☀︎SunTariff

How much does it cost to run a electric storage hot water system? (2026–27)

At typical draw · official state tariffs

$0.99–$1.51 per hour at 3,600 W

Typical household use — 6 kWh a day — runs $602–$918 a year depending on your state's tariff.

Wattage basis: Standard single-phase element = 3.6 kW; daily energy ~6 kWh is the study-backed midpoint (Adelaide University 410-home study).

Electric hot water running cost by state at typical draw (2026–27 reference tariffs)
StateTariff c/kWhPer hourTypical year
New South Wales33.1c$1.19$726
Victoria27.5c$0.99$602
Queensland28.0c$1.01$613
South Australia41.9c$1.51$918
Western Australia33.3c$1.20$728
Tasmania28.0c$1.01$612
Australian Capital Territory37.0c$1.33$809
Northern Territory31.7c$1.14$694

Appliance running-cost calculator

NSW

Electric hot water: 1,800–4,800 W typical range.

The element heats ~3–5 h/day, often overnight on controlled load; daily energy spans ~2 kWh (single person) to ~10 kWh (large family).

$1.19 per hour · $1,742/year at your settings
Per day (4 h)
$4.77
Per month
$145.06
Per year (365 days)
$1,741.69

Tariff: 33.1c/kWh — AER Default Market Offer 2026–27 (DMO 8) for the Ausgrid network, effective 1 July 2026. Wattage basis: Same Day Hot Water — hot water electricity use. Full electric hot water costs in NSW →

Cutting the cost

If you have a standard electric tank, ask your retailer about a controlled-load (off-peak) tariff so it heats overnight at a cheaper rate. Insulate any exposed hot-water pipes, fix dripping hot taps promptly, and fit water-saving showerheads, since most of the cost is heating shower water. Set the thermostat to a safe, sensible level rather than scalding hot. Going away for a while? Switch it off at the tank.

Frequently asked questions

How is the running cost calculated?
Watts ÷ 1,000 × your electricity rate = cost per hour. A electric hot water drawing 3,600 W on a 33.1c/kWh tariff costs $1.19 an hour — the calculator above lets you change every input. For this appliance the yearly figure uses its measured energy per use rather than a constant draw.
Does a higher star rating cut the cost?
Yes — the star rating compresses the power draw or energy per use, which scales this page's figures directly. The low–high band in the table (1,800–4,800 W) roughly spans efficient to inefficient models.
Why does the state matter?
The appliance draws the same power everywhere — but each state's reference usage rate differs, so the same hour of running costs $0.99 in the cheapest state and $1.51 in the dearest. Pick your state above for exact figures.

Related

Sources — figures current as at 17 July 2026.

Costs use each state's representative-zone reference usage rate, effective 1 July 2026. The element heats ~3–5 h/day, often overnight on controlled load; daily energy spans ~2 kWh (single person) to ~10 kWh (large family).