Hot baths and steamy showers can be relaxing in chilly winters in Australia. Isn’t it? The best part is that you can enjoy hot water all year round for various tasks, such as laundry, cleaning, cooking, and, of course, bathing in your own home. All you need is a super efficient and high performing hot water system. This home appliance simply provides comfort and convenience. These systems can help you save energy, especially with energy efficient models. A consistent hot water supply promotes hygiene while improving the overall quality of life. According to some reports, around 50% of Australian homes had electric hot water systems, 49.5% gas hot water systems, and only 3 per cent had solar hot water systems in 2023. However, there is a surge in demand for solar heating water systems due to an eco-conscious approach.
In winter, this sturdy appliance becomes a necessity instead of a luxury. Whether you want to have a hot bath or wash your dirty clothes to banish germs, access hot water in seconds, and you are ready to go. With technological advancements and new features, homeowners have plenty of options to choose from. However, the final decision should be based on your specific requirements, an estimated budget, a sustainable mindset and other key aspects to make it a key home investment.
Whether you’re upgrading to a bigger and tech driven water heater or buying it for the first time, conducting a thorough research can make a world of difference. Fret not! Here is a comprehensive guide to help you buy the most suitable, energy efficient and high performing hot water system in 2025. The guide comprises of the most common types, key features, benefits and hot selling models to help you make the right buying decision.
What is a Hot Water System & How it Works?
A hot water system or a water heater is an essential household appliance designed to heat, store and supply hot water for multiple uses, such as bathing, cooking and cleaning. These systems have a central boiler that heats water to a temperature between 140°F and 180°F, then circulates it through pipes, taps, and appliances throughout your home. It works wonders by raising the temperature of normal or cold water for your comfort and convenience.
The circulation of hot water is carried out in two ways: naturally, via pressure and gravity, or with the assistance of a pump. Forced circulation is more efficient, as it provides complete flexibility and control. The system may use gas, electricity, a heat pump and solar energy to heat the water.
While in tanks or storage water heater, the hot water is store in an insulated tank until used.
In storage systems, hot water is stored in an insulated tank until it is used. However, in tankless systems, water is increased to a high temperature instantly, and passes through the unit. The best part is that the water circulates through pipes, showers, taps and appliances.
In systems like super efficient refrigerators, ovens and AC, thermostats play a crucial role in regulating temperature, while safety valves control pressure. Always remember that choosing the right system depends on household size, climate, budget and energy source.
Types of Hot Water Systems in 2025
Before investing money in the best water heater in Australia, let’s explore the different types of systems. This will help you make an informed decision with ease:
- Tank Water Heater
These units are designed with a robust heating element and a storage tank that stores hot water until it is used. These types of systems are the most affordable options due to their accessibility to hot water. These have a spacious, insulated tank that can store up to 80 gallons of water, depending on tank size. Under this, cold water enters the tank and is heated to a set temperature. It will automatically stop heating the water.
Pros:
- Super affordable
- Available in different sizes
- Powered by multiple sources, such as electricity, gas and oil
Cons:
- Consumes a lot of energy
- Space consuming appliance
- Tankless Water Heater
These are ideal for studio apartments and cramped bathrooms. It instantly heats cold water and circulates through a short series of superheated coils. The system can be powered by electricity and natural gas. The best part is that it doesn’t waste energy heating and reheating the stored water.
Pros:
Energy Saving appliance
Compact in size
Eco friendly
Cons:
- Highly expensive
- Takes a lot of time to heat the water
- Flow rate may trickle.
- Hybrid or Heat Pump Water Heaters
Highly efficient appliance, a hybrid water draws heat from the ground and air to raise the temperature of the water. This ideal system uses up to 60 per cent less power than a traditional tank water heater. However, the system comes with a huge insulated storage tank and a heat pump is located on the top of the tank, making it a bulky model.
Pros:
- Durable
- Energy efficient
- Eco Friendly
- Leverage tax rebates
Cons:
- High upfront pricing
- Need more space
- Works in warm climates
- Causes noise pollution
- Regular maintenance
- Solar Water Heater
Save electricity by reducing its consumption on a daily basis. You can make a smart move by installing a solar water heater in your home. It uses the sunlight to heat the water. Like conventional tank water systems, solar water heaters have a spacious, insulated tank to store hot water until it is completely used up. However, the main difference is that these systems collect energy from solar panels and convert it into electricity to heat the water. They rely on both gas and electric backup fuel systems to ensure a seamless supply of hot water in all seasons.
Pros:
- Sustainable Option
- Saves energy and money
- Low maintenance
Cons:
- Higher upfront pricing
- Needs a huge roof space
- Works best in hot and warm climates
- Combination Boiler Water Heater
This is a single unit appliance designed to heat the home as well as the water used at different plumbing connections throughout the house. The inbuilt boiler system evenly distributes hot water through baseboard radiators.
Key Factors to Consider When Buying the Best Water Heater
Conducting detailed research is crucial to making the right investment decision when choosing the best water heater for your home. Below are some key aspects to consider:
Household Size and Usage of Hot Water
This is one of the basic things to consider to make an informed buying decision. The size of your family and daily hot water requirements can help you decide whether to opt for a tank or a tankless system. A couple may need a 50 to 100L system, while a family of four or six may require 200 to 300L, depending on your requirements. Also, remember that oversized systems lead to energy wastage and inefficient results.
Fuel Type/Energy Efficiency:
Another crucial factor that can influence your decision is the fuel type. Most heaters use natural gas, oil, solar and electricity. It is always good to check the energy rating labels to save energy and money. You can opt for solar and hybrid hot water systems over electric ones in 2025.
Installation Location and Space
Believe it or not! The location may vary when it comes to installing water heaters in a house. Some require outdoor installation for proper ventilation, while others, like the tank system, require a huge space. Solar and hybrid systems also need roof access and sufficient air flow.
Long Run Savings:
There is no denying that an electric tank water heater is known for being affordable upfront, but it may cost more in the long run due to higher energy bills. On the contrary, solar hot water systems and hybrid water heaters have hefty installation costs but offer long run cost efficiency and government rebates in Australia.
Warranty
Don’t forget to check warranties on the water heater before making final decision. It is always beneficial to have a water heater from a reputable brand that offers a transparent warranty, providing peace of mind.
Smart Features:
This includes Wifi connectivity, smart scheduling to set heating schedules based on your requirements to save energy, leak detection sensors, energy usage monitoring, voice control compatibility and auto temperature adjustment. With the constant evolution of AI technology, it becomes essential to invest in smart household appliances for long term benefits.
Best Hot Water System to Buy in Australia in 2025
Like advanced air purifier, hot water system is also a coveted household appliance in Australia. It helps you access hot water through faucets, pipes, and other appliances in no time. However, buying the right product requires a thorough comparison based on their types, key specifications, pricing and other features. Let us help you make the right choice by listing the most efficient water heaters of 2025
- STIEBEL ELTRON DHE 202656 Instantaneous Water Heater
STIEBEL ELTRON is a renowned brand, and is known for its sturdy and technology driven products. This is a fully electronic, tankless water heater system is the best bet. It offers 18/21/24kW power levels for multiple uses and circulates degree accurate hot water for usage. It maintains a consistent temperature with electronic flow control, which is adjusted in 0.5°C increments using a digital rotary selector.
Designed for small kitchens, this unit can be installed under the sink to provide hot water. It also includes a rotatable cap and control unit for your comfort. With 4i technology and Eco mode, you can even save upto 30 per cent energy and water.
When it comes to safety features, this particular model includes an overheat prevention, an adjustable child lock and scald protection. It also has multiple drawoff points to supply hot water to over one outlet at the same time. The best part it is easy installation process and its pricing. You can buy this product from Amazon at just $975. The kit includes mounting hardware and important instructions. If your home has less space or wants to save energy consumption, this is the right water heater for you.
- Thermoflow Elex 5.5 kW Water Heater 230 V
Do you want a pressureless and compact water heater for your studio apartment or townhouse? Look no further than The Elex 5.5 electric instantaneous water heater from Thermofolow. It can heat water up to 40 °C and can be used as an under sink device in kitchens and bathrooms. The device has G3/8 inch connections and can be mounted on a wall. What makes it an ideal water heater? It’s 5.5 kW instantaneous water heating potential makes it energy efficient appliances for homes.
Priced at $156, the appliance is popular because of its modern and sleek design, affordable prices and advanced features. Ensure you read the instruction manual before installing the appliance and enjoy warm water for household chores.
- 3000W Instant Electric Water Heater with a LCD Display
Whether degreasing dishes, washing clothes or mopping floors, you need hot water for effective results. With this instant water heater, you can easily access hot water in no time. It boasts a 304 stainless steel heating body and features a 3000W power rating for stability and highly efficient results.
The best part is that it can heat water in just 3-second, ideal for kitchen usage. The device has an inbuilt brass connectors and oxygen free copper wires to boost durability and performance in long run. It can prevent corrosion and oxidation exposure, saving you maintenance expenses. This superior tankless water heater not only saves space but also keeps limescale at bay, providing a cleaner water solution.
Advanced features include an AI smart chip that provides thermostatic hot water and a power cut memory function to avoid temperature reset hassle. You can access the touch interface and enjoy a seamless experience by getting hot water in a few seconds.
- AEG DDLE 232793 Electronic Tankless Water Heater
With a 13 litre capacity, this electric tankless water heater system comfortably finds its place in your home, providing instant and unlimited warm water throughout the day. Its compact design allows you to install it below the kitchen sink or bathroom washbasin, saving you a lot of space. You can easily maintain the temperature through a rotary selector from 20 °C to 60 °C as per your requirements. It also features an optional scald protection function, which restricts the temperature to a safe 43 °C.
This over desk mounting hot water system helps you save money compared to conventional hydraulic models. Plus, it offers selectable power options of 11 or 13.5 kW, making it super energy efficient and affordable. The product is also ideal for solar inlet temperatures up to 70 degree Celsius, with the potential to reheat water up to an inlet temperature of 55 degree Celsius. Priced at $429 on Amazon, it is one of the best water heaters for studio apartments, townhouses and compact homes.
- Vaillant VEK 5L Electric Boiling Water Device
Do you want to enjoy a hot, steamy bath in the comfort of your home? Install Vaillant’s VEK 5L electric water heater in your bathroom or kitchen. With a 5 litre capacity, the appliance heats water instantly to a temperature between 30°C and 100°C.
It features a safety temperature limiter that automatically shuts off if it reaches the set temperature. There is also an inbuilt sound alert feature to let you know once the water is boiled. The best part is that the interval boiling function instantly reheats water whenever required. The compact design makes it easy to mount it on the wall in a small space. The appliance blends performance and safety in one sleek and classy unit. It is available in white and grey colours, and the box includes the water heater, power cord, and manual instructions. Priced at just $418, you can buy this unit from Amazon and access hot water all day long.
- ALSTON 8800W 220V Tankless Hot Water Heater
This sturdy and powerful 8000W water heater is ideal for delivering instant hot water to taps and appliances. The tankless design not only saves space but also eliminates the need for a storage tank. With a digital display, you can clearly see the temperature and adjust it between 25 to 55 degrees as per your comfort. The touch sensitive control allows you to control power settings and ensure utmost safety.
Believe it or not! The unit is certified with an IPX4 waterproof rating, making it ideal for installation in damp areas, such as bathrooms under the sink. Plus, it comes with leakage protection, overheating protection, etc, to keep you and your family safe and sound. You can install it with almost all plumbing systems and enjoy hot water for household purposes.
- STIEBEL ELTRON DHM4 Mini Unvented Instant Water Heater
Compact and powerful, this 2.5L instantaneous water heater delivers hot water in no time. It eliminates the need for a bulky storage tank, saving a lot of space in your kitchen and bathroom. The hydraulically controlled unit is best suited for pressure tested installation under the sink. With a 4.4 kW output and rapid water heating capabilities, this unit is designed for use with open outlet taps and appliances.
There is also an efficient bare wire heating system that allows you to monitor temperature and adjust it as per your needs.
The sleek, stylish and sturdy design easily blends into any environment. Some of the advanced features include overheating protection, temperature control, etc to ensure safe and sound usage of hot water.
- Thermoflow ELEX10 10kW Instant Electronic Water Heater
This is one of the best water heaters on the list. Ideal for kitchens and bathrooms, it operates on 230V and delivers hot water up to 55 degrees to help you complete all household chores. With a flow rate of 5.6 L per minute, this unit ensures a consistent supply of warm water for showers, tubs, sinks and washbasins.
It is a pressure resistant unit designed for fixed connections without a plug. You can easily install it and can be mounted on the wall- all thanks to its compact design and lightweight body. The energy saving mode can help you save on electricity bills and reduce greenhouse gas emissions.
The ELEX10 is installed with a plug or cable and must be filled with cold water before use. You can install it under the sink or washbasin to access hot water instantly.
- Bosch Tronic 4000 6 EB Electronic Instantaneous Water Heater
Bosch is a world renowned brand and is known for delivering top notch electronic units. Its electronic water heater is the one that lets you access hot water all day long. Ideal for small homes, it can be installed under the sink, washbasin, etc. Operating on 6kW power, it is a super powerful and efficient unit for daily use.
It heats the required amount of water through a bare wire heating system during flow, making it highly economical. This tested, compact and powerful unit requires no installation hassle. You can hang it on the wall and access consistent hot water without any stress. You can find this unit on Amazon at the best price.
- Ariston Aures Multi 5kW Instant Water Heater
Looking for a compact yet energy efficient water heater system for your home? This can be your right match. Designed to deliver hot water instantly, it is ideal for high pressure systems across the home. It ensures consistent supply without any hassle.
This tankless water heater features rapid heating technology that instantly activates the water flow, offering consistent warm water without the need for storage. If you have a small house or a cramped kitchen, freely install this compact water heater and enjoy hot water. The robust body, anti scalding and overheating protection provides long term durability, saving you money. If you wish to install it in your home this year, Ariston’s Aures Multi 5kW is the perfect option
Installation Guide for Water Heaters in Australia
In Australia, you need to stay in compliance with national plumbing and electrical standards when installing a hot water system in a home or office. The regulated process provides safety, efficiency and peace of mind. Here is a brief guide for a seamless water heater installation:
Hire a Licensed Plumber or Electrician
Hiring a certified handyman in Australia to install or replace a hot water system is can be relaxing. For electric systems, you need both a plumber and an electrician to mount the unit. However, for gas systems, a licensed gas fitter is required. These experts must be registered with your local licensing authority, such as VBA in Victoria, Fair Trading in NSW. Don’t try to install it on your own as it could lead to electrical hazards or other safety risks.
The Installation Process:
- Thoroughly Inspecting the Site: Whether you’ve a robot vacuum cleaner or a dishwasher, this step will check the location for ventilation, accessibility and compliance with regulations. It is usually installed under the sink or washbasin or mounted on the wall.
- Fitting the unit: The new hot water system will be placed or mounted in its designated location with the help of professionals.
- Plumbing Connections: Next, water pipes are connected to the unit. Plumbers also install additional valves and fittings.
- Gas/Electrician connection: Highly trained and certified professionals will connect the unit to the power and gas supply. The entire process may take an entire day depending on the type of your unit and other aspects.
- Testing the Unit: The unit is later tested for safety and proper functionality. You will be given a certificate of compliance to ensure utmost safety.
How to Maintain your Water Heater to Expand its Lifespan?
Regular maintenance of your hot water system is essential for its optimal performance and durability. Whether you have a tank or tankless model of an electric water heater, follow this guide and keep it running like a new unit for years to come:
- Annual Inspections are Must
You should inspect your hot water system annually by hiring professional plumber. They’ll look for corrosion, sediment buildup, valve efficiency and leaks for effective functionally. Early detection of malfunction can help prevent expensive repairs while extending the durability of your unit.
On the other hand, regular servicing ensures your unit remains compliant with high safety standards and operates effectively all year round.
- Regularly Flush the Tank
Make sure you flush the hot water tank every 5 to 12 months to prevent sediment buildup. It often accumulates at the bottom of the unit and affects the efficiency while strain the system. So, it is good to turn off the power and water supply before you drain the sink. After that, refill and start again.
Believe it or not! Regular flushing ensures clean, efficient and durable working of a unit to let you enjoy hot water throughout the year.
- Detect Signs As Early As Possible
Setting reminders for regular maintenance and checks can make a world of difference. However, it sometimes shows signs of maintenance or part replacement. These are:
- A decrease in water pressure
- Inconsistently heating water or taking a longer time to heat
- Discolouration or bad odours when you access the hot water
- Rumbling noises
- Higher consumption of water and electricity
- Check the Anode Rod
An anode rod is a metal piece that protects your tank from corrosion and rust. It usually attracts minerals and sediments, keeping the interior of your tank safe and sound. The rod will naturally corrode over time, so you need to replace it every three to five years for higher efficiency.
Ensure you turn off the system and attach a hose to the drain valve. Clear 10 per cent of the water from the tank. Carefully remove the anode rod and reinstall the new one.
- Check Water Temperature Settings
You should keep the thermostat at a safe level, which is around 50 to 60 degrees Celsius. Higher settings can lead to overheating, higher energy consumption and even put stress on the system.
Therefore, monitor the settings and lower the temperature to reduce the risk of scalding. This will also help you save on electricity bills. Setting the right temperature keeps your unit safe and durable for years.
- Insulate Pipes and the Tank
This step can help maintain the temperature of water for longer while reducing energy consumption. You should insulated exposed hot water pipes during colder months to avoid corrosion and moisture issues. This can also prevent normal wear and tear while boosting system’s heating potential.
Frequently Asked Questions about a Hot Water System
Buying a new water heater is a big decision and can leave you looking for important information that is not easily available. Below is a list of commonly asked questions and their answers for easy management:
What is the difference between storage and an instantaneous water heater?
A storage or tank hot water system heats as well as stores a large amount of water in a tank, while an instant water heater heats water only when needed. It won’t store in advance for usage. It can save a lot of time and space in the long run.
What is the right size of water heater for my home?
The size completely depends on your family and water usage. Usually, a close knit family of four may need 50to100L system, and larger homes may require around 300L or more. This largely depends on an individual’s specific needs.
What types of features to look for?
You should look for features that promote safety, convenience and efficiency. You should shortlist models that offer fast heating capability to save time and energy. Also, check the Energy Efficiency Ratings as it can help reduce electricity bills in the long run. Other features include anti scald protection, thermostat control, and reliable warranty for your peace of mind.
Can I install heater like a pro?
In Australia, the installation of a hot water system must be carried out by a licensed plumber and electrician. This ensures safety and compliance with state regulations. Therefore, conduct thorough research and find a highly trained professional in your local area.
Wrapping Up
A water heater is a key appliance that has evolved over the years into a highly functional and energy-efficient unit. With added features and technology driven modifications, the unit has become a must have household device to access hot water on the go. You can consider key aspects and choose the most reliable model depending on your estimated budget and specific requirements with the help of this guide.
