Here’s a side-by-side look at the pros and cons of each system:

1. Electric Hot Water

Pros:

• Cheapest upfront cost

• Easy to install almost anywhere

• Widely available replacement parts

Cons:

• Highest running costs (especially with peak electricity rates)

• Not energy-efficient

• Usually no rebates or incentives

2. Gas Hot Water

Pros:

• Reliable supply (good for larger families)

• Instant systems provide endless hot water on demand

• Cheaper to run than standard electric systems

Cons:

• Gas prices are rising steadily

• Requires gas connection to property

• Higher carbon emissions than other options

3. Solar Hot Water

Pros:

• Very low running costs once installed

• Environmentally friendly (uses renewable energy)

• Often eligible for generous rebates

Cons:

• High upfront cost (especially with large storage tanks)

• Needs roof space with good sun exposure

• May require an electric or gas booster in cloudy/rainy periods

4. Heat Pump Hot Water

Pros:

• Uses up to 70% less energy than electric storage

• Works day and night, even in cooler weather

• Eligible for rebates in most states

• Good option if paired with solar power

Cons:

• Higher upfront cost than electric or gas

• Needs outdoor space with airflow

• Can be noisier than other systems if installed too close to living areas