Electric or Gas Hot Water Systems: Which Is Best for NSW Homes?

Are you building, renovating, or replacing your current hot water unit and unsure whether to choose electric or gas? The right hot water system depends on your household size, budget, and energy goals, but with so many options available, making a decision can feel overwhelming.

For homeowners in Coffs Harbour and nearby coastal areas, understanding how these systems operate, what they cost to run, and how they’re installed can make the decision clearer. In this blog, we’ll explore the differences between electric and gas hot water systems, the pros and cons of each, and why electric options remain a practical choice for many NSW homes.

Hot water systems are essential in any home, delivering heated water to taps, showers, dishwashers, and laundry appliances. In NSW, the two most common types of residential systems are electric and gas storage units, although heat pumps and solar systems are also used in some homes.

While both electric and gas models can achieve the same outcome—heating water for daily use—they operate in very different ways.

• Electric systems use a heating element (similar to a kettle) to warm water stored in a tank or as needed (continuous flow).
• Gas systems rely on natural gas or LPG to heat water, either in a tank or via instantaneous flow as water passes through the unit.

The choice between the two often depends on access to gas connections, energy pricing, and household habits.

Electric hot water systems are a common choice across NSW due to their wide availability and ease of installation. They’re particularly suitable for homes in coastal areas like Coffs Harbour, where electric infrastructure is already in place and gas access may be limited or unavailable.

Key Benefits of Electric Systems

• Easy to install or upgrade during renovations or new builds.
• Available in a range of sizes to suit small to large households.
• Low upfront cost, often making them an accessible option for first-home buyers or landlords.
• Off-peak tariff compatibility, which allows water to heat during lower-cost electricity periods for better efficiency.

Electric systems can be storage-based (heating a set amount of water in a tank) or instantaneous (heating water as it is used), giving homeowners flexibility depending on space and usage needs.

Gas systems are ideal for households with an existing natural gas connection or those wanting consistent hot water delivery without reliance on electricity. They are often used in homes with higher water usage or where energy prices for gas are more favourable.

Key Features of Gas Systems

• Fast water recovery, making them suitable for homes with multiple bathrooms or frequent use.
• Works during blackouts, as they don’t depend on electricity for operation.
• Often lower running costs compared to standard electric systems (but this varies based on tariff and supply).
• Compact continuous flow units are popular for space-conscious installations.

However, homes without a gas line may require bottled LPG, which can add to maintenance and delivery logistics.

Every home is different, and what works for one property may not suit another. To make the right decision, it’s important to consider more than just the installation cost. Long-term energy use, household size, and environmental impact all play a role.

Homes in built-up areas of Coffs Harbour may have access to both electricity and natural gas. However, many coastal or regional properties do not have gas infrastructure and would require bottled LPG to support a gas system. In these cases, electric systems are often the more straightforward choice.

Electric systems running on off-peak tariffs can be cost-effective, particularly for households with moderate usage. On-peak electric models may incur higher running costs, especially when compared to natural gas systems. Gas pricing, however, can vary with supplier rates and usage levels.

Electric hot water systems typically have lower upfront costs, making them suitable for renovations or upgrades where plumbing needs to be updated. Gas systems may require more extensive fitting, including gas line connection or venting.

Electric systems are available in both compact and large-capacity formats, with wall-mounted or slimline options for tight areas. Gas units, especially continuous flow models, can also save space but require ventilation and placement close to gas lines or bottles.

Larger families or shared homes may benefit from a gas system’s faster recovery rate and continuous flow, which reduces the risk of running out of hot water. Smaller households, rental units, or secondary dwellings may find an electric unit more than sufficient for daily needs.

For many homes across Coffs Harbour and the surrounding coast, electric hot water systems strike the right balance between reliability, affordability, and convenience. With broad compatibility and minimal infrastructure requirements, they are well suited to:

• New home builds without gas access.
• Older homes are undergoing plumbing upgrades.
• Rental properties where simplicity and compliance matter.
• Renovations where space or layout constraints exist.

Additionally, with increasing access to solar electricity and smart grid technology, electric systems can offer energy savings and reduced environmental impact when integrated with renewable solutions.

Choosing a hot water system is more than a product decision—it’s about working with professionals who understand your local conditions and can recommend the right fit. A poorly installed system may reduce efficiency or fail prematurely, costing more in the long run.



Working with a local plumber in Coffs Harbour who understands coastal conditions, council regulations, and building layouts can help you:

• Select the right system for your household’s water usage and energy source.
• Ensure correct installation for safe, long-term operation.
• Access timely servicing and maintenance support.

Whether you’re replacing an old system or selecting one for a new build, expert guidance helps avoid costly oversights.

At Emerald Beach Plumbing Service, we install and service electric hot water systems in Coffs Harbour and across the NSW coast, helping homeowners, landlords, and builders find tailored solutions that match their lifestyle and energy goals.

Contact us today to learn more about electric hot water systems or to request a quote for your next installation.