When a hot water system fails, the replacement decision feels urgent and overwhelming. You're suddenly navigating a market full of brands, system types and salespeople who each have a reason why their product is best. This guide gives you an honest, independent breakdown.
The Three Main System Types
Gas Hot Water (Continuous Flow)
Continuous flow gas units (sometimes called tankless or instantaneous) heat water on demand as it flows through the unit. There's no storage tank, so you never run out of hot water.
- Running cost: Low to moderate depending on gas tariff
- Lifespan: 15–20 years with servicing
- Best for: Families, homes with natural gas connection, high hot water demand
- Note: Not recommended for properties on bottled LPG — running costs are significantly higher
Natural gas is generally cheaper than electricity per unit of energy in Queensland, making continuous flow gas systems economical to run. They do require a gas connection — if your home doesn't have one, the installation cost increases.
Heat Pump Hot Water
A heat pump works like a reverse-cycle air conditioner — it extracts heat energy from the surrounding air and uses it to heat water in a storage tank. It uses electricity, but far less than a conventional electric system.
- Running cost: Very low — typically 60–75% cheaper than electric storage
- Lifespan: 10–15 years
- Best for: Homes without gas, solar PV owners, energy-conscious households
Queensland's warm climate makes heat pumps particularly efficient — they work best in ambient temperatures above 5°C, which is almost always the case on the Sunshine Coast.
Rebates: Queensland's Climate Smart Energy Savers rebate may provide financial assistance when replacing an old electric storage system with a heat pump or solar unit. Eligibility requirements apply — ask Jay when getting your quote.
Electric Storage Hot Water
The traditional and most common system in Australian homes. A tank of water is heated by an electric element and stored hot, ready to use.
- Running cost: Highest of the three options
- Lifespan: 8–12 years
- Best for: Smaller households, properties without gas, straightforward replacement
Electric storage is the cheapest to buy but the most expensive to run. For most Queensland households, the long-term cost of running an electric storage system is significantly higher than the alternatives. Off-peak tariffs (controlled load) can reduce costs.
What About LPG (Bottled Gas)?
If your home is on bottled LPG rather than mains natural gas, gas hot water is generally not recommended. LPG running costs are significantly higher than natural gas, making continuous flow gas systems uneconomical on bottled supply. For LPG properties, a heat pump or electric system is usually the better long-term choice.
Side-by-Side Comparison
Running costs vary significantly between system types. In Queensland's climate, heat pumps are typically the most economical to run, followed by gas continuous flow, with electric storage being the most expensive to operate. The best choice for your home depends on your existing gas connection, household size, and whether you have solar. Jay can give you personalised advice when you get your quote.
Which Should You Choose?
If you have natural gas already connected and a large household: continuous flow gas is hard to beat on performance and reliability.
If you want the lowest long-term running costs and you have solar panels (or want to integrate with solar): heat pump is the smart choice, especially with available rebates.
If you have an existing electric system and want a straightforward like-for-like replacement: electric storage gets you sorted quickly and reliably.
"I'll always tell you what makes sense for your home and budget — not what makes me the most margin. That's the only way I operate."
For personalised advice, get a free quote from Jay. He'll assess your current setup, usage and goals and give you a straight recommendation.
Need Help with a Plumbing or Gas Issue?
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