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Which is The Best Hot Water System in 2024?

Which is The Best Hot Water System in 2024?

Last updated on December 10, 2024

What Are the Most Efficient Hot Water Systems in Sydney in 2024?

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 most efficient? 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 cheap price to run.

So, which hot water system is best for your property?

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* downpayment, supply and installed!

eco alliance heat pump hot water

**For optimum efficiency, the system shouldn’t be installed indoors**

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.

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. 

solar hot water system
Solar Hot Water System

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.

Electric Hot Water Systems

Electric hot water systems are a type of water heating that uses electricity to heat water. 

Electric hot water system
Electric Hot 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.

Don’t Wait Until Your Old Tank Burns Out – Plan Your Next Purchase Now!

There’s nothing worse than stepping into a cold shower first thing in the morning. Or worse yet, running out of hot water in the middle of your shower! If your old tank is on its last legs, now is the time to start planning your next purchase.

Heat pumps are a popular choice for hot water systems. They work by drawing heat from the air and using it to heat water. Providing a continuous flow of hot water. They heat water as it flows through the system, so there’s no risk of running out of hot water.

Whichever heating method you choose, make sure you do your research and buy from a reputable brand. That way, you can be sure your new system will provide years of reliable hot water. Ask us about how you can receive a government rebate to upgrade your hot water system for just $33 today!*

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Unit Type and Size

Generally, the type and its size are the biggest factors that determine the price. There are two major models of hot water systems – storage systems and instantaneous flow systems

1. Storage Hot Water System

As the name suggests, this model only stores hot water for use when needed. 

It uses tanks made of various types of materials and sizes to store hot water. 

A storage system uses heating elements to heat a tank of water, however, when stored water is used up, the hot water is not available until the tank is refilled and reheated. 

2. Instantaneous Hot Water System

Instant water systems do not have tanks to store the hot water; instead, they heat the water as needed by drawing large amounts of energy to heat the water on demand. 

Because of the unlimited hot water provided by the instantaneous hot water system (as opposed to storage systems), and their ability to save energy in some cases, they are becoming more popular.

Most of the different types are available in both models (storage and instantaneous) as we will discuss below. We will look at the features and prices of different types of water systems like Electric, Gas, Solar, and Heat pump.

Electric Hot Water System Prices, Pros – Cons

These systems come in two main types: 

  • storage
  • instant

The electric storage system is one of the most popular systems used in Australia. It uses heating elements to heat a tank of water that varies in size from about 25L on the low end to more than 400L. 

This hot water system is cost-effective when purchasing and installing it. Small sizes of electric storage hot water systems are priced at around $450, while the larger models, which often use two heating elements for faster warming, are priced at up to about $1900.

The electric instant system has no tank to store hot water. It heats water on-demand by drawing high amounts of power. If you do not use large amounts of hot water, this system uses less energy compared to electric storage units. The electric instant systems are priced in the range of $680 to $1600 (product only). 

Pros of an electric hot water system

The following are the advantages of an electric hot water system:

  • It is easy to install.
  • It has low upfront costs.
  • It is reliable.

Cons of an electric hot water system

The following are the disadvantages of an electric hot water system:

  • If it does not run on renewable sources of energy, it is not environmentally friendly.
  • It proves to be expensive in the long term

Gas Hot Water System Prices, Pros – Cons

Similar to the electric system, gas hot water systems are also available in the instantaneous and storage versions. However, these different models are similar in price. 

The high temperature at which gas burns makes this system faster and more efficient. The gas system works by using a gas burner, usually located at or below the storage tank, to heat the water. The price of a 135L gas hot water system starts at around $850, while the 360L system ranges at about $1800. 

With an instantaneous gas system, there has to be a constant flow of gas if you want to consistently enjoy hot water. Instantaneous gas systems are usually priced from about $750 to $1900, subject to the number of simultaneous taps or water outlets that the device serves.

Pros of a gas hot water system

The following are the advantages of a gas hot water system:

  • It has a quick heat recovery time.
  • It has lower usage rates compared to electricity.
  • It is cost-effective in the long term.

Cons of a gas hot water system

The following are the disadvantages of a gas hot water system:

  • It can lose heat quickly in the absence of insulation.
  • It must be installed outside or be fitted with an exhaust fan inside. 

Solar Hot Water System Prices, Pros – Cons

Many people in the sunny parts of Australia are switching to a solar-powered hot water system although it’s more expensive. While this system is quite expensive to install, it saves a lot of money and energy in the long run. 

However, most solar systems need an alternative source of energy, especially on cold or cloudy days. There are a few varieties of solar hot water systems. 

A very popular variety is the roof-mounted model. The base price for an electrically assisted roof-mounted model ranges from about $3,800 to $5,400 or more. When your roof cannot support the heavyweight of a tank, you have to opt for an electrically boosted solar system with a tank on the ground, known as a “split system”. 

These systems are roughly priced from about $3900 to $6000 or more. Finally, the price of gas boosted split system starts at around $4900 and goes up to about $6500.

Pros of a solar hot water system

The following are advantages of a solar hot water system

  • It has a constant natural source of energy.
  • It requires no maintenance.
  • It saves the cost of energy bills.
  • Once there is enough space, it can be installed anywhere.

Cons of a solar hot water system

  • In colder climates, its production reduces.
  • It requires a lot of money to set up.
  • It requires a lot of space for installation.

Heat Pump Hot Water System Prices, Pros – Cons

In terms of efficiency, the heat pump water heater is similar to a solar hot water system. However, the functionality of both systems is different. Instead of solar energy, heat pump water heaters absorb heat from the surrounding air and use it to heat water through air conditioning technology. 

Although this system is economical, it requires warm or temperate climates and must be installed outdoors to function effectively. It can also be noisy. A heat pump hot water system starts at around $3,800 for a 160L system and goes up to about $4,500 for a 315L heat pump.

Pros of a heat pump water system

The following are the advantages of a heat pump water system:

  • It does not require inverters, batteries, or solar panels.
  • It is easy to install.
  • It helps you to save money in the long term.
  • It is environmentally friendly.

Cons of a heat pump water system

  • It is unsuitable in cold temperatures.
  • It is expensive to set up.

Here is a summary of the types and prices of hot water systems. This table only includes the cost of the equipment itself. Other factors incur additional costs.

System TypeAverage minimum priceAverage 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)
Hot water systems price comparison chart

What is the Average Lifespan of a Hot Water System?

When it comes to water heaters, there are a variety of options on the market. Gas water heaters tend to have the longest lifespan, averaging around 15 years. Electric water heaters are not far behind, with an average lifespan of 13 years. Solar water heaters typically last for around 10 years, while heat pumps have an average lifespan of 8 years.

However, when it comes to the overall efficiency and cost savings, heat pumps are the clear winner. While they may not last as long as other types of water heaters, they are much more efficient at heating water and can save homeowners hundreds of dollars each year in energy costs.

In the end, though it all comes down to personal preference, heat pumps are the best option for those looking for a long-lasting and efficient hot water system.

How Much Does a Hot Water System Cost?

There’s nothing quite like a hot shower to start your day off right. But have you ever stopped to think about how much it costs to heat your water? The cost of running a hot water system can vary depending on the type of system you have in your home.

Gas and electric water heaters are the most common, but solar and heat pump systems are becoming increasingly popular. So, how much does each type of system cost to install and run?

Gas water heaters are typically the cheapest to install, but they have higher running costs than other types of systems. Solar water heaters are more expensive to install, but they can significantly reduce your energy bills.

Electric water heaters are somewhere in the middle, with average running costs and installation price. Heat pump water heaters are the cheapest to install (JUST $33*) now due to government incentives, they’re also the most efficient, so they’ll save you the most money in the long run.

Hot Water System Annual Energy Cost

Hot Water System Annual Energy Cost comparison

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E-Green Electrical

E-Green Electrical is a top tier energy efficiency company based in Sydney. We focus on utilising government rebates to help reduce our clients energy consumption by installing energy efficient solutions. E-Green boasts a rich heritage within the realm of energy efficiency, consistently staying up to date with cutting-edge technologies to deliver optimal results for our valued customers.

We don't just sell products and services; we also provides tips and information on how to help reduce energy consumption. We believe in using energy wisely and teaching others how to do the same. For E-Green, it’s important to share knowledge with the community. That's why we regularly write articles about saving energy, new government rebates available and increasing sustainability.

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