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Gas hot water systems prices and usage costs

Gas Hot Water System Prices

A new hot water system can be a sizable investment for a household but knowing which one suits your needs and your property can help you save on purchase and installation costs. This Canstar Blue guide looks at gas hot water systems, how they work and how much they cost, so you can make an informed decision on whether it’s the right choice for your home.

What is a gas hot water system?

A gas hot water system uses natural gas or liquified petroleum gas (LPG) to heat water for household use. There are three main types of gas hot water systems: storage systems, continuous flow systems (also called instantaneous systems) and solar hot water systems with instantaneous gas boosting.

Compare gas deals

NSW VIC QLD SA WA

Here are some of the cheapest gas deals on our database for NSW. These estimated annual costs are based on the Jemena Gas Network in Sydney and yearly gas usage of 18,800 MJ/year, but prices will vary depending on your own circumstances. We show one product per retailer, listed in order of lowest estimated cost. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

AGL Energy Limited | Value Saver

Distributed By Jemena Gas

Basic Plan Information

PROMOTED

Get 35% off gas usage and supply charges for 12 months with AGL, no lock-in contracts, flexible billing options. T&C's Apply

Powershop Australia | Power House

Distributed By Jemena Gas

Basic Plan Information

Not yet rated

Origin Energy | Go Variable

Distributed By Jemena Gas

Basic Plan Information

Kogan | Kogan First

Distributed By Jemena Gas

Basic Plan Information

Not yet rated

ENGIE | ENGIE Solar NRMA

Distributed By Jemena Gas

Basic Plan Information

Not yet rated

ENGIE | ENGIE NRMA

Distributed By Jemena Gas

Basic Plan Information

Not yet rated

Sumo | Sumo Assure

Distributed By Jemena Gas

Basic Plan Information

Not yet rated

AGL Energy Limited | Value Saver

Distributed By Jemena Gas

Basic Plan Information

Advertiser Disclosure

Canstar Blue may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it is an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar Blue. Payment of fees for ads does not influence Value Rank or Customer Satisfaction Ratings. See How We Get Paid to find out more.

General Disclosure – Energy

The data in the table is updated within 24 hours of Canstar Blue becoming aware of a change. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Gas Value Rank Methodology.

Please note that the Satisfaction Rating displayed in the table is a rating relating to customers’ overall satisfaction with the brand. It should not be confused with an individual product rating. Learn more about Brand Satisfaction ratings and for more information on how the Brand Satisfaction ratings are calculated, read the Canstar Blue Most Satisfied Customers Methodology.

The results do not include all energy retailers or products in the market and may not compare all features relevant to you. Canstar Blue does not supply electricity or gas services. If you decide to apply for a particular energy product, you will deal directly with the retailer, not with Canstar Blue. Fees, charges, product information and contract terms should be confirmed directly with the relevant retailer.

Some plans may require you to meet certain conditions before a discount may become available to you. Check the energy provider’s plan information for details of all possible discounts that may apply and any conditions that need to be met for you to be eligible for these discounts.

Check your current plan’s exit fees and other termination provisions before changing providers.

Some plans may have a minimum term that is longer than one year. In that case the total cost over the term will be much higher than the estimated Price, which is for one year only. Consider the provider’s detailed product and pricing information before making a decision to take out a new plan or switch electricity providers.

Pricing Information

The price shown is inclusive of GST and is the estimated lowest possible price a representative customer would be charged in a year for each plan, assuming all conditions of discounts offered, if any, have been met. Gas usage assumptions have been derived from the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table.

The general usage assumptions for products displayed in the table have been derived from:

the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table. The figures provided are intended to serve as general estimates and should be used for information only. If the amount of gas you actually use differs greatly from this estimate, your bill could be significantly larger or smaller than the estimated price/year listed for each plan; or
if you have provided usage data from your gas bill, the estimated annual amount payable for this plan is based on your individual circumstances.

The estimated yearly Price is based on single rate tariffs, which is when a flat usage rate is charged for ‘blocks’ of gas consumed and could be a limited amount per day, month, quarter, which may include a second block with a different usage rate applied, or, season.

Some plans may have a minimum term longer than one year – in that case the total cost over the term will be much higher than the estimated yearly Price (which is only for one year).

Some plans may apply additional charges to the price shown. Always check the energy provider’s plan information for details of all charges that may apply.

What does the ‘phone’ mean?

By clicking on the number next to the phone icon, you will leave the Canstar Blue website and be connected with the call centre of the Online Partner’s brand that you have selected. You will be subject to that referral partner’s brand privacy policy and terms of use. You agree that Canstar Blue Referral Terms apply to this referral.

Here are some of the cheapest gas deals on our database for VIC. These estimated annual costs are based on the AGN – VIC network in Melbourne and yearly gas usage of 40,500 MJ/year, but prices will vary depending on your own circumstances. We show one product per retailer, listed in order of lowest estimated cost. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

AGL Energy Limited | Value Saver

Distributed By AGN - Vic

Energy Fact Sheet

PROMOTED

Get 35% off gas usage and supply charges for 12 months with AGL, no lock-in contracts, flexible billing options. T&C's Apply

Powershop Australia | Power House

Distributed By AGN - Vic

Energy Fact Sheet

Not yet rated

Kogan | Kogan First

Distributed By AGN - Vic

Energy Fact Sheet

Not yet rated

Sumo | Sumo Lite

Distributed By AGN - Vic

Energy Fact Sheet

Not yet rated

Alinta Energy | HomeSaver Plus

Distributed By AGN - Vic

Energy Fact Sheet

Momentum Energy | Nothing Fancy

Distributed By AGN - Vic

Energy Fact Sheet

Sumo | Sumo Assure

Distributed By AGN - Vic

Energy Fact Sheet

Not yet rated

ENGIE | ENGIE Perks

Distributed By AGN - Vic

Energy Fact Sheet

Advertiser Disclosure

Canstar Blue may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it is an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar Blue. Payment of fees for ads does not influence Value Rank or Customer Satisfaction Ratings. See How We Get Paid to find out more.

General Disclosure – Energy

The data in the table is updated within 24 hours of Canstar Blue becoming aware of a change. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Gas Value Rank Methodology.

Please note that the Satisfaction Rating displayed in the table is a rating relating to customers’ overall satisfaction with the brand. It should not be confused with an individual product rating. Learn more about Brand Satisfaction ratings and for more information on how the Brand Satisfaction ratings are calculated, read the Canstar Blue Most Satisfied Customers Methodology.

The results do not include all energy retailers or products in the market and may not compare all features relevant to you. Canstar Blue does not supply electricity or gas services. If you decide to apply for a particular energy product, you will deal directly with the retailer, not with Canstar Blue. Fees, charges, product information and contract terms should be confirmed directly with the relevant retailer.

Some plans may require you to meet certain conditions before a discount may become available to you. Check the energy provider’s plan information for details of all possible discounts that may apply and any conditions that need to be met for you to be eligible for these discounts.

Check your current plan’s exit fees and other termination provisions before changing providers.

Some plans may have a minimum term that is longer than one year. In that case the total cost over the term will be much higher than the estimated Price, which is for one year only. Consider the provider’s detailed product and pricing information before making a decision to take out a new plan or switch electricity providers.

Pricing Information

The price shown is inclusive of GST and is the estimated lowest possible price a representative customer would be charged in a year for each plan, assuming all conditions of discounts offered, if any, have been met. Gas usage assumptions have been derived from the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table.

The general usage assumptions for products displayed in the table have been derived from:

the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table. The figures provided are intended to serve as general estimates and should be used for information only. If the amount of gas you actually use differs greatly from this estimate, your bill could be significantly larger or smaller than the estimated price/year listed for each plan; or
if you have provided usage data from your gas bill, the estimated annual amount payable for this plan is based on your individual circumstances.

The estimated yearly Price is based on single rate tariffs, which is when a flat usage rate is charged for ‘blocks’ of gas consumed and could be a limited amount per day, month, quarter, which may include a second block with a different usage rate applied, or, season.

Some plans may have a minimum term longer than one year – in that case the total cost over the term will be much higher than the estimated yearly Price (which is only for one year).

Some plans may apply additional charges to the price shown. Always check the energy provider’s plan information for details of all charges that may apply.

What does the ‘phone’ mean?

By clicking on the number next to the phone icon, you will leave the Canstar Blue website and be connected with the call centre of the Online Partner’s brand that you have selected. You will be subject to that referral partner’s brand privacy policy and terms of use. You agree that Canstar Blue Referral Terms apply to this referral.

Here are some of the cheapest gas deals on our database for QLD. These estimated annual costs are based on the AGN – QLD in Brisbane and yearly gas usage of 8,300 MJ/year, but prices will vary depending on your own circumstances. We show one product per retailer, listed in order of lowest estimated cost. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

AGL Energy Limited | Value Saver

Distributed By AGN - QLD

Basic Plan Information

PROMOTED

Get 35% off gas usage and supply charges for 12 months with AGL, no lock-in contracts, flexible billing options. T&C's Apply

Origin Energy | Go Variable

Distributed By AGN - QLD

Basic Plan Information

Origin Energy | Everyday Rewards Variable

Distributed By AGN - QLD

Basic Plan Information

AGL Energy Limited | Value Saver

Distributed By AGN - QLD

Basic Plan Information

Alinta Energy | HomeSaver

Distributed By AGN - QLD

Basic Plan Information

Not yet rated

Red Energy | BCNA Saver

Distributed By AGN - QLD

Basic Plan Information

Not yet rated

Red Energy | Living Energy Saver

Distributed By AGN - QLD

Basic Plan Information

Not yet rated

Red Energy | Qantas Red Saver

Distributed By AGN - QLD

Basic Plan Information

Not yet rated

Advertiser Disclosure

Canstar Blue may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it is an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar Blue. Payment of fees for ads does not influence Value Rank or Customer Satisfaction Ratings. See How We Get Paid to find out more.

General Disclosure – Energy

The data in the table is updated within 24 hours of Canstar Blue becoming aware of a change. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Gas Value Rank Methodology.

Please note that the Satisfaction Rating displayed in the table is a rating relating to customers’ overall satisfaction with the brand. It should not be confused with an individual product rating. Learn more about Brand Satisfaction ratings and for more information on how the Brand Satisfaction ratings are calculated, read the Canstar Blue Most Satisfied Customers Methodology.

The results do not include all energy retailers or products in the market and may not compare all features relevant to you. Canstar Blue does not supply electricity or gas services. If you decide to apply for a particular energy product, you will deal directly with the retailer, not with Canstar Blue. Fees, charges, product information and contract terms should be confirmed directly with the relevant retailer.

Some plans may require you to meet certain conditions before a discount may become available to you. Check the energy provider’s plan information for details of all possible discounts that may apply and any conditions that need to be met for you to be eligible for these discounts.

Check your current plan’s exit fees and other termination provisions before changing providers.

Some plans may have a minimum term that is longer than one year. In that case the total cost over the term will be much higher than the estimated Price, which is for one year only. Consider the provider’s detailed product and pricing information before making a decision to take out a new plan or switch electricity providers.

Pricing Information

The price shown is inclusive of GST and is the estimated lowest possible price a representative customer would be charged in a year for each plan, assuming all conditions of discounts offered, if any, have been met. Gas usage assumptions have been derived from the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table.

The general usage assumptions for products displayed in the table have been derived from:

the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table. The figures provided are intended to serve as general estimates and should be used for information only. If the amount of gas you actually use differs greatly from this estimate, your bill could be significantly larger or smaller than the estimated price/year listed for each plan; or
if you have provided usage data from your gas bill, the estimated annual amount payable for this plan is based on your individual circumstances.

The estimated yearly Price is based on single rate tariffs, which is when a flat usage rate is charged for ‘blocks’ of gas consumed and could be a limited amount per day, month, quarter, which may include a second block with a different usage rate applied, or, season.

Some plans may have a minimum term longer than one year – in that case the total cost over the term will be much higher than the estimated yearly Price (which is only for one year).

Some plans may apply additional charges to the price shown. Always check the energy provider’s plan information for details of all charges that may apply.

What does the ‘phone’ mean?

By clicking on the number next to the phone icon, you will leave the Canstar Blue website and be connected with the call centre of the Online Partner’s brand that you have selected. You will be subject to that referral partner’s brand privacy policy and terms of use. You agree that Canstar Blue Referral Terms apply to this referral.

Here are some of the cheapest gas deals on our database for SA. These estimated annual costs are based on the AGN – SA network in Adelaide and yearly gas usage of 14,800 MJ/year, but prices will vary depending on your own circumstances. We show one product per retailer, listed in order of lowest estimated cost. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

AGL Energy Limited | Value Saver

Distributed By AGN - SA

Basic Plan Information

PROMOTED

Get 35% off gas usage and supply charges for 12 months with AGL, no lock-in contracts, flexible billing options. T&C's Apply

Alinta Energy | HomeSaver Plus

Distributed By AGN - SA

Basic Plan Information

Not yet rated

Lumo Energy | Plus

Distributed By AGN - SA

Basic Plan Information

Not yet rated

Lumo Energy | Basic

Distributed By AGN - SA

Basic Plan Information

Not yet rated

AGL Energy Limited | Value Saver

Distributed By AGN - SA

Basic Plan Information

Energy Australia | Flexi Plan

Distributed By AGN - SA

Basic Plan Information

Red Energy | Living Energy Saver

Distributed By AGN - SA

Basic Plan Information

Not yet rated

Red Energy | Qantas Red Saver

Distributed By AGN - SA

Basic Plan Information

Not yet rated

Advertiser Disclosure

Canstar Blue may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it is an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar Blue. Payment of fees for ads does not influence Value Rank or Customer Satisfaction Ratings. See How We Get Paid to find out more.

General Disclosure – Energy

The data in the table is updated within 24 hours of Canstar Blue becoming aware of a change. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Gas Value Rank Methodology.

Please note that the Satisfaction Rating displayed in the table is a rating relating to customers’ overall satisfaction with the brand. It should not be confused with an individual product rating. Learn more about Brand Satisfaction ratings and for more information on how the Brand Satisfaction ratings are calculated, read the Canstar Blue Most Satisfied Customers Methodology.

The results do not include all energy retailers or products in the market and may not compare all features relevant to you. Canstar Blue does not supply electricity or gas services. If you decide to apply for a particular energy product, you will deal directly with the retailer, not with Canstar Blue. Fees, charges, product information and contract terms should be confirmed directly with the relevant retailer.

Some plans may require you to meet certain conditions before a discount may become available to you. Check the energy provider’s plan information for details of all possible discounts that may apply and any conditions that need to be met for you to be eligible for these discounts.

Check your current plan’s exit fees and other termination provisions before changing providers.

Some plans may have a minimum term that is longer than one year. In that case the total cost over the term will be much higher than the estimated Price, which is for one year only. Consider the provider’s detailed product and pricing information before making a decision to take out a new plan or switch electricity providers.

Pricing Information

The price shown is inclusive of GST and is the estimated lowest possible price a representative customer would be charged in a year for each plan, assuming all conditions of discounts offered, if any, have been met. Gas usage assumptions have been derived from the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table.

The general usage assumptions for products displayed in the table have been derived from:

the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table. The figures provided are intended to serve as general estimates and should be used for information only. If the amount of gas you actually use differs greatly from this estimate, your bill could be significantly larger or smaller than the estimated price/year listed for each plan; or
if you have provided usage data from your gas bill, the estimated annual amount payable for this plan is based on your individual circumstances.

The estimated yearly Price is based on single rate tariffs, which is when a flat usage rate is charged for ‘blocks’ of gas consumed and could be a limited amount per day, month, quarter, which may include a second block with a different usage rate applied, or, season.

Some plans may have a minimum term longer than one year – in that case the total cost over the term will be much higher than the estimated yearly Price (which is only for one year).

Some plans may apply additional charges to the price shown. Always check the energy provider’s plan information for details of all charges that may apply.

What does the ‘phone’ mean?

By clicking on the number next to the phone icon, you will leave the Canstar Blue website and be connected with the call centre of the Online Partner’s brand that you have selected. You will be subject to that referral partner’s brand privacy policy and terms of use. You agree that Canstar Blue Referral Terms apply to this referral.

Here are some of the cheapest gas deals on our database for WA. These estimated annual costs are based on the ATCO network in Perth and yearly gas usage of 6,300 units/year, but prices will vary depending on your own circumstances. We show one product per retailer, listed in order of lowest estimated cost. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Kleenheat | Monthly Energiser

Distributed By ATCO

Energy Fact Sheet

PROMOTED

Not yet rated

Join Canstar Blue's most satisfied WA Natural Gas customers awarded in 2022 & 2023. Enjoy added value through partnerships with RAC & Flybuys. T&Cs Apply

Origin Energy | Go Variable

Distributed By ATCO

Energy Fact Sheet

Not yet rated

Origin Energy | Everyday Rewards Variable

Distributed By ATCO

Energy Fact Sheet

Not yet rated

AGL Energy Limited | Savers

Distributed By ATCO

Energy Fact Sheet

Not yet rated

ENGIE | ENGIE Saver

Distributed By ATCO

Energy Fact Sheet

Not yet rated

Alinta Energy | Fair Go 33

Distributed By ATCO

Energy Fact Sheet

Not yet rated

ENGIE | ENGIE Perks

Distributed By ATCO

Energy Fact Sheet

Not yet rated

Alinta Energy | Carbon Balance - Gas

Distributed By ATCO

Energy Fact Sheet

Not yet rated

Advertiser Disclosure

Canstar Blue may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it is an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar Blue. Payment of fees for ads does not influence Value Rank or Customer Satisfaction Ratings. See How We Get Paid to find out more.

General Disclosure – Energy

The data in the table is updated within 24 hours of Canstar Blue becoming aware of a change. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Gas Value Rank Methodology.

Please note that the Satisfaction Rating displayed in the table is a rating relating to customers’ overall satisfaction with the brand. It should not be confused with an individual product rating. Learn more about Brand Satisfaction ratings and for more information on how the Brand Satisfaction ratings are calculated, read the Canstar Blue Most Satisfied Customers Methodology.

The results do not include all energy retailers or products in the market and may not compare all features relevant to you. Canstar Blue does not supply electricity or gas services. If you decide to apply for a particular energy product, you will deal directly with the retailer, not with Canstar Blue. Fees, charges, product information and contract terms should be confirmed directly with the relevant retailer.

Some plans may require you to meet certain conditions before a discount may become available to you. Check the energy provider’s plan information for details of all possible discounts that may apply and any conditions that need to be met for you to be eligible for these discounts.

Check your current plan’s exit fees and other termination provisions before changing providers.

Some plans may have a minimum term that is longer than one year. In that case the total cost over the term will be much higher than the estimated Price, which is for one year only. Consider the provider’s detailed product and pricing information before making a decision to take out a new plan or switch electricity providers.

Pricing Information

The price shown is inclusive of GST and is the estimated lowest possible price a representative customer would be charged in a year for each plan, assuming all conditions of discounts offered, if any, have been met. Gas usage assumptions have been derived from the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table.

The general usage assumptions for products displayed in the table have been derived from:

the average usages advertised by a selection of retailers in the distribution region as shown at the top of the table. The figures provided are intended to serve as general estimates and should be used for information only. If the amount of gas you actually use differs greatly from this estimate, your bill could be significantly larger or smaller than the estimated price/year listed for each plan; or
if you have provided usage data from your gas bill, the estimated annual amount payable for this plan is based on your individual circumstances.

The estimated yearly Price is based on single rate tariffs, which is when a flat usage rate is charged for ‘blocks’ of gas consumed and could be a limited amount per day, month, quarter, which may include a second block with a different usage rate applied, or, season.

Some plans may have a minimum term longer than one year – in that case the total cost over the term will be much higher than the estimated yearly Price (which is only for one year).

Some plans may apply additional charges to the price shown. Always check the energy provider’s plan information for details of all charges that may apply.

What does the ‘phone’ mean?

By clicking on the number next to the phone icon, you will leave the Canstar Blue website and be connected with the call centre of the Online Partner’s brand that you have selected. You will be subject to that referral partner’s brand privacy policy and terms of use. You agree that Canstar Blue Referral Terms apply to this referral.

How does a gas hot water system work?

Storage gas hot water systems use a gas burner to heat water stored in a tank. These systems usually have a continuously burning pilot flame, which keeps the water at a set temperature throughout the day, waiting for use as needed.

A continuous, or instantaneous system, heats water as it is released. Unlike a storage system, there are no tanks in continuous systems. These systems rely on heat exchangers to keep water warm as it moves directly to the relevant tap, after being heated by a gas burner. According to Elgas, continuous gas hot water systems are generally considered to be the more energy and cost-efficient option.

Solar hot water systems with gas boosters rely on solar energy to heat water and only use gas as a backup energy source on rainy or cloudy days or at nighttime when solar energy isn’t being generated.

Gas hot water system prices

The price of gas hot water systems varies. Depending on gas hot water system specifics, customers can expect to pay anywhere between $900 – $2,000. Prices will vary depending on the system type (instantaneous or storage) size, gas connection and number of taps or devices the system serves.

Gas hot water system installation costs come at an additional charge on top of the system purchase price. Installation prices typically range from $1,500 – $3,000 for a new gas system, or $500 – $800 for a replacement system. A replacement system is much cheaper because the gas connections are already available from an existing unit.

Looking to install a new hot water system in your home? Compare pricing, tips and leading brands in Canstar Blue’s hot water system installation guide.

What are the benefits of a gas hot water system?

Some advantages of installing a gas hot water system are:

Energy efficiency: According to Everyday Plumbing & Gas Services, an instantaneous gas hot water system uses less energy than a traditional hot water system because energy isn’t wasted on maintaining storage tank heat.
Easy to install: As long as you are connected to your local gas mains, gas hot water systems are generally simple to install at home.
Older models have off-grid capabilities: If you are using a 100% gas-powered traditional hot water system, then you may still have hot water during a power outage. Please note that this is typically only applicable to older systems.

How much does it cost to run a gas hot water system?

Gas hot water system usage costs will depend on your household size, system type and gas prices in your distribution area. According to Sustainability Victoria, instantaneous systems have a better gas energy rating than storage systems but a higher gas consumption rate.

To give you an idea of what you could pay on your energy bill, Canstar Blue has collected annual estimated costs for instantaneous and storage gas hot water systems across Australia.

Average annual gas water heater running costs (200L per day)

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Gas water heater type	Average annual gas consumption (MJ)	National average	Sydney	Melbourne	Brisbane	Adelaide	Perth	Hobart	Canberra
Instantaneous	18,539MJ	$686	$667	$630	$908	$630	$760	$1,001	$723
Storage	21,460MJ	$794	$773	$730	$1,052	$730	$880	$1,159	$837

Source: www.canstarblue.com.au – 15/08/2024. Average energy consumption figures based on gas hot water heaters listed in the Commonwealth of Australia E3 Program’s Registration database, which assumes delivering 200L of hot water per day. Annual gas usage cost estimates based on the average annual national gas usage rate of 3.7 c/MJ, 3.9 c/MJ in Canberra, 3.6 c/MJ in Sydney, 4.9 c/MJ in Brisbane, 4.1 c/MJ in Perth, 3.4 c/MJ in Adelaide, 3.4 c/MJ in Melbourne and 5.4 c/MJ in Hobart. Average gas usage rates are based on summer rates of single-rate plans in Canstar’s database, available for an annual usage of 33,625 MJ.

This data shows that households in Hobart on average have the highest bills for gas hot water systems, while Adelaide and Melbourne have the lowest on average.

Worried about how much hot water you are using at home? Compare your bills against the average water bill costs of everyday consumers, with Canstar Blue’s average water billing data report.

Is a gas hot water system right for me?

Picking the right gas hot water system will depend on a number of factors such as household size, location and energy connections within the property. If you already have a mains gas connection at your home, then you may find value in connecting a gas hot water system. Larger households may also find some benefit in gas hot water due to these systems’ higher recovery rates. The recovery rate refers to how quickly the system heats water back to the required temperature after hot water is used. This is important as it can affect household water usage according to the My Heat Pump Quotes website.

If you don’t have a gas mains connection, consider if it’s worth paying the additional cost to install one. According to hipages, a new gas connection can cost between $70 and $110, depending on location.

For further information on hot water systems, check out Canstar Blue’s Best-Rated Hot Water Systems.

Image credits: Douglas Cliff/Shutterstock.com

This article was reviewed by our Utilities Editor Tara Donnelly before it was updated, as part of our fact-checking process.

Katrina Hasdell

Energy Content Producer

Katrina Hasdell is an Energy Content Producer at Canstar Blue, where she covers Australia’s retail energy market. Katrina is dedicated to providing consumers with easy-to-read information on their energy options so they can get better deals on electricity, solar power and more.

In this article

AGL Energy Limited | Value Saver

Distributed By Jemena Gas

Basic Plan Information

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Get 35% off gas usage and supply charges for 12 months with AGL, no lock-in contracts, flexible billing options. T&C's Apply

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