Electric water heating, particularly heat pump hot water, can significantly reduce the energy needed to produce hot water. For businesses with high hot water demand, this can mean lower operating costs, fewer emissions and a more efficient energy system.
Heat pump water heating can produce several units of heat for every unit of electricity it consumes. This makes it significantly more efficient than traditional fossil-fuel systems.
For businesses with high hot water demand, such as accommodation providers, hospitality businesses, gyms and other commercial facilities, these efficiency improvements can translate into substantial operating savings.
The financial case will depend on your current system, fuel costs, hot water demand and the type of replacement system. Two examples are shown below from analysis that QEA have carried out.
Queenstown Resort College
$107,000 anticipated savings each year in energy costs
162t of annual reduction in CO2e operational emissions
Rendezvous Heritage Hotel Queenstown
$171,239 anticipated savings each year in energy costs
Businesses across Queenstown Lakes are already replacing fossil-fuel water heating systems with efficient electric alternatives and reducing their operating costs.
Explore all Local Stories
Queenstown Resort College
Queenstown Resort College is progressing plans to replace the LPG hot water system at its Shotover Lodge in Arthurs Point with an efficient hot water heat pump system, following the identification of significant potential cost and emissions savings.
Kinloch Wilderness Retreat
Kinloch Wilderness Retreat uses hot water heat pumps across several accommodation areas, supported by solar and battery storage to create an efficient, renewable energy system that helps reduce operating costs.
Rendezvous Heritage Hotel Queenstown
Rendezvous Heritage Hotel is exploring replacing its LPG hot water system with efficient electric hot water heat pumps to reduce energy costs and emissions.
Explore current programmes and support that can help your business understand the opportunity and take the next step towards electrifying its hot water system.
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Get expert support to identify, assess and deliver electrification projects, from initial advice through to business cases, feasibility studies and implementation.
Learn MoreYes. Commercial heat pump water heating systems can be designed for businesses with significant hot water requirements, including accommodation, hospitality, recreation and other commercial facilities. The system needs to be correctly sized for your demand profile.
Yes. If your business has solar panels, a heat pump hot water system can be scheduled to operate during periods of high solar generation. This allows you to use more of your own electricity and reduce the amount you need to buy from the grid.
Yes. Hot water cylinders can store energy as heat, allowing businesses to shift some electricity use to times when energy is cheaper, solar generation is available or site demand is lower.
Not always. Depending on your existing setup, it may be possible to replace only part of the system or integrate new heat pump equipment with existing storage. A site assessment can help identify the most practical option.
Yes. Moving away from delivered fuels can reduce exposure to fuel supply disruptions and price fluctuations. When combined with solar, batteries and sufficient hot water storage, electric water heating can also give your business greater flexibility over when and how energy is used.
Start by understanding your current hot water system, how much energy it uses and what it costs to operate. QEA can help identify electrification opportunities and assess whether heat pump hot water could provide financial and operational benefits for your business.
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