Hot Water System Reviews: Best Brands, System Types and What to Choose for Your Home

Feb 20, 2024

Choosing the right hot water system can make a big difference to daily comfort, running costs and long-term reliability. The best system for one home may be the wrong choice for another, especially when household size, number of bathrooms, energy source, installation location and budget are all different.

Some homes need a simple electric storage replacement. Others are better suited to instant gas, gas storage, heat pump hot water or a larger family-sized system. Brand matters, but the right system type and size matter more.

This hot water system review guide compares the main hot water brands, system types and suitability factors so you can choose a better option before ordering.

You can compare Hot Water Systems, Electric Hot Water Systems, Gas Hot Water Systems, Instant Gas Hot Water Systems, Instant Electric Systems and Heat Pump Hot Water Systems online with Installed Today.

Quick answer: what is the best hot water system?

The best hot water system is the one that matches your household demand, energy source, installation location and long-term running cost goals.

As a practical guide:

Best for System type to compare
Simple replacement Same system type as existing, if it was working well
Homes without gas Electric storage or heat pump hot water
Lower upfront cost Electric storage hot water
Energy-efficient electric upgrade Heat pump hot water
Gas-connected homes Gas storage or instant gas
Compact outdoor installation Instant gas hot water
Larger families Larger electric storage, gas storage, 26L instant gas or heat pump
Rooftop solar homes Heat pump or electric storage with suitable timer setup
Units and townhouses Electric storage, instant electric or compact gas where suitable
Brisbane and Gold Coast installed options Selected supplied-and-installed products where available

There is no single best model for every Australian home. The right choice depends on the site.

Best hot water system brands to compare

Several major hot water brands are commonly compared by Australian homeowners. Each brand has different strengths across electric, gas, instant and heat pump systems.

Installed Today’s homepage-linked hot water brands include:

The best brand depends on the type of hot water system you need.

Rheem hot water system review

Rheem is one of the most recognised hot water brands in Australia. It is commonly compared across electric storage, gas storage, instant gas and heat pump systems.

Rheem Hot Water Systems may suit customers wanting:

  • A widely recognised brand

  • Electric storage options

  • Gas hot water options

  • Heat pump hot water options

  • Family-sized systems

  • Common replacement sizes

  • Broad product range

  • Supply-only ordering or installed options where available

Rheem can be a strong brand to compare if you want a familiar hot water name and a wide range of system types.

Before choosing Rheem, compare:

  • System type

  • Tank size or flow rate

  • Natural gas or LPG where relevant

  • Product dimensions

  • Warranty terms

  • Installation location

  • Total replacement cost

  • Whether it suits the household’s demand

Rinnai hot water system review

Rinnai is commonly compared for instant gas hot water, electric storage, heat pump and other hot water options.

Rinnai Hot Water Systems may suit customers wanting:

  • Instant gas hot water

  • Continuous flow gas options

  • Compact outdoor hot water systems

  • Electric storage options

  • Heat pump options

  • Recognised hot water brand

  • Natural gas or LPG options depending on model

  • Supply-only or eligible installed options

Rinnai is often a strong brand to compare if you are looking at instant gas hot water.

Before choosing Rinnai, check:

  • Flow rate

  • Gas type

  • Gas pipe sizing

  • Water pressure

  • Electrical power requirements

  • Outdoor clearances

  • Temperature controller options

  • Total installation cost

Aquamax hot water system review

Aquamax is often compared for electric and gas storage-style hot water systems.

Aquamax Hot Water Systems may suit customers wanting:

  • Electric storage hot water

  • Gas storage hot water

  • Stored hot water for family use

  • Like-for-like replacement

  • Larger tank options

  • Simple operation

  • Supply-only ordering with their own installer arranged

Aquamax may be a practical brand to compare when replacing an existing storage system.

Before choosing Aquamax, check:

  • Tank size

  • Gas or electric model

  • Installation location

  • Dimensions

  • Connection positions

  • Warranty terms

  • Household demand

  • Total replacement cost

Dux hot water system review

Dux is another established hot water brand commonly compared for electric, gas and heat pump options.

Dux Hot Water Systems may suit customers wanting:

  • Electric storage hot water

  • Gas hot water

  • Heat pump options

  • Common replacement sizes

  • Australian household-focused systems

  • Supply-only ordering or installed options where available

Dux can be worth comparing if you are looking for a mainstream hot water brand across multiple system types.

Before choosing Dux, compare:

  • Capacity

  • System type

  • Warranty terms

  • Product dimensions

  • Energy source

  • Installation requirements

  • Running cost expectations

  • Total cost

Vulcan hot water system review

Vulcan is often compared by customers looking for a value-focused hot water replacement.

Vulcan Hot Water Systems may suit customers wanting:

  • Electric storage hot water

  • Gas storage hot water

  • Budget-conscious replacement options

  • Simple hot water systems

  • Rental property options

  • Like-for-like replacement

Vulcan may be worth considering when upfront cost matters, but suitability should still be based on household demand and installation requirements.

Before choosing Vulcan, check:

  • Tank size

  • Energy source

  • Warranty terms

  • Installation location

  • Product dimensions

  • Household size

  • Total replacement cost

Bosch hot water system review

Bosch is commonly compared by customers looking at gas hot water and compact continuous flow options.

Bosch Hot Water Systems may suit customers wanting:

  • Gas hot water options

  • Compact systems

  • Continuous flow hot water

  • Natural gas or LPG options depending on model

  • An alternative to Rinnai or Rheem gas systems

Before choosing Bosch, check:

  • Gas type

  • Flow rate

  • Water pressure

  • Gas pipe sizing

  • Ignition method

  • Power requirements

  • Outdoor location

  • Warranty terms

  • Total replacement cost

iStore hot water system review

iStore is commonly compared by customers looking at heat pump hot water.

iStore Hot Water Systems may suit customers wanting:

  • Heat pump hot water

  • Efficient electric hot water upgrade

  • A system that may pair well with rooftop solar timing

  • Replacement for old electric storage

  • Family-sized heat pump options

  • Supply-only or eligible installed options

Before choosing iStore, check:

  • Tank size

  • Outdoor airflow

  • Condensate drainage

  • Noise placement

  • Electrical setup

  • Timer settings

  • Household demand

  • Warranty terms

Enviroheat hot water system review

Enviroheat is commonly compared by customers looking for heat pump hot water at a value-focused price point.

Enviroheat Hot Water Systems may suit customers wanting:

  • Heat pump hot water

  • Efficient electric replacement

  • A value-focused heat pump option

  • Family hot water where correctly sized

  • Suitable outdoor installation

Before choosing Enviroheat, check:

  • Tank size

  • Recovery expectations

  • Noise position

  • Outdoor airflow

  • Condensate drainage

  • Electrical requirements

  • Warranty terms

  • Total replacement cost

Stiebel Eltron hot water system review

Stiebel Eltron is commonly compared by customers looking at premium electric and heat pump-style hot water solutions.

Stiebel Eltron Hot Water Systems may suit customers wanting:

  • Premium electric hot water options

  • Compact electric solutions

  • Heat pump comparisons

  • Energy-efficient electric hot water

  • A brand known for electric water heating products

Before choosing Stiebel Eltron, check:

  • System type

  • Capacity

  • Electrical requirements

  • Installation location

  • Product dimensions

  • Warranty terms

  • Household suitability

  • Total replacement cost

Aquatech / Hydrotherm hot water system review

Aquatech / Hydrotherm is often compared by customers researching heat pump hot water.

Aquatech / Hydrotherm Hot Water Systems may suit customers wanting:

  • Heat pump hot water

  • Efficient electric hot water upgrade

  • Stored hot water without gas

  • A heat pump alternative to iStore, Rheem or Enviroheat

  • Supply-only ordering with their own installer arranged

Before choosing Aquatech / Hydrotherm, check:

  • Tank size

  • Outdoor airflow

  • Condensate drainage

  • Noise placement

  • Recovery time

  • Warranty terms

  • Electrical requirements

  • Installation location

Main types of hot water systems

Most homes compare four main types of hot water systems:

  • Electric storage

  • Gas hot water

  • Instant gas

  • Heat pump hot water

Some homes may also compare instant electric or solar hot water, depending on the property.

The right choice depends on energy source, household size, running cost goals and site conditions.

Electric storage hot water systems

Electric Hot Water Systems are a common choice for Australian homes, units, townhouses and rental properties.

They work by heating water in a storage tank using an electric element.

Electric storage may suit:

  • Homes without gas

  • Units and townhouses

  • Like-for-like electric replacement

  • Lower upfront budget

  • Simple operation

  • Off-peak or controlled-load electricity setups where suitable

  • Small to large households depending on tank size

Potential drawbacks include:

  • Higher running costs than heat pump hot water in many suitable homes

  • The tank can run out if undersized

  • Recovery time matters after heavy use

  • Larger tanks need more space

  • Electrical setup must suit the selected system

Electric storage is often practical, but sizing matters.

Gas storage hot water systems

Gas Hot Water Systems can include gas storage systems and other gas hot water options.

Gas storage systems heat and store hot water in a tank using gas.

Gas storage may suit:

  • Homes already connected to natural gas or LPG

  • Customers replacing existing gas storage

  • Families wanting stored hot water

  • Homes needing faster recovery than some electric storage options

  • Properties where a storage tank location already exists

Potential drawbacks include:

  • Requires suitable gas supply

  • Natural gas and LPG are not interchangeable

  • Larger tanks take up space

  • Installation must be completed by a licensed gas fitter

  • Running costs depend on gas pricing and household use

Gas storage can be practical where the home is already set up for it.

Instant gas hot water systems

Instant Gas Hot Water Systems heat water as it flows through the unit.

They do not store a tank of hot water.

Instant gas may suit:

  • Homes already using natural gas or LPG

  • Customers wanting compact outdoor hot water

  • Properties replacing an existing continuous flow unit

  • Homes with suitable gas pipe sizing

  • Homes with suitable water pressure

  • Customers wanting no large storage tank

Potential drawbacks include:

  • Gas pipe sizing must be checked

  • Water pressure must be suitable

  • Many systems need electrical power

  • Long pipe runs can still delay hot water at the tap

  • Flow rate must match household demand

  • Multiple showers at once may need a larger system or different design

Instant gas is popular, but it must be sized and installed correctly.

Heat pump hot water systems

Heat Pump Hot Water Systems use electricity to transfer heat from surrounding air into stored water.

They can use less electricity than standard electric storage in suitable conditions.

Heat pump hot water may suit:

  • Homes replacing old electric storage

  • Customers wanting an efficient electric upgrade

  • Homes with rooftop solar where timer settings suit

  • Properties with suitable outdoor airflow

  • Homes with suitable condensate drainage

  • Households wanting to move away from gas

Potential drawbacks include:

  • Higher upfront cost than many standard electric systems

  • Needs outdoor airflow

  • Needs condensate drainage

  • Fan and compressor noise must be considered

  • Electrical setup must suit the unit

  • Recovery time and timer settings matter

Heat pumps can be excellent when the site suits them, but they are not right for every home.

Instant electric hot water systems

Instant Electric Systems heat water on demand using electricity.

They may suit:

  • Point-of-use applications

  • Compact spaces

  • Small sinks

  • Low-demand areas

  • Specific installations where electrical capacity supports it

They may not suit every whole-home replacement.

Before choosing instant electric, check:

  • Electrical capacity

  • Flow rate

  • Application

  • Number of outlets

  • Temperature rise

  • Circuit requirements

  • Licensed electrician requirements

Instant electric should not be treated as a direct replacement for every storage system.

Hot water system sizing guide

Sizing is one of the most important parts of choosing a hot water system.

As a general guide:

Household Electric storage Instant gas Heat pump
1 person Compact to small tank Smaller flow rate may suit Usually only if demand and site justify it
2 people 125L to 160L often compared 16L to 20L often compared Smaller or medium heat pump where suitable
3 to 4 people 250L often compared 20L to 26L often compared Medium to larger heat pump
5+ people 315L to 400L often compared 26L or larger design may be needed Larger heat pump or confirmed design
High-demand home Larger tank or specialist design Flow rate and gas supply must be checked Recovery and boost strategy must be checked

This is only a guide. The right size depends on showers, bathrooms, bath use, laundry, timing and household habits.

What size electric hot water system do I need?

Electric storage sizing depends on stored capacity and recovery.

Before choosing a size, check:

  • Number of people

  • Number of bathrooms

  • Shower length

  • Bath use

  • Laundry use

  • Dishwasher use

  • Morning peak demand

  • Evening peak demand

  • Whether off-peak electricity applies

  • Whether the old system ran out

If the old system regularly ran out of hot water, do not automatically replace it with the same size.

What size instant gas system do I need?

Instant gas sizing depends on flow rate, gas supply and water pressure.

Before choosing a size, check:

  • Number of showers

  • Whether two showers run at once

  • Shower rose flow rates

  • Gas pipe sizing

  • Water pressure

  • Natural gas or LPG

  • Distance from unit to outlets

  • Temperature controller requirements

  • Electrical power point availability

A 26L instant gas system may suit many two-bathroom homes, but the site must support it.

What size heat pump do I need?

Heat pump sizing depends on stored capacity, recovery time and daily hot water demand.

Before choosing a heat pump, check:

  • Number of people

  • Number of bathrooms

  • Shower habits

  • Bath use

  • Laundry use

  • Timer settings

  • Solar timing

  • Boost mode

  • Recovery time

  • Outdoor air temperature

  • Peak demand periods

A heat pump should be sized for real usage, not just the number on the tank.

Best hot water system for small homes

Small homes may suit:

  • Smaller electric storage systems

  • Compact instant gas where gas is available

  • Instant electric for specific low-demand applications

  • Smaller heat pump options where the site suits

Small homes should avoid oversizing unless future demand, rental use or high shower use justifies it.

Best hot water system for family homes

Family homes may suit:

  • 250L to 400L electric storage depending on usage

  • Gas storage where gas is already available

  • 20L to 26L instant gas where the site supports it

  • Larger heat pump systems where airflow, drainage and electrical setup suit

Family homes need sizing based on peak demand, not average use.

Best hot water system for rental properties

Rental properties need simple, reliable hot water that suits likely tenants.

Good options may include:

  • Electric storage where the property already uses electric

  • Gas storage where gas is already installed

  • Instant gas where gas pipe sizing and water pressure suit

  • Heat pump where the site is suitable and tenants can operate it easily

For rentals, choose based on property size, likely occupancy and maintenance access.

Best hot water system for Airbnb and short-stay homes

Short-stay homes need hot water sized for guest capacity, not owner usage.

Before choosing, check:

  • Maximum guest count

  • Number of bathrooms

  • Back-to-back showers

  • Bath use

  • Laundry between bookings

  • Recovery time

  • Guest simplicity

  • Maintenance access

  • Noise placement for heat pumps

  • Gas or electrical capacity

Hot water complaints can affect guest experience, so undersizing is risky.

Best hot water system for renovations

A renovation is the right time to reassess hot water properly.

Before choosing a system, confirm:

  • Final bathroom count

  • Fixture layout

  • Energy source

  • Unit location

  • Pipe run lengths

  • Gas pipe sizing if relevant

  • Electrical capacity

  • Drainage

  • Access after renovation

  • Future household demand

  • Whether heat pump, electric or gas is best long term

Do not leave hot water selection until after plumbing, gas and electrical layouts are locked in.

Best hot water system for homes with solar power

Homes with rooftop solar may compare:

  • Heat pump hot water with daytime timer settings

  • Electric storage with solar-friendly timing where suitable

  • Existing solar PV and battery setup

  • Energy tariff and controlled-load arrangements

A heat pump can pair well with rooftop solar where the system runs during solar generation hours, but this depends on the electrical setup and household usage.

Best hot water system for homes without gas

Homes without gas usually compare:

  • Electric storage

  • Heat pump hot water

  • Instant electric for specific applications

Changing to gas may involve extra cost and may not be practical.

For many homes without gas, the main comparison is standard electric storage vs heat pump hot water.

Best hot water system for homes with natural gas

Homes with natural gas may compare:

  • Gas storage

  • Instant gas

  • Heat pump hot water if moving toward electric

  • Electric storage if gas is being removed

Natural gas and LPG are not interchangeable. Confirm the correct gas type before ordering any gas system.

Supply-only hot water systems

Supply-only ordering can suit customers who already have their own licensed installer arranged.

Supply only may suit:

  • Builders

  • Renovators

  • Landlords

  • Property managers

  • Trade customers

  • Homeowners managing their own installation

  • Customers outside supplied-and-installed service areas

Supply-only product pricing generally does not include installation, valves, old unit removal, disposal, electrical work, gas work, pipework changes, drainage, access upgrades or compliance upgrades unless clearly selected or included.

Before ordering supply only, your licensed installer should confirm the system suits the property.

Supplied-and-installed hot water systems

Supplied-and-installed options may be available on selected products in eligible Brisbane and Gold Coast service areas where shown.

This can suit customers who want the product and installation pathway arranged together.

Before ordering supplied and installed, check:

  • Service area eligibility

  • Existing system type

  • Installation inclusions

  • Valve requirements

  • Electrical work

  • Gas work

  • Old unit removal

  • Disposal

  • Pipework changes

  • Drainage

  • Access

  • Base or slab condition

  • Compliance upgrades

  • Product suitability

Do not assume every possible site requirement is included. Check the product page and selected options carefully.

Installation requirements

Hot water installation should be completed by the right licensed professional.

Installation checks may include:

  • Existing system type

  • Existing energy source

  • Tank size or flow rate

  • Installation location

  • Access

  • Valves

  • Water pressure

  • Gas pipe sizing where relevant

  • Electrical supply

  • Drainage

  • Old unit removal

  • Disposal

  • Tempering valve requirements

  • Compliance upgrades

A simple like-for-like replacement in one home may be more complex in another.

Maintenance considerations

Hot water systems need periodic checks.

Maintenance may include:

  • Relief valve checks

  • Tempering valve checks

  • Leak checks

  • Anode inspection where applicable

  • Burner checks for gas systems

  • Heat exchanger checks for instant gas

  • Airflow checks for heat pumps

  • Condensate drain checks for heat pumps

  • Electrical checks by a qualified professional where required

  • Water pressure checks

  • General system inspection

Maintenance needs depend on system type, model, age, water quality and manufacturer instructions.

Warranty considerations

Before choosing a hot water system, check warranty terms carefully.

Review:

  • Cylinder warranty

  • Heat exchanger warranty

  • Parts warranty

  • Labour coverage

  • Installation requirements

  • Maintenance requirements

  • Water quality exclusions

  • Pressure requirements

  • Gas type requirements

  • Electrical requirements

  • Proof of purchase

  • What is and is not covered

Warranty coverage does not mean every issue is automatically covered. Incorrect installation, water quality, missing maintenance or wrong gas type can affect claims.

Common mistake: choosing by brand alone

A good brand can still be the wrong system for your home.

Compare:

  • System type

  • Tank size or flow rate

  • Energy source

  • Installation location

  • Household demand

  • Warranty terms

  • Running cost expectations

  • Total replacement cost

The right model matters more than the logo.

Common mistake: replacing with the same size automatically

If the old system ran out of hot water, replacing it with the same size may repeat the problem.

Review household demand before ordering.

Common mistake: choosing the cheapest unit

The cheapest product is not always the cheapest total replacement.

Extra costs may include:

  • Valves

  • Old unit removal

  • Disposal

  • Pipework changes

  • Electrical work

  • Gas work

  • Drainage

  • Access issues

  • Compliance upgrades

Compare total cost, not just product price.

Common mistake: ignoring gas type

Natural gas and LPG are different.

Gas hot water systems must match the property’s gas type. Ordering the wrong model can delay installation and create extra cost.

Common mistake: ignoring heat pump location

Heat pumps need suitable outdoor airflow, condensate drainage and noise placement.

A heat pump can be efficient and still be unsuitable for a tight or enclosed location.

Common mistake: expecting instant hot water at every tap

Instant gas heats water on demand, but hot water still has to travel through pipework.

Long pipe runs can still create a wait at the tap or shower.

Common mistake: DIY hot water installation

Hot water installation can involve plumbing, electrical work, gas work, pressure control, scalding safety and compliance.

DIY installation can create:

  • Water leaks

  • Gas leaks

  • Electrical risks

  • Scalding risks

  • Warranty issues

  • Insurance problems

  • Non-compliant work

  • Poor performance

  • Property damage

Use the right licensed professional.

Final verdict: what hot water system should you choose?

The best hot water system depends on your home.

Choose electric storage if you want a straightforward replacement and your home already uses electric hot water.

Choose instant gas if your property has suitable natural gas or LPG, correct gas pipe sizing, good water pressure and you want compact continuous flow hot water.

Choose gas storage if your home already has gas storage and you want stored hot water with gas recovery.

Choose heat pump hot water if you want an efficient electric upgrade and your property has suitable outdoor airflow, drainage, electrical setup and noise placement.

Start by comparing Hot Water Systems, Electric Hot Water Systems, Gas Hot Water Systems, Instant Gas Hot Water Systems, Instant Electric Systems and Heat Pump Hot Water Systems.

Then compare the main brands, including Rheem, Rinnai, Aquamax, Dux, Vulcan, Bosch, iStore, Enviroheat, Stiebel Eltron and Aquatech / Hydrotherm.

The best hot water system is not always the cheapest, biggest or most popular. It is the system that matches your household demand, installation site and long-term cost expectations.

Long-tail FAQs

What is the best hot water system brand in Australia?

There is no single best brand for every home. Rheem, Rinnai, Aquamax, Dux, Vulcan, Bosch, iStore, Enviroheat, Stiebel Eltron and Aquatech / Hydrotherm are all worth comparing depending on system type and household needs.

Is Rheem better than Rinnai?

Rheem and Rinnai suit different hot water needs. Rheem is commonly compared across electric, gas and heat pump systems, while Rinnai is often compared for instant gas and continuous flow hot water. Compare exact models, not just brands.

Is electric hot water better than gas?

Electric hot water may suit homes without gas and simple like-for-like replacements. Gas hot water may suit homes already connected to natural gas or LPG. The better option depends on the home.

Is heat pump hot water worth it?

Heat pump hot water can be worth it where the property has suitable outdoor space, airflow, condensate drainage and electrical setup. It may use less electricity than standard electric storage in suitable conditions.

What size hot water system do I need for a family?

Family homes commonly compare 250L to 400L electric storage, 20L to 26L instant gas, larger gas storage or a suitable heat pump. The right size depends on people, bathrooms, shower habits and peak demand.

What hot water system is best for two bathrooms?

Two-bathroom homes may suit a 250L to 315L electric system, 20L to 26L instant gas, gas storage or a suitable heat pump. Water pressure, gas supply and usage habits matter.

What hot water system is cheapest to install?

Electric storage is often one of the simpler replacement options where the home already uses electric hot water. However, the cheapest product is not always the cheapest total installation.

What hot water system is cheapest to run?

Running costs depend on energy prices, household usage, system efficiency and installation conditions. Heat pump hot water can be efficient in suitable homes, while gas may suit some gas-connected properties.

Should I replace my hot water system with the same type?

Like-for-like replacement can be simpler, but it is not always best. If the old system was undersized, expensive to run or poorly suited to the home, compare other options before ordering.

Can I install a hot water system myself?

No. Hot water installation should be completed by licensed professionals. Plumbing, gas, electrical and compliance requirements can create safety and warranty problems if handled incorrectly.