Best Hot Water System for Canberra: Gas, Electric or Heat Pump?

Gas, electric or heat pump? — Born Plumbing Canberra guide

For a Canberra home, compare electric storage, a heat pump suited to cold weather and gas against your budget, winter demand and existing connections. When planning hot water installation or replacement in Canberra, include running costs and installation changes in the price comparison.

Updated 18 October 2026.

Compare the main options on the same basis

System Useful strength Check before selecting
Electric storage Straightforward technology; possible simpler changeover Tariff, recovery, usable capacity and electrical scope
Heat pump Moves heat rather than producing it entirely with an element Cold-weather output, booster use, sound and clearances
Gas continuous flow Compact and no stored tank to empty Winter output, simultaneous demand and gas supply
Solar thermal Uses solar collectors for water heating Roof suitability, frost protection and boosting

Solar thermal is different from rooftop solar PV powering an electric heater. For a Canberra installation, assess the whole property and the exact product. A heat pump needs adequate airflow; putting one in the location occupied by an old tank may not be acceptable.

How heat pumps compare with electric storage

The Australian Government’s hot water guide gives a general comparison in which heat pumps use about 30% of the energy of conventional electric water heating. The chart shows that general comparison on an index. Actual performance depends on the model and conditions.

Illustrative electricity-use index for equal hot-water demand
Conventional electric

100
Heat pump

30
Conventional electric = 100. General government comparison; climate, controls and booster operation change actual performance.

To estimate dollar savings, you also need your tariff, solar use and hot-water demand. Ask for assumptions that you can compare with your bill, and check performance information for the exact cold-climate model.

Choosing for a household that is moving away from gas

Consider other gas appliances before estimating savings from disconnection. If gas heating remains, the fixed supply charge may remain too. If hot water is the final gas appliance, include any disconnection cost and confirm the process with the supplier. A decision can favour a different system when assessed over several years rather than as an emergency like-for-like purchase.

Electric storage: a straightforward option to assess

Conventional electric storage is generally less expensive to buy and install than the more complex options, but operating costs need consideration. Your tariff, heating schedule and use of solar electricity can change the comparison. Australian Government hot water guidance explains the main technologies.

For an existing electric installation, establish what a like-for-like changeover actually needs. Compare an alternative on a complete installed basis, including any circuit changes or location work.

Heat pumps: check suitability for a cold climate

The ACT Government’s hot water guidance identifies suitable heat pumps as an efficient option for Canberra. Select the model for local winter conditions rather than assuming every heat pump performs alike.

Ask for the operating temperature range, recovery information, backup arrangements, noise data and space requirements. Also establish who will install and service it. A good proposal should address those questions for the actual site.

Gas storage and continuous flow

Existing gas supply, demand and the cost of a changeover are relevant to a gas replacement. For continuous flow, check simultaneous outlet demand and winter output. Review the household’s broader plans for electric appliances before committing to another gas unit.

A compact unit is not automatically cheaper to install if the gas supply, pipework or location needs changes. Our continuous-flow guide covers those practical questions.

Solar hot water or solar panels powering an electric system?

These are different approaches. Solar thermal hot water uses collectors to heat water; solar PV generates electricity that may power household equipment, including water heating. For either option, ask how the proposed system works when solar production is low.

A comparison should account for available roof or ground space, backup, controls and your electricity plan. Do not assume that adding “solar” makes the running cost zero throughout the year.

Narrow down your options

  • Urgent failure: assess the existing system and realistic restoration options.
  • Planned upgrade: compare a suitable heat pump with other options before the old unit fails.
  • Limited space: check clearances and servicing access before choosing capacity.
  • High peak demand: assess delivery and recovery, rather than relying on household size alone.

Use our sizing guide and brand comparison checklist to refine the shortlist.

Check assistance before committing

Some installations may qualify for support, subject to eligibility and program conditions. Read ACT hot water rebates and application steps before accepting a rebate-dependent offer. Confirm both the product and installer requirements.

For Canberra hot water installation and replacement, speak with Born Plumbing about your existing system and the scope available for your property.

Sources

Get A Quick Quote