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Installation and Operation Tips
The installation and use of your hot water system has substantial influence on its running costs and life span.

General
Keep hot water pipe runs as short as possible to minimise the heat losses from pipes. Have your hot water system installed as close as possible to all points of hot water use. If this isn't possible, locate it close to where small, regular amounts of hot water are drawn off (usually the kitchen).
If buying a gas hot water system, look at the star rating labels - the higher the stars the more energy efficient the hot water system.
Consider installing a low flow shower head, or fit a flow restricting valve to existing shower heads (see information on instantaneous systems below).
Maintain your system as required and have it serviced according to manufacturer's instructions.
Install solar hot water collector panels facing as close to north as possible.
Have a registered plumber rectify any problems of 'water hammer'.

Storage hot water systems
To save money with a storage system, ask your installer to set the thermostat to 60°C and ensure you know how to turn it off when you go away on holidays.
Consider installing a timer on electric storage units to reduce hot water availability when you don't need it.
Turn off your storage hot water system if you are going away for more than a weekend.
If you decide on a storage hot water system, estimate your hot water needs as accurately as possible to ensure your tank is not oversized for your household.
Insulate the first two metres of the hot water pipe leading from the hot water system, as well as the pipe leading from the relief valve. Insulating these pipes will reduce the heat loss from the pipes which would otherwise occur even if no hot water is being used.
Insulating all hot water pipes is usually not cost effective and only results in small energy savings. Insulation should be considered where long pipe runs occur, where pipe runs are in exposed situations on the outside of the house and/or in areas with very cold winters.
Gas storage systems usually reheat water more quickly than electric storage systems. This means that the size of the storage tank can usually be smaller for gas hot water systems than electric hot water systems, without compromising your hot water requirements.

Instantaneous hot water systems
Adjust the setting on a gas instantaneous hot water system to produce a comfortable temperature throughout the year. Some have electronic temperature controls which can be adjusted from a control unit inside the house.
Electronic ignition uses a lot less energy over the year than a gas pilot light. Electronic ignition units use no gas at all when not being used. However, be aware that mains electricity ignition systems may not supply hot water during power 'blackouts'.
Some low flow showerheads are not compatible with some instantaneous hot water systems as they can restrict the flow of water to the extent that the hot water system turns off. Ensure you select a showerhead that is suitable for the flow rate from your hot water system.
Unlike storage hot water systems, there is no need to insulate the first few metres of pipes from instantaneous systems. However, insulation should be considered where long pipe runs occur, where pipe runs are in exposed situations on the outside of the house and/or in areas with very cold winters.