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Electrifying The Home: Why Hot Water Is The First Step To Net-Zero Living

  • Writer: Michael Pietro-Paolo
    Michael Pietro-Paolo
  • Apr 14
  • 5 min read

Updated: Apr 15



Key Takeaways


  • Significant Energy Impact: Water heating accounts for roughly 16%* of the average Australian home's energy use.

  • Low Global Warming Potential: Using a CO₂ refrigerant system like Daikin’s offers a GWP of just 1, making it a leader in sustainability.

  • High Efficiency Performance: Modern heat pumps move heat rather than creating it, making them far more efficient than gas or traditional electric units.

  • PFAS And Lead Free: Choosing a system with natural refrigerants ensures your home is free from harmful chemicals.

  • Solar Synergy: You can use your hot water tank as a "thermal battery" to store excess solar energy during the day.


Electrifying your hot water is the single most effective move you can make to lower your household emissions. While many homeowners focus on solar panels or electric vehicles, the heavy lifting of a net-zero home starts with how you heat your water. It is the "low-hanging fruit" of sustainable living because the technology is ready and the impact is immediate. We have designed this guide to help you understand why your hot water system is the key to a cleaner future.


Why Hot Water Drains Your Energy


Heating water is a massive task that happens behind the scenes every day. It is often the second-largest energy expense in an Australian home*, right after heating and cooling. Because we use hot water for showers, laundry, and dishes, the energy required to keep that water at temperature is constant.



Most Australian households spend about a quarter of their total energy budget just on hot water. If you are already looking for ways to cut your energy bills on your heating and cooling, focusing on hot water is the logical next step. Switching to a modern electric heat pump changes the math entirely, allowing you to reduce that massive energy drain without changing your daily habits or sacrificing comfort.


The Environmental Case For Moving Away From Gas


Gas was once considered the cleaner alternative to coal-fired electricity. That is no longer the case as the Australian grid becomes greener with wind and solar power. Burning gas directly in your home releases carbon dioxide and other pollutants. To reach a truly net-zero lifestyle, we must remove combustion from our daily lives.


Many Australian states are already leading the way, with new builds in some regions no longer allowed to connect to the gas network. By choosing to transition to electric hot water now, you are aligning your home with a renewable future an all-electric home powered by renewable energy is the only way to eliminate your household's operational emissions.


The Role Of CO₂ Refrigerant In Sustainable Living


Not all heat pumps are created equal. One of the most important factors for a net-zero home is the type of refrigerant used. Daikin’s CO₂ Heat Pump Hot Water system uses natural CO₂ (R744) refrigerant. This matters because CO₂ has a Global Warming Potential (GWP) of just 1. It already exists naturally in the air we breathe.


Traditional refrigerants often have a much higher impact on the environment if they leak. By using a natural refrigerant, you are choosing a system with zero ozone depletion potential.


The components and fittings are also designed to be Lead and PFAS-free. Couple that with an all stainless steel tank and you have a complete hot water solution that puts your health first and minimises your environmental footprint as much as possible.


How Heat Pump Technology Changes The Equation


Heat pumps are a total game changer for home efficiency. Unlike traditional electric heaters that use a "kettle-like" element to create heat, a heat pump does not create heat at all. Instead, it extracts thermal energy from the ambient air and transfers it into your water. By understanding how heat pump technology works, you can see why it is so much more efficient than gas.


This process is incredibly efficient. For every 1kW of electricity the system uses, it can transfer up to 6kW of heat energy from the air outside**. This massive leap in performance is why electrifying hot water in Australia is such a popular choice for those looking to save money and the planet.


Future-Proofing Your Home In Victoria, New South Wales, And Tasmania


The Daikin CO₂ Heat Pump Hot Water System is currently available for homeowners in Victoria, Tasmania, New South Wales and Australian Capital Territory. Transitioning to electric hot water protects you from fluctuating gas prices and changing regulations. Modern electric systems are designed to last for a long time and require very little service and maintenance.


By planning your upgrade now, you can take control of your home’s energy future. An all-electric home is also more attractive to buyers who are looking for sustainable, low-cost properties. It is a move that adds value to your home while reducing your monthly outgoings.


Connecting Hot Water To Your Solar Strategy


If you have solar panels, your hot water system can become a brilliant energy storage tool. Instead of sending your excess solar power back to the grid for a small credit, you can use that energy to heat your water during the day. This turns your hot water tank into a "thermal battery."


This strategy maximises your solar investment and reduces your reliance on the grid at night. It is a simple and logical way to make the most of the resources you already have. If you are in the planning stage, it is worth exploring what to consider when buying an air conditioner to see how a complete home electrification plan could work for you.


Find Your Local Daikin Hot Water Specialist today to request a quote and see how much you can save on your journey to net-zero living.


FAQs


Is it hard to switch from gas to electric hot water?

Not at all. A Daikin Hot Water Specialist can assess your current setup and handle the transition. Most of the work involves standard plumbing and electrical updates that can be completed in a single day.


Why is CO₂ refrigerant better than others?

CO₂ is a natural refrigerant with a Global Warming Potential of only 1. It is much safer for the environment than synthetic refrigerants and provides excellent heat transfer performance even in colder climates.


Where is the Daikin CO₂ Heat Pump available?

The system is currently available to residents in Victoria, Tasmania, New South Wales and Australian Capital Territory. This ensures that local Daikin Hot Water Specialists can provide the best installation and support for your region.


How much can I save by switching to a heat pump?

While savings vary, many households see their water heating costs drop significantly compared to gas or old electric systems. The savings are even higher if you pair the system with solar panels or off-peak electricity.


What is a net-zero home?

A net-zero home relies entirely on carbon-free energy sources or produces as much energy as it consumes. Removing gas and using high-efficiency electric appliances like a CO₂ heat pump is the most important part of this goal.


 *Source: Department of Climate Change, Energy, the Environment and Water (energy.gov.au

**For more information on heat pump technology, see (Back to Basics: Heat pumps - Energy Efficiency Council)

Our Daikin Expert


Michael Pietro-Paolo is the National Sales Manager – Domestic Hot Water at Daikin Australia, specialising in residential hot water solutions. He works closely with Product & Marketing, Engineering and Sales teams to deliver efficient, reliable systems designed for everyday use in Australian homes.



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