Deciding Between Gas And Electric Hot Water Systems – Costs, Efficiency, And Performance Compared


Are you considering upgrading your hot water system in Melbourne but unsure whether to go with electric or gas? Understanding the nuances between these two system options is crucial for making an informed decision. 

Electric hot water systems offer the convenience of instant hot water at the flick of a switch, while gas systems boast energy efficiency and potentially lower running costs. To have a better understanding, you must delve into the realm of energy-efficient water heating

In this article, we’ll explore the comparative costs, efficiencies, and performances of gas and electric hot water systems in Melbourne. Let’s navigate through the intricacies of selecting the ideal hot water solution tailored to your needs and budget.

Gas vs Electric Instant Hot Water Systems

Instant hot water systems provide immediate access to hot water without the need for a storage tank. Gas and electric instant systems offer similar functionality but differ in their underlying mechanisms. Gas systems typically heat water using a burner powered by natural gas or propane, whereas electric systems utilise heating elements to generate warmth. 

When comparing the two, gas instant hot water heater systems often boast higher heating capacities and faster recovery rates, making them ideal for larger households or those with high hot water demands. 

On the other hand, electric instant hot water units may offer easier installation and lower upfront costs, but they might have slightly slower heating times and higher operating expenses depending on the electricity rates in your area. Understanding these differences can help you choose the best instant hot water solution for your specific needs and preferences.

Running Costs

When it comes to running costs of hot water systems, both gas and electric hot water systems have their own set of considerations. Gas systems generally have lower energy costs compared to electric ones, as natural gas is often cheaper than electricity per unit of energy. 

However, the system’s efficiency and the appliance’s energy efficiency rating also play significant roles. Gas systems are more energy-efficient overall, which can further reduce running costs. Factors such as the size of your household, frequency of hot water usage, insulation quality of the system, and local utility rates can also influence running costs. 

Maintenance requirements and the hot water system lifespan can also impact long-term expenses. By carefully evaluating these factors and comparing the running costs of gas and electric hot water systems, you can make an informed decision that aligns with your budget and energy-saving goals.

Instant Electric Hot Water

Instant electric hot water systems offer on-demand hot water without the need for a storage tank, making them suitable for smaller spaces. They are easy to install but may have higher operating costs than gas systems, particularly in areas with expensive electricity. 

While they may have slightly slower heating times, they can be highly efficient with features such as adjustable temperature settings. Overall performance depends on the factors such as insulation quality and flow rate. By weighing these factors, you can decide if an instant electric hot water system suits your needs.

Instant Gas Hot Water

These gas hot water systems are generally more energy-efficient than electric systems, potentially resulting in lower operating costs, especially with cheaper natural gas. However, professional installation may be required, and upfront costs can be higher. 

In terms of efficiency and performance, they typically have faster heating times and can also provide a continuous supply of hot water. Here too, overall performance depends on factors such as insulation quality and flow rate. 

Need advice on choosing the right hot water system for your home? Look no further! Our consultation services are here to help you make an informed decision. Give us a call today at 0411 295 646 for expert guidance and personalised recommendations tailored to your needs.

Electric vs Gas Hot Water Systems: How to Choose the Right One for Your Household?

When deciding between an electric or gas hot water system for your household, several factors come into play to ensure you choose the right one for your needs.

  1. Energy Efficiency: Consider the energy efficiency of each system. Gas systems are often more energy efficient than electric ones, but this can vary depending on factors such as the model and usage patterns.
  2. Cost: Evaluate the upfront costs as well as the long-term operating costs associated with each type of system. Gas systems may have higher upfront costs but lower operating costs over time, especially if natural gas prices are favourable.
  3. Availability and Accessibility: Determine the availability and accessibility of gas and electricity in your area. If natural gas is not readily available or there are limitations on installing gas appliances, an electric hot water system may be the more practical choice.
  4. Household Size and Usage: Start by considering your household size and typical hot water usage patterns. Larger households with higher water demands may benefit from the faster recovery times and higher heating capacities of the gas system.
  5. Installation Requirements: Ensure that you carry out the installation process with the help of a professional, as this will help you maintain your peace of mind. They can also help you with gas hot water system maintenance.

When choosing between gas and electric, also consider the emergency plumbing situations that may occur. If you need emergency plumbing service in Epping, Mernda, Mickleham, South Morang, Whittlesea, or concerning gas fitting in Doreen, we are just a call away. Simply call us at 0411 295 646.


The choice between gas and electric hot water systems in Melbourne ultimately depends on your specific needs, preferences, and circumstances. Whether you opt for gas or electric, ensuring the system meets your requirements is essential for long-term satisfaction. 

For personalised advice and assistance in choosing the right hot water system for your home and any kind of gas fitting and electric hot water system maintenance, contact us today for a consultation. 


Heat pump hot water systems are considered the most cost-effective in Australia.

The life expectancy of a gas hot water system is typically around 10 to 15 years.

The cost of replacing a hot water system in Australia varies depending on factors such as the type and size of the system, but it can range from a few hundred to several thousand dollars.

Whether to switch from gas to electric water heater depends on factors such as energy costs, availability, and personal preferences.

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Deciding Between Gas And Electric Hot Water Systems – Costs, Efficiency, And Performance Compared