Choosing the best hot water system for your home isn’t as simple as picking the biggest tank or cheapest brand. The right system depends on your household size, water usage, energy preferences, and long-term running costs. In Australia, the most popular options include gas, electric, solar, and heat pump systems, each with its own pros and cons.
We’ll explore the different types of best hot water systems available in Australia and which type might suit your needs best.
Best Heat Pump Hot Water Systems
Heat pumps are quickly becoming one of the most energy-efficient options for heating water in Australian homes. Rather than generating heat directly, they use heat pump technology to extract warmth from the air and transfer it into your water supply.
Why heat pumps are worth considering:
- Use less energy than traditional electric hot water systems
- Lower carbon emissions and energy costs
- Can be eligible for rebates under the Small-scale Renewable Energy Scheme
- Ideal for moderate to warm climates, including most parts of WA
Things to keep in mind:
- Performance may drop in colder regions or sub-zero temperatures
- Units can be noisy and may need space for outdoor installation
- Upfront installation costs can be higher than gas or electric systems
At Swan’s Professional Plumbing, we often recommend heat pump systems for households looking to reduce energy usage without installing solar panels.
Best Gas Hot Water Systems
Gas hot water systems are a reliable choice for homes with access to natural gas. They heat water faster than electric systems and are generally cheaper to run over time.
There are two main types:
- Gas storage systems: Heat and store hot water in a tank, ready for use.
- Continuous flow gas systems: Heat water on demand as you turn on the hot tap.
Why gas is still a solid option:
- Faster recovery times compared to electric systems
- Continuous flow models never run out of hot water
- Can be installed outdoors, saving indoor space
- Lower greenhouse gas emissions than standard electric units
What Gas is Best for:
- Homes already connected to natural gas
- Families that use hot water at different times throughout the day
- Outdoor installations where space is limited
Best Electric Hot Water Systems
Electric hot water systems are common in homes across Australia. They’re affordable to install and easy to maintain, making them popular for small households or rentals.
There are two types:
- Storage tanks: Heat and store a set amount of water for use during the day
- Continuous flow systems: Heat water as it flows through the unit
Pros:
- Lower upfront installation costs
- Ideal where gas or solar isn’t available
- Modern electric models are far more energy efficient than older units
Cons:
- Higher running costs unless paired with solar PV or off-peak electricity
- Electric storage tanks can run out of hot water if undersized
Who it suits:
- Homes with low to moderate hot water use
- Smaller properties or apartments
- Those upgrading from an existing electric unit
Best Solar Hot Water Systems
Solar hot water systems use energy from the sun to heat your water, with an electric or gas booster for cloudy days. While the upfront cost is higher, they can cut your energy bills significantly over time.
Why solar might work for you:
- Excellent long-term savings
- Reduce reliance on fossil fuels
- Lower your carbon footprint
- Eligible for government rebates and incentives
Ideal setup:
- North-facing roof space with good sun exposure
- Households with high daily water usage
- Families wanting to future-proof their energy use
Limitations:
- High initial installation costs
- Needs space for roof panels and storage tank
- Performance drops during winter or rainy weeks
Choosing the Right Hot Water System for Your Home
Before making a decision, think about:
- How many people live in your home?
- When and how is hot water typically used?
- Are you connected to gas?
- Do you want the lowest running costs or the lowest upfront cost?
- Do you have space for a storage tank or solar panels?
If you’re unsure, our team at Swan’s Professional Plumbing can help you compare systems based on your home, budget, and future energy goals. We supply and install heat pumps, gas units, electric systems and more across our service areas of the Perth metropolitan area.
Get in contact today to organise your hot water system!
Frequently Asked Questions
Most systems last between 8–15 years depending on the type, brand, and maintenance.
Yes, especially if you're looking to lower your energy bills. Many older systems are less efficient and more costly to run over time.
Yes, but you’ll need a qualified plumber to check your setup and handle any electrical or plumbing upgrades.
Modern heat pumps are designed to operate in colder temperatures, though performance may dip slightly in sub-zero climates.
Yes. Rebates vary depending on your state and system type. Heat pumps and solar hot water systems are usually eligible.
