 1.5 14116 80% 0.23 19653 5459 72% $ 235 $ 683 $ 543
No electricity Large 170 1.8 21174 80% 0.25 28679 7966 74% $ 343 $ 997 $ 792
Table 9 Assumptions for gas (NG and LPG) instantaneous water heaters (Zone 4)
Household Deliv- UE Daily Daily Burner MJ/yr kWh/yr Task Stand- Fans Total c/kWh $/yr $/yr $/yr $/yr
category ery (MJ) mins mins of Effic- Gas effic- by kWh/yr kWh/yr Elec Elec NG LPG LPG
(l/min) of flow fan op iency iency (a) kWh/yr (b) only only (disc)
Natural gas instant Small 16 8014 13.3 20.0 80% 10587 2941 78% 44 49 92 15.15 $ 14 $ 127 $ 368 $ 292
– 3 star efficiency Medium 20 13356 22.2 33.3 80% 17645 4901 78% 44 81 125 15.15 $ 19 $ 211 $ 613 $ 487
No electricity Large 32 20034 33.3 50.0 80% 26468 7352 78% 44 122 165 15.15 $ 25 $ 317 $ 920 $ 731
Natural gas instant Small 16 8014 13.3 20.0 92% 9206 2557 89% 44 49 92 15.15 $ 14 $ 110 $ 320 $ 254
– 5 star efficiency Medium 20 13356 22.2 33.3 92% 15344 4262 89% 44 81 125 15.15 $ 19 $ 184 $ 533 $ 424
No electricity Large 32 20034 33.3 50.0 92% 23015 6393 90% 44 122 165 15.15 $ 25 $ 275 $ 800 $ 636
(a) Includes electricity for standby, fans etc. (b) Assuming 95% of operation between 7am and 11pm.
Table 10 Assumptions for solar-electric water heaters (Zone 4)
Household Delivery Solar kWh/yr kWh/yr kWh/yr Task Peak rate Weighted $/yr
category (litres) Panels delivered delivered Total effic- % of c/kWh Electricity
(heat) (pump) iency energy Elec
(a) (b)
Thermosyphon Small 180 1 1278 0 1278 184% 18% 9.46 $ 121
- Minimum efficiency (c) Medium 220 2 1844 0 1844 213% 18% 9.46 $ 174
Large 300 3 2448 0 2448 240% 18% 9.46 $ 232
Thermosyphon Small 180 1 892 0 892 264% 18% 9.46 $ 84
- High efficiency Medium 220 2 1350 0 1350 290% 18% 9.46 $ 128
Large 300 3 1445 0 1445 407% 18% 9.46 $ 137
Split system Small 180 2 1190 88 1278 184% 18% 9.46 $ 121
- Minimum efficiency (c) Medium 220 3 1757 88 1844 213% 18% 9.46 $ 174
Large 300 3 3209 88 3297 178% 18% 9.46 $ 312
Heat pump Small 270 NA 0 1278 1278 184% 36% 11.49 $ 147
- Minimum efficiency (c) Medium 270 NA 0 1844 1844 213% 36% 11.49 $ 212
Large 270 NA 0 2353 3297 178% 36% 11.49 $ 270
(a) Useful energy/electricity delivered (includes pumping) (b) Share of electricity supplied during peak hours at peak rate, given time divisions in Table 2 (c) A unit just
meeting the regulated performance requirements in Table 14 but supplying the delivery task in Table 6.
Table 11 Assumptions for solar-gas (NG and LPG) water heaters (Zone 4)
Household Delivery Solar MJ/yr kWh/yr kWh/yr Task Weighted $/yr $/yr $/yr $/yr
category (litres) Panels Delivered delivered Total effic- c/kWh Electricity NG LPG LPG
(gas) (pump) iency Elec (b) only (disc)
(a)
Split system Small 260 2 7999 89 2311 106% 15.15 $ 13 $ 96 $ 278 $ 221
- Minimum efficiency (c) Medium 260 2 11062 94 3167 128% 15.15 $ 13 $ 132 $ 385 $ 305
Large 260 3 18774 88 5302 113% 15.15 $ 13 $ 225 $ 653 $ 518
Preheat with instant. Small NA 1 0 1278 1278 307% 15.15 $ 22 $ 26 $ 77 $ 61
- high efficiency Medium NA 2 0 1844 1844 393% 15.15 $ 23 $ 34 $ 100 $ 79
Large NA 2 0 2353 3297 183% 15.15 $ 29 $ 111 $ 321 $ 255
(a) Useful energy/energy delivered (includes pumping) (b) Assuming 95% of operation between 7am and 11pm (c) A unit just meeting the regulated performance
requirements in Table 14 but supplying the delivery task in Table 6.
Table 12 Scaling assumptions and energy use for solar-electric, solar-gas and heat pump water heaters (Zone 4)

Type of water heater 120 l/day delivery 200 l/day delivery MJ/yr
MJ/yr Conven % of Pass at Scaling MJ/yr Conven % of Pass at Scaling at 300
-tional Conven 120 l? Factor -tional Conven 200 l? Factor l/day (c)
MJ/yr -tional MJ/yr -tional
Solar-electric thermosyphon (minimum efficiency) 4600 11500 40.0% Yes(a) 1.12 6640 16600 40.0% Yes(a) 1.37 8812
Solar-electric thermosyphon (higher efficiency) 3211 11500 27.9% Yes 1.00 4860 16600 29.3% Yes 1.00 5204
Solar-electric split system (minimum efficiency) 4600 11500 40.0% Yes(b) 0.75 6640 16600 40.0% Yes(b) 0.75 12185
Heat pump (minimum efficiency) 4600 11500 40.0% Yes(a) 1.36 6640 16600 40.0% Yes(a) 1.18 8470
Solar-gas split system (minimum efficiency) 8320 20800 40.0% Yes(a) 1.02 11400 28500 40.0% Yes(a) 1.07 18774
Solar preheat to gas instantaneous (higher efficiency) 2735 20800 13.1% Yes 1.00 3418 28500 12.0% Yes 1.00 9937
(a) Boost energy consumption of actual model scaled up to meet limit (b) Boost energy consumption of actual model scaled down to meet limit (c) Large delivery units are
only required to met Guideline criteria at medium delivery (corresponds to peak winter hot water energy load of 42 MJ/day, or about 200 litres/day)
Table 13 Scaling assumptions and energy use for solar-electric, solar-gas and heat pump water heaters (Zone 3)
Type of water heater 120 l/day delivery 200 l/day delivery MJ/yr
MJ/yr Conven % of Pass at Scaling MJ/yr Conven % of Pass at Scaling at 300
-tional Conven 120 l? factor -tional Conven 200 l? factor l/day (c)
MJ/yr -tional MJ/yr -tional
Solar-electric thermosyphon (minimum efficiency) 3546 11500 30.8% Yes(a) 1.12 5061 16600 30.5% Yes(a) 1.37 6681
Solar-electric thermosyphon (higher efficiency) 2495 11500 21.7% Yes 1.00 2797 16600 16.9% Yes 1.00 7230
Solar-electric split system (minimum efficiency) 3241 11500 28.2% Yes(b) 0.75 4724 16600 28.5% Yes(b) 0.75 7082
Heat pump (minimum efficiency) 4352 11500 37.8% Yes(a) 1.36 6282 16600 37.8% Yes(a) 1.18 8014
Solar-gas split system (minimum efficiency) 6483 20800 31.2% Yes(a) 1.02 8726 28500 30.6% Yes(a) 1.07 14168
Solar preheat to gas instantaneous (higher efficiency) 2211 20800 10.6% Yes 1.00 2669 28500 9.4% Yes 1.00 7581
(a) Boost energy consumption of actual model scaled up to meet limit (b) Boost energy consumption of actual model scaled down to meet limit (c) Large delivery units are
only required to met Guideline criteria at medium delivery (corresponds to peak winter hot water energy load of 42 MJ/day, or about 200 litres/day)

Natural Gas and LPG
Two types of gas water heater are examined – storage (Table 8) and instantaneous (
Table 9). For each type there is a lower efficiency variant (just meeting 3 stars on the
AS 4552/AG 102 scale) and a high efficiency variant (just meeting 5 stars). It is
assumed that the efficiency and hence energy consumption of natural gas (NG) and
liquefied petroleum gas (LPG) variants are identical, so differences in running costs are
due solely to differences in fuel price.
For storage water heaters, the delivery capacity has been matched to the daily delivery,
to avoid the effect that task efficiency declines as the load on a storage water heater of
given capacity falls, because heat loss (made up by the gas ‘maintenance rate’) is
largely fixed. Under the assumptions shown the task efficiencies (in Zone 4) range
from 50% (small household, 3 star rating) to 60% (large household, 5 star rating).
Instantaneous gas water heaters have high conversion efficiency (typically 80% for 3
star and 92% for 5 star). Many models also use mains electricity for ignition (NAEEEP
2004), as well as fans for blowing combustion air and then for cooling the heat
exchanger. The electricity consumption of instantaneous gas water heaters is estimated
on the following assumptions:
• standby consumption is 5W (44 kWh/yr).

• fan energy is 20W
• fan run time is 1.5 times total water flow time (allowing for post-cooling)
• daily flow time (minutes) is derived from the daily delivery (litres) and a flow rate
of 9 l/min.
With electricity use included, task efficiencies for instantaneous gas water heaters in
Zone 4 range from 78% (3 star rating) to 90% (5 star rating).
Solar
The performance of solar and heat pump water heaters has been calculated with
reference to both the physical performance of actual models and the maximum energy
consumption prescribed under the Guidelines for compliance with the Plumbing (water
and energy savings) Regulations 2004 (SEAV 2004) (Table 14).
Table 14 Maximum energy consumption in Guidelines (Zone 4)

House size Peak winter hot Electric Gas (includes LPG)
water energy load Conventional: Solar-electric: Conventional: Solar-gas:
(MJ/day) nominal MJ/yr max MJ/yr (a) nominal MJ/yr max MJ/yr (a)
1 or 2 bedrooms 25.2 11,500 4,600 20,800 8,320
3 or more bedrooms 42.0 16,600 6,640 28,500 11,400
Source :SEAV (2004): Maximum values for solar apply in Zone 4, and for units installed after June 2005
(a) Maximum energy allowance must cover pump and other auxiliaries, if present
The Guidelines prescribe maximum boost energy limits, in Zone 4, for solar water
heaters installed in two categories of dwellings (1-2 bedrooms and 3 or more
bedrooms). However, energy consumption and hence running costs depend on the
number of persons in the household and other factors, not number of bedrooms. For
simplicity, it is assumed that all ‘small’ category households occupy dwellings with 1 to
2 bedrooms, and all ‘medium’ and ‘large’ households occupy dwellings with 3 or more
bedrooms.
The running costs for ‘minimum efficiency’ electric- or gas-boosted solar water heaters
(including heat pumps), just meeting the minimum Zone 4 solar contribution standards
in the Guidelines, can be calculated directly from Table 14 For example, a ‘minimum
efficiency’ solar-electric water heater installed in a 3 bedroom dwelling may consume
no more than 4,600 MJ (1,278 kWh) of electricity per year, so all that is needed to
calculate the cost of the electicity is to estimate the ratio purchased in peak and off-peak
times. However, this does not indicate the energy consumption or running cost of the
same model of solar water heater installed in the Zone 3 part of Victoria, where solar
contributions and cold water temperatures are higher, and running costs are lower. Nor
does it indicate the energy use at different daily deliveries.
The following procedure was adopted:
For the following solar water heaters, the boost energy requirement was calculated at
Mildura and at Melbourne for the delivery tasks summarised in Table 6, using the SCF
predictive model
• Thermosyphon configuration, selective surface collector panels, electric boost

• Thermosyphon configuration, higher efficiency selective surface collector panels,
electric boost
• Split configuration, electrically-boosted storage tank
• Split configuration, gas-boosted storage tank
• Solar preheat to unboosted storage tank, then to instantaneous gas water heater
It was generally assumed that there was one solar panel panel for smaller water using
households, 2 for medium and 3 for large, but in the split configurations an extra panel
was assumed if the solar contribution was very low.
For heat pumps, the electricity demand was calculated on the basis that the Coefficient
of Performance (COP) was just high enough to meet the minimum efficiency
requirement.
The above procedure produced a boost energy value for each type, which could be
tested against the limit constraints in the Guidelines.
The modelled boost energy of each system type in Zone 4 was then compared with the
regulated maximum boost energy. Where the modelled boost energy exceeds the
maximum allowable, it is scaled down (indicated by a scaling factor of less than 1 in
Table 12). For example, the modelled boost energy consumption of the solar-electric
split system serving a small household was 6103 MJ/yr, well over the regulated limit of
4600 MJ (40% of 11,500 MJ for a 1-2 bedroom home). Therefore the boost energy was
scaled down (and hence the solar contribution scaled up) in order to match the limit.
This created a ‘virtual’ solar water heater for which running costs could be calculated in
Zone 3 as well as Zone 4.

Conversely, if the modelled water heating energy in Zone 4 is less than the minimum in
the Guidelines, it is scaled up by applying a scaling factor of more than 1. This creates a
‘virtual’ model for which running costs could be calculated in Zone 3.
No adjustment was made to the modelled performance of the higher-efficiency solar

water heater types (indicated by a scaling factor of 1.0 in Table 12).
The Guidelines state that ‘for electric boosted systems, the peak (day rate) boost energy
used must be less than 25% of the reference conventional system energy use.’3 This has
been simulated in the spreadsheet by specifying that 25% of boosting occurs within the
7am to 11pm period each day, including weekends. As only weekday energy consumed
in this time period is charged at day-rate, it means that the total day-rate share of boost
energy over the whole week is 18%, so it falls well within the Guideline limits.
For the heat pump it is assumed that 50% of electricity is consumed within the 7am to
11pm period, so the total day-rate share of boost energy over the whole week is 36%.
Models serving large water user households (300 l/day), still only have to meet the
regulated limits of performance at a delivery of 200 l/day. A solar water heater meeting
the limit criteria at 300 l/day will clearly also meet the criteria at the lower delivery.
However, water heaters which fail the criteria at 300 l/day may meet them at 200l/day,
so further analysis had to be carried out on some large delivery solar units to determine
the scaling factor at a 200 l/day delivery. This factor (if less than 1) was then applied to
the higher delivery task.
3
The Guidelines do not define ‘reference conventional system’, but is is assumed that for a solar-electric
unit the rfence is a convetional day-rate system, since a ‘pure’ single-element off-peak system would use
no day-rate boost energy, so the comparison would be 25% of zero, wihch is zero.

Results
The results are presented as a series of tables and bar graphs in the accompanying
spreadsheet. There are groups of graphs for small, medium and high water using
households, and for a weighted or composite household, in each of the two Zones. For
the time being the shares of small, medium and large households in the composite have
been set so that the weighted average hot water consumption is 198 litres/day, but this
can be easily changed if better data on hot water use become available.
For each group there are three graphs – the annual energy consumption of each mode of
water heating (the ‘kWh’ graph), the annual energy cost of each, (the ‘$’ graph) and the
annual greenhouse gas emissions of each (the ‘CO2’ graph). The final group of graphs
is a weighted average for the whole of Victoria. At present the weighting is set at 35%
Zone 3 and 65% Zone 4, but this can be easily changed. The graph contents and
identifiers (marked on the tabs in the spreadsheet) are summarised in Table 15. The
data tables from which the graphs are derived are at tables Calcs(3) and Calcs(4).
Table 15 summary of output graphs and titles

Small Medium Large Weighted Zone-weighted
household household household average (198 l/day)
(120 l/day) (200 l/day) (300 l/day) (198 l/day)
Zone 3 3S-kWh 3M-kWh 3L-kWh 3Av-kWh
3S-$ 3M-$ 3L-$ 3Av-$ Av-kWh
3S-CO2 3M-CO2 3L-CO2 3Av-CO2 Av-$
Zone 4 4S-kWh 4M-kWh 4L-kWh 4Av-kWh Av-kWh
4S-$ 4M-$ 4L-$ 4Av-$
4S-CO2 4M-CO2 4L-CO2 4Av-CO2
As a sample of the outputs, the zone-weighted diagram groups are shown at Figure 2,
Figure 3 and Figure 4 following. For water heater types using more than one energy
form, the consumption, cost and emissions of each energy form are separately indicated
by colour. As Figure 2 shows, natural gas and LPG variants are all assumed to be of
equal efficiency and hence use the same amount of delivered energy. As Figure 3
shows, however, the energy costs are quite different because of the differences in
energy price in Table 1. The greenhouse emissions of natural gas and LPG water heater
variants are quite similar, as indicated in Figure 4, and below that of all electric and
solar-electric water heaters. The lowest emissions by far are from preheat-type natural
gas (or LPG) -boosted solar water heaters: as a matter of interest, over 40% of the
emissions of this type come from the electricity used in the circulating pump and in the
instantaneous gas unit.
In the areas of Victoria not served by natural gas, the only practical water heating
options are electric, solar-electric, LPG and solar-LPG. Table 17, Table 18, Table 19
and Table 20 summarise the annual running costs and related greenhouse gas emissions
from these options and compare them with electric off peak and minimum efficiency
solar-electric.
The relative ranking of running costs for electric and LPG water heaters depends on the
Zone, and whether the LPG is full price or discounted. In general:

• the energy costs of conventional LPG water heaters are much higher than those of
off-peak electric water heaters;
• for minimum efficiency solar water heaters (ie just meeting the Guideline
requirements), the energy costs of LPG boosting are significantly higher than of
electric boosting; and
• for high efficiency solar water heaters, the energy costs of LPG boosting are
comparable to those of electric boosting (ie + $25 is within the bound of
uncertainty)
These are running costs only. Comparison of the life cycle costs of alternatives, and
hence the costs of greenhouse gas abatement via different water heating options, would
also require estimates of capital costs, which are not covered by this study.
Table 16 Comparison of LPG and electric boosting costs for solar water heaters
Zone 4 Zone 3
$/yr $/yr (disc) $/yr $/yr (disc)
Solar-electric (Min efficiency) 174 174 133 133
Solar-LPG (Min efficiency) 398 319 305 245
LPG boosting compared with electric 223 144 172 112
Solar-electric (High efficiency) 128 128 74 74
Solar-LPG (High efficiency) 123 102 97 81
LPG boosting compared with electric -5 -25 23 8
Source: Table 17, Table 18, Table 19 and Table 20
Figure 2 Annual consumption of delivered energy
Zone-weighted average household, Victoria (198 l/day)
8000
7000
kWh per year delivered energy
6000
5000
4000
3000
2000
1000
0
Gas inst (3*) - LPG (disc)

Gas inst (3*) - NG
Gas inst (5*) - NG

Gas storage (3*) - LPG (disc)
Gas inst (3*) - LPG
Gas inst (5*) - LPG

Gas storage (3*) - NG

Gas storage (3*) - LPG

Continuous electric
Solar-gas Split (min eff) - LPG (disc)

OP electric
Solar-gas Split (min eff) - NG

Heat pump (min eff)
Solar-preheat (high eff) - LPG (disc)

Solar-gas Split (min eff) - LPG
Solar-preheat (high eff) - NG

Dual-element OP
Solar-elect Split (min eff)
Solar-preheat (high eff) - LPG

Solar-elect TS (high eff)
Solar-elect TS (min eff)

t CO2-e per year $ energy costs per year
0.00
1.00
2.00
3.00
4.00
5.00
6.00
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Continuous electric
Continuous electric
OP electric
OP electric
Dual-element OP
Dual-element OP
Gas inst (3*) - NG
Gas inst (3*) - NG
Gas inst (3*) - LPG
Gas inst (3*) - LPG
Gas inst (5*) - NG
Gas inst (5*) - NG
Gas inst (5*) - LPG
Gas inst (5*) - LPG
WaterHeaterRunningCostsVictoria(GWA)V5 with results table



Figure 3 Annual energy costs


Heat pump (min eff) Heat pump (min eff)

Figure 4 Annual greenhouse gas emissions
Solar-gas Split (min eff) - NG Solar-gas Split (min eff) - NG
Solar-gas Split (min eff) - LPG Solar-gas Split (min eff) - LPG
Solar-gas Split (min eff) - LPG (disc) Solar-gas Split (min eff) - LPG (disc)
Solar-preheat (high eff) - NG Solar-preheat (high eff) - NG
Solar-preheat (high eff) - LPG Solar-preheat (high eff) - LPG
Solar-preheat (high eff) - LPG (disc) Solar-preheat (high eff) - LPG (disc)
17
Table 17 Electric and LPG options – Zone 4 (200 litres/day)
$/yr t CO2-e/yr cf electric OP cf solar-electric
$/yr t CO2-e/yr $/yr t CO2-e/yr
Electric off-peak 358 5.3 NA NA 183 3.3
LPG storage (3*) 879 1.7 521 -3.6 704 -0.3
LPG storage (5*) 683 1.3 326 -4.0 509 -0.7
LPG instant (3*) 632 1.3 275 -4.0 458 -0.7
LPG instant (5*) 552 1.2 195 -4.2 378 -0.9
Solar-electric (Min efficiency) 174 2.0 -183 -3.3 NA NA
Solar-electric (High efficiency) 128 1.5 -230 -3.8 -47 -0.5
Heat pump 212 2.0 -146 -3.3 38 0.0
Solar-LPG (Min efficiency) 398 0.8 40 -4.5 223 -1.2
Solar-LPG (High efficiency) 123 0.4 -235 -5.0 -52 -1.7
Table 18 Electric and LPG (discounted) options – Zone 4 (200 litres/day)

LPG storage (3*) 698 1.7 341 -3.6 524 -0.3
LPG storage (5*) 543 1.3 185 -4.0 368 -0.7
LPG instant (3*) 506 1.3 149 -4.0 332 -0.7
LPG instant (5*) 443 1.2 85 -4.2 268 -0.9
Heat pump 212 2.0 -146 -3.3 38 0.0
Solar-LPG (Min efficiency) 319 0.8 -39 -4.5 144 -1.2
Table 19 Electric and LPG options – Zone 3 (200 litres/day)

LPG storage (3*) 835 1.6 496 -3.4 704 0.1
LPG storage (5*) 644 1.2 305 -3.8 513 -0.3
LPG instant (3*) 594 1.2 255 -3.8 463 -0.3
LPG instant (5*) 519 1.1 180 -3.9 388 -0.4
Heat pump 196 1.9 -143 -3.2 65 0.4
Table 20 Electric and LPG (discounted) options – Zone 3 (200 litres/day)

LPG storage (3*) 663 1.6 325 -3.4 532 0.1
LPG storage (5*) 512 1.2 173 -3.8 381 -0.3
LPG instant (3*) 476 1.2 137 -3.8 345 -0.3
LPG instant (5*) 416 1.1 77 -3.9 285 -0.4
Heat pump 196 1.9 -143 -3.2 65 0.4

References
ABS (3236.0) Household and Family Projections Australia, 1996 to 2021, Australian
Bureau of Statistics
AS/NZS 1056:2-2004 Electric water heaters, Part 5: Energy labelling and Minimum
Energy Performance Standard (MEPS) requirements
AS 4234-1994 Solar water heaters – domestic and heat pump – calculation of energy
consumption
AS 4552-2000, AG102-2000 Gas Water Heaters
GWA (2004a) NFEE – Energy efficiency improvement potential case studies,

residential water heating George Wilkenfeld and Associates for the Sustainable Energy
Authority Victoria, February 2004
GWA (2004b) Regulation Impact Statement: Proposed National System of Mandatory

Water Efficiency Labelling for Selected Products, George Wilkenfeld and Associates
for the Department of the Environment and Heritage, Australia, May 2004
MMA (2005) Prices for fuels supplied to solar hot water systems, Report to the
Sustainable Energy Authority Victoria, McLennan Magasanik Associates, April 2005
NAEEEP (2004) Standby Power Profile: Instantaneous Gas Water Heaters, National
Appliance and Equipment Energy Efficiency Program, March 2004
SEAV (2004) Guidelines for approval of domestic solar water heaters for compliance to
the Plumbing (water and energy savings) Regulations, July 2004, Version 1, December
2004
*****

Summary of all results
Zone 3
Weighted by Household
Small households Medium Households Large households Size
Energy $ CO2 Energy $ CO2 Energy $ CO2 Energy $ CO2
kWhpa $pa Tpa kWhpa $pa Tpa kWhpa $pa Tpa kWhpa $pa Tpa
Continuous electric 2682 $406 2.97 4268 $647 4.72 6226 $943 6.89 4229 $641 4.68
OP electric 3028 $225 3.35 4603 $342 5.09 6527 $485 7.22 4561 $339 5.05
Dual-element OP 3141 $259 3.48 4722 $389 5.23 6650 $548 7.36 4680 $386 5.18
Gas storage (3*) - NG 4523 $195 1.04 6741 $290 1.54 9397 $405 2.15 6674 $288 1.53
Gas storage (3*) - LPG 4523 $566 1.09 6741 $844 1.63 9397 $1,176 2.27 6674 $835 1.61
Gas storage (3*) - LPG (disc) 4523 $450 1.09 6741 $670 1.63 9397 $934 2.27 6674 $663 1.61
Gas storage (5*) - NG 3266 $141 0.75 5195 $224 1.19 7570 $326 1.73 5146 $222 1.18
Gas storage (5*) - LPG 3266 $409 0.79 5195 $650 1.26 7570 $947 1.83 5146 $644 1.24
Gas inst (3*) - NG 2875 $134 0.74 4762 $219 1.20 7122 $325 1.78 4720 $217 1.19
Gas inst (3*) - LPG 2875 $362 0.78 4762 $599 1.26 7122 $896 1.87 4720 $594 1.25
Gas inst (3*) - LPG (disc) 2875 $291 0.78 4762 $480 1.26 7122 $717 1.87 4720 $476 1.25
Gas inst (5*) - NG 2512 $118 0.66 4157 $193 1.06 6214 $286 1.57 4120 $191 1.05
Gas inst (5*) - LPG 2512 $317 0.69 4157 $524 1.11 6214 $782 1.65 4120 $519 1.10
Gas inst (5*) - LPG (disc) 2512 $255 0.69 4157 $420 1.11 6214 $626 1.65 4120 $416 1.10
Solar-elect TS (min eff) 985 $93 1.09 1406 $133 1.56 1856 $176 2.05 1385 $131 1.53
Solar-elect TS (high eff) 693 $66 0.77 777 $74 0.86 2008 $190 2.22 944 $89 1.04
Solar-elect Split (min eff) 988 $93 1.09 1400 $132 1.55 2055 $186 2.27 1412 $132 1.56
Heat pump (min eff) 1209 $139 1.34 1745 $201 1.93 2226 $256 2.46 1705 $196 1.89
Solar-gas Split (min eff) - NG 1799 $87 0.49 2418 $114 0.63 4023 $183 1.00 2529 $118 0.66
Solar-gas Split (min eff) - LPG 1799 $227 0.51 2418 $305 0.66 4023 $506 1.05 2529 $319 0.69
Solar-gas Split (min eff) - LPG (disc) 1799 $183 0.51 2418 $245 0.66 4023 $405 1.05 2529 $256 0.69
Solar-preheat (high eff) - NG 614 $42 0.27 741 $48 0.30 2106 $110 0.64 919 $56 0.34
Solar-preheat (high eff) - LPG 614 $81 0.27 741 $97 0.31 2106 $268 0.66 919 $119 0.35
Solar-preheat (high eff) - LPG (disc) 614 $69 0.27 741 $81 0.31 2106 $219 0.66 919 $99 0.35
Zone 4
Small households Medium Households Large households Size
Energy $ CO2 Energy $ CO2 Energy $ CO2 Energy $ CO2
kWhpa $pa Tpa kWhpa $pa Tpa kWhpa $pa Tpa kWhpa $pa Tpa
Continuous electric 2809 $426 3.11 4480 $679 4.96 6542 $991 7.24 4438 $673 4.91
OP electric 3154 $234 3.49 4815 $358 5.33 6844 $508 7.57 4770 $354 5.28
Dual-element OP 3268 $269 3.62 4934 $407 5.46 6967 $574 7.71 4889 $403 5.41
Gas storage (3*) - NG 4691 $202 1.07 7023 $303 1.61 9819 $423 2.25 6953 $300 1.59
Gas storage (3*) - LPG 4691 $587 1.13 7023 $879 1.70 9819 $1,229 2.38 6953 $870 1.68
Gas storage (5*) - NG 3424 $148 0.78 5459 $235 1.25 7966 $343 1.82 5408 $233 1.24
Gas storage (5*) - LPG 3424 $428 0.83 5459 $683 1.32 7966 $997 1.93 5408 $677 1.31
Gas inst (3*) - NG 3033 $141 0.78 5026 $230 1.26 7518 $342 1.87 4981 $228 1.25
Gas inst (3*) - LPG 3033 $382 0.81 5026 $632 1.32 7518 $945 1.96 4981 $627 1.31
Gas inst (3*) - LPG (disc) 3033 $306 0.81 5026 $506 1.32 7518 $756 1.96 4981 $502 1.31
Gas inst (5*) - NG 2650 $124 0.69 4387 $203 1.11 6559 $301 1.65 4348 $201 1.10
Gas inst (5*) - LPG 2650 $334 0.72 4387 $552 1.17 6559 $825 1.73 4348 $547 1.16
Gas inst (5*) - LPG (disc) 2650 $268 0.72 4387 $443 1.17 6559 $661 1.73 4348 $439 1.16
Solar-elect TS (min eff) 1278 $121 1.41 1844 $174 2.04 2448 $232 2.71 1816 $172 2.01
Solar-elect TS (high eff) 892 $84 0.99 1350 $128 1.49 1445 $137 1.60 1268 $120 1.40
Solar-elect Split (min eff) 1278 $121 1.41 1844 $174 2.04 3385 $312 3.75 1956 $184 2.16
Heat pump (min eff) 1278 $147 1.41 1844 $212 2.04 2353 $270 2.60 1802 $207 1.99
Solar-gas Split (min eff) - NG 2310 $109 0.61 3160 $146 0.80 5302 $238 1.29 3303 $152 0.83
Solar-gas Split (min eff) - LPG 2310 $291 0.63 3160 $398 0.84 5302 $666 1.36 3303 $416 0.87
Solar-gas Split (min eff) - LPG (disc) 2310 $234 0.63 3160 $319 0.84 5302 $532 1.36 3303 $333 0.87
Solar-preheat (high eff) - NG 760 $49 0.30 950 $57 0.35 2760 $140 0.80 1181 $68 0.41
Solar-preheat (high eff) - LPG 760 $99 0.31 950 $123 0.36 2760 $350 0.83 1181 $152 0.42
Solar-preheat (high eff) - LPG (disc) 760 $83 0.31 950 $102 0.36 2760 $284 0.83 1181 $126 0.42

Average
Size
Energy $ CO2
kWhpa $pa Tpa
Continuous electric 4365 $661 4.83
OP electric 4697 $349 5.20
Dual-element OP 4816 $397 5.33
Gas storage (3*) - NG 6855 $295 1.57
Gas storage (3*) - LPG 6855 $858 1.66
Gas storage (3*) - LPG (disc) 6855 $681 1.66
Gas storage (5*) - NG 5316 $229 1.22
Gas storage (5*) - LPG 5316 $665 1.29
Gas storage (5*) - LPG (disc) 5316 $529 1.29
Gas inst (3*) - NG 4890 $224 1.23
Gas inst (3*) - LPG 4890 $615 1.29
Gas inst (3*) - LPG (disc) 4890 $493 1.29
Gas inst (5*) - NG 4268 $197 1.09
Gas inst (5*) - LPG 4268 $537 1.14
Gas inst (5*) - LPG (disc) 4268 $431 1.14
Solar-elect TS (min eff) 1665 $158 1.84
Solar-elect TS (high eff) 1155 $109 1.28
Solar-elect Split (min eff) 1766 $166 1.95
Heat pump (min eff) 1768 $203 1.96
Solar-gas Split (min eff) - NG 3032 $140 0.77
Solar-gas Split (min eff) - LPG 3032 $382 0.81
Solar-gas Split (min eff) - LPG (disc) 3032 $306 0.81
Solar-preheat (high eff) - NG 1090 $64 0.38
Solar-preheat (high eff) - LPG 1090 $140 0.40
Solar-preheat (high eff) - LPG (disc) 1090 $116 0.40

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Estimated Household Water Heater Energy Use,

Running Costs and Emissions, Victoria

Based on energy price projections, 2005-2015

Sustainable Energy Authority Victoria

George Wilkenfeld and Associates Pty Ltd

GEOR GE WILKENFELD AND ASSOC IATES Pty Lt d

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 2

Only five energy prices are used in the present study:

• LPG (a simple average of the four LPG prices estimated by MMA)

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 3

Table 1 Projected energy price estimates, Victoria 2005-2015 (averaged)

Table 2 Time divisions, peak and off-peak rates of electricity supply

Greenhouse gas emissions

The greenhouse gas emissions associated with consuming an additional unit of

Table 3 Greenhouse gas emission factors, Victoria 2005-2015 (averaged)

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 4

Calculations of hot water energy requirements in Australian Standards assume a

Table 4 Indicative hot water use per person per day

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 5

Figure 1 Cold water temperatures, Victoria

Table 5 Annual average cold water temperatures by zone, Victoria

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 6

1. Begin with the daily energy delivery task in Table 6;

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 7

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 10

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 11

• standby consumption is 5W (44 kWh/yr).

Table 14 Maximum energy consumption in Guidelines (Zone 4)

The following procedure was adopted:

• Thermosyphon configuration, selective surface collector panels, electric boost

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 13

No adjustment was made to the modelled performance of the higher-efficiency solar

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 14

Table 15 summary of output graphs and titles

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 15

Figure 2 Annual consumption of delivered energy

Zone-weighted average household, Victoria (198 l/day)

Gas inst (5*) - LPG (disc)

Gas inst (5*) - NG

Gas storage (5*) - LPG (disc)

Gas inst (3*) - LPG

Gas inst (5*) - LPG

Gas storage (5*) - NG

Gas storage (5*) - LPG

Solar-gas Split (min eff) - LPG (disc)

Solar-gas Split (min eff) - NG

Solar-preheat (high eff) - LPG (disc)

Solar-preheat (high eff) - NG

Solar-elect Split (min eff)

Solar-preheat (high eff) - LPG

WaterHeaterRunningCostsVictoria(GWA)V5 with results table 16

WaterHeaterRunningCostsVictoria(GWA)V5 with results table

Solar-elect TS (min eff)

Solar-elect TS (high eff)

Zone-weighted average household, Victoria (198 l/day)

Solar-elect Split (min eff)

Heat pump (min eff) Heat pump (min eff)