Gas vs Electric Hot Water Heater: Which Is the Right Option?

When NZ homeowners need to decide between forms of hot water heating, it tends to be a question of gas hot water vs electric hot water.

A lot of the time when Kiwis are looking at hot water systems, they are particularly interested in the respective gas vs electric hot water running costs. However, as we explain below, there are also some other key factors to think about.

Which Is Cheaper – Instant Gas or Electric Hot Water?

Remember that both initial set-up and ongoing running costs are important. If you’re choosing between an electric or gas hot water cylinder, there probably won’t be a drastic difference in set-up price.

A new hot water cylinder (whether instant or electric) from a reputable manufacturer might cost you around $2,000 to $4,000, encompassing the entire process of your old cylinder being removed, and your new cylinder being installed and connected by qualified plumbers. Meanwhile, you can expect to pay around $3,500 to have a new gas continuous hot water system fitted, depending on the brand and model.

Presuming two identical households use the same volume of water in the same way, but one uses a gas hot water while the other has an electric hot water cylinder, the gas system is likely to be cheaper over time.

However, a gas continuous flow system tends to be more economical than either of these options. That’s because this type of system only heats the water when someone is actually using the water, unlike the alternatives, which keep the water hot while it is being stored in the cylinder.

Other Factors to Consider When Choosing Between Gas Hot Water Vs Electric Hot Water

Naturally, gas hot water systems and electric hot water systems offer different pros and cons. Electric hot water cylinders, for example, are suitable for all water pressures, and depending on the power plan you have, you may be able to take advantage of attractive night-rate electricity tariffs. A downside of a gas system, though, is that in the event of a power outage, you won’t have any hot water as it requires power for ignition.

 In contrast, an electric cylinder will still have hot water stored even after the power's gone out because it's already stored, whereas an instant gas unit won't.

If you are looking to change from one type of system to another, you will also need to consider the practicalities of this transition. If you are seeking to switch from electric to gas, for instance, and you use a lot of hot water, upgrading to a large storage tank is advisable.

No NZ homeowner’s situation is exactly the same as the next. So, before you decide on gas hot water vs electric hot water, you should seek advice and recommendations from trusted experts. Here at Matthews Plumbing & Gasfitting, we can be those experts, while also undertaking the highest standard of installation. Call us today, on 09 416 4084, to find out more.