Electric vs Gas vs Solar Hot Water: Which Is Best in WA?
Honestly, for most WA homes it just boils down to how much you want to pay now versus how much you want to pay later. Electric storage units are the least expensive to buy but they hurt the hip pocket on running costs. Gas sits in the middle, particularly the continuous-flow type, and solar or heat pump systems will set you back more initially but the savings on your bills are substantial, plus you can get STC rebates. What works best really hinges on your household size, the roof you've got, your energy setup, and what your budget looks like. We've broken it all down below.
For the average WA household, picking a hot water system usually comes back to one question: do you want to save money now or save money later? Electric storage hits the wallet hardest when the quarterly bill lands, but it's the most affordable to get installed. Gas is a reliable middle ground, especially if you go continuous-flow. Then there's solar and heat pump systems — sure, you'll pay more to get one in, but the running costs drop right away and the STC rebate softens the blow. Your situation — how many people live in the house, what your roof looks like, whether you've even got a gas connection, and how much cash you can spend — that's what actually decides it. Have a read through the comparisons.
Quick comparison table
| Type | Typical upfront (AUD, indicative) | Running cost | Lifespan | Best for |
|---|---|---|---|---|
| Electric storage | $1,200–$2,000 | High (higher on peak tariff) | 8–12 years | Low upfront budget; small homes; no gas connection |
| Gas storage | $1,400–$2,500 | Medium | 8–12 years | Homes with mains gas wanting steady supply |
| Gas continuous flow | $1,500–$3,000 | Medium (only heats on demand) | 12–20 years | Endless hot water; space-saving; varied demand |
| Solar (roof panels + tank) | $3,000–$6,000+ | Very low | 10–15 years (tank) | Sunny roof; long-term savings; larger households |
| Heat pump | $2,500–$5,000+ | Very low | 10–15 years | Efficiency without roof panels; STC rebate |
Those figures are indicative only, not a quote. Things like how complicated the install is, which brand you go with, and what rebates apply — they all push the final number around. Always ask for a proper written quote before committing.
Electric hot water
These are the units you can get into without spending a heap upfront, and they're about as straightforward as it gets to put in, which is why they turn up in a lot of smaller places and rental properties. The catch, and it's a big one, is what they cost to run. Heating water with electricity is pretty much the most expensive way to go about it — standard tariff will have you wincing at the bill. If you're on controlled-load or off-peak and you've got solar panels up top though, it starts to make a bit more sense. Our electric hot water service page goes deeper into the options.
Best for
Properties without a gas connection, smaller homes, rentals, or situations where getting in cheap matters more than what you spend over the next decade.
Gas hot water
This is the one most Perth households land on, and for good reason — natural gas through ATCO covers most of the metro area. Gas heats the water faster than electric and costs less to keep running. You've got two flavours to pick from:
- Gas storage holds a tank of hot water so it's ready whenever you turn the tap. Solid and dependable, though if three people shower back to back you might find the tank runs dry.
- Gas continuous flow (instantaneous) only fires up when you actually need hot water, which means no standing heat loss and you won't run out. The units themselves are compact, and they tend to last a fair bit longer than a storage tank too.
One thing to keep in mind — any gas work legally needs a licensed gas fitter. You can check out our gas hot water service for install and repair info.
Best for
Homes with mains gas connected, looking for a sensible mix of upfront cost, running cost, and dependable performance. The continuous-flow option especially suits busier households.
Solar and heat pump hot water
Cheapest to run, best for your bills over time, but yes — they do cost more to put in. Perth's sun makes solar hot water a natural fit, and both systems qualify for the federal STC rebate which helps a lot.
- Solar hot water has panels mounted on the roof that heat your water, backed up by an electric or gas booster for the overcast days. You need a decent, sun-facing roof for it to really work well.
- Heat pump operates like a reverse-cycle air con, pulling warmth out of the surrounding air and using it to heat water. Uses a fraction of the electricity a standard element would. No panels required, so if solar isn't practical on your roof this is a strong alternative.
The STC rebate shaves a meaningful chunk off the purchase price — we're often talking around $1,500 or sometimes more on a heat pump — which brings the upfront gap between these and cheaper systems a lot closer. Our guide on solar hot water rebates in WA covers the details, and our solar and heat pump hot water service page has more on the systems themselves.
Something worth knowing: the running-cost savings from these systems are genuine, but it does take time for them to claw back that higher purchase price. If you're planning to stay in the house for a good stretch, the payback period is absolutely worth it. Might be moving in a couple years though? A less expensive unit could be the smarter play — though having efficient hot water already in place is a nice selling point for potential buyers down the track.
Best for
Households planning to stick around long-term, wanting the lowest possible running costs and the smallest energy footprint, and comfortable spending more upfront to get those savings later.
Don't forget sizing
Picking the right type is one thing — it also needs to be the right size for your house. Too small and you're doing the cold-shower dance when two people shower in a row. Too big and you're paying to heat water nobody ever uses. Generally speaking, the capacity you need comes down to how many people live there and how many bathrooms you've got. Continuous-flow gas units work differently — they're rated by flow rate rather than tank volume. A licensed plumber will work out the proper size based on how you actually use hot water, which is honestly just another reason to get professional help rather than guessing.
How to choose
Walk yourself through these:
- Do you have mains gas? If you do, gas continuous flow is usually where the value is. No gas? Electric or heat pump tend to make more sense.
- How long will you stay? Staying put for a while means solar and heat pump savings really pay off.
- Budget now versus later? Not much to spend upfront — go electric. Want the lowest bill over time — solar or heat pump.
- How much hot water does your household chew through? Bigger families do better with continuous flow or a properly-sized solar system.
- What's your roof like? North-facing and unshaded is ideal for solar. Shaded or awkward? A heat pump gets you similar efficiency without panels.
Whatever you land on, the brand you pick matters for how long it lasts and what the warranty looks like. Our guide to hot water brands in WA runs through the main ones — Rheem, Rinnai, Dux, Solahart, Bosch and Vulcan — so you can see how they stack up.
Get the right system for your home
There isn't one answer that fits everyone. The best system is the one that suits your household, your roof and your budget. A licensed plumber gets the sizing right, handles the gas or electrical connection properly, and deals with any rebate paperwork so you don't have to.
Not sure which direction to go? Call our licensed Canning Vale plumbers and we'll give you straightforward advice and a written quote.
Frequently asked questions
Related:
Which hot water system is cheapest to run in WA?
Solar and heat pump systems, no contest. They're pulling free energy from the sun or drawing warmth out of the air, so the running costs drop right down. The upfront price is higher, sure, but between the STC rebate and the savings year after year, you come out ahead.
Is gas or electric hot water better in Perth?
Got mains gas? Gas is generally the cheaper one to run and it heats the water quicker — continuous-flow especially. Electric is cheaper to buy but stings you ongoing. If there's no gas connection at your place, a heat pump will usually beat standard electric on running costs.
Do solar and heat pump hot water systems get a rebate?
They do. Both qualify for the federal Small-scale Technology Certificate (STC) rebate, which comes off as an upfront discount — often around the $1,500 mark on a heat pump, sometimes more. There's no separate WA state rebate at the moment, but the federal scheme applies across the whole state so you're covered either way.
How long do these systems last?
Electric and gas storage tanks generally give you 8 to 12 years. Gas continuous-flow units sit around 12 to 20 years. Solar and heat pump systems, you're looking at roughly 10 to 15 years. Keep in mind Perth's water conditions and whether you actually service the thing — both those factors affect how long it really lasts.