This blog post was accurate at the time of publishing. However, programs, policies and rebates may have changed since then. We recommend checking our website or contacting us directly for the most current information on 1300 430 917.
For decades, gas hot water systems were considered the go-to choice for many South Australian households. They were reliable, familiar, and widely available. But energy markets have changed and so have the technologies. Today, gas is no longer the cheapest or most efficient way to heat water and many homes are starting to feel the pinch.
If you’re still relying on an old gas hot water system, it may be quietly costing you more than you realise. Fortunately, there’s a smarter solution available and thanks to the Retailer Energy Productivity Scheme (REPS), it’s also more affordable than ever.
Why Gas Hot Water Systems Are No Longer the Best Option
While gas systems once offered a cost-effective alternative to electric storage units, rising gas prices and improved electric technologies have shifted the landscape. Here’s why staying with gas could be draining your budget:
- Higher running costs due to rising gas prices
- Constant standby energy losses, especially in storage systems
- Limited control or energy-saving features
- Carbon emissions from burning fossil fuels
- No future-proofing – as the world moves toward electrification and renewables, gas systems may become obsolete
Even if your system is still working, it might be costing you hundreds of dollars more each year compared to newer, energy-efficient models.
Enter Heat Pump Hot Water Systems: The Smarter Alternative
Heat pump hot water systems use a highly efficient process to heat water by drawing energy from the air, similar to how a reverse-cycle air conditioner works. They can deliver the same hot water performance while using up to 70% less energy than traditional electric or gas systems.
Let’s Talk Numbers: What Can You Save?
Here’s a rough comparison of annual running costs for different hot water systems:
Annual Running Cost Comparison: Hot Water Systems (Australia)
https://www.choice.com.au/
This chart compares the average annual running costs of gas storage and heat pump hot water systems in Australia. Gas systems typically cost between $700 and $950 per year, while heat pump systems are far more efficient, costing just $200 to $350 per year.
Over a 10-year period, the cost gap between hot water systems becomes even more substantial. Households using gas storage systems could spend up to $9,500, while heat pump users may spend as little as $2,000–$3,500.
Key benefits include:
- Reduced running costs
- Environmentally friendly operation
- Longer system life with fewer moving parts
- Quiet, low-maintenance operation
- Heat pumps work efficiently even in cooler weather, making them ideal for Australian conditions.
- Add value to your home
- Eligibility for government rebates through REPS
Need Help Covering the Upfront Cost? Consider a Green Loan
For households looking to make multiple energy upgrades such as replacing a hot water system and installing solar panels, low-interest green loans can help cover the cost without straining your budget. Many finance providers now offer affordable plans tailored to sustainable home improvements.
Don’t Wait Until Your System Fails—Plan Ahead and Save
Waiting until your current gas system breaks down might leave you rushing into a costly emergency replacement. By planning ahead and taking advantage of REPS rebates, you can make the switch on your terms and start saving right away.
It’s a key step toward electrification and sustainability, especially as more households move away from gas and toward cleaner, renewable solutions.
