Choosing the Right Hot Water System for Melbourne’s Winter: Gas or Electric?

Gas vs Electric: Best Hot Water System for Melbourne Winters

Melbourne’s winter is here, and we’re already experiencing brisk winds and freezing cold nights. During these months, we tend to lean on our hot water systems more than ever. This is why there’s no better time than now to invest in a brand-new hot water unit.

The next question you’ll have to answer is this; is it better to go with gas, electric, or something else? If you need answers, we’re here to break it all down in clear and simple terms. Let’s not wait any longer and jump right into it!

Understanding Your Hot Water Options

If you’re in the market for a hot water system in Melbourne, the good news is there are many options available. These include everything from electric to gas, solar, and heat pump.

Every style has its own pros and cons, and understanding the differences can help you make the best choice for your home or business. Here’s a quick overview:

Electric Hot Water Systems

Electric systems are still one of the most common hot water options in Australian homes, and this is mainly because they are affordable and easy to install. Whether you live in a freestanding house or an apartment, electric systems are generally straightforward to hook up and operate.

How They Work: Electric hot water systems use an electric element to heat the water stored in a tank. These systems also come in a range of sizes, from small units suitable for a single occupant to larger tanks for businesses and growing families.

Pros:

1. Lower upfront cost
2. Easy to install and replace
3. Available in a range of sizes
4. Good option for properties without access to natural gas
   

Cons:

1. A little more expensive to run, especially with standard electricity rates
2. Not quite as eco-friendly as solar

If you’re looking for a budget-friendly solution and don’t use large amounts of hot water, an electric system might be right for you. Brands like Rheem and Dux offer solid, energy-rated electric systems, with prices generally starting at around $450.

Ready to upgrade? MCN Plumbing is your go-to team for hot water in Caulfield, Pakenham, Thomastown, and all other corners of Melbourne. Our service is quick, affordable, and handled by seasoned pros with years of hands-on experience.

Get in touch with us today!

Gas Hot Water Systems

Gas hot water systems have long been known for their ability to provide instantaneous hot water, making them ideal for busy households with higher demands. Rather than storing heated water in a tank, instantaneous gas systems heat water only as it’s needed, which reduces energy waste.

How They Work: These systems connect to your home’s gas supply and heat water on demand as it flows through the unit. This also means less chance of running out of hot water, even with back-to-back showers.

Pros:

1. Lower running costs than electric (if you already have gas connected)
2. Instantaneous models provide endless hot water
3. Efficient and reliable, especially in colder climates

Cons:

1. Requires access to mains gas
2. Can be more expensive to install if retrofitting
3. Not the most environmentally friendly option
4. Less future-proof as Victoria pushes towards electrification

As Melbourne moves toward electrified households, the long-term viability of gas is becoming a concern. That said, brands like Rinnai and Bosch continue to offer excellent gas systems, particularly for homes with existing gas connections.

Solar Hot Water Systems

If you’re serious about slashing your energy bills and going green, solar hot water is a fantastic choice. While the upfront cost can be high, the long-term savings and environmental benefits make it a smart, future-focused investment.

How They Work: Solar hot water systems use roof-mounted panels to absorb heat from the sun, which is then transferred to your water storage tank. Many systems include a booster (electric or gas) to ensure consistent hot water during cloudy periods or high demand.

Pros:

1. Significantly lower energy bills
2. Environmentally friendly
3. Eligible for government rebates and incentives
4. Works well when paired with solar PV and battery systems
   

Cons:

1. High upfront cost ($3,000–$7,000+)
2. Requires sufficient roof space and sunlight exposure
3. Booster systems add to running costs

Solar systems are most effective when installed in sun-exposed areas and paired with smart device apps that allow homeowners to monitor energy use and schedule heating times for efficiency.

Heat Pump Systems

Heat pump hot water systems are one of the best solutions for homeowners looking for a durable system that is energy efficient, even in colder climates like Melbourne.

How They Work: A heat pump extracts heat from the surrounding air (even in winter) and uses it to warm water. Think of it as a reverse fridge. They are powered by electricity, but use much less energy than traditional electric hot water systems.

Pros:

1. Energy efficient and eco-friendly
2. Eligible for generous rebates
3. Suitable for cold climates
4. Can cut water heating costs by up to 70%

Cons:

1. Higher upfront costs
2. Can be noisy (depending on the model)

Brands like Stiebel Eltron, Rheem, and Rinnai offer top-performing heat pump systems that combine long-term investment value with advanced technology.

Leading Brands in Australia

Here’s a quick look at some of the leading hot water system brands trusted by Australian households and businesses:

1. Rheem: Long-standing Australian favourite known for their wide range of gas, electric, and solar systems. Offers excellent after-sales support and warranty options.
   
2. Rinnai: Specialists in instantaneous gas and heat pump systems. Their systems are sleek, energy-efficient, and built to last.
   
3. Dux: Offers reliable electric and gas systems with competitive pricing and good energy star ratings.
   
4. Bosch: Popular for compact and efficient instantaneous systems, including smart features and durable designs.
   
5. Stiebel Eltron: German-engineered heat pump systems with a reputation for high efficiency and quiet operation.
   

These are just some of the many leading brands available, and our hot water plumbers are more than happy to offer expert recommendations to help you find the perfect option.

How to Know It’s Time to Replace Your System: 5 Key Signs

Not sure whether it’s time to upgrade? Here are the top signs your current hot water system may be on its last legs:

Rusty or Dirty Water

If your taps are producing brown or rusty-coloured water, it could mean the inside of your tank is corroding. This is usually a major red flag that it’s time for a replacement.

Strange Noises

Banging, popping, or rumbling sounds typically indicate sediment build-up at the bottom of your tank. Left untreated, this can reduce efficiency and eventually lead to system failure.

Low Water Pressure

Reduced pressure may point to sediment clogging your pipes or internal valve issues. This affects not just comfort but also your system’s efficiency.

Water Temperature Fluctuations

Cold water one minute and scalding the next? Inconsistent water temperature often means your system’s thermostat or heating element is faulty.

System Age

Most hot water systems last somewhere between 8 to 12 years (sometimes longer but only for certain newer models). If yours is older, it’s worth considering a replacement, especially if it’s no longer energy-efficient.

Rebates for Going Gas-Free in Victoria

Victoria is actively encouraging households to move away from gas appliances as part of the state’s push towards an electrified, low-carbon future. As such, there are generous government rebates available for homeowners upgrading to electric heat pumps or solar hot water systems.

These incentives are designed to help offset the higher upfront cost of eco-friendly options and make the switch more affordable for all households.

Some rebates and incentives include:

1. Victorian Energy Upgrades (VEU) Program
2. Solar Victoria Hot Water Rebate: Offers up to $1,000 off solar or heat pump hot water systems
3. Small-Scale Technology Certificates (STCs)

By making the switch, you’re not just saving money, you’re also reducing emissions and future-proofing your home.

Making the Right Choice for Your Home

Everyone has different priorities and circumstances, so there’s no one-size-fits-all answer when it comes to choosing the best hot water system. However, there are some things to think about, such as:

Household Size & Usage: Larger families may benefit from instantaneous gas or heat pump systems, while smaller homes may find an electric or solar system more than enough.

Location: Does your property receive good sunlight? If so, solar could be a smart choice. For shady or cooler areas, heat pumps are better suited.

Budget: Upfront cost versus long-term savings—this is the biggest trade-off. Electric is cheaper to install, while solar and heat pumps save you money over time.

Access to Energy Sources: Not all properties are connected to gas. Going all-electric or solar eliminates dependency on fossil fuels.

Environmental Goals: If you want to reduce your carbon footprint, solar and heat pump systems are the clear winners.

Make the Switch with MCN Plumbing

Melbourne winters are tough enough without worrying about your hot water. Whether you’re replacing an old system or installing one for the first time, getting the right setup is essential for comfort, efficiency, and cost savings.

Looking for expert advice? We offer installations, maintenance, and hot water repairs across Melbourne, with plumbers who are always ready to lend a helping hand. From electric to gas to energy-saving heat pumps, they’ll help you choose the right system for your property and handle the installation professionally.

If you’re ready to make the switch, or simply want to explore your options, it’s time to get in touch with MCN Plumbing today.