Gas Hot Water System

Jenn Sinclair
April 8, 2019
last modified: April 8, 2019

What are the benefits these days by going gas hot water? I read recently that these days electric are just as economical as you don't have to pay gas supply charges. We are building a 4 bedroom 2 storey and 3 bathroom family house.

Have also read up about Heat Pump hot on the Gold Coast QLD, this sounds like a viable option - however how expensive would upfront costs be?

Comments (5)

  • genkii
    Ditch the gas and go with a heat pump or solar hot water, especially if you live in qld. Gas prices are only going up and you can’t use rooftop solar to power gas appliances.

    A heat pump hot water system converts heat from the air to create energy to heat water, so in a Queensland climate it’ll work very efficiently. Depending upon your system it’ll use 1-2 kWh per day. If you have solar panels it will cost you nothing to run. If you don’t, it’ll cost between 20 and 60 cents a day.

    Solar hot water will also work well in a warm climate.

    A resistive electric hot water service uses much more energy than a heat pump or solar hot water service but they are cheaper to buy and can be economical to run if you have rooftop solar.

    If you don’t have gas heating and you have an induction cooktop you can ditch gas completely and save $300 a year or more on gas daily charges alone.

    This is a worthwhile read on the subject.

    Best of luck
  • genkii
    To answer your question is a little tricky as it depends upon the rebates offered in your state and the number of STCs you’d get for your region for any given heat pump or solar hot water service.
    But heat pump and solar are considerably more expensive up front than gas. However, over the life of the appliance you’ll more than save the difference in not paying the gas supply charges. When you factor in the cost to run it the situation improves even further. A heat pump connected to rooftop solar or a solar hot water service could cost $0.00 to run, especially in your climate. A heat pump without rooftop solar could cost as little as $75 a year to run. Gas will always cost you.
  • Jenn Sinclair
    Thanks genkii
    We aren't planning on installing solar panels as we are only planning to stay at the house 5-7 years. For this period of time would heat pump still work out more economical in terms of upfront plus running costs etc
  • PRO
    Mayfair Building Group

    In South Australia we have a pretty good gas infrastructure in place.

    BUT certainly in areas where there is no gas in the street the Heat Pump is a fantastic option. As of recently there was approximately just over $1,000 rebate applicable to heat pumps, but this fluctuates and varies on the model you opt for.

  • genkii
    I’m not sure. It depends on the upfront costs, rebates and whether you can use a controlled load or off peak tariff for your heat pump.

    This website gives annual costs for different types of water heaters. It is Victorian so the cost of energy could be different in QLD. The upside is that heat pumps work better in a warmer climate so your electricity spend is likely to be lower than shown in this table. Heat pumps trump gas but you also need to consider the upfront costs and gas supply charge.

    Another thing to consider is that for such a short time period you might be happy with one of the cheaper heat pumps and that might tip the calculations in favour of heat pumps. A cheaper one will not be quite as efficient and will have a shorter warranty but in QLD you will still get better efficiency with a less efficient heat pump than you would in Melbourne winter with a more expensive one.