Hot water, heating and cooling systems are responsible for over 40% of your total energy usage.1 These appliances are seldom replaced until they suddenly break. Educating yourself to understand the breadth of systems on offer, and knowing what questions to ask your technician can guide you to pick the right system.

When these systems break, replacing them with a more energy efficient system can allow you to save on everyday utility bills, all while reducing your greenhouse emissions in the process. There’s even an argument for proactively replacing an aging system, so that you can realise these energy bill savings sooner, whilst also doing your part for the environment.

CommBank has a range of discounted financing solutions for eligible clean energy products such as a Green Loan and Green personal loan discount, to help you on your home energy efficiency journey.

Do you know what hot water system you have?

Hot water systems are responsible for ensuring a steady supply of hot water to your home and makes up almost a quarter of your home’s energy usage2. Knowing what hot water system you have can guide your decision making when deciding it’s time to replace it. There are many types of systems available, all with various pros and cons which relate to upfront and running costs, efficiency and greenhouse emissions intensity. We’ve outlined some of the most common hot water systems below:

  • Storage Gas Hot Water System
  • Instantaneous Gas Hot Water System
  • Storage Electric Hot Water System
  • Instantaneous Electric Hot Water System
  • Solar Hot Water System
  • Heat Pump Hot Water System

For a more detailed look at the nuances of each system, you can go to the Australian Government YourHome website.

Benefits of heat pump hot water systems

Heat pumps are the most energy efficient option when it comes to hot water systems right now. They work by drawing warmth out of the air and transferring it through a pump system to your water tank, where the stored water is heated.

The running cost of a heat pump system is comparatively lower across the life of the system – and you may even be eligible for Government rebates. For more information you can go to Connecting it to your home’s solar system can drive down your electricity bills and greenhouse emissions even further.

Choosing a new heating/cooling unit

The ideal heating and cooling system should take your climate zone into consideration but lifestyle and the size of your home also play a big part in finding the right system for you. One that’s too powerful may be using unnecessary amounts of energy while a less powerful system would need to work harder to get up to temperature. Both options could impact your energy bills significantly.

Some of the most common types of heating and cooling include:

  • Reverse cycle-air conditioners
  • In-slab floor heating
  • Wood burners
  • Gas heaters
  • Electric resistance/fan heaters

Benefits of heating/cooling your home via reverse cycle air conditioning

With a heat pump system, more commonly referred to as reverse-cycle air-conditioners, you get the best of both worlds when it comes to heating and cooling your home. The cooling function removes heat from the space and turns it into cold air while the heating function absorbs cold air from the outside and turns it into warm air. This makes reverse-cycle air conditioners not only an incredibly energy efficient addition to your home but may also help prevent your energy bills from spiking. It should also be mentioned that passive design measures such as glazed windows and insulation can be effective in maintaining an optimal home temperature and reducing reliance on additional heating and cooling.

Upgrading your hot water, heating or cooling system is not an opportunity that comes around all too often. So when it does, consider replacing it with a system that utilises a heat pump, which can help you save money on future energy bills, while reducing greenhouse gas emissions. Furthermore, moving to energy efficient electric appliances means you can consider closing off your gas connection, so you no longer need to pay the gas supply charge.

CommBank provide discounted financing solutions for eligible clean energy products such as a Green Loan and Green personal loan discount. To find out more, visit:



Things you should know

  • This information has been provided without considering your individual objectives, financial situation or needs. Before making any decisions, you should consider its appropriateness to your circumstances and consider obtaining professional advice.

    The Commonwealth Bank is not authorised and does not make any assertions about reduced consumption from non-renewable energy sources through clean energy purchases installations. Advice and further information should be sought from relevant certified industry professionals.

    CommBank Green Loan:

    Applications are subject to credit approval, satisfactory security and minimum requirements. Full terms and conditions will be set out in our loan offer, if an offer is made. Fees and charges are payable.

    Personal Loan for eligible green products:

    *Discounted interest rate is available on eligible clean energy products only and subject to verification. Find out more at

    Applications are subject to the Bank’s lending criteria and credit approval. View the Personal Loan Terms and Conditions. Full terms and conditions will be included in our loan offer. Fees and charges may apply. 

    For more information about Target Market Determination (TMD), please refer to the TMD

    Commonwealth Bank of Australia ABN 48 123 123 124, Australian credit licence 234945.