Compare running costs, lifespan, and suitability for your home. Honest advice from licensed plumbers.
Electric storage systems are the cheapest to buy but the most expensive to run. They heat water using an element inside a tank and keep it hot all day. A family of four can expect to pay $800 to $1200 per year in electricity. Tanks last 8 to 12 years on average. They are simple to install and suit homes without gas.
Gas hot water costs less to run than electric. Natural gas systems suit homes with a gas connection. LPG is an option for homes without mains gas but costs more per unit. Gas continuous flow units heat water on demand and never run out. Storage tanks last 8 to 12 years; continuous flow units last 15 to 20 years.
Heat pumps use a small amount of electricity to move heat from the air into your water. They use about one third of the energy of a standard electric system. Running costs are typically $300 to $500 per year. They work best in mild to warm climates like the Central Coast and Sydney. Government rebates of up to $1000 are available.
Electric storage: $800 to $1500 upfront, $800 to $1200 per year running. Gas storage: $1200 to $2000 upfront, $500 to $800 per year. Gas continuous flow: $1500 to $2500 upfront, $400 to $700 per year. Heat pump: $3000 to $4500 upfront (before rebates), $300 to $500 per year running.
The right choice depends on your household size, roof space, gas connection, and budget. Heat pumps have the lowest running costs and qualify for rebates. Gas suits homes that need instant hot water. Electric is the cheapest upfront but costs the most over 10 years. Call us for a free assessment.
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