Hot water · How-to

How to Choose a Hot Water System

Local Plumbing Group · 5 min read
Plumbing Tips & How-Tos/ How to Choose a Hot Water System

Most people only think about hot water when it runs out. If your system is getting on (many last around 10–15 years) or you're building or renovating, it pays to know your options before you're stuck with a cold shower and have to take whatever's available. Here's a plain-English way to work through it.

Step 1: Check what you've got now

Start with the compliance plate on your current unit. It shows the brand, model, fuel type (gas or electric), tank size and often the year it was made. Take a photo of it. Also note:

  • Is it inside, in a cupboard, or outside?
  • Do you have natural gas connected, or bottled LPG, or electric only?
  • Do you have solar panels on the roof?
  • Any signs of trouble: rust or water around the base, a dripping relief valve, rumbling noises, or water that isn't as hot as it used to be?

Step 2: Think about how your household uses hot water

The right size depends on how many people live in the house and when everyone showers. A couple who shower at different times needs far less than a family of five who all shower before school. If you often run out, you may need a bigger tank or a different type, not just a like-for-like swap. Your plumber should ask about this rather than just matching the old unit.

Step 3: Compare the main types

Gas storage. A tank kept hot by a gas burner. Reliable and reheats well, and a common like-for-like swap in homes that already have gas. Running costs depend on gas prices, and many Victorian households are now moving away from gas.

Gas continuous flow (instantaneous). Heats water only when you turn on a tap, so you never "run out" and there's no tank to keep hot. Needs a suitable gas supply and an outdoor wall to mount on.

Electric storage. A tank with an electric element. Cheap to buy and simple to install, but usually the most expensive to run unless it's on an off-peak tariff or you can time it to your solar.

Heat pump. Works like a reverse-cycle air conditioner, pulling heat from the outside air into the water. Uses far less electricity than a standard electric tank, and pairs well with rooftop solar. It's the option a lot of Geelong households are choosing now.

Solar hot water. Collector panels on the roof heat the water, with gas or electric boosting on cloudy days. Good long-term savings, but it needs a suitable north-facing roof and costs more upfront.

Step 4: Factor in Geelong's climate

Geelong and the Surf Coast get cool, damp winters with plenty of cold mornings. That matters most for heat pumps, because they pull heat from the air, and older or cheaper units can struggle when it's cold. If you're looking at a heat pump, choose one rated for cooler climates and ask about its performance at low temperatures. Also think about where it sits. A spot with some airflow, away from bedroom windows (they do make a gentle hum), with room for servicing, works best.

One option we install a lot is the NeoPower heat pump, at $2,590. It's a good fit for many homes around here, but it isn't right for every house, and we're happy to talk through the alternatives.

Step 5: Look at the whole cost, not just the price tag

  • Upfront cost: the unit plus installation. Our hot water systems start from $1,650 supplied and installed.
  • Running cost: this is where heat pumps and solar usually win over the life of the system.
  • Rebates: Victorian government rebates and incentives may be available for heat pump and solar systems, especially when you're replacing an old electric or gas unit. Eligibility and amounts change, so check before you buy. We can help with that when we quote.
  • Install extras: moving the system to a new spot, upgrading the electrical circuit, or adding a tempering valve can add to the job, so ask for a written quote that spells it out.

Step 6: Plan ahead if you can

If your system is over ten years old or showing signs of wear, get a quote now, while it still works. That way you can choose properly instead of rushing into a swap when it fails on a cold morning.

When to call us

  • Water around the base of the tank, or rust on the casing
  • The relief valve is constantly dripping or pouring
  • No hot water, or it runs out much sooner than it used to
  • You smell gas near a gas unit (turn it off at the meter and get it checked)
  • You want to compare options or check rebates before committing

Gas and electrical connections to hot water systems must be done by licensed tradespeople.

Need a hand choosing?

There's no one right answer for every home, and a good plumber will help you weigh it up. Have a look at our hot water page, or call 1800 224 229 or book a quote and we'll recommend what suits your house, your budget and how you use hot water.

Rather leave it to a local plumber?

Local Plumbing Group, 195 Melbourne Rd, Rippleside. 4.9★ from 400+ Google reviews.

These guides are general information only. Gas, electrical and most plumbing work in Victoria must be done by a licensed tradesperson.
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