The modern convenience of being able to switch your shower on and bask in warmth should never be underappreciated. It’s a luxury humankind worked centuries to achieve and perfect to the point where it’s now the norm.

But with every hot shower comes something behind the scenes – the need for a reliable and efficient water heater.

Let’s discuss this marvel of an appliance, what it does, the configurations it comes in, and what to consider when investing in one for your own home.

Types of Hot Water Systems

While they all work to achieve the same goal of heating water, hot water systems do their job in more than one way. There are multiple types of systems out there, each with their own benefits and drawbacks to know.


Electric water heaters work by heating water with an electric coil. This coil is energised when the water heater thermostat calls for heat. The current flowing through the coil creates a magnetic field which in turn generates heat. This heat then transfers to the surrounding water, raising its temperature until it reaches your preset thermostat setting.


Solar water heaters use the energy of the sun to generate heat for your home. Solar panels absorb sunlight and convert it into electricity which is used to power a heat pump. This pump forces the heated water through pipes which then transfers the heat into your home’s water storage tank.

Heat pump

Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. A fan draws in ambient air and passes it over a system of coils filled with refrigerant. The refrigerant absorbs the warm air and releases it inside the water tank, heating the water. This process is much more energy efficient then traditional electric heaters and can save you money on your monthly utility bill.


Gas water heaters work by burning either natural gas or propane fuel to create heat. When the thermostat calls for more hot water, a valve opens allowing gas to flow into the burner assembly where it is ignited. The resulting flame heats a metal heat exchanger, which then transfers its energy to the surrounding water, raising it to your preset temperature.

Is a Storage Tank or Instant Water Heater Better?

The choice between a storage tank and instant water heater is one that many homeowners have to make.

Storage tanks have been around for a long time and are the most common type of hot water heater found in many households. The primary advantage of storage tanks is that they can hold large amounts of hot water, making them suitable for families with high hot water needs.

Instant water heaters use a tankless design that heats up cold incoming water quickly and efficiently. This type of heater is becoming more popular due to its energy efficiency, however, being limited in capacity, it may not be suitable for all households.

In either case, you may be eligible for an incentive from the Australian government or one of its partners. Several new rebates and assistance programs have sprung up over the years as the nation’s need to reduce energy consumption increases.

Get advice on which hot water system is best for your home and what programs you may qualify for by consulting with a local service provider today.