
If you are a homeowner in NSW using a traditional water heater, you must be paying huge bills for domestic […]
Are you tired of shivering throughout a cold morning shower?
You’re not alone.
Don’t worry, though; there is a way around this, you can simply override the off-peak hot water system to start enjoying warm, comfortable showers.
Also read: How Long Do Hot Water Systems Last?
Don’t let your energy bills drain your wallet
Your monthly energy costs have increased dramatically without changes to your usage habits. Hot water typically accounts for 15-20% of your energy bill, so sudden spikes often indicate inefficiency.
You’re constantly adjusting the thermostat or experiencing lukewarm water despite high settings. This forces your system to work overtime, consuming more energy to maintain desired temperatures.
It takes forever for hot water to reach your faucets and showers. This waste of water and time often indicates poor insulation or an inefficient distribution system.
Your hot water supply depletes faster than it should during normal use. This suggests your water heater is undersized, aging, or operating inefficiently.
Your water heater is approaching or exceeding its expected lifespan. Older units lose efficiency over time, requiring more energy to heat the same amount of water.
As the cost of electricity keeps rising in Australia, more households are embracing off-peak hot water systems as a choice to save money and reduce energy costs. The system takes advantage of lower electricity rates during off-peak periods, providing a smart and economical choice for budget-conscious Australians.
Here, we’ll cover the fundamentals of how off-peak hot water operates to the cost-saving potential of switching, its comparison to solar hot water, and rebates to help make the transition.
Off-peak hot water systems are installed to heat water when there is low electricity usage—generally in the morning or early evening. They are known as off-peak hours when energy providers provide lower electricity tariffs.
It works by connecting your hot water heater to an off-peak dedicated electricity tariff (e.g., Tariff 31 or 33 in Australia). Your hot water tank is reheated during off-peak hours when energy is cheaper, storing the tank with a hot water supply enough to run your household throughout the day.
Common Australian off-peak periods:
These tariffs are set by energy retailers and vary between states and suppliers.
One of the biggest draws of off-peak hot water is the ability to reduce your energy bills significantly. Water heating is one of the biggest users of electricity in Australian homes—around 25% of overall energy consumption.
Here’s how off-peak systems make you money:
For example, installing an off-peak system for a standard electric hot water heater can save a typical household $200 to $500 annually on electricity.
Let’s deconstruct how these savings work in practice. If you have four people in your household using around 200 litres per day of hot water, charged at peak rates on a continuous tariff, you might be paying 28–32 cents/kWh, while an off-peak tariff could be 12–16 cents/kWh.
The savings over 12 months add up:
Also, by coordinating your hot water system with off-peak use, you’re not just saving your bucks—you’re supporting demand reduction on the grid and making energy more sustainable.
Peak rates are the normal rates that are paid during peak hours, typically 3 pm to 9 pm, when houses draw more power for cooking, heating, and lighting. They pay extra because the demand is highest.
Contrarily:
Off-peak rates are applied during off-hours (such as late night to early morning).
Shoulder rates are in between peak and off-hours and sometimes give half savings too.
By shifting your hot water heating to off-peak hours, you’re benefiting from reduced rates that energy providers offer in a bid to shift demand across the network.
To be able to benefit from hot water off-peak, you need to properly set up your system. The following is a step-by-step process on how to adjust:
1. Check your electricity contract: Phone your energy provider and ask if off-peak tariffs are available where you are.
2. Fit a compatible hot water system: The majority of electric storage water heaters can be fitted with off-peak tariffs. Solar and heat pump systems might need to be specially set.
3. Use a timer or smart controller: These can assist with controlling when your water heater is turned on and off.
4. Hire a licensed electrician: Only a qualified electrician should modify the system’s wiring to convert it to off-peak supply.
Note: Off-peak hot water won’t function if your house uses a high rate of hot water during the day, unless you have a large tank or dual-element system.
Both systems offer energy savings, but the best option depends on your household needs and location.
Feature | Off-Peak Hot Water | Solar Hot Water |
Initial Cost | Lower (especially with rebates) | Higher upfront cost |
Running Costs | Low with off-peak rates | Very low, powered by the sun |
Ideal For | Homes with lower daytime hot water usage | Homes with ample roof space and sun exposure |
Environment Impact | Moderate | Low |
Weather Dependency | Not affected | Can be impacted on cloudy days |
Backup Required? | No | Often includes an electric or gas booster. |
• If you are fortunate enough to be in a sunny location, planning to have the space for solar panels already available, and willing to pay the higher upfront cost, then solar hot water can realise the lowest operating cost.
• If you reside in a cold region or want to economise money, off-peak hot water is a good solution to save a lot with little upfront cost.
Several rebates and incentives exist in Australia to encourage energy-efficient water heating systems, like off-peak hot water.
National & State-Based Incentives:
In some cases, energy retailers also offer discounts or upgrades free of charge for switching to off-peak systems.
Tip: Ring your state government’s energy page or your installer to find out what you’re entitled to.
Off-peak hot water systems offer an affordable, reliable, and environmentally friendly way to manage your home’s energy consumption.
Heating water using off-peak electricity hours enables you to save money without compromising comfort. Replacing a current system or searching for another option besides solar, off-peak hot water is a cost-effective and environmentally friendly solution for Australian residences.
Several reasons may require you to override your off-peak hot water system.
One common situation that many people encounter is when unexpected guests show up, and you need to accommodate a higher demand for hot water than usual. It could be relatives staying over or friends dropping by.
You certainly don’t want them to experience the discomfort of cold showers.
Another reason for overriding the peak hot water system is if you have a morning or late-night event that requires you to take a hot shower outside the regular off-peak period.
Also read: Free Hot Water Upgrade for Small Businesses
This is very useful if you want to start your day feeling refreshed after a warm shower, or perhaps you’re attending a late-night function and would like to wash away the stress of the day before going to bed.
Moreover, if you heavily rely on water for household tasks such as washing dishes or doing laundry, there may be times when it becomes necessary to override the off-peak setting to ensure a high supply of hot water throughout the day.
Fortunately, it’s not as complex as it sounds. Here’s a simple step-by-step guide that will assist you throughout the process.
Locate your hot water system’s control panel or timer. This is where you’ll find the settings and controls that determine the operation of your hot water system.
Familiarise yourself with the different settings. Take note of the “off-peak” mode and any other available modes. Understanding how these settings work will be crucial in overriding the off-peak mode.
Also read: Instant Hot Water Systems – 5 Reasons To Use Instant Hot Water Systems In 2023
Determine how your off-peak hot water system communicates with your electricity provider. This will help you decide on the best approach for overriding the system. Is there a separate meter, or does it rely on a wireless signal?
Once you’ve gained a clear understanding of your hot water system, it’s time to override the off-peak mode. Follow the instructions provided by the manufacturer to switch to the desired mode. This could either be a “boost” mode or a manual override option.
Enjoy your hot showers! Now that you’ve successfully overridden your off-peak hot water system, you can take hot showers when you want, regardless of the off-peak periods.
Also read: Hot Water Systems- Which is the Best Hot Water System in 2023?
Remember to always consult the user manual or contact a professional if you have any doubts or concerns. Now go ahead and enjoy your warm and comfortable showers!
While overriding your off-peak hot water system can give you the flexibility to enjoy hot showers at any time you desire, it’s important to be aware of the possible risks and keep the following solutions in mind.
One potential risk is increased energy usage and higher electricity bills. By overriding the off-peak mode, your system will use more hot water during peak demand periods, leading to higher rates and increased costs.
To mitigate this risk, consider setting a timer or alarm to remind yourself to remove the override once you’re done with your hot shower.
Another risk is the potential for overloading your hot water system. If multiple people in your household are taking long, hot showers or using hot water for other tasks simultaneously, it can strain the system.
To prevent this, communicate with your household members and establish a system to avoid excessive hot water usage during overriding periods.
Consider taking shorter showers or staggering hot water usage to ensure everyone gets their turn without overwhelming the system.
Also read: Best Hot Water Installer in Sydney
Lastly, overriding your off-peak hot water system may void any warranties or guarantees that came with your system. It’s essential to check the terms and conditions provided by the manufacturer before overriding the off-peak mode.
If you’re unsure about the implications, reach out to the manufacturer or a professional to get clarity and guidance.
This blog post offers a simple and straightforward method to override your off-peak hot water system with confidence, allowing you to enjoy hot showers whenever needed without any significant setbacks.