Heat Pump vs Instant Gas Hot Water: Which One Reigns Supreme?
If you’re looking for a new hot water system, you’ve likely narrowed your choices down to heat pump and instant gas hot water systems. Both are energy-efficient options that can save you money in the long run, but which one is better suited for your home?
In this battle of heat pump vs instant gas hot water, we’ll break down the pros, cons, costs, and efficiency of each system so you can make the smartest choice.
How Do These Systems Work?
🔥 Instant Gas Hot Water (Tankless)
An instant hot water system, also known as an instantaneous gas hot water system or a continuous flow system, heats water on demand using a gas burner. When you turn on the hot tap, the burner fires up and instantly heats the water as it flows through the unit.
✔ No storage tank needed – endless hot water supply ✔ Compact design – wall-mounted, space-saving ✔ Works with natural gas or LPG✔ Only heats water when required – energy-efficient
⚡ Heat Pump Hot Water
A heat pump hot water system works like an air conditioner in reverse. It extracts heat from the surrounding air, amplifies it using a compressor, and then transfers the heat to the water in a storage tank.
✔ Uses up to 75% less energy than electric storage systems
✔ Ideal for homes with solar PV – can run off solar power
✔ Works best in warm climates
✔ Lower running costs compared to gas
Energy Efficiency: Which One Saves You More?
🔥 Instant Gas Hot Water
🔹 Efficiency Rating: 6-star models or higher 🔹 Energy Use: Gas hot water systems only operate when you turn on the tap, meaning no standby energy losses 🔹 Best For: Households with inconsistent hot water usage or access to cheaper gas rates
⚡ Heat Pump Hot Water
🔹 Efficiency Rating: Can be 3-5 times more efficient than standard electric systems 🔹 Energy Use: Draws heat from the air instead of generating heat directly, using 60-75% less electricity🔹 Best For: Homes with high hot water usage, solar PV panels, or off-peak electricity rates
💡 WINNER: Heat Pump Hot Water – Uses less energy over time, making it the more efficient choice. In comparison, electric hot water systems, while effective, require substantial solar energy to operate efficiently alongside other home appliances.
Upfront Cost vs Long-Term Savings
🔥 Instant Gas Hot Water
✔ Lower upfront cost – Typically $1,000 – $2,500 installed
✔ Minimal maintenance costs
✔ Gas prices fluctuate, making running costs unpredictable
⚡ Heat Pump Hot Water
✔ Higher upfront cost – Typically $2,500 – $5,500 installed
✔ Lower running costs – Uses significantly less electricity than gas systems
✔ Eligible for government rebates – Small Scale Technology Certificates (STCs) can offset the initial price
💡 WINNER: Heat Pump Hot Water – Higher upfront cost but greater long-term savings.
Environmental Impact: Which One Is More Eco-Friendly?
🔥 Instant Gas Hot Water
❌ Burns fossil fuels – Produces CO₂ emissions
✅ More efficient than gas storage tanks
⚡ Heat Pump Hot Water
✅ Uses renewable heat from the air
✅ Can run on solar power – Reduces reliance on the grid
✅ Up to 75% lower carbon footprint than gas
💡 WINNER: Heat Pump Hot Water – The greener option, especially when paired with solar.
Reliability & Performance: Which One Delivers Hot Water Faster?
🔥 Instant Gas Hot Water
✔ Delivers hot water instantly – No waiting
✔ Perfect for homes with multiple bathrooms
✔ Works well in all climates
⚡ Heat Pump Hot Water
✔ Works efficiently in warm climates
❌ Slower recovery rate – Takes longer to heat water in cold conditions
✔ Needs a backup element for high demand
💡 WINNER: Instant Gas Hot Water – No delays, no waiting – just instant hot water.
Installation & Space Considerations
🔥 Instant Gas Hot Water
✔ Compact, wall-mounted unit
✔ Easy installation for homes with existing gas lines
✔ No bulky storage tank
⚡ Heat Pump Hot Water
✔ Outdoor installation required (needs airflow)
✔ Takes up more space than an instant gas unit
✔ Quieter models available for noise-sensitive areas
💡 WINNER: Instant Gas Hot Water – Ideal for homes with limited space.
Which One Should You Choose?
Choose Heat Pump If You Want:
✅ Lower running costs & long-term savings
✅ An eco-friendly, energy-efficient solution
✅ Rebates to offset upfront costs
✅ Integration with solar PV for even more savings
Choose Instant Gas If You Want:
✅ Hot water on demand with no waiting
✅ A lower upfront investment
✅ A compact system that takes up minimal space
✅ Reliability in colder climates
Final Verdict
✔ **Best for Energy Efficiency & Savings:**Heat Pump✔ **Best for Instant, Unlimited Hot Water:**Instant Gas✔ **Best for Solar Compatibility:**Heat Pump✔ **Best for Space-Saving & Fast Installation:**Instant Gas
💡 Overall Winner: Heat Pump Hot Water – Higher efficiency, lower running costs, and better for the environment. Heat pumps offer energy efficiency, longer lifespan, and quiet operation compared to traditional gas systems.
Still unsure? Installed Today can help you choose, install, and maintain the best hot water system for your home! Get expert advice and fast installation across Australia.
