Best Hot Water System for Homes With Natural Gas: Complete Buyer’s Guide

If your home has natural gas, the best hot water system is usually a natural gas storage system, instant gas hot water system, or another system type such as electric storage or heat pump hot water if gas is no longer the best fit. Natural gas gives you more hot water options, but the right system still depends on your household size, number of bathrooms, water pressure, gas supply, available location, budget and whether you want storage or continuous flow hot water.

At Hot Water Outlet, you can compare gas hot water systems, instant gas hot water systems, hot water systems, electric hot water systems, heat pump hot water systems and common valves, pipework and fittings.

Quick Answer: What Is the Best Hot Water System for Natural Gas Homes?

For many homes with natural gas, the best options to compare are gas storage and instant gas hot water.

As a general guide:

• Choose an instant gas hot water system if you want continuous flow hot water and your gas supply, water pressure and external location are suitable.

• Choose a gas hot water system if you want a gas storage-style replacement and the tank capacity or recovery rate suits your household.

• Compare electric hot water systems if you want a practical tank-style alternative and gas is no longer preferred.

• Compare heat pump hot water systems if you want efficient electric hot water and your property has suitable outdoor space, airflow, drainage and electrical setup.

• Confirm the product is natural gas, not LPG.

• Check gas supply, water pressure, flow rate, location, dimensions, valves and fittings before ordering supply-only.

Natural gas gives you good flexibility, but the best system depends on the property and household demand.

Best Hot Water Options for Natural Gas Homes at a Glance

For most natural gas homes, the main choice is gas storage vs instant gas. Electric and heat pump options are worth comparing if gas is no longer the best long-term fit.

Start With Your Current Hot Water System

Before choosing a new hot water system, check what is already installed.

Look for:

• Current brand and model

• System type

• Natural gas or LPG

• Tank capacity in litres if storage

• Flow rate in L/min if instant gas

• Indoor, outdoor or flued setup

• Product dimensions

• Connection positions

• Whether the system keeps up

• Whether it runs cold during peak use

• Whether the household size has changed

• Whether the current location still works

• Whether controllers are fitted

• Whether valves and fittings need replacing

If your current natural gas system has worked well, a similar replacement may be practical.

If it struggles during peak use, runs cold, cannot handle two showers or no longer suits the household, compare different sizes or system types before ordering.

Natural Gas vs LPG: Do Not Mix Them Up

Before ordering any gas hot water system, confirm that the model is suitable for natural gas.

Natural gas and LPG are not interchangeable.

A natural gas hot water system cannot simply be used on LPG unless the specific model is designed and approved for that gas type. The same applies in reverse.

Before ordering, check:

• Existing hot water unit label

• Appliance data plate

• Gas meter

• Product listing

• Gas type shown on the model

• Licensed gas fitter advice if unsure

Choosing the wrong gas type can cause delays, extra costs and compatibility issues.

Instant Gas Hot Water for Natural Gas Homes

Instant gas hot water is one of the most common options for natural gas homes.

An instant gas system heats water as it passes through the unit. It does not store a large tank of hot water.

Instant gas may suit if:

• You want continuous flow hot water

• Natural gas is already available

• Gas supply can support the selected unit

• Water pressure and flow are suitable

• External wall location is practical

• You want a compact system

• The correct L/min flow rate is selected

Before choosing instant gas, check:

• Required flow rate in L/min

• Number of people in the home

• Number of bathrooms

• Whether two showers may run close together

• Bath use

• Gas supply capacity

• Water pressure and flow

• External wall location

• Clearances from windows and openings

• Controller compatibility where relevant

• Product dimensions

• Required valves and fittings

Browse instant gas hot water systems if you want to compare continuous flow natural gas options.

Gas Storage Hot Water for Natural Gas Homes

Gas storage hot water systems heat and store water in a tank.

Gas storage may suit if:

• You are replacing an existing gas storage system

• You prefer a tank-style hot water system

• The current storage setup has worked well

• Tank capacity suits household demand

• Recovery rate suits peak use

• Product dimensions fit the existing location

• Natural gas is already connected

Before choosing gas storage, check:

• Tank capacity

• Recovery rate

• Current tank size

• Whether the old system runs out

• Number of people in the home

• Number of bathrooms

• Bath use

• Gas supply suitability

• Product dimensions

• Connection positions

• Required valves and fittings

Browse gas hot water systems if you want to compare gas storage and gas hot water options.

Instant Gas vs Gas Storage for Natural Gas Homes

Instant gas and gas storage systems work differently.

Instant gas is sized by flow rate in L/min.

Gas storage is sized by tank capacity and recovery rate.

Do not compare L/min and litres as if they are the same measurement. They describe different system types.

When Instant Gas May Be Better

Instant gas may be the better option if:

• You want continuous flow hot water

• You do not want a large storage tank

• Natural gas supply is suitable

• Water pressure is suitable

• External wall space is available

• The selected L/min rating suits your household

• You want a compact natural gas option

Instant gas can be a strong choice for many natural gas homes, but it must be correctly sized and supported by the property.

When Gas Storage May Be Better

Gas storage may be the better option if:

• You are replacing an existing gas storage unit

• The current tank-style setup has worked well

• You prefer stored hot water

• The existing location suits a tank

• Recovery rate and tank capacity suit demand

• A like-for-like replacement is preferred

• Instant gas supply or pressure requirements are difficult

Gas storage can still be practical where the home already suits this system type.

What Size Instant Gas System Do You Need?

Instant gas hot water systems are sized by flow rate in L/min.

As a general guide:

A higher L/min model may suit larger households, but it is not automatically better. The home must have suitable gas supply and water pressure.

What Size Gas Storage System Do You Need?

Gas storage systems are sized by tank capacity and recovery rate.

Before choosing a gas storage model, check:

• Current tank capacity

• Whether the current system keeps up

• Number of people in the home

• Number of bathrooms

• Shower duration

• Back-to-back showers

• Bath use

• Kitchen hot water use

• Laundry use

• Recovery rate

• Available location

A larger tank is not the only factor. Recovery rate can also affect how well the system handles peak hot water demand.

Best Natural Gas Hot Water System for One Bathroom

A one-bathroom natural gas home may suit instant gas or gas storage depending on household demand.

Instant gas may suit if:

• The household has low to moderate demand

• Natural gas supply is suitable

• Water pressure is suitable

• The selected flow rate matches usage

• External wall location is practical

Gas storage may suit if:

• A gas storage system is already installed

• Tank capacity suits demand

• Recovery rate is suitable

• A tank-style replacement is preferred

A one-bathroom family home may need more hot water than a two-person household, so do not choose purely by bathroom count.

Best Natural Gas Hot Water System for Two Bathrooms

Two-bathroom homes need more careful sizing because showers and outlets may overlap.

Instant gas may suit if:

• A suitable L/min rating is selected

• Natural gas supply can support the unit

• Water pressure and flow are suitable

• External location works

• The household wants continuous flow hot water

Gas storage may suit if:

• Tank capacity is suitable

• Recovery rate matches peak use

• The existing tank location works

• A storage-style system is preferred

For two bathrooms, do not choose only by brand or product price. Size, gas supply and water pressure matter more.

Best Natural Gas Hot Water System for Families

Families usually have higher hot water demand, especially during morning and evening peaks.

For a family with natural gas, compare:

• Higher-flow instant gas systems

• Gas storage systems with suitable tank capacity and recovery rate

• Electric or heat pump alternatives if gas is no longer preferred

Check:

• Number of people in the home

• Number of bathrooms

• Shower duration

• Back-to-back showers

• Bath use

• Whether two showers may run together

• Kitchen and laundry hot water use

• Natural gas supply

• Water pressure

• Product location

A family home can still experience poor hot water performance if the system is undersized or the gas supply is not suitable.

Best Natural Gas Hot Water System for Small Homes

Small natural gas homes may suit compact instant gas or smaller gas storage options depending on layout and demand.

Instant gas may suit if:

• Demand is low to moderate

• External wall space is available

• Natural gas supply is suitable

• Water pressure is suitable

• A compact system is preferred

Gas storage may suit if:

• A storage tank is already installed

• The selected tank capacity matches demand

• The existing location works

• A like-for-like replacement is preferred

Small homes still need proper checks. Do not assume the smallest model is automatically the best option.

Best Natural Gas Hot Water System for Units

Units can be more complicated because of building rules, space, ventilation, flue requirements and body corporate conditions.

A natural gas system may suit a unit if:

• The building already supports natural gas hot water

• Body corporate rules allow the replacement

• The product location is compliant

• External location or flued setup is suitable

• Gas supply and water pressure are suitable

• Product dimensions suit the available space

• Delivery access is practical

Some units may be better suited to electric hot water if gas replacement is difficult or building approval is unclear.

For units, check building and body corporate requirements before ordering supply-only.

Best Natural Gas Hot Water System for Townhouses

Townhouses can suit natural gas hot water, but the layout needs careful checking.

Important checks include:

• Side access

• External wall space

• Gas meter location

• Distance from windows and openings

• Distance from bedrooms

• Neighbouring properties

• Body corporate or complex rules

• Gas pipe sizing

• Water pressure

• Product dimensions

Instant gas can be practical for townhouses where external location, natural gas supply and water pressure are suitable. Gas storage may suit where an existing tank-style system is already installed.

Best Natural Gas Hot Water System for Rental Properties

Rental properties need practical hot water systems that suit likely tenant demand.

Instant gas may suit rentals if:

• Natural gas is already installed

• Gas supply is suitable

• Water pressure is suitable

• The selected L/min rating suits the property

• External location works

• Continuous flow hot water is preferred

Gas storage may suit rentals if:

• Gas storage is already installed

• Tank capacity suits the property size

• Recovery rate is suitable

• A straightforward replacement is preferred

Avoid undersizing rental hot water. A lower product price may create more complaints if tenants experience poor hot water performance.

Best Natural Gas Hot Water System for Renovations

Renovations are a good time to reassess natural gas hot water because the finished home may have higher demand than the old layout.

You may need a different system if:

• A second bathroom is being added

• More people will live in the home

• A bath is being added

• The old hot water location is changing

• More gas appliances are being added

• Gas pipework is being upgraded

• External wall space is being redesigned

• Water pressure issues are being addressed

Plan hot water around the finished home, not only the old hot water system.

Best Natural Gas Hot Water Brands

Natural gas hot water buyers often compare:

• Rheem hot water systems

• Rinnai hot water systems

• Bosch hot water systems

• Dux hot water systems

• Vulcan hot water systems

Rinnai, Bosch and Rheem are commonly compared for instant gas.

Rheem, Dux and Vulcan are commonly compared for gas storage-style hot water.

The best brand depends on the system type, model size, gas supply, water pressure and property layout.

Rinnai Natural Gas Hot Water

Rinnai hot water systems are commonly compared for instant gas and continuous flow hot water.

Rinnai may suit natural gas homes where:

• Continuous flow hot water is preferred

• Gas supply is suitable

• Water pressure is suitable

• External wall location works

• The selected L/min rating suits demand

• Controller compatibility is checked where relevant

Rinnai is often worth comparing if you are focused on instant gas.

Bosch Natural Gas Hot Water

Bosch hot water systems are commonly compared for gas continuous flow hot water.

Bosch may suit natural gas homes where:

• Instant gas is preferred

• A compact external gas unit is practical

• Gas supply can support the selected model

• Water pressure is suitable

• Product dimensions and clearances suit the location

Bosch is usually best compared within the instant gas category.

Rheem Natural Gas Hot Water

Rheem hot water systems are commonly compared across several hot water categories, including gas storage and instant gas.

Rheem may suit buyers who want:

• Gas storage options

• Instant gas options

• A broader hot water brand comparison

• A familiar brand across electric, gas, heat pump and storage systems

Rheem can be useful if you are still deciding between gas storage, instant gas, electric or heat pump hot water.

Dux Natural Gas Hot Water

Dux hot water systems are commonly compared for gas storage hot water.

Dux may suit natural gas homes where:

• A gas storage system is already installed

• A tank-style replacement is preferred

• Tank capacity suits household demand

• Recovery rate suits peak use

• Product dimensions fit the current location

Dux may be worth comparing if storage gas is the right system type.

Vulcan Natural Gas Hot Water

Vulcan hot water systems are commonly compared for practical gas storage-style replacements.

Vulcan may suit natural gas homes where:

• A storage-style system is preferred

• Existing tank location works

• Tank capacity and recovery rate suit demand

• A practical replacement option is needed

• Product dimensions and connection positions suit the property

Vulcan is commonly compared against Rheem and Dux for storage hot water.

Natural Gas vs Electric Hot Water

Natural gas and electric hot water suit different homes.

Natural gas may suit if:

• Gas is already connected

• Instant gas or gas storage is preferred

• Gas supply is suitable

• Water pressure is suitable for instant gas

• A gas replacement is straightforward

Electric hot water systems may suit if:

• You want to move away from gas

• A tank-style electric system is already installed or preferred

• Electrical requirements can be met

• Heat pump location is not practical

• A simple storage replacement is preferred

The better choice depends on your property, energy setup and household demand.

Natural Gas vs Heat Pump Hot Water

Natural gas hot water and heat pump hot water are very different options.

Natural gas may suit if:

• Gas is already available

• Instant gas or gas storage suits the home

• The replacement location works

• Gas supply and water pressure are suitable

Heat pump hot water systems may suit if:

• Efficient electric hot water is preferred

• Outdoor space is available

• Airflow is suitable

• Condensate drainage can be managed

• Noise placement is acceptable

• Electrical requirements can be met

Heat pumps can be a good option for some homes, but a natural gas home should still compare total suitability, not only energy source.

Natural Gas vs Instant Electric Hot Water

Instant electric hot water may suit selected applications, but it is not automatically a direct replacement for natural gas instant hot water.

Instant electric hot water systems may suit if:

• Flow demand is modest

• Electrical capacity is suitable

• The system is for a suitable outlet or application

• Licensed tradespeople confirm requirements

Instant electric may not suit if:

• Whole-home demand is high

• Multiple showers may run together

• Switchboard capacity is limited

• A natural gas instant system is already practical

• A storage or heat pump system is more suitable

Electrical requirements must be checked before ordering instant electric.

Gas Supply Requirements

Natural gas hot water performance depends on gas supply.

Before choosing a gas model, check:

• Gas meter capacity

• Gas pipe sizing

• Distance from gas supply

• Other gas appliances

• Appliance load

• Regulator requirements where relevant

• Licensed gas fitter advice

A larger instant gas unit may not perform properly if gas supply is not suitable.

Water Pressure and Flow

Instant gas systems need suitable water pressure and flow.

Before choosing instant gas, check:

• Mains water pressure

• Existing shower flow

• Number of hot outlets

• Whether outlets may run together

• Existing pipework

• Pressure limiting valves

• Product specifications

• Licensed plumber advice where needed

If water pressure or flow is poor, replacing the hot water system alone may not solve the issue.

External Gas Unit Location

Many instant gas systems are external units unless the specific product is designed and approved for internal or flued installation.

Before choosing an instant gas system, check:

• External wall location

• Clearance from windows and doors

• Clearance from openings

• Distance to gas supply

• Distance to water connections

• Access for servicing

• Weather exposure requirements

• Product installation requirements

Do not assume an external gas unit can be installed indoors.

Controllers and Accessories

Some instant gas systems may be compatible with temperature controllers, depending on the model.

Before ordering controllers or accessories, check:

• Product compatibility

• Whether controllers are included

• Number of controllers supported

• Controller location

• Wiring requirements

• Whether old controllers are compatible

• Licensed trade requirements

Do not assume existing controllers will work with every new gas hot water system.

Supply-Only Pricing vs Installed Cost

When comparing natural gas hot water systems online, make sure you understand what the price includes.

Hot Water Outlet sells supply-only hot water systems and accessories online. Supply-only pricing usually does not include:

• Installation

• Plumbing labour

• Gas fitting

• Electrical work

• Old unit removal

• Disposal

• Valves

• Fittings

• Pipework changes

• Gas upgrades

• Controller wiring

• Compliance upgrades

• Concrete bases or platforms

• Delivery beyond what is shown at checkout

Before ordering, confirm the full job requirements with appropriately licensed tradespeople.

Valves, Fittings and Accessories

A natural gas hot water order may need more than the main unit.

Common accessories include:

• Tempering valves

• Pressure relief valves

• Duo valves

• Non-return valves

• Isolation valves

• Copper pipework

• Gas fittings

• Controllers where compatible

• Drainage parts

• Connection parts

Hot Water Outlet has a dedicated range of valves, pipework and fittings to help customers compare common hot water accessories.

Always confirm compatibility before ordering.

Common Mistakes When Choosing Natural Gas Hot Water

Ordering LPG Instead of Natural Gas

Natural gas and LPG are not interchangeable. Confirm the correct gas type before ordering.

Choosing Brand Before System Type

Choose gas storage or instant gas before choosing the exact brand and model.

Choosing Flow Rate by Price Alone

A lower-flow instant gas model may not suit families, two bathrooms or overlapping showers.

Ignoring Gas Supply

Instant gas performance depends on suitable gas supply.

Ignoring Water Pressure

Poor water pressure can affect instant gas performance.

Comparing Storage Litres With Instant Gas L/min

Storage systems are sized by tank capacity and recovery rate. Instant gas systems are sized by L/min.

Assuming External Gas Units Can Go Indoors

External gas units are outdoor/external only unless the specific product is designed and approved for internal or flued installation.

Comparing Supply-Only Price to Installed Cost

Supply-only product pricing is not the same as total replacement cost.

Forgetting Valves and Fittings

The hot water unit may not be the complete order.

Natural Gas Hot Water Buyer Checklist

Before choosing a natural gas hot water system, check:

• Current hot water system brand and model

• Current system type

• Natural gas confirmed

• Tank capacity if storage

• Flow rate in L/min if instant gas

• Whether the current system keeps up

• Number of people in the home

• Number of bathrooms

• Shower habits

• Bath use

• Desired system type

• Gas storage or instant gas

• Tank capacity if storage

• Recovery rate if storage

• Flow rate if instant gas

• Gas supply suitability

• Water pressure and flow

• External location

• Product dimensions

• Connection positions

• Controller compatibility where relevant

• Delivery access

• Required valves and fittings

• Warranty information

• Licensed trade requirements

Compare Natural Gas Hot Water Systems Online

Hot Water Outlet makes it easier to compare natural gas hot water systems by brand, system type, tank capacity, flow rate, dimensions, specifications and supply-only pricing.

Start with:

• Gas Hot Water Systems

• Instant Gas Hot Water Systems

• Hot Water Systems

Then compare brands:

• Rinnai Hot Water Systems

• Bosch Hot Water Systems

• Rheem Hot Water Systems

• Dux Hot Water Systems

• Vulcan Hot Water Systems

If natural gas is no longer the best fit, compare:

• Electric Hot Water Systems

• Heat Pump Hot Water Systems

• Instant Electric Hot Water Systems

FAQs About Natural Gas Hot Water Systems

What is the best hot water system for a home with natural gas?

For many natural gas homes, the best options to compare are instant gas and gas storage hot water. Instant gas may suit homes wanting continuous flow, while gas storage may suit homes replacing a tank-style system.

Is instant gas better than gas storage?

Instant gas may suit homes wanting continuous flow hot water where gas supply and water pressure are suitable. Gas storage may suit homes replacing an existing tank-style gas system. Neither is automatically better.

What size instant gas hot water system do I need?

Instant gas systems are sized by flow rate in L/min. Smaller homes may suit lower-flow models, while larger families or two-bathroom homes may need higher-flow systems, subject to gas supply and water pressure.

What size gas storage system do I need?

The right gas storage size depends on the number of people in the home, number of bathrooms, shower habits, bath use, tank capacity and recovery rate.

Is natural gas hot water cheaper than electric?

The running cost comparison depends on usage, tariff, gas pricing, system type and property setup. The best choice should be based on suitability, not only energy type.

Can I replace natural gas hot water with a heat pump?

Yes, if the property has suitable outdoor space, airflow, condensate drainage and electrical requirements. A licensed electrician and plumber should confirm suitability before installation.

Can I use an LPG hot water system on natural gas?

No. Natural gas and LPG are not interchangeable unless the exact product is designed and approved for conversion or that gas type. Always order the correct model.

Are Rinnai and Bosch good for natural gas hot water?

Rinnai and Bosch are commonly compared for natural gas instant hot water. The right choice depends on flow rate, gas supply, water pressure, product dimensions and location.

Do natural gas hot water systems need valves and fittings?

Some natural gas hot water replacements require valves, fittings, controllers or accessories depending on system type and connection layout. Browse valves, pipework and fittings and confirm compatibility before ordering.

Can I install a natural gas hot water system myself?

No. Natural gas hot water systems involve plumbing, gas fitting and sometimes electrical work that should be completed by appropriately licensed tradespeople. Hot Water Outlet sells supply-only hot water systems and accessories online, and may help organise quotes from reputable installers where appropriate.

Find the Best Natural Gas Hot Water System

The best hot water system for a natural gas home depends on household demand, system type, gas supply, water pressure, tank capacity, flow rate, location and budget. Instant gas may suit homes wanting continuous flow hot water. Gas storage may suit homes replacing a tank-style gas system. Electric or heat pump options may suit homes moving away from gas.

Browse gas hot water systems and instant gas hot water systems online with Hot Water Outlet to compare natural gas hot water options by brand, size and specification.