Best Hot Water Systems Australia: Complete Buyer’s Guide

Choosing the best hot water system in Australia depends on your household size, energy source, available space, budget, current setup and daily hot water demand. The right system is not always the cheapest unit or the biggest tank. It is the hot water system that suits your home, replacement requirements, energy type and product specifications.

At Hot Water Outlet, you can compare hot water systems online, including electric storage, gas storage, instant gas, instant electric and heat pump hot water systems from trusted brands. This guide will help you understand the main options before you order.

Quick Answer: What Is the Best Hot Water System in Australia?

The best hot water system is the one that matches your household demand, current energy source and replacement setup.

As a general guide:

• Choose an electric hot water system if you want a straightforward storage tank option, especially for like-for-like electric replacements.

• Choose a heat pump hot water system if you want an energy-efficient electric storage option for a suitable home.

• Choose a gas hot water system if your property already uses natural gas or LPG and you want a stored gas hot water unit.

• Choose an instant gas hot water system if you want continuous flow gas hot water without a large storage tank.

• Choose an instant electric hot water system for compact point-of-use hot water applications where suitable.

For most buyers, the best starting point is to compare the full hot water systems range, then narrow the choice by system type, brand, size, gas type, flow rate, dimensions and household suitability.

Why Choosing the Right Hot Water System Matters

A hot water system is one of the most important appliances in a home. It affects showers, bathrooms, kitchens, laundries, rental properties, renovations and everyday household comfort. When an old unit fails, many people rush to replace it with the first similar-looking model. That can work in some cases, but it is still worth checking whether the new system actually suits the home.

A good hot water system choice should consider:

• Household size

• Number of bathrooms

• Daily hot water use

• Current energy source

• Natural gas or LPG availability

• Tank capacity

• Flow rate

• Recovery rate

• Dimensions

• Connection positions

• Water pressure rating

• Replacement location

• Required valves and fittings

• Delivery access

• Product warranty information

Buying the wrong system can lead to poor hot water performance, compatibility issues, ordering delays or unnecessary costs. Buying the right system makes replacement, renovation or project planning much easier.

Main Types of Hot Water Systems

Australian homes commonly use electric storage, heat pump, gas storage, instant gas or instant electric hot water systems. Each type has a different role.

Electric Hot Water Systems

Electric hot water systems are one of the most common options for Australian homes. They heat and store water in a tank, then supply hot water when needed.

Electric storage systems are often chosen for like-for-like replacements because many homes already have an electric hot water tank. They are available in a range of sizes, from compact units for smaller applications through to larger tanks for family homes.

Electric hot water systems may suit:

• Homes already using electric storage

• Townhouses and units with suitable space

• Rental properties needing a straightforward replacement

• Homes without gas supply

• Buyers wanting a familiar storage tank setup

Before ordering an electric hot water system, check the tank size, physical dimensions, recovery rate, power requirements, connection positions and whether extra valves or fittings are required.

Heat Pump Hot Water Systems

Heat pump hot water systems are a popular choice for households wanting an efficient electric hot water option. A heat pump uses heat from the surrounding air to help heat stored water, making it different from a standard electric storage tank.

Heat pump hot water systems are often considered when replacing an older electric storage system, especially where the home has suitable outdoor space, airflow and household demand.

Heat pump hot water systems may suit:

• Homes wanting an energy-efficient electric option

• Replacements for older electric storage tanks

• Families needing stored hot water

• Renovations where a modern hot water upgrade is being considered

• Homes with suitable outdoor space and airflow

Before ordering a heat pump, check the tank size, dimensions, noise rating, airflow requirements, warranty information, household suitability and whether the unit location is appropriate.

Gas Hot Water Systems

Gas hot water systems are commonly used in homes with natural gas or LPG. Gas storage systems heat and store water in a tank, similar to electric storage, but use gas as the energy source.

Gas storage hot water can be a practical choice for homes already set up with a gas storage unit. They are often compared by tank size, gas type, recovery rate, brand, dimensions and connection positions.

Gas hot water systems may suit:

• Homes already using gas storage hot water

• Natural gas properties

• LPG properties

• Like-for-like gas storage replacements

• Households that prefer a traditional stored hot water unit

Always check whether the property uses natural gas or LPG. Natural gas and LPG models are not interchangeable, so choosing the correct gas type is essential.

Instant Gas Hot Water Systems

Instant gas hot water systems, also called continuous flow gas hot water systems, heat water as it flows through the unit. They do not store a large tank of hot water.

These systems are commonly compared by flow rate, gas type, temperature controller options, household suitability and brand. Common flow rate sizes include smaller options for lower-demand homes and larger continuous flow units for higher-demand homes.

Instant gas hot water systems may suit:

• Homes with natural gas or LPG

• Buyers wanting continuous flow gas hot water

• Properties with limited space for a large storage tank

• Replacements for older gas hot water units

• Homes where flow rate can be matched to household demand

Before ordering, check the gas type, flow rate in L/min, controller options, dimensions, water connections and whether the selected model suits the household’s hot water demand.

Instant Electric Hot Water Systems

Instant electric hot water systems are usually suited to compact point-of-use applications rather than whole-home hot water demand. They can be useful where a small, dedicated hot water supply is needed, but they must be matched carefully to the intended use and electrical requirements.

Instant electric systems may suit:

• Small point-of-use applications

• Compact areas

• Specific fixtures where suitable

• Projects where storage space is limited

Before ordering, check the electrical requirements, intended use, water demand and whether the unit is suitable for the application.

Best Hot Water Systems Compared

Best Hot Water System by Household Type

Best Hot Water System for a Family Home

For family homes, the best hot water system usually depends on the number of people, number of bathrooms and how often hot water is used at the same time.

A larger household may need a larger electric storage tank, a suitable heat pump, a higher-capacity gas storage system or an instant gas system with the right flow rate. Families should avoid choosing a system based on price alone. Capacity, recovery rate and performance matter more when multiple people use hot water each day.

Good starting points include:

• Electric hot water systems for stored electric hot water

• Heat pump hot water systems for efficient electric storage

• Instant gas hot water systems for continuous flow gas hot water

• Gas hot water systems for stored gas hot water

Best Hot Water System for a Small Home or Unit

Small homes, units and townhouses may not need the same capacity as a large family home. The best option depends on available space, existing energy source and daily usage.

A compact electric storage system may suit some small properties. A smaller instant gas system may suit homes with gas. An instant electric system may suit specific point-of-use applications where appropriate.

Before ordering for a smaller property, check:

• Available space

• Access to the unit location

• Current energy source

• Tank size or flow rate

• Connection positions

• Electrical or gas requirements

• Product dimensions

Best Hot Water System for a Rental Property

For rental properties, reliability, straightforward replacement and correct sizing are important. A like-for-like replacement may be practical if the existing system type works well and the new model matches the property requirements.

Electric storage and gas storage systems are commonly considered for rental properties because many rentals already have these setups. Heat pumps may also be considered where suitable, especially if the property owner wants to upgrade from older electric storage.

When choosing for a rental, compare:

• Existing system type

• Tenant hot water demand

• Replacement size

• Brand reliability

• Warranty information

• Product availability

• Required valves and fittings

• Delivery suitability

Best Hot Water System for a Renovation

Renovations are a good time to reassess the hot water setup. A bathroom, kitchen or laundry renovation may change hot water demand, fixture locations or household usage.

For renovation projects, compare the current system against the future layout. A bigger family bathroom, second bathroom or upgraded kitchen may change the required system size or flow rate.

During a renovation, it may be worth comparing:

• Hot water systems by type

• Valves, pipework and fittings for required parts

• Relevant brand collections such as Rheem, Rinnai, Dux and Vulcan

How to Choose the Right Hot Water System

1. Start With Your Current System

The easiest place to start is the system already at the property. Check the brand, model, tank size, gas type, energy source, pressure rating, connection positions and physical dimensions.

A like-for-like replacement may be the simplest path, but it is not the only option. An old electric storage tank may lead you to compare a new electric storage system with a heat pump. An old gas storage system may lead you to compare gas storage with instant gas.

2. Match the System to Your Energy Source

Your available energy source will narrow your options quickly.

If the home has electricity only, compare electric storage and heat pump systems. If the home has natural gas, compare gas storage and instant gas. If the home uses LPG, make sure the selected gas model is specifically designed for LPG.

Do not assume gas models are universal. Natural gas and LPG units are different and must be selected correctly.

3. Choose the Right Size or Flow Rate

Storage systems are usually compared by tank capacity in litres. Instant gas systems are usually compared by flow rate in L/min.

For electric, heat pump and gas storage systems, tank size matters because the system stores heated water. For instant gas systems, flow rate matters because the unit heats water as it passes through.

A small household may not need a large storage tank, while a larger family may quickly run out of hot water if the tank is undersized. For instant gas, a system with too low a flow rate may struggle to meet demand when multiple outlets are used.

4. Check the Location and Dimensions

Always check where the new system will go. Measure the available space and compare it with the product dimensions. Also consider access for delivery, airflow, clearances, drainage and whether the system is suitable for the intended location.

This is especially important when changing system type. A heat pump may have different space and airflow requirements compared with a standard electric storage tank. An instant gas unit may require a different wall location compared with a storage tank.

5. Compare Brands, But Do Not Choose by Brand Alone

Brand matters, but it should not be the only factor. A known brand still needs to be the right size, energy type, gas type and configuration for the property.

Hot Water Outlet lists recognised hot water brands including Rheem hot water systems, Rinnai hot water systems, Dux hot water systems, Bosch hot water systems, iStore hot water systems, Envirosun hot water systems, Stiebel Eltron hot water systems, Vulcan hot water systems and Emerald Energy hot water systems.

Compare the brand alongside the product specifications, household suitability and replacement requirements.

6. Allow for Valves, Fittings and Pipework

A hot water system order may also need valves, fittings, pipework or connection accessories. These parts can vary depending on the system type, pressure requirements, connection layout and replacement setup.

Hot Water Outlet has a dedicated range of valves, pipework and fittings, including common hot water valves and connection accessories. Always check product compatibility and speak with a licensed tradesperson if you are unsure what is required.

Electric vs Gas vs Heat Pump Hot Water

Electric Hot Water

Electric storage is a practical option for many homes, especially where the property already has an electric hot water tank. It is usually compared by tank size, recovery rate, brand, dimensions and connection positions.

Electric may be a good option when:

• The home does not have gas

• A like-for-like replacement is preferred

• A storage tank setup is already in place

• The household demand suits the tank size

Gas Hot Water

Gas hot water may suit homes with natural gas or LPG. Buyers can compare gas storage systems or instant gas continuous flow systems depending on household demand and replacement goals.

Gas may be a good option when:

• The home already has natural gas or LPG

• The current system is gas

• Continuous flow is preferred

• Gas storage is already in place

Heat Pump Hot Water

Heat pump systems are often compared by customers wanting an efficient electric hot water option. They may suit homes replacing older electric storage systems, provided the location, airflow and household requirements are suitable.

Heat pump may be a good option when:

• The household wants an electric hot water system

• Outdoor space and airflow are suitable

• A storage tank setup is still preferred

• Energy efficiency is a priority

Common Hot Water System Mistakes to Avoid

Choosing Only by Price

Price matters, but it should not be the only factor. A cheaper unit may not be the right size, energy type, gas type or connection layout for the home.

Always compare the product specifications before ordering.

Buying the Wrong Gas Type

Natural gas and LPG hot water systems are not interchangeable. If you are buying a gas hot water system, confirm the property’s gas type before choosing a model.

Choosing the Wrong Size

An undersized storage tank may run out of hot water too quickly. An oversized unit may cost more than needed. For instant gas systems, the flow rate needs to suit household demand.

Forgetting About Valves and Accessories

Hot water systems often require more than just the main unit. Valves, fittings, pipework and connection accessories may be needed depending on the system and replacement setup.

Browse valves, pipework and fittings if you are building a complete hot water order.

Not Checking Dimensions

Before ordering, check the physical size of the new unit. Do not assume a new model will fit because the capacity looks similar. Product dimensions and connection positions can vary between models.

Ignoring Existing Connections

Connection positions matter for replacements. Check where the hot and cold water connections are, as well as gas or electrical requirements where relevant.

Hot Water System Buyer Checklist

Before ordering a hot water system online, check:

• System type

• Brand and model

• Tank capacity or flow rate

• Energy source

• Natural gas or LPG if gas

• Dimensions

• Connection positions

• Pressure rating

• Recovery rate

• Household suitability

• Number of bathrooms

• Current system location

• Indoor or outdoor suitability

• Power requirements

• Gas requirements

• Required valves

• Required pipework and fittings

• Delivery access

• Warranty information

• Product specifications

Best Hot Water Brands to Compare

Hot Water Outlet makes it easier to compare trusted hot water brands in one place.

Rheem Hot Water Systems

Rheem hot water systems are widely recognised across electric, gas and heat pump hot water categories. Rheem may be worth comparing if you want a familiar brand with a broad range of hot water options.

Rinnai Hot Water Systems

Rinnai hot water systems are commonly compared for instant gas, electric and heat pump options. Rinnai is often considered by buyers looking at continuous flow gas hot water.

Dux Hot Water Systems

Dux hot water systems are commonly considered for electric storage and other hot water applications. Dux may suit buyers looking for practical hot water replacement options.

Bosch Hot Water Systems

Bosch hot water systems are often compared in gas hot water categories, especially where buyers are looking at established hot water brands.

iStore Hot Water Systems

iStore hot water systems are commonly compared by buyers looking at heat pump hot water options.

Stiebel Eltron Hot Water Systems

Stiebel Eltron hot water systems are often considered in heat pump and electric hot water categories.

Vulcan Hot Water Systems

Vulcan hot water systems are commonly compared for practical electric and gas storage hot water options.

Emerald Energy Hot Water Systems

Emerald Energy hot water systems may suit buyers comparing heat pump and energy-efficient hot water options.

Replacing an Old Hot Water System

If your current hot water system is old, leaking, unreliable or no longer keeping up with demand, replacement may be worth considering. Before choosing a new unit, take note of the existing system details.

Check the label or data plate where possible and look for:

• Brand

• Model number

• Tank capacity

• Gas type

• Energy source

• Pressure rating

• Indoor or outdoor suitability

• Manufacturing date

• Connection positions

• Dimensions

A like-for-like replacement can be practical, but it is still worth comparing the main categories before ordering. For example, if you currently have electric storage, compare electric hot water systems and heat pump hot water systems. If you currently have gas storage, compare gas hot water systems and instant gas hot water systems.

When Should You Replace a Hot Water System?

You may need to consider replacement if:

• The system is leaking from the tank

• Hot water runs out faster than it used to

• The unit is old and unreliable

• The system no longer suits household demand

• Rusty water is coming from hot taps

• The system is making unusual noises

• Repair costs are becoming uneconomical

• You are renovating and want to upgrade the setup

• You are changing from electric storage to heat pump

• You are changing from gas storage to instant gas

Not every hot water issue means the system must be replaced. Some problems may relate to valves, thermostats, elements or other components. If you are unsure, speak with a licensed plumber, gas fitter or electrician before ordering.

Compare Hot Water Systems Online

Hot Water Outlet helps customers compare hot water systems online by type, brand, size, energy source and household suitability. Whether you are replacing an old unit, upgrading during a renovation, choosing a system for a rental property or ordering parts for a hot water project, the goal is to make product comparison easier.

Start with the main hot water systems collection, then narrow your search by:

• Heat pump hot water systems

• Electric hot water systems

• Gas hot water systems

• Instant gas hot water systems

• Instant electric hot water systems

• Valves, pipework and fittings

FAQs About the Best Hot Water Systems in Australia

What is the best hot water system for most homes?

The best hot water system for most homes is the one that matches the household size, number of bathrooms, current energy source and replacement setup. Electric storage, heat pump, gas storage and instant gas systems can all be good choices when matched to the right property.

Is electric or gas hot water better?

Electric and gas hot water systems suit different homes. Electric storage may be practical for homes without gas or properties already using electric hot water. Gas hot water may suit homes with natural gas or LPG. The better choice depends on the existing setup, usage demand, gas availability, system size and replacement requirements.

Are heat pump hot water systems worth it?

Heat pump hot water systems can be worth comparing if you want an efficient electric hot water option and the property has a suitable location, airflow and household demand. They are commonly considered when replacing older electric storage systems.

What size hot water system do I need?

The right size depends on the number of people in the home, number of bathrooms, shower habits, laundry use, kitchen use and how often hot water is needed at the same time. Storage systems are compared by tank size in litres, while instant gas systems are compared by flow rate in L/min.

Is instant gas hot water better than storage hot water?

Instant gas hot water can be a good option for homes wanting continuous flow hot water without a large storage tank. Storage hot water can be a good option for homes that prefer a stored supply. The better option depends on gas availability, household demand, available space, flow rate needs and replacement setup.

Can I replace an electric hot water system with a heat pump?

In some homes, replacing electric storage with a heat pump may be worth considering. The property needs suitable space, airflow, electrical requirements and a location that suits the selected heat pump model. Always check product specifications and confirm suitability before ordering.

Can I replace gas storage with instant gas hot water?

Some homes may consider changing from gas storage to instant gas, but it depends on the existing setup, gas supply, location, flow rate requirements and installation conditions. Compare the product specifications carefully and speak with a licensed gas fitter if you are unsure.

Do I need valves and fittings with a new hot water system?

Some hot water system orders may require valves, pipework, fittings or connection accessories. Requirements vary depending on the system type, pressure rating, connection layout and replacement setup. Browse valves, pipework and fittings and confirm compatibility before ordering.

What is the cheapest hot water system to buy?

The cheapest hot water system will depend on system type, size, brand and current product pricing. However, price should not be the only factor. A low-cost unit still needs to suit the home, energy source, household demand and replacement requirements.

What should I check before ordering a hot water system online?

Before ordering, check the system type, energy source, gas type, tank capacity, flow rate, dimensions, connection positions, household suitability, valves, fittings, delivery access and warranty information. If you are unsure, confirm the details with a licensed tradesperson before purchasing.

Find the Best Hot Water System for Your Home

The best hot water system is the one that suits your home, energy source, household size, available space and replacement requirements. Before ordering, compare the system type, size, brand, gas type, flow rate, recovery rate, dimensions, connection positions and any required accessories.

Browse hot water systems online with Hot Water Outlet to compare electric, gas, instant gas, instant electric and heat pump options from trusted brands.