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Choosing the right hot water system can make a big difference — not just to your energy bills, but to your lifestyle and environmental impact, too.
With so many options available today, from traditional electric or gas storage units to high-efficiency heat pumps, solar setups, and sleek continuous flow systems, it’s important to weigh the pros and cons of each. Whether you’re building, renovating, or just due for an upgrade, this guide will help you understand the key differences so you can find the hot water solution that suits your home, budget, and climate.
Traditional storage hot water system
This is a general term for systems that heat and store hot water using electricity or gas
Pros
- Reliable: Works in all weather, day or night.
- Replacement: Affordable to replace compared to some other systems
Cons
- Higher energy bills: Especially electric systems without timers or off-peak rates.
- More carbon emissions: Unless using renewable electricity.
- Tank space required: Storage models need space and insulation
Hot water heat pump
A heat pump uses electricity to transfer heat from the air into the water tank.
Pros
- Energy-efficient: Uses 60–75% less electricity than a conventional electric heater.
- Government rebates: Often eligible for environmental incentives.
- Lower running costs: Especially in moderate to warm climates.
Cons
- Upfront cost: More of an investment to purchase/install (take advantage of rebates!!!)
- Noise: Some units make a humming sound, similar to air conditioners.
- Performance drops in cold climates: May need a backup booster in winter.
Solar hot water
Solar collectors (usually roof-mounted) heat water using sunlight. A storage tank keeps the water hot, often with an electric or gas booster for cloudy days.
Pros
- Eco-friendly: Free energy from the sun reduces carbon footprint.
- Lower long-term costs: Big savings on energy bills over time.
- Incentives available: Government rebates and STCs (Small-scale Technology Certificates)
Cons
- High upfront cost: Installation is pricier than conventional systems.
- Weather dependent: Needs backup during extended cloudy/rainy periods.
- Roof space required: Needs sun-facing roof area and structurally strong roof.
Continuous flow hot water system
A continuous flow hot water system is a wall mounted unit that heats the water as you use it.
Pros
- Efficient: Only heats the water that you use, doesn’t even have a pilot light
- Convenience: Allows for unlimited hot water (as long as you have gas and water) Great for large families
- Consistent: Works with temperature controllers to deliver constant temperature to a set point so it doesn’t fluctuate when your in the shower
- Space: Takes up very little space
Cons
- Energy: Requires a high volume energy supply when operating and doesn’t use renewable energy sources
With plenty of options, we’re sure to find you a solution that meets your needs and budget. Chat to the team today.