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solar diverter for hot water worth it

The question, put plainly: Should I heat my hot water with solar instead of exporting it?

The short answer

Often yes, because a hot water tank is cheap thermal storage. Using surplus solar to heat water avoids paying retail rates at night and earns far more than exporting the same energy.

TradieAnswers editorial · written in-house and sourced to the authorities listed below

Checked against 5 published sources, listed in full at the end of this page. How we source this

The arithmetic is straightforward once feed-in tariffs are low. Exporting a unit of energy earns the feed-in rate. Using it to heat water avoids buying a unit later at the retail rate, which is substantially higher. On most current tariffs, self-consumption is worth several times export.

Ways to do it

  • A timer on an existing electric storage system, set to heat in the middle of the day rather than overnight. This is the cheapest option and often the best value.
  • A dedicated diverter that sends only surplus energy to the element, so it never draws from the grid.
  • A heat pump hot water system on a daytime timer, which uses roughly a third of the energy of a resistive element for the same output.

Things to check first

  • Whether the system is on a controlled load or off-peak tariff, since moving to daytime heating may mean leaving that tariff and changing the metering.
  • Whether the tank is large enough to hold a day's hot water, because the point is to store energy rather than heat on demand.
  • Tank insulation and standing losses, which are worse on old units and eat the benefit.

Sources

Every source below was fetched and its response recorded on the date shown. Where a government site blocks automated clients, that is noted rather than reported as a successful check.

  1. Hot water systems · energy.gov.auChecked 2026-08-10 · responded 200 OK
  2. Hot water systems · Your Home (Australian Government)Checked 2026-08-10 · responded 200 OK
  3. Energy Made Easy · Australian Energy RegulatorChecked 2026-08-10 · responded 200 OK
  4. Energy Rating · Australian GovernmentChecked 2026-08-10 · responded 200 OK
  5. Cheaper Home Batteries Program · energy.gov.auChecked 2026-08-10 · responded 200 OK

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