Electric vs Gas vs Heat Pump Hot Water Systems: Which Is Best?

Choosing between electric, gas and heat pump hot water systems depends on your home, energy source, household size, available space, budget and replacement goals. There is no single best hot water system for every Australian property. The best option is the one that suits your existing setup, daily hot water demand and long-term plans.

At Hot Water Outlet, you can compare hot water systems online, including electric hot water systems, gas hot water systems, instant gas hot water systems and heat pump hot water systems from trusted brands.

Quick Answer: Is Electric, Gas or Heat Pump Hot Water Best?

The best hot water system depends on what your home is already set up for.

As a general guide:

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

• Choose a heat pump hot water system if you want an energy-efficient electric storage option and have a suitable location with enough airflow.

• Choose a gas hot water system if your property already uses natural gas or LPG and you want a traditional gas storage replacement.

• Choose an instant gas hot water system if your home has natural gas or LPG and you want continuous flow hot water without a large storage tank.

For most buyers, the best starting point is to compare the full hot water systems range, then narrow the choice by system type, energy source, household demand, size, flow rate, dimensions and product specifications.

Electric vs Gas vs Heat Pump Hot Water at a Glance

Each option can be the right choice when matched to the right property. The mistake is assuming one system type is automatically better without checking the home’s existing energy source, hot water demand and replacement requirements.

What Is an Electric Hot Water System?

An electric hot water system heats and stores water in a tank using electricity. When hot water is used in the home, it comes from the stored supply inside the tank.

Electric storage hot water is common across Australian homes and is often chosen for like-for-like replacements. If your current system is an electric storage tank and the household demand has not changed much, another electric storage system may be one of the simplest options to compare.

Electric hot water systems are usually selected by:

• Tank capacity in litres

• Household size

• Number of bathrooms

• Recovery rate

• Power requirements

• Physical dimensions

• Connection positions

• Indoor or outdoor suitability

• Brand and warranty information

When Electric Hot Water May Be the Best Choice

Electric storage hot water may suit homes that already have an electric hot water tank and want a practical replacement. It can also suit properties without natural gas or LPG.

Electric hot water may be a good option when:

• The home already has electric storage hot water

• You want a familiar tank-style system

• There is no gas supply at the property

• The existing unit location still works

• The household demand suits the tank size

• You want a straightforward product comparison

The main thing is to choose the right size. A tank that is too small may run out of hot water too quickly, while a larger tank may cost more than needed. Always compare the product specifications before ordering.

What Is a Heat Pump Hot Water System?

A heat pump hot water system is an electric hot water system that uses heat from the surrounding air to help heat stored water. It still uses electricity, but it works differently from a standard electric storage tank.

Heat pumps are often compared by households wanting an energy-efficient electric hot water option. They are commonly considered when replacing older electric storage systems, especially where the home has suitable outdoor space and airflow.

Heat pump hot water systems are usually selected by:

• Tank capacity in litres

• Household size

• Energy efficiency goals

• Unit dimensions

• Airflow requirements

• Noise rating

• Outdoor location suitability

• Brand and model

• Warranty information

When Heat Pump Hot Water May Be the Best Choice

Heat pump hot water may suit homes that want an efficient electric storage option and have a suitable location for the unit.

A heat pump may be a good option when:

• You are replacing an older electric storage system

• You want to compare energy-efficient hot water options

• The property has suitable outdoor space

• The unit can get enough airflow

• The household still wants stored hot water

• You want a larger tank option for regular household demand

Heat pumps need to be chosen carefully. Location, airflow, dimensions and noise rating all matter. A heat pump that suits one property may not suit another, so always check the product specifications before ordering.

What Is a Gas Hot Water System?

A gas hot water system uses natural gas or LPG to heat water. Gas hot water can include gas storage systems and continuous flow instant gas units.

Gas storage systems heat and store water in a tank. Instant gas systems heat water as it flows through the unit, without storing a large tank of hot water.

If your property already has gas hot water, it is worth comparing both gas hot water systems and instant gas hot water systems before choosing a replacement.

When Gas Hot Water May Be the Best Choice

Gas hot water may suit homes that already have natural gas or LPG connected and want to stay with a gas system.

Gas hot water may be a good option when:

• The home already has a gas hot water system

• The property has natural gas or LPG

• You want a like-for-like gas storage replacement

• You want to compare storage and continuous flow gas options

• The household demand suits the selected tank size or flow rate

• You prefer gas hot water over electric storage

The most important detail is gas type. Natural gas and LPG hot water systems are not interchangeable. Always choose the correct model for the property.

What Is an Instant Gas Hot Water System?

An instant gas hot water system, also known as a continuous flow gas hot water system, heats water as it passes through the unit. It does not keep a large storage tank of hot water ready.

Instant gas systems are usually compared by flow rate in L/min. Common options include smaller flow rate units for lower-demand homes and larger systems for households with higher hot water use.

Instant gas hot water systems are usually selected by:

• Natural gas or LPG type

• Flow rate in L/min

• Number of bathrooms

• Household demand

• Controller options

• Outdoor location suitability

• Brand and model

• Dimensions

• Connection positions

When Instant Gas Hot Water May Be the Best Choice

Instant gas hot water may suit homes with natural gas or LPG where continuous flow hot water is preferred over a storage tank.

Instant gas may be a good option when:

• You want continuous flow hot water

• You do not want a large storage tank

• The home already has gas available

• The selected flow rate suits the household

• Outdoor wall space is available where required

• The correct natural gas or LPG model is chosen

Flow rate is the key comparison point. A 16 L/min unit, 20 L/min unit and 26 L/min unit will not suit the same demand. The right size depends on the number of outlets, bathrooms and typical hot water use.

Electric vs Heat Pump Hot Water

Electric storage and heat pump hot water systems both use electricity, but they work differently.

A standard electric storage system uses an electric element to heat water inside the tank. A heat pump uses heat from the surrounding air to help heat the stored water, which can make it a more efficient option in suitable homes.

Choose electric storage when you want a practical like-for-like replacement and the current setup works well. Choose heat pump when you want to compare more efficient electric storage options and the home has a suitable location.

Gas Storage vs Instant Gas Hot Water

Gas storage and instant gas systems both use gas, but they deliver hot water differently.

Gas storage systems heat and store water in a tank. Instant gas systems heat water only when hot water is being used.

Choose gas storage if your current setup is gas storage and you want a similar replacement. Choose instant gas if you want continuous flow gas hot water and the selected model suits the property.

Electric vs Gas Hot Water

Electric and gas hot water systems suit different homes. The better option often depends on what the property already has.

Electric hot water may suit homes without gas or homes already set up for electric storage. Gas hot water may suit homes with natural gas or LPG already available.

The best choice is usually the one that works with the home’s existing services unless you are planning a larger upgrade or renovation.

Best Option for Like-for-Like Replacement

For a straightforward replacement, many buyers start by comparing the same system type they already have.

If you currently have electric storage, compare electric hot water systems. If you want to explore a more efficient electric option, also compare heat pump hot water systems.

If you currently have gas storage, compare gas hot water systems. If you want to move away from a large storage tank, compare instant gas hot water systems.

Before ordering a like-for-like replacement, check:

• Current system type

• Brand and model

• Tank size or flow rate

• Natural gas or LPG if gas

• Power requirements if electric

• Dimensions

• Connection positions

• Pressure rating

• Location

• Required valves and fittings

Best Option for Energy Efficiency

For many homes comparing energy-efficient hot water options, heat pump hot water is one of the main categories to consider.

A heat pump may be suitable if the property has:

• An appropriate outdoor location

• Enough airflow around the unit

• Suitable space for the tank

• Household demand that matches the tank size

• Electrical suitability

• A desire to move away from standard electric storage

Browse heat pump hot water systems if you are comparing efficient electric storage options.

Gas continuous flow may also be worth comparing for homes already set up with gas, especially if the goal is to avoid storing hot water in a large tank. Browse instant gas hot water systems if your home has natural gas or LPG.

Best Option for Larger Families

Larger families need to pay close attention to capacity and performance. A small tank may not keep up with back-to-back showers, laundry use and kitchen use. A low-flow instant gas unit may also struggle if multiple outlets are used at once.

For larger households, compare:

• Larger electric storage tanks

• Larger heat pump hot water systems

• Gas storage systems with suitable recovery

• Instant gas systems with an appropriate flow rate in L/min

The right choice depends on whether the home uses electricity, natural gas or LPG, as well as how many bathrooms and occupants the property has.

Best Option for Small Homes, Units and Townhouses

Smaller homes may not need the same hot water capacity as larger family homes. A compact electric storage system, smaller gas continuous flow system or point-of-use instant electric unit may be suitable depending on the setup.

For smaller properties, check:

• Available space

• Access to the unit location

• Current energy source

• Number of occupants

• Number of bathrooms

• Tank capacity or flow rate

• Electrical or gas requirements

• Product dimensions

Do not choose a smaller system just because the property is compact. The unit still needs to match actual hot water demand.

Best Option for Renovations

Renovations are a good time to compare electric, gas and heat pump hot water options. Bathroom, kitchen and laundry upgrades can change the way hot water is used in the home.

A renovation may increase hot water demand if you are adding:

• A second bathroom

• A larger bath

• More fixtures

• A new kitchen layout

• A larger laundry

• A granny flat or separate living area

Before choosing a hot water system for a renovation, compare the future layout, not just the current setup. The right system should suit the home after the renovation is complete.

Do Valves, Fittings and Pipework Matter?

Yes. A hot water system order may need more than the main unit. Some replacements and projects also require valves, pipework, fittings or connection accessories.

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

Depending on the system and replacement setup, items to check may include:

• Tempering valves

• Pressure relief valves

• Duo valves

• Non-return valves

• Isolation valves

• Copper pipework

• Fittings

• Connection accessories

Always confirm compatibility before ordering. Gas, electrical and plumbing work should be handled by appropriately licensed tradespeople.

Trusted Brands to Compare

Hot Water Outlet brings together recognised hot water brands so buyers can compare systems by type, size, energy source and product specifications.

Depending on the system type, you may want to compare:

• 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

• Emerald Energy hot water systems

Brand can help narrow your search, but the final choice should still come down to system type, size, gas type, flow rate, dimensions, connection positions and suitability for your home.

Common Mistakes to Avoid

Choosing the Cheapest System Without Checking Suitability

A cheap hot water system is not good value if it does not suit the home. Always compare the energy source, size, dimensions, connection positions and household demand before ordering.

Assuming Bigger Is Always Better

A larger tank may not always be the best option. The right size depends on household demand, recovery rate and how the home uses hot water.

Mixing Up Natural Gas and LPG

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

Comparing Storage and Instant Systems the Same Way

Storage systems are compared by tank capacity in litres. Instant gas systems are compared by flow rate in L/min. These are different measurements and should not be treated the same.

Forgetting About Space and Airflow

Heat pumps need suitable space and airflow. Storage tanks need enough physical room. Instant gas units need suitable wall space and correct gas type. Always check the unit location before ordering.

Ignoring Valves and Accessories

Some hot water projects may require extra valves, fittings or pipework. Check the full order, not just the main unit.

Buyer Checklist: Electric vs Gas vs Heat Pump Hot Water

Before choosing between electric, gas and heat pump hot water, check:

• Current system type

• Existing energy source

• Natural gas or LPG availability

• Household size

• Number of bathrooms

• Daily hot water demand

• Tank capacity if storage

• Flow rate in L/min if instant gas

• Recovery rate

• Unit dimensions

• Connection positions

• Indoor or outdoor suitability

• Heat pump airflow requirements

• Noise rating if choosing a heat pump

• Power requirements

• Gas requirements

• Required valves and fittings

• Delivery access

• Warranty information

• Product specifications

So, Which Hot Water System Is Best?

Electric, gas and heat pump hot water systems can all be the best choice in the right home.

Choose electric storage if you want a practical like-for-like electric replacement. Choose heat pump if you want to compare efficient electric storage options and have a suitable location. Choose gas storage if your home already uses gas storage and you want a traditional replacement. Choose instant gas if your home has natural gas or LPG and you want continuous flow hot water.

The best hot water system is not just about the energy type. It is about matching the unit to your home, usage, space, replacement requirements and product specifications.

Compare Electric, Gas and Heat Pump Hot Water Systems Online

Hot Water Outlet makes it easier to compare hot water systems online by type, brand, size, energy source and household suitability.

Start with the full hot water range, or browse by category:

• Electric hot water systems

• Heat pump hot water systems

• Gas hot water systems

• Instant gas hot water systems

• Instant electric hot water systems

• Valves, pipework and fittings

FAQs About Electric vs Gas vs Heat Pump Hot Water

Is electric, gas or heat pump hot water best?

The best option depends on your home. Electric storage may suit like-for-like electric replacements. Heat pump hot water may suit homes wanting an efficient electric storage option. Gas hot water may suit homes with natural gas or LPG. Instant gas may suit homes wanting continuous flow hot water without a large tank.

Is a heat pump better than an electric hot water system?

A heat pump can be a more efficient electric hot water option in suitable homes, but it needs the right location, airflow and space. Standard electric storage may be simpler for some like-for-like replacements. The better choice depends on your property and replacement requirements.

Is gas hot water better than electric hot water?

Gas hot water may suit homes with natural gas or LPG, while electric hot water may suit homes without gas or homes already set up for electric storage. The better option depends on the current energy source, household demand, system size and replacement setup.

Should I replace electric hot water with a heat pump?

Replacing electric storage with a heat pump may be worth considering if you want an efficient electric hot water option and the property has a suitable location. Check the tank size, dimensions, airflow requirements, noise rating and product specifications before ordering.

Should I replace gas storage with instant gas hot water?

Some homes may consider moving from gas storage to instant gas, especially where continuous flow hot water is preferred. Suitability depends on gas type, flow rate, location, household demand and existing connections. Speak with a licensed gas fitter if you are unsure.

What is the best hot water system for a family?

The best hot water system for a family depends on the number of people, bathrooms and daily hot water use. Larger families may need a larger storage tank, suitable heat pump or instant gas unit with the right flow rate in L/min.

What is the best hot water system for a small home?

Small homes may suit compact electric storage, appropriately sized heat pump, smaller instant gas or point-of-use instant electric options depending on the energy source and hot water demand. Always check the product specifications before ordering.

Can I switch from gas hot water to electric?

Some homes may be able to switch from gas to electric or heat pump hot water, but the suitability depends on the property, electrical requirements, existing gas setup, location and replacement goals. Licensed tradespeople should assess any gas, plumbing or electrical changes.

Do I need a licensed tradesperson for hot water replacement?

Yes. Hot water system replacement can involve plumbing, gas and electrical work. These tasks should be completed by appropriately licensed tradespeople. Hot Water Outlet helps customers compare and order supply-only hot water systems and parts online, but installation and connection work should be handled by licensed professionals.

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

Before buying online, check the system type, energy source, gas type, tank capacity, flow rate, dimensions, connection positions, pressure rating, required valves, fittings, delivery access, warranty information and product specifications.

Find the Right Hot Water System Online

The best hot water system is the one that suits your home, energy source, available space, household demand and replacement requirements. Electric, gas and heat pump systems all have a place, but the right choice depends on the details.

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