If you have solar panels, your hot water system can play a big role in how much value you get from your solar energy.
Many households generate the most solar power during the middle of the day, but use the most hot water in the morning or evening. That mismatch can mean solar energy is exported to the grid during the day, while your hot water system still heats at other times when electricity may cost more.
The right setup can help change that.
By timing your electric storage, heat pump or solar hot water booster to run during the day, you may be able to use more of your own solar power and reduce how much electricity your home draws from the grid.
Which hot water systems work best with solar panels?
Some hot water systems are better suited to solar energy than others.
| Hot water system type | How it can work with solar panels |
| Electric storage hot water | Can heat during the day and store hot water for later. |
| Heat pump hot water | Uses electricity efficiently and can often be scheduled during solar hours. |
| Solar hot water with electric boost | Uses the sun to heat water, with electric boosting when needed. |
| Gas hot water | Has less direct benefit because the main heating source is gas. |
For homes with rooftop solar, electric storage and heat pump hot water systems can be strong options because they may be able to run when your panels are producing power.
How to get more value from solar and hot water
The best use of solar panels with your hot water system usually comes down to timing and control.
If you have an electric storage system, it may be possible to heat the tank during the day while your solar panels are generating electricity. This can help reduce the amount of solar power exported to the grid.
If you have a heat pump, you may be able to set it to run during the strongest solar generation period. Heat pumps are often a good match for solar because they use electricity efficiently and can store heated water for later use.
If you have a compatible smart hot water heater, you may be able to use their app to set a timer and schedule heating during the best part of the day for your household.
Before changing any settings, check how your system is connected. Some hot water systems run on controlled load tariffs, which may limit when they heat. Others may be connected to general supply or controlled by a timer, app or smart controller.
Where the Solar Sharer Offer fits in
The Solar Sharer Offer is another reason to think carefully about when your hot water system runs.
From 1 July 2026, eligible households in New South Wales, South East Queensland and South Australia are expected to be able to access at least three hours of free electricity during the middle of the day. The offer is designed to encourage households to use more power when there is excess solar energy available across the grid.
A common misconception is that you need rooftop solar panels to access the Solar Sharer Offer. You do not. The offer is about using electricity when the grid has more solar energy available, not whether your individual home produces solar power.
For hot water, the connection is simple. If your system can be timed to heat during the free daytime window, it may help you make better use of the offer. This is especially relevant for electric storage, heat pump and solar hot water systems with electric boosting.
What should you check?
To get the best use of solar panels with your hot water system, check:
| What to check | Why it matters |
| Your system type | Electric, heat pump, solar and gas systems work differently. |
| Your system controls | A timer, controller or app can help schedule heating during solar hours. |
| Your tariff | Controlled load or time-of-use tariffs can affect when your system runs. |
| Your smart meter | A smart meter may be needed for time-based offers like Solar Sharer. |
| Your household usage | Larger households may need more stored hot water available at peak times. |
Need help using solar with your hot water system?
The goal is not to use less hot water at all costs. It is to heat water at the smartest time, while still having enough hot water when your household needs it.
Australian Hot Water can help you compare electric, gas, solar and heat pump hot water systems based on your household, energy setup and solar use.
If you are not sure whether your system can be timed, whether you have the right controls, or whether your current setup is making the best use of your solar panels, get in touch with Australian Hot Water for practical advice.