Hot Water
Gas vs electric hot water: which is better?
Gas hot water usually costs less to run and reheats faster, making it a strong choice for larger households with a gas connection. Electric storage is cheaper to buy and install but costs more to run on standard tariffs. For most Sydney homes with gas available, gas is the more economical long term option.
Choosing between gas and electric hot water comes down to a few practical things: what is already connected at your place, how many people use hot water, and whether you care more about upfront cost or ongoing running cost. Terry has installed both across Western Sydney since 1986, and there is no single right answer for every home.
Running costs
As a general rule, gas hot water is cheaper to run than standard electric because gas is a lower cost energy source per unit of heat. A continuous flow gas unit only heats water when a tap is opened, so there is no standing heat loss from a tank.
Electric storage on a standard tariff is usually the most expensive to run. Electric on a controlled or off peak tariff can be much more competitive, since the tank heats overnight when power is cheaper. A heat pump, which is a type of electric system, is the cheapest electric option to run because it moves heat rather than making it.
Install and upfront cost
Electric storage units are generally the cheapest to buy and install, which is why they are common in older Berala homes and units. Gas units cost more upfront, and if there is no gas line to the location you will also need a gas fitter to run and certify the supply. Terry holds licence L10959 which covers gas fitting, so both the plumbing and the gas work can be done by the one licensed tradesperson.
Recovery and household size
Gas recovers faster, meaning it reheats a tank or supplies continuous hot water more quickly. A big family that runs several showers back to back is better served by gas, especially continuous flow, which never runs out. A smaller household may be perfectly happy with a well sized electric tank on off peak.
Lifespan
Storage tanks of either type last around 10 to 12 years. Continuous flow gas units often reach 15 to 20. Heat pumps sit around 10 to 15 years.
Which should you choose
- Gas already connected and a busy household: gas continuous flow is usually the best value
- No gas line and low upfront budget: electric storage, ideally on off peak
- Want the lowest running cost and have the space: an electric heat pump
- Small household, tight budget: electric storage is fine
Gas safety note
Any gas hot water work must be done by a licensed gas fitter, with a compliance certificate issued for the job under AS/NZS 5601. This is not a DIY area. If you ever smell gas near a unit, do not touch it, ventilate the area and call a licensed gas fitter.
Every home is a little different, so the honest answer often depends on your exact setup. Terry is happy to look at what you have and give a fixed quote before any work. Call 0415 274 542 to talk it through.
Frequently asked questions
- Is gas hot water cheaper than electric?
- Gas is usually cheaper to run than standard electric hot water, because gas costs less per unit of heat and continuous flow units avoid standing tank losses. Electric on off peak or a heat pump can be competitive on running cost, but upfront electric is generally cheaper to install.
- Do I need a gas line to install gas hot water?
- Yes. Gas hot water needs a gas supply to the unit. If there is no line at the location, a licensed gas fitter must run and certify it. Terry holds licence L10959 covering gas fitting, so he can handle both the supply and the install.
- What is the cheapest hot water system to run?
- An electric heat pump is usually the cheapest to run, as it moves heat rather than generating it. Gas continuous flow is next. Standard electric storage on a full tariff is generally the most expensive to run, though off peak reduces the gap.
- Which is better for a big family, gas or electric?
- Gas, especially continuous flow, suits larger households because it reheats faster and never runs out during back to back showers. A large electric tank can work but may struggle to keep up with heavy simultaneous use.
- Can Terry install both gas and electric hot water?
- Yes. Terry installs and replaces both gas and electric systems across Berala and Western Sydney. Because he is a licensed gas fitter under L10959, gas installs include the required compliance certificate under AS/NZS 5601.
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Need a hand from a real plumber?
Terry's been sorting plumbing across Berala and Western Sydney since 1986. Call 0415 274 542 for a straight answer and a fixed price.
NSW Licence L10959 · 40+ years experience