Best Electric Hot Water Systems Australia: Buyer’s Guide

Jul 2, 2026

Electric hot water systems are one of the most common choices for Australian homes, units, townhouses, rentals and replacement jobs. They are familiar, widely available, and can be a practical option where gas is not available or where a straightforward storage replacement is preferred.

The best electric hot water system is not always the biggest tank or the cheapest model. It depends on household size, shower habits, electrical supply, controlled-load setup, installation location, tank size, element rating, warranty, access and whether a heat pump may be a better long-term option.

This guide explains how to compare electric hot water systems in Australia, which sizes suit different homes, and what to check before ordering.

Quick answer: what is the best electric hot water system?

As a general guide:

Household type	Electric hot water size to consider	Notes
1 person	80L–125L	Depends on shower length and recovery setup
1–2 people	125L	Good for smaller homes with moderate use
2–3 people	160L	Better buffer than 125L
3–4 people	250L	Common family-size electric storage option
4–6 people	315L	Better for higher-use family homes
5+ people / high use	315L–400L	Check controlled-load timing and peak demand

For most small homes, a 125L or 160L electric hot water system is the starting point. For many family homes, a 250L electric hot water system is common. For larger families, higher-use homes or controlled-load setups, a 315L or 400L electric hot water system may be more suitable.

You can compare current options in Electric Hot Water Systems or browse all Hot Water Systems.

What is an electric hot water system?

An electric hot water system heats water using electricity. Most residential systems are storage tanks, meaning they store hot water ready for use.

A standard electric storage system includes:

A storage tank
One or more electric elements
Thermostat controls
Cold water inlet
Hot water outlet
Pressure relief valve
Tempering valve where required
Electrical connection
Plumbing connections

Electric storage systems are different to instant electric systems. Storage systems keep hot water in a tank. Instant Electric Systems heat water as it flows through the unit and usually need much more electrical capacity for whole-home use.

Best electric hot water system by household size

Best for one person: 80L–125L electric hot water

A smaller electric hot water system may suit one-person homes, compact units or low-use properties.

A 125L system may be suitable if:

The home has one person
Shower use is moderate
There is no regular bath use
Space is limited
The old 125L system performed well
The system has enough time to recover

For very low use, smaller tanks may be considered, but 125L is often a more practical starting point where normal shower use is expected.

Best for two people: 125L–160L electric hot water

For two-person homes, the choice is usually between 125L and 160L.

A 125L system may suit couples with short-to-moderate showers. A 160L system gives more storage buffer and is often the safer option if showers are longer, guests stay occasionally, or the old 125L system was marginal.

A 160L system may be better if:

Two people shower close together
Guests stay sometimes
The home has stronger shower flow
The old 125L tank ran out
The system is not reheating continuously

Best for small families: 160L–250L electric hot water

Small families usually need more storage than a 125L system can comfortably provide.

A 160L system may suit some low-use small households, but a 250L system is often a better family starting point.

A 250L system may suit:

3–4 person homes
Moderate family shower use
One or two bathrooms
Standard residential replacements
Homes where smaller tanks are not enough
Rental properties with average occupancy

Best for family homes: 250L electric hot water

A 250L electric hot water system is one of the most common family-size options.

It can be a practical fit for:

Families of three
Families of four with moderate use
Homes without heavy bath use
Standard electric storage replacements
Properties where the old 250L system performed well

A 250L tank may be too small if the home has long back-to-back showers, teenagers, regular guests, large baths or controlled-load heating with limited recovery time.

Best for larger families: 315L electric hot water

A 315L electric hot water system gives more stored hot water than 250L and is often better for larger households.

It may suit:

4–6 person homes
Larger families
Homes with teenagers
Homes with two bathrooms
Higher morning or evening demand
Controlled-load or off-peak setups
Homes where 250L has not been enough

A 315L system needs more space, suitable access, proper support, compliant drainage and the correct electrical supply.

Best for high-demand homes: 400L electric hot water

A 400L electric hot water system is a large storage option.

It may suit:

Larger households
High-occupancy rentals
Homes with multiple bathrooms
Regular bath use
Short-stay accommodation
Heavy peak hot water demand
Selected controlled-load setups

A 400L system should not be chosen just because it is bigger. It should be chosen because the household genuinely needs that much stored hot water and the site can support it.

Electric hot water system size comparison

Size	Best suited to	Watch out for
80L	Very small applications	Usually limited for normal household use
125L	1–2 people	Can run out with long showers
160L	2–3 people	May be tight for family use
250L	3–4 people	May struggle with high peak demand
315L	4–6 people	Needs more space and access
400L	Large or high-use homes	May be oversized for normal households

The right size depends on actual use, not only the number of people.

Best electric hot water system for units

For units, the best electric hot water system is usually compact, suitable for the existing location, and correctly sized for the occupants.

Common options include:

125L for low-to-moderate use
160L for more buffer
250L where space and access allow
Instant electric only where properly assessed

Before ordering for a unit, check:

Internal or external location
Safe tray requirements
Drainage
Access
Body corporate rules
Electrical circuit
Tank dimensions
Replacement valve requirements

Do not assume a larger tank will fit just because it is a better size.

Best electric hot water system for townhouses

Townhouses often need a balance between capacity and installation space.

A 160L system may suit smaller households. A 250L system may be better for families or rentals.

Check:

Side access
Tank footprint
Garage or external location
Drainage
Safe tray requirements
Electrical supply
Whether the old system was keeping up
Distance to bathrooms

If the old system regularly ran out, avoid replacing like-for-like without checking whether a larger size is needed.

Best electric hot water system for rentals

For rental properties, the best electric hot water system should suit likely occupancy, not only the current tenant.

A 125L system may suit a small one-bedroom unit. A 160L system may suit a low-use townhouse or two-person rental. A 250L or 315L system is usually safer for family rentals.

For rentals, consider:

Number of bedrooms
Likely number of occupants
Shower and bath setup
Existing complaints about running out
Controlled-load setup
Access for future servicing
Simple replacement and reliability
Avoiding undersized systems

Undersized rental hot water systems can lead to repeat complaints.

Best electric hot water system for families

For families, the best electric hot water system is usually one that has enough stored water for morning and evening peak use.

A 250L system may suit moderate family use. A 315L system is often better where there are more people, teenagers, longer showers or controlled-load heating.

For family homes, check:

Number of people
Number of bathrooms
Shower length
Shower head flow rate
Bath use
Laundry use
Dishwasher use
Guest use
Whether the old tank ran out
Whether the system can reheat during the day

A family-size system should be chosen around peak demand, not just total daily use.

Best electric hot water system for off-peak or controlled load

Controlled-load or off-peak electric hot water can affect sizing because the system may only reheat during set times.

If the tank runs out during the day, it may not fully recover until the next heating window.

For controlled-load setups:

Smaller tanks can run out more easily
Larger storage may be needed
250L may suit moderate family use
315L may be safer for larger households
400L may suit high-use homes
Element size and circuit setup matter
The old system’s performance should be reviewed

Do not choose a smaller tank without understanding how and when it reheats.

Best electric hot water system for solar homes

For homes with solar power, electric hot water can sometimes be timed to heat during the day.

Options may include:

Standard electric storage with a timer
Electric storage with a solar diverter
Heat pump hot water
Larger storage to carry evening and morning demand

A standard electric system can work with solar timing, but a Heat Pump Hot Water System may be worth comparing where the site suits it.

A heat pump may be better where:

There is outdoor space
Airflow is suitable
Condensate drainage is available
Noise placement is acceptable
The household wants efficient electric hot water
The tank is sized correctly

Standard electric may still be better where heat pump placement is not practical.

Best electric hot water system brands

There are several well-known electric hot water brands available in Australia.

Common brand options may include:

The best brand depends on the model, warranty, tank material, size, availability, installation requirements and whether the system suits the property.

Rheem electric hot water systems

Rheem is one of the most recognised hot water brands in Australia.

Rheem electric systems may suit customers looking for:

Common replacement sizes
Broad product availability
Vitreous enamel and stainless steel options depending on model
Known brand support
Family-size electric storage options
Like-for-like electric replacement

When comparing Rheem models, check tank size, element rating, warranty terms, dimensions, water pressure requirements, internal or external suitability and whether the model suits the home’s electrical supply.

Dux electric hot water systems

Dux electric hot water systems are commonly considered for residential replacements.

Dux may suit customers looking for:

Common family tank sizes
Australian hot water brand recognition
Electric storage replacement options
Practical sizing for homes and rentals
Standard storage layouts depending on model

When comparing Dux options, check tank size, warranty terms, element configuration, dimensions, access and whether the system suits controlled-load or continuous power.

Vulcan electric hot water systems

Vulcan electric hot water systems are often considered value-focused storage options.

Vulcan may suit customers looking for:

Practical electric storage replacement
Common residential sizes
Simple storage hot water design
Value-focused brand positioning
Options for small, medium and larger households depending on model

When comparing Vulcan systems, check the model size, element rating, cylinder warranty, dimensions, water pressure limits and installation suitability.

Stainless steel vs vitreous enamel electric tanks

Electric storage tanks may use different cylinder materials depending on the model.

Tank type	General notes
Vitreous enamel	Common tank type, usually uses a sacrificial anode
Stainless steel	Often positioned as a premium tank option on selected models

Do not choose only by tank material. Check warranty, water quality suitability, manufacturer requirements, availability, installation conditions and total value.

Single element vs twin element

Electric storage systems may be single element or twin element depending on the model.

Element type	General use
Single element	Common for standard storage systems
Twin element	Can improve recovery in some setups where the electrical supply and tariff suit

Twin element does not automatically mean the system is better for every home. Electrical supply, wiring, tariff, switchboard capacity and household demand need to be checked.

Electrical work must be completed by a licensed electrician where required.

Electric storage vs instant electric

Standard electric storage and instant electric are very different.

System type	How it works	Best suited to
Electric storage	Stores hot water in a tank	Most standard household electric hot water replacements
Instant electric	Heats water as it flows	Often point-of-use unless properly assessed for whole-home demand

Instant electric whole-home use can require significant electrical capacity. Flow rate, temperature rise, circuit requirements and switchboard capacity all matter.

Do not assume an instant electric system is a simple replacement for a 250L or 315L storage tank.

Electric storage vs heat pump

A heat pump is still an electric hot water system, but it works differently from standard electric storage.

System type	Best suited to
Standard electric storage	Simple replacement, lower upfront complexity, controlled-load setups
Heat pump hot water	Efficient electric hot water where airflow, drainage and location suit

Heat pumps can reduce electricity use where correctly installed and configured, but they need suitable outdoor placement, airflow, condensate drainage, noise consideration and electrical setup.

If the site does not suit a heat pump, standard electric storage may be the more practical choice.

What size electric hot water system should I choose?

Use this as a starting point:

Household	Better starting point
1 person	80L–125L
2 people	125L–160L
3 people	160L–250L
4 people	250L–315L
5 people	315L
6+ people	315L–400L
High-use rental	315L–400L
Short-stay property	315L–400L or assessed option

Then adjust based on real use.

Size up if:

Showers are long
Multiple showers happen close together
A bath is used
Guests stay regularly
The home is on controlled load
The old system ran out
The property is a rental with likely higher occupancy

Size down only if:

Hot water use is genuinely low
The old larger system was clearly oversized
The new system still suits peak demand
Space, access or electrical limits require it

Should you replace like-for-like?

Like-for-like replacement can make sense if the old electric system worked well before it failed.

It may be suitable if:

The old size met household demand
The electrical supply suits the replacement
The tank location is still compliant
Access is suitable
Valves and drainage can be brought up to standard where needed
No major household changes have occurred

Do not replace like-for-like automatically if:

The old system often ran out
More people now live in the home
The property has changed use
A bath has been added
The old system was on a different tariff
The household now has longer showers
The installation location no longer suits current requirements

Installation and compliance reminders

Electric hot water installation is not DIY work.

Use a licensed plumber for plumbing work and a licensed electrician for electrical work where required.

Important installation checks may include:

Tank size and dimensions
Access for delivery and removal
Water pressure
Tempering valve requirements
Isolation valves
Pressure and temperature relief valve discharge
Safe tray or drainage where required
Base or support requirements
Electrical circuit suitability
Element rating
Controlled-load or continuous supply setup
Timer or solar-diverter setup
Switchboard capacity
Compliance with current plumbing and electrical requirements

Extra parts or site work may be required depending on the property. Relevant options may be available under Installation Add-Ons.

Supply-only vs supplied-and-installed

Installed Today offers electric hot water systems online with supply-only options across major metro areas.

For supply-only orders, you need to arrange your own suitable licensed installer. Electric hot water systems involve plumbing and electrical requirements, so the correct licensed trades must be used.

Supplied-and-installed options are only available where shown in eligible Brisbane and Gold Coast service areas. Availability depends on the product, location and installation conditions shown at the time of ordering.

Before ordering, confirm the system size, electrical suitability, installation location and any required add-ons.

Common mistakes when buying electric hot water systems

Choosing the cheapest tank only

The cheapest system may not be the right size or fit for the property.

Replacing like-for-like when the old tank ran out

If the old system was undersized, copying it may repeat the same problem.

Ignoring controlled-load heating

If the system only reheats during set periods, tank size becomes more important.

Forgetting electrical requirements

Element size, circuit capacity, wiring and switchboard suitability need to be checked.

Choosing too small for a rental

Rental properties should be sized around likely occupancy, not only the current tenant.

Assuming instant electric is an easy upgrade

Whole-home instant electric can require major electrical capacity and should be assessed carefully.

Ignoring access

Large electric tanks need suitable access for delivery, removal and servicing.

Forgetting valves and drainage

Old valves, unsafe discharge, safe trays, bases or drainage issues may need to be corrected during installation.

Final verdict

The best electric hot water system in Australia depends on the household and the property.

For smaller homes, a 125L or 160L electric hot water system may be suitable. For family homes, a 250L electric hot water system is a common starting point. For larger families, controlled-load setups or higher-use properties, a 315L or 400L electric hot water system may be more appropriate.

Choose based on real hot water demand, not just the old tank size. Check household size, shower habits, bath use, controlled-load timing, electrical supply, tank location, access, valves, drainage and whether a heat pump may be a better long-term option.

FAQs

What is the best electric hot water system for a family?

For many families, a 250L or 315L electric hot water system is the best starting point. The right size depends on household size, shower habits, bath use and controlled-load setup.

Is 125L electric hot water enough?

A 125L electric hot water system may suit one or two people with moderate shower use. It may be too small for families, long showers or regular guests.

Is 160L electric hot water enough for three people?

A 160L system may suit some three-person homes with low-to-moderate use, but a 250L system is often safer for normal family demand.

Is 250L electric hot water enough for a family of four?

A 250L system may suit a family of four with moderate shower use. If showers are long, baths are used or the system is on controlled load, 315L may be better.

Is 315L electric hot water enough for five people?

A 315L electric hot water system is often a good starting point for five-person homes, depending on shower habits and recovery setup.

Should I choose electric storage or heat pump?

Choose electric storage if you want a simpler replacement or the site does not suit a heat pump. Choose heat pump where airflow, drainage, noise placement and electrical setup are suitable and efficiency is a priority.

Is instant electric better than storage electric?

Instant electric can suit point-of-use applications, but whole-home use needs careful assessment of flow rate, temperature rise, switchboard capacity and electrical load.

Do electric hot water systems need an electrician?

Electrical work must be completed by a licensed electrician where required. The existing circuit, element rating and switchboard capacity should be checked.