Electric vs Gas Hot Water Systems: Which is Right for Your Home?

  • By Hot Water Boss

Published: Thursday, April 10, 2025

When you’re purchasing a new hot water system, one of the first decisions you’ll need to make is whether to install an electric or gas hot water system. Both options have their pros and cons, and the right choice will depend on your household size, energy availability, and long-term budget.

At Hot Water Boss, we’ve been helping families in Jimboomba and across South-East Queensland choose and install the best hot water systems for over a decade. To make things easier, here’s a guide comparing electric vs gas hot water systems - plus a quick look at heat pump systems as another option.

Electric Hot Water Systems

Electric hot water systems are among the most common in Brisbane and Jimboomba homes.

 

Key benefits of electric systems:

- Lower upfront cost compared to gas systems.

- Simple to install and widely available.

- Can be connected to your existing solar panels (if sized correctly).

 

Things to consider:

- Running costs depend heavily on your electricity tariff. Peak tariffs can make bills higher over time.

- Available in single element (suitable for most households) and dual element (ideal for high-demand families).

- If you’re planning to use solar power, check with your electrician whether your solar setup can support your hot water system.

 

👉 Best for: Homes without gas connections, households with solar panels, or those wanting a lower upfront cost.

Gas Hot Water Systems

Gas hot water systems usually cost more upfront but can be cheaper to run over time — especially for larger families with higher hot water demand.

 

Key benefits of gas systems:

- Reliable and energy-efficient, especially with natural gas connections.

- Available in storage tank systems or instantaneous (tankless) systems.

 -Instantaneous gas systems provide hot water on demand, so you never run out.

 

Things to consider:

- Higher upfront purchase and installation cost than electric systems.

- Require access to natural gas or LPG.

- Installation location matters, as proper ventilation is essential.

 

👉 Best for: Families with higher hot water usage or homes already connected to natural gas.

Heat Pump Hot Water Systems (An Alternative Option)

While not the main comparison here, heat pump hot water systems are becoming increasingly popular throughout Jimboomba and its surrounds as an energy-efficient option.

 

- Work by extracting heat from the air to warm water.

- Perform best in warmer climates and need to be installed outdoors.

- Can be noisier than electric or gas systems due to ventilation requirements.

 

👉 Best for: Environmentally-conscious households looking to reduce long-term running costs.

Which Hot Water System Should I Choose?

Still unsure whether an electric or gas hot water system is right for your home? Here’s a quick summary:

 

Choose electric if you want a lower upfront cost, plan to use solar power, or don’t have access to gas.

Choose gas if your home has a gas connection, you want lower running costs, or your household has high hot water demand.

 

At Hot Water Boss, our licensed plumbers can assess your home, energy setup, and water usage to recommend the best hot water system for your family. Whether it’s electric, gas, or heat pump, we supply and install quality systems across Jimboomba and surrounding areas.

 

👉 Request a free online quote today and let Hot Water Boss take the stress out of choosing your new hot water system.

Request a Quote Now!

Frequently Asked Questions

What size hot water system do I need?

While the size of the hot water system will more than likely vary depending on your specific needs, the average 4-person Australian home will need at least a 160 litre tank for a continuous electric system, or a 250-315 litre off-peak system. If you’re in the market for a gas tank, a 4-person house averages a 170 litre tank. 270-315 litre tank should be sufficient for heat-pump users. 

Why is the right size hot water system so important?

If your hot water heater is too small for your needs, you will find yourself continually run out of water. On the other hand, if your hot water system is too large for your needs, you are going to spend an unnecessary amount of energy (and therefore money) heating it. This is because your hot water system will keep maintaining the heat of your water, even when you are not using it.

Can I install the system myself?

You will need a licensed plumber to install your new hot water system.

I'm not in SEQLD - how do I choose a plumber?

It's important to ensure you choose the right plumber to install your hot water system. The last thing you want is a non compliant install on your brand new hot water system, which could shorten the life of the new hot water system and even void the warranty. We are often asked if a customer can install a hot water system...in all honesty the risks aren't worth it - and it's illegal! Best to call a licensed plumber to ensure it's done right.

How do I calculate my hot water usage?

The first step to take in choosing a new hot water system is to calculate the hot water usage in your home. The amount of hot water each household uses will vary depending on lifestyle, appliances, and water fixtures throughout the house. 

Rheem Stellar 315L 3.6kW Single Element Stainless Steel Electric - 4A1315G7

Stainless steel construction

No sacrificial annode

Reliable and tough (built to last Aussie conditions)

Backed by Rheem’s solid 12-year warranty and reliability

Request a Quote Now!