Gas Hot Water: The Pros and Cons

Gas hot water systems are one of the most popular options for delivering hot water in Australian homes. They offer many features and benefits that will appeal to many homeowners. However, that doesn’t mean it’s the right hot water system for everyone.

Let’s have a close look at the pros and cons of gas-powered hot water heaters.

Gas Hot Water System Pros

From energy efficiency to cost effectiveness, this heating method offers many advantages. Let’s explore them further.

Gas Hot Water is Cheaper Than Electric Hot Water Systems

Historically, gas hot water has typically been notably cheaper than electricity as a power source. Only solar hot water systems and heat pump-powered units were cheaper in terms of running costs and energy consumption. In many situations, gas remains the cheaper option. However, it’s worth noting that volatile gas prices and improvements in off-peak electric hot water systems, especially when used with solar panels, are closing that cost-effectiveness gap.

Instantaneous Systems are Compact

Continuous flow hot water systems have no tank, which makes them easy to install in almost any home. Not only are they compact, but most modern continuous flow systems feature a sleek, contemporary design that effortlessly complements your home.

They’re Long-lasting and Durable

Tankless hot water systems are fantastically tough and durable. A properly installed and well-maintained continuous flow system will provide hot water for 20 years or more.

Quality, modern systems are built to withstand our tough Australian conditions. They’ll function just as well on a winter morning as in the sweltering heat of an Aussie summer.

Never Run Out of Hot Water

Despite Australia’s warm climate, Australians love their long, hot showers and baths. If you and your family fall into this category, then an instantaneous hot water system is the way to go. Why? Well, it simply means you’ll never run out of hot water again.

As long as you have a functioning cold water mains supply feeding your water heater, your water heater will keep on warming your H2O whenever you turn on the hot water tap.

Versatility

Another huge benefit is that you have a diverse range of options to choose from. Whether you go for instant or storage, LPG or natural gas, indoor or outdoor models, you can be sure that you’ll get years of trouble-free hot water service for your home.

Additional Benefits

  • Quick heat-up times: Gas-powered systems deliver hot water to the tap almost instantly, cutting down on wasted water and improving convenience.
  • Blackout-friendly: Because they ignite with natural gas rather than mains electricity, many gas hot water systems will still work during power outages.
  • Energy efficiency: High-efficiency condensing designs lift energy efficiency ratings and trim utility bills, helping Australian homes lower both costs and carbon footprint.
  • Integrates with solar: Hybrid-ready systems can pair with solar pre-heating or heat-pump boosters to cut overall energy demand while still meeting peak hot water needs.

Of course, despite their economical and environmental benefits, a gas water heater won’t be the ideal solution for every house. Here are some of the potential drawbacks some households might encounter.

gas hot water system on a white wall

Gas Hot Water System Cons

The perfect hot water system doesn’t exist, just as there’s no such thing as the perfect person or car.

When choosing your hot water system, consider what’s most important to you, and trade that off against the perceived cons. Let’s take a look at them.

The System Can Be More Expensive to Buy

One of the obvious important factors when choosing the right gas hot water system for your home is the initial purchase cost. Buying a tankless/continuous flow gas system is usually more expensive than an electric or storage gas system. That being said, the difference in price between tankless and storage is often small.

However, it is also important to remember that you’ll often offset the purchase cost of a gas water heater over an electric-powered system by saving on running costs once you’ve installed it.

You May Require Multiple Units

Modern instant hot water systems are designed to efficiently heat water in the typical average demand household. But that doesn’t mean they are a suitable one-size-fits-all option. For larger homes with more than two bathrooms, you may need more than one hot water unit to meet capacity needs.

For example, if your home needs hot water in two bathrooms, the laundry and the kitchen, and all at the same time, you’ll likely need a second gas hot water unit. You’re best speaking to a plumber who can advise you on the best option in this scenario.

Size May Matter

We’ve explained just how compact instant hot water systems are. However, the flipside is that gas storage hot water systems can be big and chunky. Of course, if you have ample space for hot water outlets, then that won’t necessarily be an issue for you.

But it’s worth remembering that something like a 200L standing hot water tank will take up a lot of space. As an example, the Aquamax N/G 50C hot water system, which boasts a 155L storage tank, is around 1.6m tall, 52cm wide and 61cm deep.

It’s certainly not a Goliath, but it probably will be noticeable in a smaller yard, without the implementation of some clever landscaping.

Additional Potential Drawbacks

  • A working gas supply line is a must: It goes without saying, but properties without an existing natural gas line must pay for pipeline installation or rely on LPG cylinders.
  • Flueing and ventilation also a must: Every gas hot water system requires compliant flueing and ventilation. This can restrict the installation location of your tank or continuous flow unit.
  • Risk of CO leaks: Combustion appliances pose carbon monoxide risks. Regular licensed servicing becomes essential and increases lifetime maintenance expenses.
  • Greenhouse emissions: Burning gas produces greenhouse gas emissions, potentially raising a household’s carbon footprint compared with electric hot water systems powered by renewables.

Contact The Hot Water System Specialists

Interested in learning more about hot water systems? We have Hot Water Systems: The Complete Guide to help you out. It explains everything from electric hot water heaters to solar hot water system options, as well as gas-powered water heaters.

Please note: This information is provided for advice purposes only. Regulations differ from state to state, so please consult your local authorities or an industry professional before proceeding with any work. See our Terms & Conditions here.


Published: 2025-06-18

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