Last Update:
Choosing between gas and electric hot water can be confusing. We break down the pros and cons of each system type, including running costs, energy efficiency, and installation considerations to help you make the right choice for your household.
The Big Decision
When your hot water system fails, you're faced with an important decision: should you replace it with gas or electric? The answer depends on your household size, budget, existing infrastructure, and environmental priorities. Let's break down the key differences.
Gas Hot Water Systems
Gas hot water systems are available in two main types: storage tanks and continuous flow (instantaneous) units. Both use natural gas or LPG to heat water.
Pros:
- Lower running costs — natural gas is typically cheaper per unit of energy than electricity
- Continuous flow models provide unlimited hot water on demand
- Faster recovery rate on storage tanks compared to electric
- Works during power outages (some models)
Cons:
- Higher upfront installation cost, especially if gas lines need to be run
- Requires adequate ventilation and flue for exhaust gases
- Not available in all areas — some homes don't have natural gas connection
- Annual servicing recommended for safety
Electric Hot Water Systems
Electric hot water systems are the most common type in Australian homes. They come in storage tank and heat pump varieties.
Pros:
- Lower upfront purchase and installation cost
- Simple installation — no gas lines or flues required
- Available everywhere — just needs a power point and water connection
- Heat pump models are extremely energy efficient (up to 65% less energy than conventional electric)
Cons:
- Conventional electric storage has the highest running costs of any hot water type
- Slower recovery rate — once the tank runs out, you're waiting for it to reheat
- Storage tanks lose heat over time (standby heat loss)
- Heat pumps can be noisy and need adequate airflow around the unit
Running Cost Comparison
For an average family of four using approximately 200 litres of hot water per day, typical annual running costs in South East Queensland are:
- Natural gas continuous flow: $350–$500 per year
- Natural gas storage: $400–$600 per year
- Electric heat pump: $250–$400 per year
- Conventional electric storage: $800–$1,200 per year
These figures vary depending on your energy tariff, usage patterns, and local climate.
Our Recommendation
For most homes with an existing gas connection, a continuous flow gas system like the Rinnai Infinity offers the best balance of running costs, convenience, and reliability. If gas isn't available, a heat pump is the most cost-effective electric option and may also qualify for government rebates under energy efficiency programs.
Every home is different. Contact our team for a free assessment and we'll recommend the best hot water solution for your specific situation.
