Choosing the Right Hot Water System
Hot water systems account for up to 25% of home energy costs. Choosing the right system depends on household size, budget, energy costs, and environmental priorities.
Storage Tank Systems
Electric Storage Systems
How They Work:
Electric elements heat water in an insulated tank. Most operate on off-peak electricity overnight.
Pros:
- Lower upfront cost
- Simple installation
- No gas connection needed
- Reliable technology
Cons:
- Higher operating costs
- Slower recovery time
- Can run out of hot water
- Standing heat loss
Gas Storage Systems
How They Work:
Gas burners heat water stored in a tank.
Pros:
- Faster recovery than electric
- Lower running costs than electric
- Works during power outages
Cons:
- Requires gas connection
- Higher upfront cost than electric
- Ongoing gas connection fees
Continuous Flow (Instantaneous) Systems
How They Work:
Water heats as it flows through the unit, providing unlimited hot water on-demand.
Pros:
- Never runs out of hot water
- Compact size
- Energy efficient (no standing heat loss)
- Long lifespan (20+ years)
- Lower operating costs
Cons:
- Higher upfront cost
- May struggle with simultaneous high demand
- Requires adequate gas supply or electrical capacity
Heat Pump Systems
How They Work:
Extract heat from air (like reverse air conditioning) to heat water, using electricity only to run the pump.
Pros:
- Extremely energy efficient (uses 65% less energy)
- Lower running costs
- Government rebates available
- Environmentally friendly
Cons:
- High upfront cost
- Less efficient in cold climates
- Requires outdoor installation space
- Can be noisy
Solar Hot Water Systems
How They Work:
Solar panels on your roof heat water, with gas or electric boosting for cloudy days.
Pros:
- Free energy from the sun
- Government rebates available
- Can reduce hot water costs by 50-80%
- Environmentally friendly
Cons:
- Highest upfront cost
- Requires roof space with good sun exposure
- Still needs backup system
- More complex installation
Sizing Your System
Choose capacity based on household size:
- 1-2 people: 125-160L
- 3-4 people: 250-315L
- 5+ people: 400L+ or continuous flow
Running Cost Comparison
Annual running costs for typical family of four (approximate):
- Electric storage: $800-$1200
- Gas storage: $500-$700
- Continuous flow gas: $400-$600
- Heat pump: $250-$400
- Solar (with gas boost): $150-$300
Which System Is Best?
Best for Budget:
Electric storage has the lowest upfront cost.
Best for Running Costs:
Solar with gas boost or heat pump systems.
Best for Environment:
Solar or heat pump systems.
Best for Large Families:
Continuous flow gas or large solar system.
Best for Limited Space:
Continuous flow systems. Need help choosing? Call 0404 939 121 for expert hot water system advice and installation across Sydney.
Panther Plumbing Group
Licensed plumbing specialists serving Sydney since 2015. NSW Licence #369675C. Our team of certified plumbers brings 10+ years of combined experience in residential, commercial, and emergency plumbing services across all Sydney suburbs.
