Types of Hot Water System – Which Is the Best Hot Water Heater for Your Home?

Don’t put off buying your hot water system until your old tank bursts out; instead, plan your purchase!

When a hot water system fails, it often goes with a blow, a wail, or may flood the area, abruptly without any prior warning. If it happens, then you won’t get the time to go through reviews of the available alternatives, unless you can tolerate cold showers. Hence, what you’ll do is, order a replacement hot water system of the same type and get it delivered to your home at the earliest, and forget about it until the next time. In the process, what if you missed out on a better product?

Therefore, we have prepared this buying guide to help you understand the different types of hot water systems available on the market and how to pick the right hot water system for your household.

Gas, Electric, Heat Pump or Solar-Powered – Which Is the Best Hot Water System?

Electric, gas, solar and heat pumps are the different heating options available on the market currently for hot water systems. So you need to select the heating method first before choosing the hot water system that is perfect for your household. Let us understand the different heating methods.

1. Gas Hot Water System

• Direct replacement and installation for an identical gas hot water system will only take around 2 to 3 hours.
• Look for energy efficiency star rating.
• If you can get the connection for natural gas, then it is an excellent alternative. Besides, it will cost less than electricity. As gas rates don’t fluctuate through the day, gas hot water systems can heat water as required.
• A household with four persons will need a storage tank of around 140 to 180 litres. Besides, you get the option of a continuous-flow hot water system.
• Some units come with a pilot light that uses a small amount of gas. Nevertheless, electric ignition is more affordable, but during an electrical outage, you can miss your hot water supply.
• Due to venting requirements, the gas hot water system generally installed outdoors; however, you can install it indoors with a flue.
• LPG (liquid petroleum gas) bottles are an option to natural gas, but you may have to pay considerably more to operate it.
• The cost of gas hot water system varies from $950 to $2050 (excluding hot water installation cost).

2. Electric Hot Water System

• Direct replacement and installation for an identical electric hot water system will require around 2 to 3 hours.
• Systems that operate on off-peak electricity are economical to run but require a big tank as the water heated overnight need to supply you hot water all day. Besides, all households do not have access to off-peak electrical energy.
• You can install an electric hot water system both indoors and outdoors.
• Ideally, a household of 4 persons requires around 130 to 165 litres storage tank for a continuous system or 255 to 320 litres for off-peak use.
• Instantaneous or continuous-flow electric water heaters are also available.
• You can buy an electric hot water system that varies between $350 and $1550 (excluding hot water installation cost).
• Well, your electric hot water system could consume a large portion of your electricity bills. So it is prudent to check if you’re on the optimal electricity plan for your requirements.
• An electric hot water system with a storage tank is inexpensive to purchase and install, but the most costly to operate, especially if it’s on the continuous (full day) rate.

3. Heat Pump

• The heat pump is a more resourceful type of electric storage tank system that runs on the same rule as the refrigerator or air conditioner. It draws out heat from the air and then uses it to heat the water tank.
• Direct replacement and installation for an identical heat pump or electric storage hot water system will take around 2 to 3 hours only.
• You need to install them in an adequately ventilated area, generally outdoors.
• A household of 4 persons will usually require a storage tank between 275 and 320 litres.
• Government rebates and other incentives can aid balance the purchase cost.
• Generally, units incorporated with tank and compressor; however, they are also available with the split unit (separate tank and separate compressor).
• Heat pump hot water system work optimally in warm and moderate regions, but there are models designed to operate optimally in cold climates as well. And most of the units come with a booster component for days of high water usage or cold weather.
• Similar to your outdoor air conditioning unit, the compressor on the heat pump will produce noise, so avoid installing them near to your neighbour’s home.
• Heat pump hot water systems vary between $2550 to $4050 (excluding hot water installation cost).

4. Solar-Powered Water Heater

• A household of 4 generally requires about 4 square metres of solar collector area (two panels) and a storage tank of around 310 to 370 litres. A large tank needed if you want more hot showers than usual or for days having less sunlight.
• Solar hot water system comprises a storage tank and solar collector panels. In the absence of the right location for panels installation, they may be less efficient, and you’ll require a big collection area.
• The solar hot water system is pricier to install and also time-consuming. The installer will have to check the area available within and around your home to plan for the installation. However, the actual installation will typically take a day or a little less.
• On days with less sunshine, the electric or gas booster component within the storage tank will help to keep the water hot.
• A solar hot water system of the reputed brand will pay for itself in the long run due to its lower operating costs.
• The solar hot water system range varies in price from $2050 to $7050 (excluding hot water installation cost).
• Government rebates and other incentives can help balance the initial equipment cost.

Instantaneous or Storage Tank

Once you are clear with the heating method, then you need to choose between the storage tank and instantaneous (continuous flow) that heats on demand.

Instantaneous Hot Water System

• It is also known as continuous-flow and heats the water on demand (as and when required). It only takes seconds before hot water starts running from the tap.
• Both gas and electric models are available; however, you’ll get more choice for gas-powered.
• Unlike water stored in a tank, they are economical to operate because there is no heat loss.
• A house with two bathrooms will require a flow rate of around 24 to 26 litres per minute. However, it is best to speak to your supplier to know the right capacity for your home.

Storage Tank Hot Water System

• Well, most of the water heating methods – electric, gas, solar and heat pump use a storage tank.
• Though tanks are insulated, yet there is some heat loss over time, so it’s best to install them in enclosed space or sunny spot.
• Storage tanks built using mild-steel can corrode with time, so they require maintenance every few years to help prevent this. They come with 5 to 10 years warranty.
• Tanks built using stainless steel can get pricier; however, they last longer and does not need as much maintenance as mild-steel tanks. They come with a 10-year warranty and need occasional upkeep that can include valves and seals replacement.
• Your local water quality may determine which type is best suited for your household, so need to check with the installer.

Hot Water System Size

Well, to determine the right hot water system size, a supplier would ask you a few vital questions to calculate how much hot water your household uses daily. These questions can include:

• How many persons reside in your home?
• What is the time for baths or showers? Is it morning or evening, or both? In all how many shower per day and how long do they last.
• Do you use a dishwasher or hand wash your dishes?
• Do you wash your clothes in cold or hot water?

Standard recommendations include:

• A small household consisting of 1-2 persons will need a compact gas storage hot water system or continuous flow hot water system with gas or electric alternative.
• A mid-size household consisting of 3 to 4 persons will need a gas hot water system continuous flow or storage tank or a heat pump.
• A big household consisting of more than five persons will need multiple continuous flow hot water systems; however, the gas storage tank unit may be economical. Big heat pumps are an option as well.

It is prudent to request quotes from at least two hot water system suppliers.

Energy Star Ratings

MEPS (Minimum Energy Performance Standards) right now apply for gas and electric hot water storage systems, as well as gas continuous-flow systems. But these hot water systems are not needed to have energy star rating labels on them. However, you will notice star rating labels on gas hot water systems, but these are industry-managed strategy and not controlled by the government. MEPS under review for other water heater types and it will aid to get rid of inefficient variants from the market, and gradually start seeing star rating labels on all hot water systems.

Crucial Questions You Should Ask Before Installing Hot Water System

Do you facilitate the supply and install of a new hot water system?

It is vital to know if the seller facilitates supply and install of the hot water system; otherwise, you will require finding a licensed plumber and electrician.

Is Natural Gas available at your place?

Check if natural gas available in your area.

What is the ideal place to install your new hot water system?

Well, units are more resourceful when positioned next to the bathroom or kitchen. If you place the system away from the point of use, then there will be a delay. Here, ask an expert and follow his recommendations.

Do you possess a license?

It is vital to use a licensed installer.

Are you an authorised installer of a particular type of hot water system you purchased?

Your plumber in Sydney needs experience in installing the system you have purchased and should have undergone manufacturer’s training as well.

How Much Should I Expect to Pay?

It’s better to get the quote before your hot water system installation, and read the fine print and understand it.

Contact Sydney Plumbing Hot Water & Gas

Get in touch with our experienced and licensed plumbers at Sydney Plumbing Hot Water and Gas. We provide hot water system installations and hot water repair services on all leading brands like Rinnai, Rheem, Dux, Bosch and more. If you need hot water system prices of different heating methods such as gas, electric, heat pump or solar, or installation quote, call us on 0402 487 444 or visit Sydney Plumbing Hot Water and Gas today.