Gas vs Electric Hot Water Systems: Which Is Right for Your Home?

Choosing the right hot water system for your home is more important than many homeowners realise. Not only does it affect your daily comfort, but it can also have a long-term impact on your energy bills, system maintenance, and environmental footprint. Among the most common options available to Australian households are gas and electric hot water systems. But which one suits your needs best?

In this article, we’ll break down how each system works, compare costs and benefits, and help you decide which is the better fit for your home.

Need help right away? Learn more about our hot water installation services or find out when it might be time to replace your existing system.

 

How Do Gas and Electric Hot Water Systems Work?

Gas hot water systems use natural gas or LPG to heat water either through a storage tank or an instantaneous (continuous flow) unit. These systems are typically faster and more efficient if mains gas is available.

Electric hot water systems rely on electricity to heat water, usually storing it in a tank. While easier to install, they often cost more to run long-term, especially if used on peak electricity tariffs.

Pros and Cons of Gas Hot Water Systems

Pros:

• Fast water heating and recovery times

• Lower running costs (especially on natural gas)

• Ideal for larger households

• More energy-efficient models now available

Cons:

• Higher upfront installation costs

• May require a gas line installation if not already connected

• Limited choice in some regional areas

Pros and Cons of Electric Hot Water Systems

Pros:

• Lower initial purchase and installation cost

• Easy to install almost anywhere

• Good for smaller households with low water usage

• Off-peak electricity options can reduce running costs

Cons:

• Higher ongoing energy costs (especially on peak tariffs)

• Slower water heating and recovery

• Less energy-efficient over time compared to gas or solar