Types of Hot Water Systems in Australia – Which is the Best to Buy?

On average, 21% of energy used in the home is for heating water. There are different types of hot water heaters available, so it is important to consider which is most suitable for meeting the demands of your family, whilst taking into account energy usage and efficiency. Some of the most common types of water heaters are listed below.

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Types of Hot Water Heaters

Electric Hot Water Heater

Electric storage systems use a heating element located inside a tank to heat water, similar to the way an electric kettle works. Water is heated and stored in the tank, available in various sizes, where it is kept hot and ready to be used. Instantaneous electric hot water heaters are also available, where water is heated instantly on demand; there is no storage tank involved and so this enables ‘endless hot water’ whenever a tap is turned on. Electric heaters may be cheaper initially but can be more expensive to run in the long term; this is important to take into consideration when deciding which water heater to buy. 

Gas Hot Water Heater

Similarly to electric systems, gas storage heaters keep hot water stored in a tank; but use a gas burner for the process of heating the water. Compared to their electric counterparts, gas storage systems have quicker heat recovery times and generally use a smaller tank. Gas instant water heaters are also available, where a gas burner only heats water on demand and does not store hot water in a tank, meaning your hot water won’t run out! 

Solar Hot Water System

Utilising a renewable energy source, solar powered hot water systems are a great way to heat water whilst reducing your environmental impact. These systems use a series of solar panels, commonly positioned on a roof where they gain maximum exposure, to absorb energy from the sun and heat the water as it is circulated through. These systems generally need to be used in conjunction with electricity or gas to maintain supply when there is no sun.

Heat Pump Hot Water System

A more efficient form of renewable energy, heat pumps extract heat from their surroundings (air, water or ground) to heat water, and often use up to two-thirds less electricity than an electric hot water heater. A heat pump water heater uses a ‘reverse refrigeration’ process to transfer heat, absorbed from the environment, into the water. These systems can initially be more costly than traditional methods, but save energy and can reduce energy bills in the long term.

Which Hot Water System is Better?

We sell and stock a wide variety of hot water systems from all the leading and trusted brands. When choosing the best system for your home, the highly experienced Beecroft plumbers at Service Today can help you make the right decision and supply and install the hot water heater for you. Below are some of our favourite systems on the market.


Our Service Today technicians are fully trained and have a wealth of knowledge about the reliable Rheem hot water systems.  Some of our favourite Rheem electric water heaters include:

RheemPlus Electric 250L

RheemPlus Electric 250L (for small to medium families)

Rheemglas Electric 160L Water Heater

Rheemglas Electric 160L Water Heater (for homes with a higher water usage)

If you’re considering a gas hot water system, we recommend following Rheem gas hot water system:

Rheem 4 Star Gas 170 Litre Hot Water System

Rheem 4 Star Gas 135L or 170L to replace older gas heaters

Rheem Stellar Gas 330L Hot Water System

Rheem Stellar Gas 330L for medium sized households looking for a 5 star, energy efficient gas heater

Rheem Stellar Gas 360L Hot Water System

Rheem Stellar Gas 360L for larger families, boasting the fastest recovery of any water heater of its kind!


Evacuated Tube Solar-Electric Boosted Hot Water System

Thermann solar hot water systems represent forward thinking, reliability and quality. The Thermann Evacuated Tube Solar-Electric Boosted Hot Water System is one of the best in the market; utilising innovative technology to effectively capture sunlight at all times of the day. When there is a lack of sunlight, this system uses an electric tank as a backup energy source.

Thermann Hot Water Systems


Bosch is a favourite in many Australian homes, applying high quality, energy efficient and water saving technology to their continuous flow gas hot water systems. Our Service Today technicians can help you find the right Bosch water heater for your home, and take care of your hot water system installation. Some of our favourites in the Bosch range include:

Bosch Electronic Highflow 17E, 21E and 26E

Bosch Electronic Highflow 17E, 21E and 26E for families looking for an energy efficient hot water system

Bosch Condensing C21 and C26

Bosch Condensing C21 and C26, which heat water in the most energy efficient manner on the market


Rinnai hot water systems provide innovative, efficient and environmentally sustainable water heating solutions. Some of our top recommended Rinnai Infinity Gas Water Heaters include:

Rinnai Infinity 16 Gas Hot Water System

Rinnai Infinity 16 Gas Hot Water System for continuous hot water with a 6.2 star equivalent energy rating

Rinnai Infinity 26 Enviro 7 Star Continuous Flow

Rinnai Infinity 26 Touch featuring temperature control settings

Rinnai Infinity 16 Gas Hot Water System

Rinnai Infinity 26 Enviro 7 Star Continuous Flow for the most efficient, continuous flow hot water system in the country

Well, there are numerous kinds of hot water heaters available on the market and you need to choose the right hot water heater based on your requirements, budget and where you live. Only a few times in your life, you’ll be making the decision to select a hot water system. Therefore, it’s vital you take your time and research your options well to make sure you purchase a system that renders adequate hot water, lowers your household’s greenhouse gas emissions and saves your hard-earned money. It’s important to consider the following things when choosing the right hot water system:

Size of Your Household

Number of persons living in your home, and your hot water usage pattern; for instance, if all of you bathe at the same time of the day, operate the washing machine, dishwasher, all at the same time – these key factors will help you in determining the right size hot water heater and assist in selecting the best hot water system and energy source for your requirements. The use of resourceful showerheads lowers the volume of hot water and should be considered when sizing an HWS (Hot Water Supply).

Cost Of Hot Water System

Ideally, you need to consider both the purchase cost and running costs of your HWS. The energy that your hot water heater uses affects your energy bill for many years to come, so consider cautiously before making the purchase. Operating costs and energy costs vary from one hot water system to the other. However, when it comes to using solar energy, running costs and tariffs differ depending on your location. Well, if your hot water supply’s operating cost is on the lower side, it may also boost your home’s resale value.

Therefore, when selecting a hot water heating system, you need to consider the following:

What’s your household size?

The total numbers of persons living in your home.

What’s the total available space?

If your home has a complex layout or doesn’t have sufficient space, installing some hot water systems in your existing home won’t be possible.

What’s the total cost of buying and operating the hot water system?

You need to figure out buying cost (i.e. one-time) and recurrent operating costs to operate the hot water system.

What are the different energy sources that are accessible to you?

Well, your choice may be restricted by accessible energy sources. In some areas, natural gas is not accessible. Heat pump or solar hot water supply units may be more resourceful where gas is not accessible.

Total roof space and shade area may affect the possibility of installing solar. If you use a lot of hot water then LPG can be very costly (tariffs are identical to a day rate tariff for electricity).

Can you access solar power?

For installing solar hot water supply, access to solar and sufficient north facing roof space must be available. Solar hot water works optimally on a northern aspect with modest shade.

What’s your existing hot water supply?

Some of the existing hot water supply systems can be effortlessly converted to more sustainable types. For instance, some standard electric hot water storage systems can be connected to a split system such as solar or heat pump hot water supply unit.

The hot water supply’s energy source has a big effect on greenhouse gas emissions. A natural gas hot water system produces less greenhouse gas emissions than an electric storage hot water system. Moreover, a heat pump or solar hot water system can produce even lesser greenhouse gas emissions.

Why are weather conditions crucial?

Sunny locations receiving good solar radiation facilitate solar hot water supply to operate most efficiently. However, in warmer climatic conditions, less energy is required to increase the temperature of water storage tanks because the disparity between the cold water temperature and the needed hot water temperature is very less, and less heat vanishes in higher air temperatures.

The amount of greenhouse gas emissions produced by your hot water supply depends on the following factors:

  • Amount of solar radiation that’s available to a solar hot water supply.
  • Amount of heat lost to the outer air by hot water storage tanks, fittings and pipes.
  • Greenhouse intensity of the energy source.
  • Competence of the hot water appliance.
  • The quantity of hot water used throughout the day.
  • The quantity of heat present in the ambient air for the proper functioning of a heat pump’s hot water supply.

To aid reduce greenhouse gas emissions, follow the below-mentioned vital recommendations:

  • It’s prudent to select a gas-boosted solar water heater or high performance solar-electric hot water supply in locations that have excellent gas availability and access to solar energy that can produce the lowest greenhouse gas emissions.
  • Nonetheless, an electric-boosted solar system or an air-source heat pump lowers emissions where gas is not available.
  • However, if gas is available but solar energy is not available adequately or is poor, then it’s wise to go with a continuous-flow gas system or air-source heat pump, which is a good option for small and medium households, as it provides the least emission.
  • Moreover, for multi-residential developments, a big, cost-effective central or various shared solar water heaters can be efficiently blended with instantaneous gas boosters or with highly-insulated small electric storage tanks, or instant electric boosters in each unit.
  • For blocks of five or more units, a geothermal heat pump could also be a cost-effective option. Bear in mind, heat losses and pumping energy losses can be high with central systems, which you need to consider while determining a central solar system would be the right hot water heater choice for you or not.

Service Today technicians have expert advice on all hot water systems and provide same day hot water service, taking care of any necessary maintenance or repairs. We supply and install a wide range of hot water heaters from all the leading brands. Call us now and save yourself the hassle!