Electricity tariffs charged by the South African electricity supplier (Eskom) have sharply increased over the past three years and there is no indication of what to expect in the future with regard to electricity tariffs. Many South Africans are searching for ways to save on their monthly electricity bills by seeking out alternative water heating systems. The purpose of this study is to determine the most financially viable alternative water heating system for a household in South Africa using various investment appraisal techniques and taking into consideration the size of the household. The study found that the five investment options identified in the literature review would all, to some extent, be financially viable to implement within households with high, as well as low, volume hot water consumption. Although some of the water heating systems were found to be more financially viable than others, the conclusion was made that a savings will be generated on the monthly electricity bill no matter what alternative water heating system was to be installed in the place of a conventional geyser.