What is the best hot water system for your home?

09.09.19 11:27 AM By Luke Davies
No one likes a cold shower, unless it’s in the middle of Summer! We get asked a lot, what is the best hot water system for my new home? What are the benefits of each system and which is the most efficient?  Your questions are answered here.


Electric hot water units are the most popular in homes around Australia, this system uses an element to heat a tank of water which can vary in size. Here are the facts; generally electric is the cheapest to buy and install but the most expensive to run.

The prices for these units range from about $450 to $1800 dependent on size and number of elements used, the most elements available the faster the water can be heated. The size of the unit can also be the cause of running out of hot water if someone in your household likes to hog the shower.


Bad news, gas prices are on the rise! But if you have the connection and still want to have a crack at using this hot water system here is some more information. The benefits of having gas over electric is in a power outage, sometimes hot water supply can be lost. Gas units are stored outside in most cases, so it’s a great option if your home is only small and you don’t have room for a tank inside.


If you’re lucky enough to be living in a location that is not short of sunlight, then this could be a very efficient water heating option for your home. Yes, initial setup costs are a little more than the other options, but you will be ahead when the dreaded power bill comes in the mail with lower ongoing costs. The downfall of this system is they will need assistance from traditional power sources for overcast or cooler periods through the year. The Australian government provides incentives for the installation and purchase of environmentally friendly systems. For solar hot water systems, rebates can reduce the costs by up to $1200, this is all relative to the type of unit used. Recent studies have suggested that on average with solar panel systems that 90% of hot water is free for a household, depending on location.


A heat pump is useful for more than just making your living room toasty. It can be used to heat your water! Unfortunately these types of systems need a warm environment to be effective and save home owners any sort of money, this is because it uses the air conditioning unit to extract heat from the air to heat water. The best way we can explain it, is that it works like a fridge but in reverse! The deal breaker for this system is that they can be extremely noisy.


  • Showers use the majority of water in a household, limiting time spent in the shower will save you at bill time and also reduce our impact on the environment.
  • Tanks for family households are often hold way more capacity than required and therefore too much water is being heated, wasting power. Ensure the size tank you choose for your home is just right.
  • Use cold or warm cycle on your washing machines! Your bank account and the environment will thank you.
  • Stay on top of your maintenance. Leaking hot water taps are a trap!

Never have a cold shower again, save money and also save the environment.