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Hot Water

Gas vs Electric vs Heat Pump: The Honest Hot Water Comparison

18 February 20267 min read

Forget the brochure spin. Here's how the three main hot water options actually compare on cost, running price and lifespan for a typical Port Augusta home.

Every week someone asks us the same question: 'If you were spending your own money, what hot water system would you install?' The honest answer depends on three things — how many people live in the house, whether you already have gas, and how long you plan to stay. Here's the unvarnished comparison.

Head to Head: 10-Year Total Cost of Ownership

SystemInstallAnnual Running10-Yr TotalLifespan
Electric Storage 315L$1,800$950$11,30010–12 yrs
Gas Continuous Flow$2,800$520$8,00012–15 yrs
Heat Pump 270L (post-rebate)$3,400$280$6,20012–15 yrs
Solar + Electric Boost$5,500$180$7,30015–20 yrs

When Electric Storage Still Makes Sense

Holiday homes, granny flats, and rentals where install cost matters more than running cost. Also makes sense if you've got solar PV and can heat the tank during the day on a timer.

When Gas Continuous Flow Wins

Larger households (4+), homes that already have a gas connection, and anyone tired of running out of hot water. Continuous flow doesn't store water, so you can't run out — but you do pay a gas daily supply charge.

When Heat Pump Is the Right Call

Owner-occupied homes planning to stay 5+ years. The post-rebate install is now competitive with gas, and the running costs are dramatically lower. Best ROI for most Port Augusta households in 2026.

Watch the small print

Heat pump 'compact' models with tanks under 200L are tempting on price but struggle with a family of four. Size the tank to the household, not to the budget.

Our Default Recommendation

For a typical 3–4 person Port Augusta home with no special constraints, a 270L heat pump is the system we'd install in our own house in 2026. Best 10-year cost, lowest carbon, and the rebates make the upfront sting bearable.

"The right hot water system is the cheapest one to own — not the cheapest one to buy."
Lehonde Mills

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