
Choosing the right hot water system is one of the most important decisions for any Perth household. With energy prices rising and so many heating options available today, homeowners often ask the same question: Should I install a gas, solar or electric hot water system?
Each system offers different benefits in terms of efficiency, running costs, environmental impact and installation considerations. The right choice depends on your home’s size, lifestyle, budget and long-term goals. This guide breaks everything down clearly so you can make an informed decision.
How Each Hot Water System Works
Understanding the basics of each system will help you compare them properly.
Gas Hot Water Systems
Gas systems heat water using natural gas or LPG, making them fast and reliable. They’re available in instantaneous (continuous flow) models or storage tank systems. Continuous flow units heat water only when it’s needed, while storage systems keep a tank of hot water ready to use.
Gas units are popular because they offer consistent pressure, quick reheating and lower running costs compared to traditional electric systems.
Electric Hot Water Systems
Electric systems heat water in a storage tank using an electric element. They remain one of the most affordable systems to purchase and install, making them a common choice for small households and rental properties.
While electric storage systems are simple and dependable, they can be more expensive to run due to higher electricity prices. Modern heat pump systems are an alternative, using the warmth in the air to heat water far more efficiently than standard electric models.
Solar Hot Water Systems
Solar hot water systems use roof-mounted solar collectors along with a storage tank. Most systems come with a gas or electric booster to ensure reliable hot water on cloudy days or during periods of high demand.
Although solar systems cost more upfront, they offer the lowest long-term running costs and are the most environmentally friendly option, especially in sunny Perth.
Comparison Table: Gas vs Solar vs Electric
| Feature / Factor | Gas | Solar | Electric |
|---|---|---|---|
| Upfront Cost | Medium | Highest | Lowest |
| Running Cost | Low–Medium | Lowest | Highest |
| Energy Efficiency | High | Very High | Moderate–Low |
| Environmental Impact | Moderate | Excellent | Higher |
| Winter Performance | Consistent | Needs booster | Consistent |
| Ideal Home Size | Small–Large | Medium–Large | Small–Medium |
| Lifespan | 10–15 years | 15–20 years | 10–12 years |
Gas Hot Water Systems: Fast, Efficient and Reliable
Gas systems continue to be a leading choice in WA homes due to their strong performance and lower running costs.
Gas units heat water quickly and maintain steady water pressure, which is ideal for busy households where hot water usage overlaps, like morning showers or running multiple taps at once.
Homes already connected to natural gas enjoy an easy installation process. For properties running off LPG, gas is still a strong option but does require ongoing bottle refills.
If you need installation, servicing or upgrades, visit Gas Fitting.

Solar Hot Water Systems: Best for Long-Term Savings
Solar hot water is the most cost-effective system over the long term. Perth’s sunny climate allows solar collectors to perform exceptionally well throughout the year.
While the initial investment is higher than gas or electric, the savings on energy bills can be significant. Many households see their hot water running costs drop by 60–80%. Solar systems also align strongly with sustainability goals and can increase your home’s value.
However, solar systems require enough roof space for collectors and a location that receives good sunlight. A booster is still necessary to ensure year-round reliability.
Electric Hot Water Systems: Affordable and Simple
Electric systems offer the lowest upfront cost and are straightforward to install and maintain. They’re common in apartments, rental homes and properties without access to natural gas.
However, electric storage systems can be the most expensive to run, especially during peak electricity periods. This makes them less suitable for large households.
Electric heat pumps are a more energy-efficient alternative. Although the initial cost is higher, they use much less electricity and work especially well when paired with rooftop solar PV systems.
Heat Pump Hot Water: A Modern Electric Upgrade
Heat pump systems operate like a refrigerator in reverse, absorbing warmth from the air and transferring it to the water.
They offer excellent energy efficiency, making them a strong middle-ground between electric and solar. In many cases, heat pumps can reduce hot water energy consumption by up to 70%.
Some models can be slightly noisy, and installation location matters, but overall they’re a solid option for Perth homes wanting lower running costs without the full investment of solar.
Choosing the Best Hot Water System for Your Home

1. Match the System to Your Household Size
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1–2 people: Electric storage or small gas units
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3–4 people: Gas continuous flow or heat pump
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5+ people: Gas or solar with booster for consistent supply
2. Consider Your Long-Term Goals
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Lowest running cost: Solar or heat pump
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Strongest performance: Gas continuous flow
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Lowest upfront cost: Electric storage
Additional Factors to Keep in Mind
Energy Availability: If your home has natural gas, gas hot water is a cost-effective and practical solution. Homes with rooftop solar PV benefit greatly from solar hot water or heat pump systems.
Space Requirements: Solar collectors need roof space and a suitable orientation. Gas and electric systems require less space, making them suitable for apartments or narrow storage areas.
Climate and Usage Patterns: Perth’s sunny weather supports solar systems well, but high-demand homes may still need reliable boosting.
If you often shower, run appliances or use hot water at the same time, gas continuous flow systems are one of the most dependable choices.
When to Replace Your Hot Water System
A hot water system replacement should be considered when:
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Your current unit is more than 10-12 years old
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You notice rusty water, leaks, fluctuations in temperature or reduced pressure
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Your energy bills are increasing without explanation
Older systems tend to run less efficiently, costing you more every year. A modern replacement can improve comfort and reduce energy waste.
For details on installation options, visit Hot Water Systems.
Final Thoughts
The best hot water system for your home depends on your budget, household size, energy access and long-term plans. Gas offers reliable and efficient heating, solar provides unmatched long-term value, and electric systems remain affordable for smaller households. Heat pumps offer a modern alternative with strong energy savings.
If you’re unsure which system suits your home, BG Plumbing & Gas can assess your property, usage and budget to recommend the perfect solution. Our licensed team provides expert installation, maintenance and repairs to ensure your system runs efficiently for years to come.