Wondering which is the best hot water system for your home? Here’s a balanced look at the three most common options.

Choosing a new hot water system is a big decision, and the right answer depends on your household, your property and your budget. Here is a balanced look at the three most common options in Queensland homes.
Heat pump hot water
A heat pump works a bit like a refrigerator in reverse. It draws heat from the surrounding air and uses it to heat the water, rather than creating heat directly with an element.
Pros
- Generally the most energy-efficient of the three, so running costs are often lower than a standard electric storage system.
- Works well in warm climates like South East Queensland.
- Can pair well with rooftop solar if you have it.
Cons
- The upfront cost is usually higher than the other options.
- It needs space with adequate airflow, and the unit can make some operating noise, so placement matters.
- Installation can be more involved than a like-for-like swap.
Electric storage hot water
An electric storage system heats a tank of water with an element and keeps it hot until you need it.
Pros
- Usually the lowest upfront cost.
- Simple, familiar technology that suits many homes.
- No gas connection is needed.
Cons
- Often the most expensive to run, particularly if you have a large household.
- Standing heat loss from the tank means energy is used to keep water hot even when nobody needs it.
Gas hot water
Gas systems come as storage tanks or continuous-flow (instantaneous) units. Continuous-flow units heat water only as it is used, so they can deliver hot water for as long as you need it.
Pros
- Fast recovery for storage models, and endless hot water from continuous-flow units.
- Continuous-flow units are compact and can often be mounted on an outside wall.
- Can suit larger households with high hot water demand.
Cons
- You need a gas connection, either mains or bottled, and gas prices can change over time.
- Gas work must be done by a licensed plumber or gas fitter, and a gas compliance certificate is issued to the owner on completion.
- Some households are moving away from gas altogether.
What to think about before you choose
- Household size and usage. More people and more showers usually favour efficient or high-capacity systems.
- Your existing setup. Switching fuel types can mean extra work, such as new wiring or gas lines.
- Space and location. Heat pumps need airflow, and gas units need proper ventilation.
- Solar panels. If you have them, a system that can use your own solar power may make sense.
- Upfront cost versus running cost. A cheaper unit can cost more over its life, and a more efficient one may take time to pay for itself.
Rebates and incentives
Rebates and incentives for hot water systems change from time to time, and eligibility rules vary. We do not quote specific amounts here. Please check the current Queensland and federal government rebate programs before you buy, as they could affect which system makes the most sense for you.
Compliance and safety
Replacing a water heater is notifiable work in Queensland. Your plumber lodges a QBCC Form 4 within 10 business days and gives you a copy. Tempering valves limit hot water to bathrooms to a maximum of 50°C under Australian plumbing standards. Do not attempt to install or modify a hot water system yourself, as it involves water pressure, electrical or gas connections, and scald risk.
We give a fixed-price quote before work starts, and finance may be available through HomePro Credit, subject to approval. Learn more on our finance page.
Finding the best hot water system for you
The best hot water system depends on your household size, your roof and your energy supply. For example, a heat pump suits many Brisbane homes because of our warm climate. You can compare models on the Energy Rating website, and the YourHome guide explains each option in more detail. Our heat pump hot water team can also help.
Not sure which system suits your home? Call The Plumbing Gang on 1300 671 525 or see our hot water services.