Heat pump hot water
Heat pumps work like a fridge in reverse — pulling warmth from the air to heat your water. They use 3–4× less electricity than a standard electric tank, which is why they qualify for the biggest rebates.
Best for: households of 2+, owner-occupiers, anyone with rooftop solar PV.
Watch out for: noise (most are quiet but check the dB rating), space (needs ~600mm clearance from walls), and freezing climates (some models lose efficiency below 5°C).
Get a heat pump quote
Gas hot water — storage and instantaneous
Gas storage tanks heat a fixed volume and keep it hot. Gas instantaneous (continuous flow) units heat water on demand — endless hot water, no tank.
Best for: connected mains gas, larger families, anywhere natural gas is cheap.
Watch out for: rising gas prices, embodied carbon, and the long-term direction of state energy policy. Many states (VIC, ACT, NSW) are restricting new gas connections.
Get a gas quote
Electric storage hot water
The classic Australian hot water tank. Cheap to buy, simple to install, expensive to run unless paired with solar PV or off-peak tariff.
Best for: rentals, like-for-like emergency replacements, properties without gas.
Watch out for: running costs — a 250L electric tank can cost $700–$1,000/year to run. Heat pump replacements often pay back the price difference in 3–5 years.
Get an electric quote
Solar hot water
Roof-mounted thermal panels heat water directly using the sun. Backup element kicks in on cloudy days. Lowest long-term running cost of any system.
Best for: north-facing rooftops, sunny climates (QLD, NSW, WA), long-term owners.
Watch out for: roof condition (solar adds weight), shading from neighbouring buildings, and the upfront cost — typically $3,500+ after rebates.
Get a solar quote