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Gas Or Electric Hot Water Systems?

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Depending on the needs and usage of gas or electric hot water systems will determine which one is better. There are multiple factors that will decide if a gas or electric hot water unit will fit best for a place. Such as installation, running cost and effectiveness, there are considerations which should be made before deciding on gas or electric. Here at Optimised Plumbing Services, we promise that our Emergency Plumber team can easily provide assistance with hot water systems. This help can come with advice on the best system or support with repairing current systems or installing new ones. 

Gas hot water systems use natural or liquefied petroleum gas to effectively heat water but can be limited in usage. Electric hot water systems are more flexible due to most homes already having electricity connected but can be more expensive. Hot water usage and the running/ installation costs which will determine if gas or electric hot water systems are better.

Gas Hot Water Systems

Gas hot water systems can cost from $300 to $600 generally while being around $700 to $2,000 to install. A gas burner is what creates the warm water which is stored in a cylinder or tank. These systems are more energy-efficient, especially the 4 or 5 star units, while also producing much less greenhouse gas emissions. 

The installation often takes a day, with the pricing can be influenced if gas is already connected to the building. Both natural and liquefied petroleum gas systems are flexible enough to be installed in almost all places. Moreover, the actual unit is smaller in size and can be installed in most areas. 

Gas systems can also be compared to solar-powered systems, and there is also gas continuous flow systems to consider:

  • Solar –  using the sun, there are boosters which are installed with the system that helps in times where sunlight is poor. These booster systems can be run by gas-power, but the booster should try to no be used as much. Panels need to be big enough and of the correct number to meet the needs of hot water. Also, the roof should be compatible with solar-power, likewise, installation usually takes a few days.
  • Gas Continuous Flow – these systems are tankless with only heating the water when it is required. As a result, hot water never runs out, bacterial growth is not a concern and is extremely energy efficient.  

Positives and Negatives With Gas Hot Water Systems


  • Cheaper to run overtime, there are no tariffs needed and natural gas is overall much cheaper.
  • Carbon footprint is minimal as there are lower greenhouse gas emissions related to gas power.
  • When purchasing the continuous flow gas heaters that means that hot water is instant and overall is appreciated. 


  • Installing and purchasing gas-powered units are more expensive with the size also impacting the costs.
  • With the size, they can be quite obstructing depending on the location it is installed in and is not aesthetic. 

Electric Hot Water Systems

Electric hot water systems are around $250 – $500 to initially purchase with installation costs similar to gas. Systems using electricity with a storage tank have been the most popular choice in Australia for many decades. However, this popularity is decreasing due to electricity being more expensive and also creating much more greenhouse gas emissions. The government is trying to limit their usage due to their negatives, with also heating all day meaning it is costly. Being cheap to initially purchase, these systems are actually expensive to run, larger in size and overall not encouraged. 

Electric heat pumps related to hot water systems are a better alternative to storage tanks. These use the ambient air from outside then extract the heat, similar to a reverse cycle aircon. There is a tank present and are expensive to purchase but are more energy-efficient, also creating less greenhouse gas emissions. However, they have been losing their popularity as well because of their noise, high maintenance costs and running costs.  

Positives and Negatives With Electric Hot Water Systems


  • The units are cheaper to purchase when compared to gas systems which are usually more expensive.
  • If a continuous flow tank is installed then hot water is available instantly, similar to gas as well.
  • Because most people already have electricity connected an electric hot water system can be more easily installed. 


  • Tariffs, the amount of money charged for using power, can be either good or really detrimental, meaning more money can be spent.
  • The size of the actual tank can be an issue with installation as well as the overall aesthetic of the building.
  • Dangers of an electric hot water system can be severe, especially if they leak and in particular in older systems. 

If curious to know which hot water system should be chosen for your needs, read our blog providing helpful advice.

Also, if wanting to know about how to save energy with a hot water system, visit Energy NSW for more information.

Hot Water Systems – Gas or Electric?

Overall, the type of hot water system will depend on the needs of the hot water, how it would be used and cost potential of each person. Here at Optimised Plumbing Services we are always contactable to prove expert advice on which type of system will suit each individual. Our emergency plumbers have over 20 years of experience working with both electric and gas hot water systems, therefore can advise the best for each person. We can be called at any time of the day to provide assistance with these systems, including general advice to repairs and installations.

Additionally, our hot water system expertise is open to all of Sydney, including Greater Western Sydney, Hills District and Inner West. Moreover, we offer Blocked Drain plumbers as well, which can be helpful with the current hot water system experiencing similar issues. We will provide honest and reliable advice on if a gas or electric hot water system is the best to install. Our hot water system services are available 24/7 to all of Sydney – call us on 02 8074 1475 or email us at

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