When comparing running costs, gas hot water systems are generally more cost-effective than electric models. Instant and continuous flow gas systems heat water only when needed, avoiding standby energy losses. This provides an efficient and affordable way to enjoy endless hot water.
Gas hot water systems are a common option for heating water in Australian homes and businesses. They use natural gas as the energy source to heat water stored in an insulated tank or to instantly heat water as it flows through the system.
Gas systems tend to be more energy efficient and cost effective to run than traditional electric storage or electric instantaneous systems. This is because gas is generally a cheaper energy source per unit of energy than electricity.
The main types of gas hot water systems are storage and instantaneous.
Storage systems heat water in an insulated tank and can deliver hot water to multiple taps at once. A gas burner or heat exchanger heats the water periodically to maintain the temperature. Storage tanks range from small to large capacity.
Instantaneous systems heat water on demand as you turn on the hot taps. A gas burner or heat exchanger instantly heats cold water flowing through the unit. The benefit is you reduce energy losses and only heat the water that you need.
When it comes to upfront costs, gas systems are more expensive than basic electric systems. But the lower running costs often make up for the higher initial investment over the 5-15 year lifespan of a system.
Gas hot water can provide households and businesses significant energy savings and is an economical option worth considering when installing a new system or replacing an existing one.
There are two main types of gas hot water systems used in homes and businesses - storage and instantaneous.
Storage Gas Systems
Storage gas hot water systems use a gas burner or heat exchanger to heat water stored in an insulated tank. The water is heated periodically to maintain the set temperature. Storage tanks come in a range of capacities to suit different household sizes and hot water usage needs.
Storage gas systems can deliver hot water simultaneously to multiple taps, making them a good option for larger homes. The tank acts as a buffer, providing a reliable supply of hot water.
The main drawback is standby energy losses from the tank. But well-insulated modern tanks minimise this.
Instantaneous Gas Systems
Instantaneous gas systems, as the name suggests, heat water on demand as you turn on the hot tap. Cold water passes through a gas-fired burner or heat exchanger which rapidly heats the water.
The main benefit is no storage tank is required so there are minimal standby losses. You only heat the water you need, saving energy.
The trade-off is a limit on simultaneous hot water use. Higher demand models are available for larger homes.
Overall, instantaneous gas systems are the most energy efficient type of gas hot water system. But storage systems offer greater hot water capacity.
When choosing a gas hot water system, consider your household’s usage patterns. Storage offers convenience while instantaneous maximises gas efficiency.
When deciding between a storage or instantaneous gas hot water system, there are some key differences to consider.
Storage Gas Systems
The main advantages of storage gas systems are:
The disadvantages are:
Instantaneous Gas Systems
The main advantages of instantaneous gas systems are:
The disadvantages are:
For most homes, an instantaneous gas system provides the best energy efficiency and lowest operating costs. Storage systems suit larger households with high concurrent hot water needs across multiple bathrooms and outlets.
When upgrading your hot water system, weigh up the convenience of storage against the gas savings of instantaneous to choose the best system for your home’s requirements.
Gas hot water systems in Australia are required to display an energy rating label that indicates their efficiency and energy consumption.
The ratings range from 1 to 6 stars, with more stars equating to greater efficiency and lower running costs. A 6-star gas storage system or 5-star gas instantaneous system are the most energy efficient options currently available.
Higher rated systems generally have better insulation, burners and heat exchangers that maximise gas usage. They will have lower greenhouse gas emissions and save households money on energy bills in the long run.
Choosing a higher star-rated gas hot water system where possible is recommended, as the extra upfront cost is recouped over time through gas savings. The efficiency label takes the guesswork out of comparing different models.
When comparing gas, electric and solar hot water systems, there are some key differences in running costs, efficiency and lifespan.
Gas Systems
Gas hot water systems generally have lower running costs than electric systems as natural gas is a cheaper energy source per unit. Gas systems also tend to have a longer lifespan of 15+ years.
Instantaneous gas systems are the most efficient type, heating water only as needed.
Electric Systems
Standard electric storage hot water systems are the least efficient and have higher running costs. But heat pump systems can reduce electricity usage by up to 75% compared to conventional electric.
Solar Hot Water
Solar hot water systems use free energy from the sun but need electricity or gas backup on cloudy days. Long-term savings depend on the climate and quality of the solar system.
Overall, gas hot water provides the best efficiency and lowest costs for most households. But solar or heat pump electric systems can also be viable options.
Heat pump hot water systems are an energy efficient electric option that can rival gas systems in running costs. They work by extracting heat from the surrounding air and using it to heat water in an insulated tank.
There are two main types of heat pump systems:
Air sourced heat pumps work best in warmer climates, as their efficiency decreases in colder ambient temperatures. Ground sourced heat pumps maintain efficiency year-round but have higher installation costs.
Compared to conventional electric storage systems, heat pumps can reduce electricity usage and running costs by 50-75%. This makes them competitive with gas hot water systems in the right climate.
The only downside of heat pumps is potentially higher upfront costs. But energy savings over their lifespan often offsets this premium. For households keen to avoid gas connections, heat pumps present an efficient electric alternative.
Solar hot water systems are an environmentally-friendly option that can reduce your household’s energy usage and bills. They work by using energy from the sun to heat water in a rooftop solar collector that’s connected to an insulated storage tank.
On sunny days, the system can provide most or even all of your hot water needs for free. On cloudier days or at night, electricity or gas is used as a backup to ensure continuous hot water delivery.
The benefits of solar hot water include:
Considerations are:
Solar hot water works best for households with daytime hot water usage. The savings from replacing an older electric storage tank can make the system pay for itself within 5-7 years.
Solar hot water allows households to take advantage of Australia’s abundant sunshine, while slashing hot water bills. For eco-conscious homeowners, it’s worth exploring quotes to see if solar can be a viable option.
The installation and setup costs for a new gas hot water system can vary depending on the type of unit, difficulty of installation, and location.
For a standard storage or instantaneous gas system, total installed costs typically range from $1,500 - $3,000. This includes the unit, delivery, installation labour, and any new gas and water connections needed.
Factors that can influence install costs include:
Using a licenced professional for installation is highly recommended to ensure correct operation, safety and compliance. Shop around for quotes to find competitive pricing from trusted local plumbers.
There are often rebates and incentives available when installing a new gas hot water system that can help offset the upfront costs.
State and federal government schemes may provide rebates for installing a more energy efficient gas system to replace an old electric model. Gas utilities themselves sometimes also offer discounts or cashbacks.
The amounts of these rebates can vary, but they typically range from $300 to $1200 depending on the programme. The criteria also varies but often focuses on the energy rating of the new system.
Research current rebates available as they can change annually. A plumber will be able to advise what’s on offer when they quote.
While rebates shouldn’t be the sole reason for installing a new system, they can be a nice bonus that reduces the overall investment in upgrading to gas.
Any savings that can be achieved are worth claiming. And more efficient gas hot water ultimately saves in the long run through lower energy bills.
The operating costs and energy usage of a gas hot water system can vary based on the climate, hot water usage, system type and efficiency rating.
Factors that influence running costs include:
For context, an efficient 5 star instantaneous gas unit for a family of four may cost $300 to $500 per year to run. A less efficient 3 star storage system around $600 to $850 annually.
Choosing the right size and rating of gas system for your household can help minimise operating expenses. And gas remains one of the most cost-effective water heating options currently available.
Choosing the appropriate size gas hot water system for your home involves estimating your household’s typical daily hot water usage. Factors to consider include:
A system that’s too small can lead to running out of hot water. Oversizing wastes energy heating excess water. Consult a plumber to assess your needs and recommend the optimal gas system size.
Upgrading your hot water system is recommended when your existing unit is 8-12 years old or showing signs of wear. An ageing system tends to be less energy efficient, cost more to run, and be at greater risk of failure or leakage.
Some signs your hot water system may need replacing include:
Replacing an older electric or gas storage tank with a new gas instantaneous or heat pump system can provide significant savings through improved efficiency. You can also take advantage of rebates when upgrading to a higher-rated system.
While a functioning older system doesn’t need urgent replacement, upgrading it before failure occurs provides peace of mind. Speak to a plumber about whether it’s time to invest in a modern, efficient new hot water unit.
Q: What are the benefits of gas hot water systems?
A: Gas systems are generally more energy efficient and cheaper to run long-term than electric. They also provide a reliable continuous supply of hot water.
Q: How often should I service my gas hot water system?
A: It’s recommended to have your gas hot water system serviced by a professional every 3-5 years to maintain safety and efficiency.
Q: How long do gas systems last compared to electric?
A: The lifespan of a well-maintained gas system is typically 15+ years, longer than the average electric system.
Q: Should I choose instantaneous or storage gas hot water?
A: Instantaneous is the most efficient, but storage provides greater capacity. Consider your household’s usage patterns when deciding.
If you notice the smell of rotten eggs, hear hissing noises from gas appliances, see cracks or rust in gas lines, or have issues with gas appliance performance, you likely have a damaged gas line. Immediately turn off your gas supply and call a licensed plumber to inspect and repair your gas system.
Read MoreIf your hot water system is over 8-12 years old, it’s likely time to upgrade to a more energy efficient model which will save on electricity bills. We can advise on the best system for your home and budget.
Read MoreConverting a gas BBQ, heater or appliance from LPG to natural gas must be done properly by licensed professionals. Contact us for full natural gas conversion services to save money and never run out of gas again.
Read MorePeakhurst, 2210 NSW
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