Man and woman looking at an energy bill

Why is my energy bill so high? 3 reasons why you’re spending too much on energy bills

Are you noticing that your energy bills are higher than usual? If you dread looking at your bills, it’s time to take action to ensure your hip pocket doesn’t keep taking a hit. With Australia’s cost of living amongst the most expensive on the planet, reducing your energy consumption is one of the best steps you can take towards greater financial freedom. 

In this article, we will explore three factors that could explain why you are spending too much on your energy bills. We will also provide some smart solutions that will help you and your family enjoy greater energy savings.

1. Only powering your home using the grid

If you power your home by drawing all your energy from the grid, you will feel the full brunt of any rise in electricity costs. Heating and cooling makes up approximately 40% of an average energy bill, so sudden changes in electricity prices can result in a huge hit on your budget.

More and more people are switching to solar power and reducing their reliance on the grid by harnessing the sun’s free energy. In fact, Australia has the highest uptake of solar in the world, with more than 3 million rooftop solar power systems installed across the nation. 

And it’s easy to see why. A typical family, with a 6kW solar power system, could enjoy savings of up to $1,500 on their annual energy bills¹. Also, according to Solar Citizens², households with solar power have bills that are approximately 20 per cent lower than households without solar technology.

Find out more about how solar power works here.

2. Still heating water with an old gas or electric water heater

Hot water typically accounts for around 25% of a household’s energy use3, with one of the main contributors being those long relaxing showers. However, what is not so relaxing is the significant impact an inefficient electric or gas water heater can have on your overall energy bill.

Switching to solar hot water, a new PowerStore system, or a heat pump is a great way to reduce your energy consumption since they use much less grid energy. 

Solar Hot Water

Solar hot water is Solahart’s original and proven solar product that uses the heat from the sun to provide hot water. According to the Solahart Solar Index Report, installing a solar hot water system can reduce your hot water energy usage by up to 65 per cent4. Also, installing a solar hot water system can you help you reduce your greenhouse gas emissions by 1.6 to 2.7 tonnes, which is equivalent to taking an average 4-cylinder car off the road.

Find out more about solar hot water here 

couple discussing power bill

Solahart PowerStore

If you already have solar power or are thinking of going solar, you could consider Solahart PowerStore, Australia’s’ first solar-smart electric water heater.

A Solahart PowerStore system takes excess energy from your solar power system and uses it to gradually heat water rather than allowing it to be fed back into the grid. Like a battery, it stores energy – but it’s more affordable.

Combining a Solahart PowerStore® system with a compatible Home Energy Management System (HEMS) will result in more significant savings.

Find out more about PowerStore here.

modern pebble house with solahart powerstore

Heat Pump Water Heater

heat pump uses the surrounding air to heat your water, which is another great way to reduce your energy consumption. It can usually be installed in the same location as your outdoor storage water heater and can often be connected to your existing plumbing and electrical system, making it an easy and financially rewarding replacement.

In fact, if you replace your electric water heater with a Solahart Atmos-Frost Heat Pump, you could save up to 68% on your hot water energy consumption5.

It’s also good to know that both solar hot water and heat pump systems qualify for Small-Scale Technology Certificates (STCs), helping you reduce the up-front cost of your purchase.

Find out more about heat pumps here.

Woman relaxing in hot bath

3. Appliance usage habits

Increasing the amount of energy you generate from renewable sources is one of the best ways to reduce your bills. But reducing the amount of household energy you use by choosing more efficient appliances can also make a big difference.

When shopping for your key appliances such as refrigerators and dishwashers, it’s a good idea to review their energy efficiency ratings. Older, inefficient appliances may seem like a cheaper option, but they can result in much higher costs in the long term, especially if you are running them with power from the grid.

To make even bigger savings, you can track the energy usage of your appliances with Solahart’s Energy Management Unit. This intelligent device, which can be added to any solar system, allows you to bring your appliances and energy generating devices together under one monitoring and control platform. You can then analyse your live energy data anytime, anywhere with the atHome App.

Also, the Energy Management Unit automatically shifts controllable loads away from expensive peak times, helping you to self consume more solar power and save even more on your energy consumption. To find out more about this smart technology, contact Solahart.

two washing machines in the laundry

Contact us today to find out more

Solahart Solar-Ready water heater is a smart choice because it provides an immediate solution to your hot water needs right now and also gives you the flexibility to upgrade and save on your energy costs in the future.

Whether you need a simple solution to get back into hot water quickly, a solar water heater from day one, or the option to upgrade to energy-saving solar in the future, you’re in control.

And no matter which option you choose, enjoy the extra peace of mind with a 10-year cylinder warranty.


1: Solahart Warranty Details: 10/3/2 warranty; 10 year cylinder and collector supply, 3 year cylinder and collector labour, 2 year parts supply including labour; applies to a single family domestic dwelling only. All other applications have a 3/1/1/1 warranty; 3 year cylinder and collector supply, 1 year parts supply, 1 year labour.

2: Energy savings of up to 65% shown is based on Australian Government approved TRNSYS simulation modelling of a Solahart 302L and using a medium load in Zone 3 and apply when replacing an electric water heater. Any savings will vary depending upon your location, type of Solahart system installed, orientation and inclination of the solar collectors, type of water heater being replaced, hot water consumption and fuel tariff. Maximum financial savings off your hot water bill are achievable when replacing an electric water heater on continuous tariff. Refer to for further information.

3: For a Solahart Solar Hot Water system, each STC represents 1 megawatt-hour (MWh) of electricity displaced over a 10 year period. The number of STC’s which may be created for the installation of an eligible solar water heater varies with the size and model of the solar water heater and the region (or zone) in which the unit is installed. The value of an STC is not fixed and varies depending on market factors.

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