Which hot water system is right for me?

Advantages and disadvantages of the various types of hot water systems

Making the right decision on which hot water option to go with when you’re upgrading an old system or installing a new unit can be tricky. Every option has advantages and disadvantages but in the end, the water heater you choose must be perfect for your particular home and your family’s hot water requirements.

We recommend speaking to your local hot water specialist or plumber to help ensure the unit you choose will provide ample hot water for your home, now and in the future.

Storage hot water systems

Advantages

Cost-effective to purchase
Easy installation when replacing like-for-like storage hot water systems
Larger units can be connected to off-peak power to boost savings
Indoor or outdoor installation options
Great for maintaining water pressure throughout the home
Available from tiny 25L under sink models ideal for one tap to huge 400L tanks perfect for the whole home, and multiple bathroom needs.
Both gas and electric units are available to suit your power preference.
Last 10 to 15 years, longer if regularly maintained

Disadvantages

One of the most costly types of hot water systems to run as the water in the tank needs to be kept above 60℃ to prevent harmful bacteria growth.
Can take a while to reheat once all the water in the tank has been used
Even though the tank and pipes are insulated some heat loss is experienced
Yearly maintenance to check for issues such as sacrificial anode replacement, tank leaks, debris or dirt build-up in the tank, etc required.

More information on storage hot water systems.

Instant, continuous flow or instantaneous hot water systems

Instant options are mostly gas fueled (natural gas or LPG) although more electric instant hot water systems are emerging on the Australian market.

Advantages

Space-saving, wall-mounted design
Minimal energy waste
Energy efficient to operate
In most situations, you won’t run out of hot water.
No constant water heating is required - instant systems only heat the water when you turn on the hot tap.
Minimal heat loss
Only needs to heat to the desired delivery temperature (often 50℃) as no storage of the water involved saving power.
Locating the unit close to the point of use reduces lag and wasted water.
Indoor and outdoor installation options
Instant units last around 20 years

Disadvantages

Smaller units can battle to provide hot water for long periods like high flow, long showers
Multiple units would be needed for larger homes or hot water needs which are a long way from each other, eg the kitchen at one end of a large house and a bathroom at the other end.
Gas models require venting to remove carbon dioxide and harmful waste produced during gas burning
Not ideal for low water pressure areas

More information on instant hot water systems.

Solar hot water heater

Advantages

Extremely energy efficient uses free solar energy to heat the water
Can take a large chunk out of your home's yearly power bill
Eligible for government rebates which help to keep purchase and installation costs down
Split system or close coupled models allow for varied installation options - roof-mounted panels and ground-mounted tank or roof-mounted tank and panel unit.
Fitted with a booster (either gas or electric) for overcast or rainy days
Work effectively even during winter or in cold climates
Panel or evacuated tube options are available, as well as frost-protected models.
Reduces your home's carbon footprint.

Disadvantages

Ideally requires north-facing roof space to get the most out of the system. East or west-facing panels can be effective however, more panels may be needed.
An unshaded roof area is required - and needs to be maintained by regularly cutting trees
Not suitable for apartments or homes with small or south-facing roofs
Use in climates with a lot of overcast or rainy days will reduce efficiency.
Close coupled systems may require roof reinforcement as larger tanks can be heavy
Only heats during the daytime.

More details on solar hot water heaters.

Heat pump hot water system

Advantages

Highly energy efficient
Utilises the ambient warmth in the air to heat the water
Uses significantly less power than directly heating the water with electricity (as in electric storage models). Electricity is only used to move the water around, using the refrigerant to heat the water.
Easy installation upgrade from an existing electric storage hot water system
Reduced greenhouse gas emissions
It lasts a long time
Work effectively in temperatures from around 3℃ to 32℃ making heat pumps a great option for most areas in Australia.

Disadvantages

One of the most expensive options to purchase
Noise needs to be considered when choosing the location for your unit.
Outdoor installation required
Not ideal for very cold climates.

Further information on heat pump water heating.