Electric, gas or solar hot water system?

September 11, 2015 - 3 min read

So many Australians wonder whats the best hot water system to use? We weigh up the pros and cons of solar, gas and electric hot water systems and help you make the best choice.

Unless you love cold showers, a hot water system is essential. However, not all systems are the same and choosing the wrong type could be a costly mistake. If you’re unsure what your choices are, we’re here to help. Whether you’re building a new home or feel like your current system is on its last legs, this guide will help determine what kind of hot water system is best for you!

Pick The Right Hot Water System For you

Solar Hot Water System

Rising in popularity thanks to their energy efficiency, solar hot water systems consist of 2 parts; solar collector panels and a storage tank. Solar panel systems also have a booster to heat the tank when there’s less sunshine.


  • Energy efficient
  • Great for warmer Fraser Coast climate
  • Cheap to run


  • Expensive to purchase and install
  • Installation takes several days
  • Roof configuration needs to be compatible

Estimated Cost: $2,000 to $7,000 (not including installation)

Electric Hot Water System

Also known as hot water tanks or cylinders, electric hot water systems have been the most popular option on the Fraser Coast for decades. But, thanks to rises in the cost of electricity, this is no more! You can purchase a continuous system that heats water all day or an off-peak heated storage tank system, which heats water at night when electricity tariffs are lowest.


  • Electric heated storage tank systems are cheaper and easier to install than alternatives
  • Can be installed indoors or outdoors
  • Continuous systems heat water all day


  • Electric heated hot water systems need a larger tank so you don’t run out of water
  • Electricity prices constantly rising
  • Continuous systems can be more expensive to run

Estimated cost: $300 to $2,000 (not including installation)

Gas Hot Water System

Gas hot water systems are very similar to electric, except the electric heat element is replaced with a gas burner. You can choose to run gas systems using natural gas or LPG.


  • Gas tariffs don’t vary, so they can heat water when required
  • Cheaper to run than electric hot water systems


  • Not all homes have a connection to natural gas (LPG is more expensive to run)
  • Needs venting when installed indoors
  • If you have an electric ignition, you may lose hot water during a blackout

Estimated cost: $900 to $2,000 (not including installation)

Heat Pump Hot Water System

A more efficient type of electric storage tank system, the heat pump hot water system extracts heat from the air and uses it to heat the water tank. Like solar hot water systems, they work best in warmer climates, but have a booster for when the weather gets cold.


  • Great for warm Fraser Coast climate
  • More energy efficient than conventional electric hot water systems


  • Initially can be more expensive than alternatives
  • Needs to be installed outdoors in a well ventilated area
  • Compressor can be noisy to run

Estimate Cost: $2,500 to $4,000 (not including installation)

Know What You Need

Before you choose your hot water system, you need to consider your hot water needs. The average person uses about 50 litres of hot water a day, so if you’ve got a house full of people that love a long hot shower, you’ll need a bigger tank or a continuous heating system. Contact your local Fraser Coast hot water systems expert and let them know your household size and water usage habits. They will be able to recommend the most suitable option for you!

If you want some more tips on making your home more energy efficient, check out these tips: