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