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How to Choose the Right Hot Water System for Your Home
With gas, electric, solar and heat pump options on the market, the right choice comes down to your energy source, household size, budget and usage. Here is Plum’s quick-reference guide for Melbourne homeowners.
- Independent, no-pressure advice
- Sizing matched to your household
- Rebate options explained upfront
- Free, no-obligation assessment

Six Things to Consider
Before you choose a hot water system, weigh up these six factors. Not sure on any of them? That is exactly what our team is here for.
Energy Source
The three main systems are gas, electric and solar. Check what is available at your property first — not every home has natural gas, and solar needs adequate roof sun.
Household Size
The number of bathrooms and taps determines the capacity you need. More outlets means a larger or more powerful unit — our team can assess your property.
Budget
Consider both upfront and ongoing costs. Solar and heat pump cost more to buy but far less to run; gas and electric are cheaper upfront but cost more over time.
Usage Patterns
Frequent long showers, dishwashing and laundry need a larger reservoir or higher flow rate. Estimate your peak demand so you do not run out mid-use.
Unit Location
Placement affects install cost, servicing access and efficiency. Consider shade, construction and distance to taps — shorter runs lose less heat.
Your Preference
Past experience matters. If a particular system type or brand has served you well, factor that in. Visible units may also need to look acceptable.
System Type Comparison
A side-by-side look at the three main fuel types we supply and install.
| Type | Upfront | Running | Best For | Pros | Cons |
|---|---|---|---|---|---|
| Gas | $$ | $$ | Homes with a natural gas connection | Fast heating, works in any weather, lower emissions than electric | Requires gas supply, annual servicing, carbon emissions |
| Electric | $ | $$$ | Smaller households, no gas access | Lowest upfront cost, easy install, widely available | Highest running cost, slower recovery, higher emissions |
| Solar | $$$ | ~$0 | Sun-exposed properties, long-term savings | Near-zero running cost, eco-friendly, long lifespan | High upfront, needs roof space & sun, booster required |
Recommended Tank Size
Typical supply-and-install cost for a hot water replacement. Solar systems with boosters and large-capacity units can cost more. Get a quote for an accurate estimate.
Decision Checklist
Run through this before you commit — or just call Plum and we will walk it through with you.



