Switching from Gas to Electric Hot Water: A Smart, Efficient Choice

Oct 3, 2024

Looking to replace gas appliances, including your gas hot water system, with electric alternatives? Upgrading to an electric hot water system can lower your bills, reduce emissions, and future-proof your home. In this guide, we’ll cover:

Why electric hot water is better than gasThe best electric hot water systemsCosts, rebates & savingsInstallation & maintenance tips

🔥 Why Switch to Electric Hot Water?

Ditching gas for electric hot water isn’t just a trend—it’s a smart investment in efficiency and sustainability. Here’s why:

While a gas hot water system may have been the norm in the past, electric systems offer significant advantages in terms of efficiency and sustainability.

💰 Save on Energy Bills – Electric systems, especially heat pumps, cut costs by up to 70%. 🌍 Lower Carbon Footprint – Gas hot water emits far more CO₂ than electric systems powered by renewables. ⚡ Use Solar Power – Pairing an electric system with solar energy means free hot water! 🛠 Fewer Repairs – Electric systems have fewer moving parts, meaning less maintenance. 🏡 Future-Proof Your Home – Gas is being phased out, and electric is the way forward.

📌 Did You Know? The government offers rebates of up to $1,000 to help you switch!

🔍 Understanding Hot Water Systems

Hot water systems are an essential part of every household, providing a convenient and comfortable way to access hot water for various needs. There are several types of hot water systems available, including electric, gas, and solar hot water systems. Each type has its pros and cons, and understanding these differences is crucial in making an informed decision when choosing a new hot water system.

Electric hot water systems use electricity to heat water, offering a straightforward and reliable solution. They come in various forms, such as storage tanks and continuous flow systems, and can be paired with solar panels for enhanced energy efficiency. Gas hot water systems, on the other hand, use natural gas or LPG to heat water. While they can be more cost-effective in terms of running costs, they require a gas connection and can be more complex to install.

Solar hot water systems harness the power of the sun through rooftop panels to heat water, making them an excellent choice for environmentally conscious homeowners. These systems can significantly reduce greenhouse gas emissions and lower energy bills. However, they often come with higher upfront costs and may need a booster element to ensure a consistent supply of hot water during cloudy days.

Heat pumps are a type of electric hot water system that use a heat pump to heat water, offering high energy efficiency and cost-effectiveness. They work by extracting heat from the air and transferring it to the water, similar to how a refrigerator operates but in reverse. This makes them one of the most energy-efficient options available.

When choosing a hot water system, it’s essential to consider factors such as running costs, efficiency, installation, and environmental impact. Electric hot water systems are generally more expensive to run than gas hot water systems, but they offer the convenience of being able to be installed indoors. Gas hot water systems, on the other hand, require a gas connection and can be more expensive to install.

Solar hot water systems are a popular choice for environmentally conscious homeowners, as they offer a renewable energy source and can significantly reduce greenhouse gas emissions. However, they can be more expensive to install and may require additional components, such as a booster element, to ensure a consistent supply of hot water.

⚡ Best Electric Hot Water Systems

Choosing the right electric hot water system depends on your household size, energy usage, and budget. Here’s what you need to know:

A solar hot water system, which uses rooftop panels to collect solar heat, can be a cost-effective and environmentally friendly option, though it may require a booster element during cloudy days.

🔹 Electric Storage Hot Water

  • How it works: Heats & stores water in a tank.

  • Best for: Homes with off-peak electricity tariffs.

  • Pros: Simple, affordable, works with solar.

  • Cons: Higher running costs than heat pumps.

🔹 Continuous Flow Electric Hot Water

  • How it works: Heats water on demand, no tank needed.

  • Best for: Small homes & apartments.

  • Pros: Space-saving, instant hot water.

  • Cons: Higher power draw, not always compatible with solar.

🔹 Heat Pump Hot Water (Most Efficient!)

  • How it works: Uses heat from the air to heat water—like a fridge in reverse!

  • Best for: Households looking to slash energy bills.

  • Pros: Most energy-efficient, uses 75% less power, eligible for rebates.

  • Cons: Higher upfront cost (but pays for itself fast!).

Our Recommendation: Heat pump hot water systems offer the best long-term savings!


💰 Gas vs. Electric Hot Water Costs

Still unsure if electric is cheaper? Let’s break it down:

Factor

Gas Hot Water

Electric Hot Water

Upfront Cost

$$ – Mid-range

$$ – Mid-range

Running Costs

$$$ – Increasing

$ – Lower with solar/off-peak

Efficiency

❌ Less efficient

✅ Highly efficient (especially heat pumps)

Carbon Emissions

❌ High

✅ Low (zero with solar!)

Lifespan

10-15 years

10-20 years

📌 Fact: Households switching to electric save $1,000+ per year on energy bills.


🏡 Rebates & Incentives: Get Paid to Switch!

Government rebates reduce the cost of upgrading to an electric hot water system.

🔹 Victorian Government – Up to $1,000 rebate for replacing old gas hot water.
🔹 Small-Scale Technology Certificates (STCs) – Big savings on heat pump & solar hot water.
🔹 Energy Saver Programs – Available in NSW, QLD, and SA.

📢 Check your eligibility at energy.gov.au to see how much you can save!


🔧 Installation: What You Need to Know

Replacing gas hot water with electric requires professional installation to ensure compliance & efficiency.

🔹 How It Works

1️⃣ Disconnect Gas System – Ensure safe removal of old unit.
2️⃣ Install New Electric System – Choose storage, continuous flow, or heat pump.
3️⃣ Connect to Power & Water – Ensure seamless integration.
4️⃣ Optimize for Efficiency – Set up off-peak power or solar.

⚠️ Do NOT DIY! Only licensed plumbers & electricians should handle this job.


🌱 Go Green: Cut Energy Costs with Solar

Pairing an electric hot water system with solar panels is a game-changer:

☀️ Free hot water when powered by solar energy.
💡 Heat pump hot water + solar = near zero running costs.
🏡 Future-proof your home for sustainable living.


🛠 Maintenance & Longevity

To keep your electric hot water system running efficiently, follow these tips:

Annual Check-Ups – Inspect for leaks & sediment buildup.
Replace Anode Rod – Prevents corrosion in storage systems.
Heat Pump Maintenance – Clean air filters & refrigerant levels.

💰 Bonus: Electric systems need LESS maintenance than gas!


🚀 Success Story: How the Johnsons Saved $1,000 a Year

The Problem: The Johnson family was paying too much for gas hot water.
The Solution: Switched to a heat pump hot water system with Installed Today.
The Results:
$1,200 annual savings on energy bills.
$800 rebate reduced upfront cost.
Zero-emission hot water when paired with solar!

Thinking about switching? Now’s the time!


📢 Make the Switch Today!

💡 Why Choose Installed Today?
Expert Installation – Fully licensed professionals.
Rebates Assistance – We handle the paperwork for you.
Fast, Reliable Service – Get your new system installed quickly.

🚀 Ready to switch? Contact Installed Today for a quote and start saving!

🔹 Save Money. Reduce Emissions. Upgrade Today! 🔹


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