Flexible Hot Water

Water heaters are one of the most energy intensive appliances in our homes.  

Until now, most have operated in the early hours of the morning. But that will soon change for some customers as we launch a new trial. 

Our trial will allow households with electric water heaters to use energy from Victoria’s large number of rooftop solar installations, which create an abundance of low-cost, renewable energy during the day. 

Switching a portion of some customers’ water heating to the middle of the day will help us to balance the network and maintain a safe, reliable supply of power to all customers as the energy transition progresses.  

How does it work?  

Today, more than 140,000 of our customers connect their hot water systems to a controlled load circuit. This allows us to remotely adjust the time when these devices operate. 

The controlled load tariff was first developed to increase energy consumption in the early hours of the morning. 

Now, by shifting the hot water fleet to the middle of the day when solar energy is abundant, we can make the most of the growing supply of renewable energy and avoid the need for additional investment in poles, wires and other network infrastructure. This helps to put downward pressure on network costs and provide affordable energy to customers. 

Households subscribed to controlled load tariffs don’t need to do anything to make the change. We will use their smart meter to remotely change the switching schedule and shift a portion of their water heating to the middle of the day. 

Can I join the trial? 

We will begin switching existing controlled load customers to daytime water heating in mid-2025. Customers will be notified before the changes are made and invited to share their experiences through an ongoing engagement process. 

At the completion of the trial, we will evaluate the findings to inform our next steps. 

Customer surveys

We want to understand trial participants’ experiences, so we have engaged Quantum Market Research to conduct surveys on our behalf. If you are part of the trial, we may have shared your name, contact information and details of the service provided with Quantum. This is only for survey purposes.

Quantum may contact you via text, an email or phone. If you have been contacted by Quantum, rest assured that this research has been commissioned by us and the links in their emails and texts are legitimate. The questions they will ask are about the services we are providing to you only. Quantum will never request additional identifying information, financial details or details about your computer and mobile devices.

We appreciate your participation in the survey and will use your anonymised feedback to gather insights about the flexible hot water trial. If you have any questions about the research, you can contact us or email Quantum via surveys@qmr.com.au or refer to their website https://qmr.com.au.

FAQs

Why are hot water systems being shifted to operate during the day?

The popularity of rooftop solar is creating a surplus of electricity during the day. Operating hot water systems during these times will help us to manage demand across the network and reduce the need for investments in additional poles, wires and other network infrastructure. 

Documents and resources