Hot water accounts for around 25% of a typical Australian household's energy bill. So when your system needs replacing, it's worth spending a bit of time choosing the right one — not just the cheapest upfront option.
Brisbane's warm climate, high solar exposure, and access to natural gas all make certain systems much more cost-effective here than in cooler parts of Australia. Here's what you need to know.
The Four Main Types
Electric Resistance (Storage)
The most common system in older Brisbane homes. A tank of water is heated by electric elements — similar to a kettle. Simple, inexpensive to buy, but the most expensive to run day-to-day.
- Low upfront cost
- Simple to install
- Works anywhere
- Highest running costs
- Not energy efficient
- Slow to reheat
Gas (Storage or Continuous Flow)
Gas hot water is popular across Brisbane, particularly continuous flow (instantaneous) systems that heat water on demand rather than storing it. Lower running costs than electric storage, and continuous flow means you never run out of hot water.
- Lower running costs than electric
- Continuous flow = unlimited hot water
- Fast heating
- Needs gas connection
- Higher upfront cost than basic electric
- Gas prices rising
Solar Hot Water
Rooftop solar collectors heat water and store it in a tank, with an electric or gas booster for cloudy days. Brisbane's 283 sunny days per year make this one of the best locations in Australia for solar hot water. Excellent long-term savings, supported by government rebates.
- Lowest running costs long-term
- Government rebates available
- Ideal for Brisbane climate
- Higher upfront cost
- Needs roof space
- Booster required for cloudy days
Heat Pump
Works like a reverse air conditioner — extracting heat from the surrounding air to heat water. Very energy efficient (3–4x more efficient than electric resistance) and works well in Brisbane's warm climate. Eligible for government rebates.
- Very energy efficient
- No roof panels needed
- Government rebates available
- Higher upfront cost
- Can be noisy
- Less efficient in very cold weather
Side-by-Side Comparison
| System | Upfront Cost | Running Cost | Best For |
|---|---|---|---|
| Electric (storage) | $600 – $1,200 | High | Budget installs, rentals |
| Gas continuous flow | $1,000 – $2,000 | Medium | Families, high usage |
| Solar | $2,500 – $5,000 | Very low | Long-term savings, owner-occupiers |
| Heat pump | $2,000 – $4,000 | Low | Efficiency without roof panels |
Brisbane tip: If you're replacing an electric storage system, a heat pump is often the best direct swap — same footprint, no gas required, and running costs drop by up to 70%. Government rebates can bring the installed cost down significantly.
What About Government Rebates?
Queensland homeowners may be eligible for rebates under the federal Small-scale Renewable Energy Scheme (SRES) when installing solar hot water or heat pump systems. The rebate amount varies depending on your location and system size, but can reduce the installed cost by $500–$1,000 or more.
We handle the rebate paperwork as part of the installation — just ask us when you call.
Our Recommendation for Most Brisbane Homes
For most Brisbane homeowners replacing an ageing system, we recommend either a gas continuous flow system (if you already have gas connected) or a heat pump (if you're on electric and want the best efficiency without solar panels).
If you're building or renovating and have good roof space, a solar hot water system is hard to beat for long-term savings in this climate.
Need a New Hot Water System?
We supply and install all major brands across Brisbane — same day in most cases. Call Ben for an honest recommendation.
Call 0401 289 993