Electric Hot Water System vs Gas: Which is Better?

Yes, we are smack bang in the middle of summer at the moment. But no matter the weather, most of us wouldn't say no to a steaming hot shower first thing in the morning. The perfect hot water system helps to make that happen every day, but have you ever wondered whether an electric hot water system vs gas powered heater is the better choice for your home?
With so many options across the electric, natural gas and solar powered heaters, it can be hard to decide when you need a new hot water system. Both gas and electric models boast unique pros and cons, from energy efficiency to running costs and environmental impact. Maybe you want lower energy bills, or reducing greenhouse gas emissions is top of your list.
Whatever your needs, choosing the right hot water system is key to consistent, cost-effective comfort for years to come. So let’s compare gas vs electric hot water systems, comparing what makes each system good—and where they fall short.
How an Electric Hot Water Heater Works
For many homes across Australia, the simplicity and reliability of electric hot water systems make them a highly popular choice.
As their names suggest, electric water heaters heat water using an electric element. They come either in a storage tank or as part of a heat pump system. An electric storage tank system keeps hot water ready to use, while modern heat pump electric systems boast next-level energy efficiency and cost-effectiveness. Many households have off-peak electricity tariffs that enable you to heat water during cheaper energy periods. It’s an easy way to reduce your energy bills.
Electric systems are great for homes with solar panels as they can use solar power to further reduce costs. And you won’t need a natural gas line or LPG, which makes a simple and versatile solution for hot water.
How a Gas Hot Water Heater Works
Gas systems heat water efficiently by burning natural gas or LPG, and offer a reliable option for many households.
There are two main types: storage tank systems and continuous flow, also called instantaneous hot water systems. Storage tanks keep hot water on standby, while instantaneous hot water systems heat water only when you need it so you never run out.
Gas heaters get your water hot quickly, making these systems a worthy choice for larger families with high demand. However, they do require a gas line and regular maintenance to prevent gas leaks and carbon monoxide risks. With lower running costs and fast heating, gas water heaters are a popular choice for hot water systems.
Electric Hot Water System Pros and Cons
Electric hot water systems have many benefits, but they’re not without their potential downsides either. Here’s what you can expect from an electric hot water unit:
Pros:
- Simple to install and use; simply plug into a power point and turn it on.
- You can use them in conjunction with solar panels to lower power bills and greenhouse emissions.
- Heat pump systems and modern electric systems are energy efficient.
- Off-peak tariffs can save big on typical running costs.
Cons:
- Higher running costs than gas if not on off-peak tariffs.
- The hot water service depends completely on the grid which can be a problem during outages.
- Slower recovery time for re-heating water in storage tank systems.
Electric heaters are still a good option if you’re looking for energy efficiency and sustainability.
Gas Hot Water System Pros and Cons
Like many gas appliances we use at home, gas hot water systems are a reliable option with some benefits and a few drawbacks. Here’s the list:
Pros:
- Lower running costs than electricity for high-demand households.
- Continuous flow systems have unlimited hot water on demand.
- Fast heating times are great for larger families.
- Don’t rely on electricity, so will work during power outages.
Cons:
- Require a gas line which may not be available in all areas.
- Higher greenhouse emissions unless paired with efficient gas burners.
- Potentially higher maintenance costs due to the need for regular servicing to prevent carbon monoxide and gas leak risks.
Gas systems are a highly popular choice for those looking for efficiency and reliability, especially in homes with natural gas.
Gas or Electric Hot Water? Important Points to Consider
When deciding between an electric hot water system and a gas option consider these points:
Cost:
- Electric systems have lower upfront costs.
- Gas systems lower running costs especially for high hot water usage.
Energy Efficiency:
- Electric heat pump systems and solar electric systems are energy efficient.
- Gas continuous flow systems waste less by heating water on demand.
Environmental Impact:
- Electric with solar panels produces less greenhouse gas emissions.
- Gas systems use fossil fuels and produce more greenhouse emissions.
Practicality:
- Electric systems work in homes without a gas line.
- Gas systems provide hot water during outages.
Consider how much hot water you’ll likely need, household size and energy goals and you’ll be better equipped to determine whether gas or electric hot water is best for your home.
How About Solar Hot Water Systems?
Amidst the electric hot water system vs gas units debate, it’s also well worth asking the question:
Where do solar hot water systems fit in the equation?
The solar water heater is an eco-friendly option for heating water, one that uses the sun’s energy to reduce reliance on traditional fuels. These systems consist of solar panels or collectors that absorb sunlight to heat water and a storage tank to store the hot water until needed.
Solar hot water systems can be paired with electric or gas boosters to provide hot water on cloudy days or when in higher than usual demand. While the upfront cost is higher than electric or gas hot water systems, the long-term savings on energy bills make them a cost-effective option.
Energy Efficiency and Environmental Impact
When it comes to energy efficiency and environmental impact, your choice of hot water system matters.
Electric hot water systems, especially heat pump systems and those with solar panels are energy efficient and produce fewer greenhouse gas emissions. They’re perfect for households looking to reduce their carbon footprint.
Gas hot water systems heat water fast and efficiently. However, they do use fossil fuels and produce more greenhouse emissions. Continuous flow gas systems are slightly more efficient than storage tank systems but are still a concern for the environment.
If you’re looking for sustainability solar hot water systems or electric systems powered by renewable energy are the best balance of performance and planet-friendly living.
Choose the Right Hot Water for Your Home
So… what’s the outcome of the electric hot water system vs gas water heater debate? Ultimately it comes down to your household needs and priorities.
Electric systems especially modern ones like heat pumps or solar powered ones are great for energy efficiency and reducing greenhouse emissions. Gas systems deliver reliability, lower running costs and on demand hot water perfect for larger families or high water usage homes.
Consider installation costs, ongoing energy bills and environmental impact when choosing the right (and right size) hot water system. Whether you choose gas or electric you’ll find a solution that suits your lifestyle for comfort, cost savings and peace of mind for years to come.
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