Hot water is now a modern necessity. But the cost you’re paying for it might be heating more than just […]
Comparing the hot water systems
When it comes to hot water systems, there are several types. Electric, solar, gas, and heat pump systems are all popular choices, but which one is the best hot water system for Australian homes?
To answer that question, we need to consider a few different factors. Electric systems are typically the most expensive option when it comes to energy costs.
Solar systems can be more expensive to install, but they offer long-term savings on energy bills. Gas systems tend to be a cheaper alternative to electric systems to operate, but they can have a significant impact on the environment.
Heat pumps in Sydney are becoming increasingly popular due to their high energy efficiency, low energy consumption, and low cost to run.
So, which is the best hot water system for your property?
Heat Pump Hot Water System
When it comes to hot water systems, there are a lot of different options on the market.
But if you’re looking for an efficient way to heat your water without breaking the bank, a heat pump system is a great choice.
Heat pump water heaters work by using electricity to transfer heat from the air into the water. Meaning they can operate even when electricity prices are high and still won’t hurt the bank.
They can provide a household with all the hot water they need, even if multiple people are taking showers. Plus, because heat pump units don’t generate their heat, they don’t produce any greenhouse gases.
So if you’re looking for an efficient and environmentally-friendly option, a heat pump hot water system is the way to go.
Due to government hot water rebates, you may be eligible to get this installed for the crazy price of just $33* down payment, supply and installation!
**For optimum efficiency, the system shouldn’t be installed indoors**
✅ Why Buy a Heat Pump Hot Water System
Energy Efficiency – Heat pump systems use significantly less electricity than conventional electric water heaters because they extract heat from the air, making them highly efficient and reducing energy bills.
❌ Why Not Buy a Heat Pump Hot Water System
Higher Upfront Cost – Heat pump systems are typically more expensive to purchase and install compared to traditional electric or gas water heaters, which can be a barrier for some homeowners.
Gas Hot Water Systems
A natural gas system heats water using natural gas.
A storage tank is used to hold the hot water until it is needed, and the amount of hot water that can be produced will depend on the size of the storage tank. To heat the water, a gas burner is used to heat a metal coil.
As the metal coil heats up, it transfers the heat to the water in the storage tank.
When you turn on your hot water tap, cold water enters the storage tank and displaces the hot water. The hot water then flows out of the storage tank and into your home.
Gas hot water systems are generally more energy-efficient than electric systems, but they do require regular maintenance to keep them running properly.
✅ Why Buy Gas Hot Water Systems:
Lower Running Costs – Gas is often cheaper than electricity, especially for heating water, leading to lower energy bills over time.
❌ Why Not Buy Gas Hot Water Systems:
Gas Connection Required – They require a natural gas connection, which may not be available in all areas or could be costly to install if not already in place.
Solar Hot Water Systems
Solar hot water units are a great way to heat water using the power of the sun. A solar water system can be used to heat water for domestic use or for commercial and industrial applications. Solar hot water systems work by solar panels absorbing sunlight and converting it into heat energy.
This heat energy is then transferred to a fluid, which is circulated through a solar hot water system.
The fluid in the system is then used to heat water in a storage tank. They are a great way to save money on your energy bill, and they are also good for the environment.
✅ Why Buy Solar Hot Water Systems
Reason: Lower energy bills over time
Solar hot water systems use free energy from the sun, reducing your reliance on electricity or gas, which can lead to significant long-term savings on utility bills.
❌ Why Not Buy Solar Hot Water Systems
Reason: High upfront installation cost
The initial cost of purchasing and installing a solar hot water system can be quite high, which may not be affordable for everyone or justified if you don’t plan to stay in the same property long-term.
Electric Hot Water Systems
Electric hot water systems are a type of water heating that uses electricity to heat water.
Electric water systems are usually more expensive to operate than other types of water heating, such as gas. Electric hot water systems often have higher running costs. They are typically easier to install than other types of water heaters.
Electric systems use electricity to heat water, so there is no need for a flue or chimney. Electric hot water systems are usually much quieter than other types of water heating.
These systems are available in a variety of sizes and styles to suit your needs.
Electric water systems are a popular choice for many homeowners to keep their water hot, but seem to be a rising issue due to increases in electricity prices.
✅ Why Buy Electric Hot Water Systems:
Energy Efficiency in Well-Insulated Systems – Modern electric systems with good insulation can be highly efficient, converting nearly all the electricity into hot water with minimal heat loss.
❌ Why Not Buy Electric Hot Water Systems:
High Operating Costs in Areas with Expensive Electricity – If electricity prices are high in your area, running an electric hot water system can be more expensive over time compared to gas or solar alternatives.
Comparing the average minimum and maximum prices of different types of hot water systems
| System Type | Average minimum price | Average maximum price |
| Electric – “storage” type | $450 (25 L) | $1900 (400 L) |
| Electric – “instant” type | $660 | $1400 |
| Gas – “storage” type | $850 (135 L) | $1700 (360 L) |
| Gas – “instant” type | $750 | $1800 |
| Solar – Roof-mounted (electric boost) | $3600 | $4800 |
| Solar – Split system (electric boost) | $3900 | $6000+ |
| Solar – Split system (gas boost) | $4900 | $6800+ |
| Heat pump | $3300 (160 L) | $4600 (315 L) |
Best Hot Water System: The final verdict:
There’s no one-size-fits-all—it depends on your budget, home, and energy goals.
On a tight budget?
- Electric: Cheapest to install, but more expensive to run over time. Best for short-term use or small households.
- Basic Gas: Slightly more costly upfront than electric, but cheaper to run. A good middle-ground option.
Looking for long-term savings?
- Heat Pump: Uses air to heat water, making it energy-efficient. Higher upfront cost but much lower running costs.
- Solar: Harnesses the sun’s energy. After installation, you’ll see major savings on energy bills.
No roof space?
- Instant Gas: Heats water only when needed, saving space and energy. No storage tank required.
- Heat Pump: Doesn’t need roof panels—can be installed on the ground, ideal for smaller homes.
Want the greenest option?
- Solar with an electric or gas booster: This reduces your carbon footprint the most. The booster ensures you have hot water even on cloudy days. Best for eco-conscious households.
