Choosing a new hot water system sounds simple until you actually have to make the decision.
Gas or electric? Storage or continuous flow? Standard electric or heat pump? Replace like-for-like or upgrade to something more efficient?
For North Lakes homeowners, the right answer depends on more than the price of the unit. Your household size, shower habits, solar setup, available space, gas connection, installation location and long-term running costs all matter.
The mistake many homeowners make is choosing the cheapest unit on the day their old system fails. That can solve the immediate problem, but it can also lock the home into higher running costs, poor recovery time or a system that never really suits the way the household uses hot water.
Here is the practical way to think through gas vs electric hot water for a North Lakes home.

Start With How Your Home Actually Uses Hot Water
Before comparing gas and electric systems, look at the demand.
A household with two adults who shower at different times has very different needs from a family of five trying to get through showers, washing and dishes in the same evening window.
Hot water demand is usually shaped by:
- how many people live in the home
- how many bathrooms are used at once
- whether showers are long or short
- whether the washing machine uses hot water
- whether the dishwasher is used daily
- whether guests or extended family stay often
- whether the household has solar power
- whether there is already mains gas or LPG on site
This is why there is no universal “best” hot water system. A good hot water plumber will look at the property and the household pattern before recommending a replacement.
Gas Hot Water: Where It Makes Sense
Gas hot water is common across many North Lakes and Moreton Bay homes, especially where the property already has gas connected or where the home uses LPG bottles.
The most common gas option is continuous flow, also called instantaneous gas hot water. Instead of storing hot water in a tank, the unit heats water as it passes through the system.
That means you are not constantly keeping a full cylinder hot all day. You turn on the tap, the burner activates, and the unit heats the water on demand.
Benefits of Gas Hot Water
Gas hot water can make strong sense when the home already has a suitable gas supply and the household uses a lot of hot water.
The main advantages are:
- continuous hot water while the gas supply is available
- compact wall-mounted units
- no large storage tank taking up space
- good performance for families with higher hot water demand
- fast heating when properly sized
- suitable for homes where electric storage recovery time is a problem
For homes on smaller blocks, a wall-mounted gas continuous flow unit can also be useful because it does not need the same footprint as a large storage cylinder.
Gas can also be a good option when homeowners are replacing an existing gas unit and the pipework, location and ventilation requirements are already suitable.
Downsides of Gas Hot Water
Gas is not automatically the cheaper or better option.
If the home does not already have gas connected, the cost of connection, pipework or LPG setup can change the equation quickly. Gas units also need correct ventilation, compliant installation and enough gas flow to operate properly.
The main drawbacks are:
- not every property has mains gas available
- LPG bottles need monitoring and replacement
- installation can be more involved if gas is not already set up
- gas appliances need safe, compliant installation
- running costs depend on gas pricing and usage
- some systems can fluctuate if flow rates, filters or components are not right
If the only gas appliance in the home would be the hot water system, the fixed supply costs should also be considered. Sometimes the unit itself is only part of the story.

Electric Hot Water: Where It Makes Sense
Electric hot water systems are also common in North Lakes homes. The simplest version is electric storage, where water is heated inside a tank and stored until needed.
Electric storage systems are often cheaper to buy and install than more advanced options, especially when replacing an existing electric unit like-for-like.
For some homes, that makes them a practical choice.
Benefits of Electric Storage Hot Water
Electric storage hot water can work well when the household demand is predictable and the unit is sized correctly.
The advantages include:
- simple and familiar technology
- often lower upfront cost
- no gas connection required
- can suit homes already wired for electric hot water
- suitable for steady household use when correctly sized
- can sometimes be connected to controlled load or off-peak tariffs
If the existing electric storage unit has lasted well and the household is happy with the performance, replacing it with a similar system may be the most straightforward option.
Downsides of Electric Storage Hot Water
The main issue with standard electric storage is running cost.
Electric storage units heat a tank of water and then keep it hot. If the tank is too small, the home runs out of hot water. If the tank is too large, the system may waste energy maintaining more hot water than the household needs.
The common drawbacks are:
- can be expensive to run compared with more efficient systems
- can run out of hot water if undersized
- larger tanks need more space
- recovery time can be slower after heavy use
- older units may lose efficiency as components wear
- poor sizing can lead to either waste or frustration
For a family home, sizing is critical. A cheap undersized unit can become annoying very quickly once multiple people need showers close together.
What About Heat Pump Hot Water?
Heat pump hot water systems are electric, but they work differently from standard electric storage.
Instead of using electricity to directly heat the water like a traditional element, a heat pump extracts heat from the surrounding air and transfers it into the water. That makes it much more efficient than a conventional electric storage system.
For North Lakes homes with solar power, a heat pump can be especially attractive because it may be timed to run during the day when the solar system is producing energy.
Heat pumps often cost more upfront, but they can make sense when the homeowner is thinking beyond the cheapest replacement and looking at long-term running costs.
They are worth considering if:
- the home has solar panels
- the existing electric storage system is expensive to run
- there is enough outdoor space and airflow
- noise placement can be managed sensibly
- the household wants lower ongoing energy use
- the budget allows for a better long-term option
The key is installation quality and product selection. A heat pump needs to be placed where it can breathe, drain correctly and operate without creating unnecessary noise issues near bedrooms or neighbours.
Gas vs Electric Hot Water: The Practical Comparison
If you already have natural gas connected and you want compact, continuous hot water, gas can be a strong option.
If you want the simplest and often cheapest upfront replacement, electric storage may be the easiest option.
If you have solar and want lower long-term running costs, heat pump hot water deserves serious consideration.
A simple way to look at it:
Gas continuous flow suits homes that already have gas, need strong hot water delivery and want a compact system without a storage tank.
Electric storage suits homes that want a straightforward replacement, have predictable usage and are more focused on upfront cost.
Heat pump hot water suits homes that want better efficiency, especially where solar power can help offset running costs.
The wrong choice usually happens when the system is selected in isolation instead of being matched to the home.
Questions North Lakes Homeowners Should Ask Before Replacing Hot Water
Before choosing gas or electric, ask these questions:
1. Is the Current System Actually the Right Type?
Just because the old system was electric does not mean the new system has to be electric.
Just because the old system was gas does not mean gas is still the best option.
Older systems were often chosen based on what was cheap or easy at the time. The home may now have solar, different household demand, renovations, extra bathrooms or a different family size.
2. Do You Have Mains Gas, LPG or No Gas?
This matters.
A gas hot water system can be a good choice where gas is already available and the existing setup is compliant. But if the home has no gas infrastructure, the extra work may make electric or heat pump options more sensible.
If the property uses LPG bottles, the convenience and bottle replacement process should also be considered.
3. How Much Space Do You Have?
Some homes have plenty of side access for a storage tank. Others have narrow side paths, tight service areas or limited outdoor space.
Gas continuous flow units are compact. Electric and heat pump storage units need more room. Heat pumps also need airflow and sensible placement.
The best system on paper may not be the best fit once the actual installation location is considered.
4. Do You Have Solar Power?
Solar can change the decision.
A standard electric storage unit may be able to use cheaper timed energy depending on the setup. A heat pump may be an even better fit because it uses much less electricity than a conventional electric system and can often be scheduled to operate during solar production hours.
For homes with good solar output during the day, heat pump hot water can be one of the most logical upgrades.
5. Are You Solving a Cost Problem or a Performance Problem?
Not all hot water complaints are the same.
If the issue is running out of hot water, the system may be undersized or not recovering quickly enough.
If the issue is high bills, the system may be inefficient or poorly matched to usage.
If the issue is temperature fluctuation, the cause may be a valve, mixer, flow restriction or gas unit fault rather than the system type itself.
Replacing the unit without diagnosing the real problem can waste money.
When Gas Hot Water Is Usually the Better Fit
Gas hot water may make more sense when:
- the property already has natural gas or LPG set up
- the household has high hot water demand
- space for a large tank is limited
- the homeowner wants continuous hot water
- the existing gas installation is compliant and in good condition
- the home does not have solar power to support electric options
A well-sized gas continuous flow system can be a strong, practical choice for busy households.
When Electric Storage Is Usually the Better Fit
Electric storage may make more sense when:
- the homeowner wants a simple like-for-like replacement
- the property has no gas supply
- upfront budget is the main concern
- household hot water use is moderate and predictable
- there is enough space for a correctly sized tank
- the existing electrical setup is suitable
Electric storage is not always the most efficient option, but it can still be the right practical choice in some homes.
When Heat Pump Hot Water Is Worth Considering
Heat pump hot water may make more sense when:
- the home has solar power
- the owner wants lower long-term running costs
- the existing electric system is expensive to run
- there is enough outdoor space and airflow
- the household plans to stay in the home long enough to benefit from efficiency gains
- upfront cost is not the only deciding factor
For many modern homes, heat pump hot water is becoming a serious alternative to both gas and traditional electric storage.
Do Not Choose Based on Unit Price Alone
The cheapest hot water system is not always the cheapest system to own.
A proper comparison should include:
- purchase price
- installation cost
- expected running cost
- household usage
- warranty
- available space
- gas or electrical work required
- compliance requirements
- likely lifespan
- maintenance needs
- whether the system suits solar
A hot water replacement should be treated as a whole-of-home decision, not just an emergency appliance swap.
The Bottom Line for North Lakes Homes
For many North Lakes homeowners, the best hot water system depends on what the home already has.
If you already have gas and want compact continuous hot water, gas can make good sense.
If you want a simple replacement and predictable performance, electric storage may be suitable.
If you have solar and want to reduce long-term energy use, a heat pump could be the smarter upgrade.
The important thing is to match the system to the property, not just the brochure.
A properly selected hot water system should give your household reliable hot water, sensible running costs and fewer problems over time.
Need Help Choosing a Hot Water System in North Lakes?
RJT Plumbing & Gas can inspect your current system, check your household needs and explain the practical options before you replace your hot water unit.
Whether you are looking at gas hot water, electric hot water, heat pump hot water or a like-for-like replacement, the right advice upfront can save frustration later.
Servicing North Lakes, Mango Hill, Griffin, Kallangur, Murrumba Downs, Narangba and surrounding Moreton Bay suburbs.
Frequently Asked Questions
Is gas or electric hot water better for North Lakes homes?
The better option depends on the property, household size, hot water usage, available space, gas access and whether the home has solar power. Gas hot water can suit homes with an existing gas supply and higher demand, while electric storage or heat pump systems may suit homes without gas or homes looking to use solar more effectively.
Is gas hot water cheaper to run than electric hot water?
Gas hot water can be cost-effective in some homes, especially where gas is already connected and the system is correctly sized. However, running costs depend on gas pricing, electricity tariffs, household usage, LPG or mains gas availability, and whether the home has solar power.
Should I replace my electric hot water system with a heat pump?
A heat pump hot water system can be worth considering if the home has suitable outdoor space, good airflow and solar power. Heat pumps usually cost more upfront than standard electric storage systems, but they can use less electricity over time when installed and used correctly.
Can I change from electric hot water to gas hot water?
Yes, but the home needs a suitable gas supply, compliant pipework, safe unit placement and correct ventilation. If the property does not already have gas, the additional installation work should be considered before choosing a gas hot water system.
What size hot water system does my home need?
The right hot water system size depends on the number of people in the home, the number of bathrooms, shower habits, appliance use and how often hot water is used at the same time. A licensed plumber can assess the property and recommend a system that suits the household.