Replacing Gas Hot Water with Electric: Should You Switch to Electric Storage or Heat Pump Hot Water?

Oct 3, 2024

Replacing gas hot water with an electric alternative can make sense for some homes, especially where the household wants to move away from natural gas or LPG, use solar PV more effectively, or compare newer efficient electric hot water options.

The best replacement depends on the existing gas system, household size, number of bathrooms, shower habits, electrical supply, outdoor space, access, budget and whether you are choosing standard electric storage, heat pump hot water or instant electric for a small point-of-use application.

Installed Today helps customers compare hot water systems, including electric hot water systems, heat pump hot water systems, instant electric hot water systems, and existing gas hot water systems for customers still comparing gas replacement options.

Supply-only ordering is available across major Australian metro areas, with selected supplied-and-installed options available on eligible products in Brisbane and Gold Coast service areas where shown.

Quick Answer

Replacing gas hot water with electric may be worth considering if:

Your old gas hot water system is due for replacement
You want to reduce reliance on natural gas or LPG
You already have solar PV or plan to use more daytime electricity
You have suitable electrical supply
You have space for an electric storage tank or heat pump
You want to compare heat pump hot water as an efficient electric option
You are renovating or planning broader home electrification
A licensed gas fitter can safely disconnect or cap the old gas appliance where required

For most whole-home hot water replacements, the main electric alternatives are:

For small sinks, offices, kitchenettes or low-demand fixtures, instant electric hot water systems may also be worth comparing.

A heat pump can be a strong option where outdoor space, airflow, condensate drainage, electrical supply and noise placement are suitable. Standard electric storage may be simpler where a heat pump location does not suit the property.

Can You Replace a Gas Hot Water System with Electric?

Yes, many gas hot water systems can be replaced with electric alternatives, but it is not always a simple swap.

A gas-to-electric hot water change may involve:

Removing or decommissioning the old gas unit
Licensed gas disconnection or capping where required
Plumbing alterations
Electrical circuit checks
Switchboard assessment
New tank location
Heat pump airflow checks
Condensate drainage for heat pumps
New valves
Temperature control requirements
Old unit removal and disposal
Compliance checks

Gas work must be completed by a licensed gas fitter. Electrical work must be completed by a licensed electrician where required. Plumbing work should be completed by a licensed plumber where required.

Why Homeowners Consider Moving Away from Gas Hot Water

Homeowners may consider replacing gas hot water with electric for several reasons.

1. To Use Solar PV More Effectively

If the home has solar panels, an electric hot water system may be able to use more daytime solar generation, depending on timer setup, electrical configuration and household usage.

A heat pump hot water system may be especially worth comparing because it is an electric storage-style system that can suit daytime operation where the setup allows.

Solar PV pairing is not automatic. The system size, timer, tariff, usage pattern and electrical setup all need to suit the home.

2. To Reduce LPG Bottle Dependence

Homes using LPG hot water may want to reduce bottle deliveries, bottle rental, regulator issues or LPG supply management.

Switching to electric may suit some LPG homes, especially where:

There is no natural gas connection
LPG bottles are mainly used for hot water
The household already has suitable electrical supply
A heat pump location is available
The home has solar PV

Before switching, check the cost of electrical work and whether other appliances still use LPG.

3. To Replace an Ageing Gas System

If a gas storage or instant gas system is old, leaking, unreliable or no longer suitable, replacement is a good time to compare alternatives.

Customers can compare:

4. To Plan for Broader Home Electrification

Some households are gradually replacing gas appliances with electric alternatives. Hot water is often one of the biggest decisions because it affects daily comfort and can involve plumbing, gas and electrical work.

This article focuses on hot water. Other gas appliances such as cooktops, ovens and space heating have their own electrical, ventilation and installation requirements.

Electric Options for Replacing Gas Hot Water

There are three main electric options to compare.

Electric Storage Hot Water

An electric storage hot water system heats and stores water in a tank using an electric element.

It may suit:

Homes without gas
Like-for-like electric replacements
Customers moving away from gas
Homes where heat pump placement is not suitable
Properties needing a familiar storage-style system
Indoor or outdoor locations where the selected model allows

Popular size ranges include:

Product examples include the Rheem 250L Electric Hot Water System, Rinnai 250L Electric Hot Water System, Dux 250L Electric Hot Water System, and Vulcan 250L Electric Hot Water System.

Heat Pump Hot Water

A heat pump hot water system is an electric storage-style system that uses electricity to move heat from the surrounding air into the water tank.

A heat pump may suit:

Homes replacing gas hot water with electric
Homes replacing older electric storage
Properties with suitable outdoor space
Locations with clear airflow
Homes where condensate drainage can be managed
Solar PV homes where timer operation suits usage
Customers wanting an efficient electric hot water option

Heat pumps are not automatically right for every home. They need suitable airflow, drainage, access, electrical supply and noise placement.

Customers can compare heat pump hot water systems, including medium heat pump hot water systems from 200L to 280L, large heat pump hot water systems over 280L, and Wi-Fi enabled heat pump hot water systems.

Product examples include the iStore 270L Heat Pump Hot Water System, Rheem AmbiHeat 270L Heat Pump Hot Water System, Rinnai Enviroflo V2 250L Heat Pump Hot Water System, Rinnai Enviroflo GR-Series 280L Heat Pump Hot Water System, Rinnai Enviroflo GR-Series 300L Heat Pump Hot Water System, and Enviroheat 250L Heat Pump Hot Water System.

Instant Electric Hot Water

Instant electric hot water heats water as it flows through the unit.

It may suit:

Hand basins
Small sinks
Kitchenettes
Offices
Workshops
Low-demand fixtures
Point-of-use hot water

Instant electric is not automatically suitable for whole-home shower use. Some instant electric systems can require high electrical capacity, dedicated circuits or three-phase power depending on the application.

Customers comparing point-of-use options can browse instant electric hot water systems.

Gas Hot Water vs Electric Storage

Gas hot water and electric storage suit different homes.

Gas Hot Water May Suit:

Homes with existing natural gas or LPG
Customers wanting like-for-like gas replacement
Properties with suitable gas pipe sizing
Homes with suitable water pressure
Customers wanting instant gas continuous flow
Homes where electrical upgrades are not practical

Electric Storage May Suit:

Homes moving away from gas
Properties without natural gas or LPG
Customers wanting a storage tank system
Homes where heat pump placement is not suitable
Properties with suitable electrical supply
Customers wanting a simpler electric alternative

Electric storage can be straightforward in some homes, but the tank size must suit household demand. If the old gas system kept up easily, switching to an undersized electric tank can be frustrating.

Gas Hot Water vs Heat Pump Hot Water

A heat pump is often the main electric alternative homeowners compare when moving away from gas.

Gas Hot Water May Suit:

Existing natural gas homes
LPG homes where bottle supply is already suitable
Customers wanting continuous flow
Properties with suitable gas pipe sizing
Homes where heat pump location is not practical
Customers wanting like-for-like gas replacement

Heat Pump Hot Water May Suit:

Homes wanting to reduce gas reliance
Properties with solar PV
Customers replacing old gas storage or electric storage
Homes with outdoor space
Locations with clear airflow
Homes where condensate drainage is practical
Households with suitable electrical supply

A heat pump may reduce electricity use compared with standard electric storage in suitable conditions, but actual running costs depend on usage, tariff, timer settings, climate, model, installation location and maintenance.

Is Electric Hot Water Cheaper Than Gas?

Not always.

Running costs depend on:

Electricity tariffs
Natural gas prices
LPG bottle costs
Solar PV use
Timer settings
Household hot water use
Shower length
Number of occupants
System type
Tank size
Heat pump performance
Gas supply charges
Maintenance condition
Whether the system is correctly sized

A heat pump paired with suitable daytime solar PV operation may perform very differently from a standard electric storage system running on a peak tariff.

Avoid choosing based on generic savings claims. The best system depends on the property.

Can Electric Hot Water Lower Emissions?

Electric hot water can reduce household gas use. Emissions depend on how the electricity is generated and how the system is used.

Electric hot water may be a lower-emission option where:

The home uses solar PV effectively
The grid becomes cleaner over time
A heat pump is correctly sized and installed
Timer settings match solar generation or off-peak tariffs
The system replaces LPG or inefficient older equipment

Standard electric storage on a high-emissions grid may not deliver the same result as a well-timed heat pump using solar PV. The installation and usage pattern matter.

Using Solar PV with Electric Hot Water

Solar PV can make electric hot water more attractive where the setup suits the household.

Possible approaches include:

Running a heat pump during the day
Using timer settings to heat during solar production
Choosing a tank size that stores enough water for evening use
Coordinating electrical setup with a licensed electrician
Comparing Wi-Fi or timer-capable models where suitable

Solar PV does not automatically mean free hot water. Results depend on system size, solar generation, household usage, tariff, timer settings and weather.

Choosing the Right Size Electric Replacement

Sizing is one of the most important parts of replacing gas with electric.

Consider:

Number of people in the home
Number of bathrooms
Shower length
Whether showers run at the same time
Bath use
Kitchen and laundry hot water use
Existing gas system performance
Whether the old system ran out
Peak usage times
Recovery rate
Electrical supply
Available installation space

Smaller Households

Smaller households may compare:

250L electric storage
250L to 270L heat pump systems
Instant electric for small point-of-use fixtures

A very small electric system may not suit daily shower use unless demand is genuinely low.

Medium Households

Medium households may compare:

Shower habits and back-to-back usage matter more than household size alone.

Larger Households

Larger households may compare:

For larger families, tank size, recovery, usage timing and installation space should all be checked carefully.

Electrical Requirements When Replacing Gas

Replacing gas with electric may require electrical work.

A licensed electrician may need to check:

Existing circuit capacity
Switchboard capacity
Cable size
Isolation requirements
Timer setup
Solar PV integration
Heat pump power requirements
Instant electric power requirements
Whether upgrades are required

This is especially important if the existing gas hot water system did not previously need a major electrical circuit.

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

Gas Disconnection Requirements

If replacing a gas hot water system with electric, the gas side must be made safe.

This may involve:

Isolating gas supply
Disconnecting the appliance
Capping gas pipework where required
Removing LPG connections where required
Checking other gas appliances remain safe
Compliance documentation where required

Gas work must be completed by a licensed gas fitter.

Do not remove, cap or alter gas pipework yourself.

Heat Pump Location Requirements

If you choose a heat pump, location matters.

A heat pump needs:

Outdoor space
Clear airflow
Suitable clearances
Condensate drainage
Service access
Noise-conscious placement
Stable base or slab
Suitable electrical supply
Suitable plumbing connection points

Avoid placing a heat pump in:

Fully enclosed areas
Tight cupboards
Poorly ventilated spaces
Locations beside bedrooms
Locations close to neighbouring bedrooms
Areas where condensate will cause nuisance water
Spots with poor service access

Standard Electric Storage Location Requirements

Electric storage tanks also need careful placement.

Check:

Indoor or outdoor suitability
Tank dimensions
Base or platform condition
Access for delivery
Access for old unit removal
Drainage
Relief valve discharge
Electrical supply
Water pressure
Valve requirements
Future service access

A larger electric tank may not fit where an old gas continuous flow unit was mounted.

Rebates, STCs and Incentives

Some heat pump or solar hot water systems may be eligible for STCs, rebates or incentives depending on product, installation location, installation details and current program rules.

These programs can change.

Before choosing a system based on incentives, check:

Current eligibility
Product eligibility
Installation location
Installer requirements
Whether the advertised price already includes incentives
Whether supply-only purchases qualify
Documentation requirements
Whether electrical or plumbing upgrades are included or separate

Do not choose a hot water system based only on a possible rebate. It still needs to suit the property.

Installation and Conversion Costs

The cost to replace gas hot water with electric can vary widely.

Cost can be affected by:

Product type
Tank size
Heat pump vs standard electric storage
Gas disconnection requirements
Electrical circuit work
Switchboard upgrades
Plumbing alterations
New valves
Drainage
Condensate drain for heat pumps
Old unit removal
Disposal
Access
Compliance upgrades
Whether the system is relocated
Whether installation is included or supply-only

A simple like-for-like electric replacement may be more straightforward than converting from gas to heat pump or electric storage in a different location.

Maintenance After Switching to Electric

Maintenance depends on the system type.

Electric Storage Maintenance May Include:

Checking for leaks
Monitoring hot water performance
Checking valves
Following manufacturer service guidance
Checking sacrificial anode requirements where applicable
Watching for rusty or discoloured water

Heat Pump Maintenance May Include:

Keeping airflow clear
Checking condensate drainage
Monitoring fan or compressor noise
Checking hot water recovery
Following manufacturer service guidance
Keeping the unit accessible
Checking valves where required

Do not attempt electrical, plumbing, refrigerant or gas work yourself. Licensed trades should complete work where required.

Brisbane and Gold Coast Considerations

In Brisbane and Gold Coast homes, replacing gas hot water with electric can be affected by:

Natural gas availability
LPG bottle setup
Existing gas unit location
Electrical supply
Switchboard capacity
Solar PV setup
Heat pump airflow
Condensate drainage
Narrow side access
Existing slab or base
Coastal exposure on the Gold Coast
Townhouse or body corporate requirements
Old unit removal
Compliance upgrades
Whether the system is supply-only or supplied-and-installed

Selected supplied-and-installed options are available on eligible Installed Today products in Brisbane and Gold Coast service areas where shown. Availability depends on the product, address and installation requirements.

Supply-Only vs Supplied-and-Installed

Installed Today offers supply-only ordering across major Australian metro areas. This can suit customers who already have licensed trades organised and want to order the hot water product online.

Selected supplied-and-installed options are available on eligible products in Brisbane and Gold Coast service areas where shown. Availability depends on the product, address and installation requirements.

For supply-only hot water products, the listed product price generally covers the product only.

It does not usually include:

Installation labour
Plumbing alterations
Electrical work
Gas disconnection
Gas capping
Gas compliance work
New electrical circuits
Switchboard upgrades
New valves
Pipework changes
Drainage changes
Condensate drainage work
Tempering valve upgrades
Pressure limiting valve upgrades
Expansion control valves
Old unit removal
Disposal
Compliance upgrades
Concrete bases or slab work
Relocation of the system
Rebate administration
Site assessment

Before ordering supply-only, confirm product suitability, gas disconnection requirements, electrical supply, drainage, access and compliance needs with licensed trades.

Common Mistakes When Replacing Gas with Electric

Assuming Electric Is Always Cheaper

Electric running costs depend on tariff, system type, usage and solar PV setup. A heat pump and standard electric storage can have very different running costs.

Choosing Heat Pump Without Checking Location

Heat pumps need airflow, drainage, access and noise-conscious placement.

Forgetting Electrical Upgrades

A gas system may not have had the electrical circuit needed for an electric replacement.

Not Safely Decommissioning Gas

Gas disconnection or capping must be handled by a licensed gas fitter.

Choosing the Wrong Tank Size

If the new electric system is too small, the home may run out of hot water.

Assuming Solar PV Means Free Hot Water

Solar PV can help where timer settings and usage line up, but results vary.

Buying Based Only on Rebates

Rebates and STCs can change, and eligibility is not guaranteed.

Assuming Supply-Only Includes Installation

Supply-only pricing generally covers the product only unless installation is clearly selected or listed.

Before Ordering Checklist

Before replacing gas hot water with electric, check:

Is the existing system gas storage or instant gas?
Is it natural gas or LPG?
Are other gas appliances still connected?
Who will disconnect and cap the gas?
Do you want electric storage, heat pump or instant electric?
How many people live in the home?
How many bathrooms are used daily?
Are showers used at the same time?
Does the household use a bath?
Did the old gas system keep up with demand?
Is electrical supply suitable?
Is switchboard capacity suitable?
Is there outdoor space for a heat pump?
Does the heat pump location have clear airflow?
Can condensate drainage be managed?
Is noise placement suitable?
Is there enough room for an electric storage tank?
Is solar PV timer operation being considered?
Are new valves required?
Is old unit removal included or separate?
Is the product supply-only or supplied-and-installed?
Have licensed trades confirmed all requirements?

Frequently Asked Questions

Can I replace gas hot water with electric?

Yes, many homes can replace gas hot water with electric storage or heat pump hot water, but gas disconnection, electrical supply, plumbing, location and compliance requirements must be checked first.

Is a heat pump better than gas hot water?

A heat pump may suit homes wanting an efficient electric storage-style option, especially where outdoor space, airflow, drainage and electrical supply are suitable. Gas may still suit homes with existing natural gas or LPG and suitable gas pipe sizing.

Is electric storage better than gas hot water?

Not always. Electric storage can suit homes moving away from gas or properties without gas, but running costs depend on electricity tariffs, usage, tank size and solar PV setup.

Can I use solar panels with electric hot water?

Yes, electric hot water may be paired with solar PV where timer settings, electrical setup and household usage suit. Heat pumps are often compared for daytime solar operation.

Is instant electric good for replacing gas hot water?

Instant electric may suit small point-of-use applications such as sinks or kitchenettes. It is not automatically suitable for whole-home shower demand because electrical requirements can be significant.

Are rebates available when replacing gas hot water with electric?

Some heat pump or solar hot water systems may be eligible for STCs, rebates or incentives depending on current program rules, product type, location and installation details. Eligibility can change.

Do I need a plumber and electrician?

Often, yes. Plumbing work should be completed by a licensed plumber where required. Electrical work must be completed by a licensed electrician where required. Gas disconnection must be completed by a licensed gas fitter.

Can I disconnect the gas hot water system myself?

No. Gas disconnection and capping must be handled by a licensed gas fitter.

Does supply-only pricing include installation?

No. Supply-only pricing generally covers the hot water product only. It does not usually include plumbing, electrical work, gas disconnection, gas capping, valves, pipework changes, drainage, old unit removal, disposal or compliance upgrades unless clearly listed.

Final Word

Replacing gas hot water with electric can be a smart move for some homes, especially where the household wants to reduce gas reliance, use solar PV more effectively or compare modern heat pump hot water systems.

The main options are standard electric storage, heat pump hot water and instant electric for small point-of-use applications. The best choice depends on household demand, installation space, electrical supply, gas disconnection requirements, airflow, drainage, noise placement and budget.

Installed Today makes it easy to compare electric hot water systems, heat pump hot water systems, instant electric hot water systems and broader hot water systems online.

For supply-only orders, confirm product suitability, electrical requirements, gas disconnection, drainage, access and compliance needs with licensed trades before purchasing.

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