Electric or Gas? Choosing the Right Hot Water System for Aussie Homes

Waking up to a cold shower is never fun, especially in winter. It’s in those moments you realize how important your hot water system really is. The big question then comes up: should you go for an electric hot water system or a gas hot water system?

Choosing the best hot water system for your Australian home is not just about comfort. It’s about long-term savings, efficiency, and making sure you never run out of hot water at the wrong time. 

This guide will walk you through all the key factors, costs, and tips so you can make the right decision for your household.

Why Choosing the Right Hot Water System Matters?

Hot water is essential for everyday life in Australia. From early morning showers to washing clothes and dishes, we rely on it constantly. Picking the wrong system can affect your bills, water availability, and home comfort.

The right system can:

• Reduce the hot water system cost over time.

• Provide reliable water temperature.

• Improve energy efficiency.

• Increase property value.

Understanding Electric and Gas Hot Water Systems

Choosing the right hot water system starts with understanding how each type works. In Australia, most homes rely on either electricity or gas to keep showers warm, dishes clean, and laundry running smoothly. Knowing the differences helps you pick a system that fits your household, energy bills, and lifestyle.

1. Electric Hot Water System

An electric hot water system uses electricity to heat water, either storing it in a tank or heating it on demand.

• Storage systems heat water ahead of time and keep it ready for use. This is convenient for regular, predictable water use.

• Instant systems heat water as you need it, which can save energy because you’re not keeping a full tank hot all day.

Electric systems are easy to install and work wherever there is a power supply. They are reliable and need little maintenance. However, running costs can be higher, especially during peak electricity hours, so energy-efficient models or off-peak usage plans can help manage bills.

Ideal for:

• Small households or apartments where water demand is low.

• Homes without access to gas connections.

• Families using solar panels or off-peak electricity tariffs.

2. Gas Hot Water System

A gas hot water system uses natural gas or LPG to heat water. Like electric systems, they come in two types: storage tanks or continuous flow systems. Continuous flow models heat water only when it’s being used, providing a constant supply and fast heating.

Gas systems are ideal for households with higher water use. They tend to run cheaper than electric systems and heat water faster, which is useful for busy mornings or larger families.

Ideal for:

• Larger families or homes with high daily water demand.

• Homes already connected to natural gas.

• Homeowners looking to lower their monthly energy costs.

Factors Affecting Hot Water System Cost

When choosing a hot water system, it’s not just the sticker price that matters. Understanding the full hot water system cost can save you money in the long run. Here are the main factors to consider:

1. Upfront Purchase and Installation

The cost of the system itself varies based on type, brand, and capacity. A basic electric hot water system might be cheaper to buy and install than a gas hot water system, especially if your home doesn’t have an existing gas line. Gas systems may need additional plumbing, venting, or LPG installation, which increases the upfront investment.

2. Running Costs

Energy usage over time is a big factor. Electric systems are easy to install but can be more expensive to run if your electricity rates are high. Gas systems heat water faster and typically cost less to run monthly, especially for large households.

3. Maintenance and Lifespan

Electric systems usually require less maintenance but may have a shorter lifespan, often around 10–12 years. Gas systems require regular servicing to ensure burners and valves are safe, but they can last longer if maintained well.

4. Energy Efficiency

Energy-efficient systems reduce your bills and environmental impact. Solar-assisted electric systems or high-efficiency gas units cost more upfront but pay off over time. Look for systems with high energy star ratings.

Choosing the Best Hot Water System for Your Home

Not every home requires the same system. Household size, water usage, and energy availability should guide your choice.

• Small households (1–2 people): Electric instant systems are compact and efficient.

• Medium households (3–4 people): Gas continuous flow provides consistent hot water.

• Large families (5+ people): Gas storage or solar-assisted electric systems are suitable.

• Off-grid homes: Electric or LPG systems work where natural gas is not available.

Think about peak water usage. Morning or evening showers may favour gas for fast heating. Solar or off-peak electric works well if usage is spread throughout the day.

Electric vs Gas Hot Water Appliances: Comparison Table

Choosing the right system can feel tricky. Both systems have their own advantages, and ideal uses. Looking at the differences side by side makes it easier to see which option fits your home, family size, and energy goals.

The table below breaks down the key features, from upfront costs to environmental impact, so you can compare at a glance and make an informed choice.

Energy Efficiency and Environmental Impact

With Australia focusing on sustainability, energy efficiency is a key factor.

Electric systems paired with solar power reduce carbon footprint and running costs. Gas systems offer fast heating with lower energy waste compared to electricity from coal.

Consider your priorities: lower energy bills, faster heating, or a greener choice. Each system has advantages depending on your home setup.

Installation and Safety Considerations

Proper installation is crucial for the safety, efficiency, and longevity of your hot water system. Professional tradies ensure everything is done correctly:

• Correct system size – Choosing the right capacity avoids wasted energy or insufficient hot water.

• Safe plumbing and wiring – Prevents leaks, electrical hazards, and costly repairs.

• Compliance with Australian safety standards – Ensures your system meets legal and safety requirements.

• Gas system checks – Proper ventilation and gas connections reduce fire and carbon monoxide risks.

• Electric system settings – Correct wiring, thermostats, and temperature settings prevent overheating or inefficiency.

• Avoiding leaks and damage – Professional installation reduces water damage risks and protects property.

• Long-term efficiency – Proper setup extends system life and keeps running costs lower.

• Peace of mind – Knowing a licensed tradie handled the job safely and professionally.

Professional installation keeps your family safe and your system running smoothly for years.

Tips to Reduce Hot Water Appliance Cost

Reducing the cost isn’t just about choosing the cheapest unit. Small steps can save money on running bills and extend the system’s lifespan:

• Use off-peak electricity – Run electric systems during off-peak hours to lower energy bills.

• Set the thermostat correctly – 60–65°C is usually enough for comfort without wasting energy.

• Insulate pipes – Keep hot water hotter for longer and reduce energy loss.

• Fix leaks promptly – Even small drips increase running costs and wear out your system faster.

• Turn off when away – If you’re on holiday, switching the system off saves energy.

• Regular maintenance – Flush storage tanks and check valves to maintain efficiency and prevent costly repairs.

• Consider timers or smart controls – Automate heating based on your household routine to avoid unnecessary energy use.

These simple measures help keep running costs low while maintaining comfort.

Simplify Hot Water System Installation

Choosing the best hot water system for Australian homes becomes easier with help. Trusted Tradie Network connects homeowners with verified tradies for the installation and maintenance of electric and gas systems.

Benefits include comparing tradies in your city, viewing transparent, itemized quotes, checking reviews and past work, and saving both time and stress. 

For instance, if you live in Sydney and need a gas hot water system, you can quickly find a skilled plumber, compare multiple quotes, and hire a trusted professional with confidence, knowing the work will be done safely and efficiently.

Conclusion

Choosing between the two requires careful consideration of household size, energy costs, and daily water needs.

Small households may benefit from electric instant systems, while large families often gain faster heating and lower running costs from gas systems. Energy efficiency, installation quality, and ongoing maintenance should all be considered.

By comparing energy use and evaluating your home’s needs, you can confidently choose the best hot water system for your Aussie home.