Looking for the best electric hot water system? In this guide, we review the top options in 2025—covering energy efficiency, reliability, eco-friendliness, and budget. Find the perfect fit for your home.
Top Electric Hot Water Systems for Every Need
Choosing the right hot water system can feel overwhelming, but we’ve narrowed down the best options for you:
- Best for Energy Efficiency: Reclaim Heat Pump Hot Water System
- Best for Eco-Friendliness: Apricus Heat Pump Hot Water System
- Best for Reliability: Rheem Electric Hot Water System
- Best for Budget: Dux Electric Hot Water System
Table of Contents
Reclaim Heat Pump Hot Water System – Best for Energy Efficiency
Price: $3,500
Specifications:
- Heat Pump Technology
- Uses Environmentally Friendly Refrigerants
Pros:
- Significant long-term savings on energy bills
- Works well in cooler climates
- Uses solar power to reduce energy bills
Cons:
- Higher upfront cost
- Requires a professional installation
Choosing the right hot water system is important for Australian consumers looking to cut down on wasted energy and lower their energy bills. The Reclaim Heat Pump Water Heater is one of the best storage hot water systems for homes wanting an energy-efficient solution.
Unlike gas hot water systems, which rely on a gas burner, or electric hot water systems, which use a heating element, this system works by transferring heat from the air. This means less reliance on natural gas or high peak tariff electricity rates. If you pair it with a solar PV system, you can enjoy off-peak tariffs and further lower your costs.
It’s also built for cold water conditions, meaning you get a continuous flow of hot water no matter the season. Plus, it has an insulated tank to prevent heat loss, ensuring only as much water as needed is heated—no more wasted energy!
The downside? It has a higher upfront cost and may need an electric booster in certain conditions. However, if you’re after a cost-effective and environmentally friendly way to heat water, this high-quality product is a great investment.
Rating:
- Price: 3/5
- Design: 4/5
- Efficiency: 5/5
- Eco-Friendliness: 5/5
Noticing water pooling around your unit? It could indicate a leak. A leak detection specialist in Melbourne can help identify and fix the issue before it leads to bigger problems.
Apricus Heat Pump Hot Water System – Best for Eco-Friendliness
Price: $3,200
Specifications:
- Uses R290 Refrigerant
- Integrates with Photovoltaic Systems
Pros:
- Eco-friendly, reduces global warming potential
- Equipped with smart controlled heating cycles
Cons:
- Higher initial investment
- Requires compatibility with existing solar systems
If you want a hot water system brand that’s good for the planet, the Apricus Heat Pump is a great option. It uses R290 refrigerant, which has a much lower environmental impact than other chemicals used in hot water systems. This means you can enjoy reliable hot water outlets while reducing your carbon footprint.
This system is designed to work with a solar hot water system, making it an ideal energy source for homes using solar power. Thanks to its efficient heating method, it runs on controlled heating cycles, ensuring there’s no wasted energy.
However, it does have a higher upfront cost, and you’ll need to make sure it works with your existing solar hot water system. But if you’re looking for a cost-effective, sustainable way to heat water, the Apricus Heat Pump is a smart long-term choice.
Rating:
- Price: 3.5/5
- Design: 4.5/5
- Efficiency: 4.5/5
- Eco-Friendliness: 5/5
Rheem Electric Hot Water System – Best for Reliability
Price: $1,200
Specifications:
- Ultranamel Coating
- Thicker Sacrificial Anode
Pros:
- Highly reliable with consistent performance
- Long warranty period
- Enhanced protection against corrosion and waterborne contaminants
Cons:
- Slightly higher ongoing maintenance costs
- Larger footprint can be a space constraint
If you want a hot water system that’s trusted by Aussies, Rheem is a great pick. The Rheem 491 Series is designed for long-term durability, with a storage tank system that can handle everyday use. It’s also got extra protection, thanks to its Ultranamel coating and thicker sacrificial anode, which help prevent corrosion and keep your hot water tap safe.
The system is designed to work efficiently even in cold weather, making sure you always have hot water when you need it. Plus, its strong materials and protective layers mean fewer repairs over time, even if hot water systems work harder in colder climates.
Even though it might have higher maintenance costs and take up more space, its reliability and long lifespan make it a solid investment for families who want efficient hot water every day.
Rating:
- Price: 4/5
- Design: 4/5
- Efficiency: 4.5/5
- Reliability: 5/5
Dux Electric Hot Water System – Best for Budget
Price: $900
Specifications:
- Quick Recovery Time
- Consistent Temperature Supply
Pros:
- Affordable and efficient heating capabilities
- Consistent supply of hot water without sudden temperature changes
Cons:
- Shorter warranty period
- Potential durability concerns after warranty expiration
If you’re looking for an affordable hot water system that still gets the job done, the Dux Electric Hot Water System is a solid choice. It heats water efficiently and keeps the temperature steady, even when demand is high—helping you manage your electricity bills without worrying about sudden cold showers.
One great feature of the Dux Proflo is its quick recovery time, meaning you won’t be waiting long for hot water after a busy morning or evening. It’s also a cost-effective option for families who want a reliable system without high upfront costs.
Plus, depending on where you live, you might be eligible for government incentives when upgrading to a more energy-efficient system, adding to the environmental benefits. If you’re considering the ideal location for installation, the Dux system is designed to work in different home setups, making it a flexible choice.
However, keep in mind that the warranty period is shorter than some other brands, and durability might become an issue over time. But if you’re after an affordable and efficient hot water system, this one is definitely worth considering.
Rating:
- Price: 5/5
- Design: 3.5/5
- Efficiency: 4/5
- Budget-Friendliness: 5/5
If you’re looking for a system that provides hot water on demand, an instantaneous system could be a great option. Check out the best instant electric hot water systems to see which one suits your needs.
Key Considerations When Choosing an Electric Hot Water System
Picking the right electric hot water system isn’t just about going with a well-known brand. You’ll want to think about a few key things to make sure your system suits your home and budget.
- One big factor is long-term costs. Some systems use less energy, which means lower electricity bills over time. In fact, energy-efficient storage systems can cut electricity use by up to 80% compared to older models.
- Next, think about household size and water usage. How many people are in your home? Do you all shower around the same time? These details help figure out what size system you need. Also, where you install your system matters—it can affect how easy it is to maintain and how efficiently it runs.
- And don’t forget maintenance! While electric systems usually cost less upfront than gas or solar, regular upkeep is important to keep them running safely and efficiently. Looking at both the purchase price and the long-term running costs will help you budget properly.
Understanding Energy Efficiency Ratings
Ever wondered what those energy efficiency ratings on hot water systems mean? They’re a great way to see which models use less power—helping you save on electricity bills while reducing your impact on the environment.
In Australia, Minimum Energy Performance Standards (MEPS) set the baseline for energy efficiency in hot water systems. Some models, like the EvoHeat EVO270 heat pump, are top performers, working well with solar panels to cut running costs. Others, like Haier’s heat pump water heaters, even come with smart app controls for adjusting the temperature easily.
Modern hot water systems are getting smarter, with energy-saving technology that reduces power use and costs. Take the Emerald all-in-one heat pump, for example—it needs very little energy to keep your water hot and even looks sleek in your home.
Choosing a system with good energy ratings means you’ll get better performance with less wasted energy, which translates to lower bills and bigger savings over time.
Sizing Your Hot Water System Correctly
Making sure you get the right hot water system size is key to having enough hot water without wasting energy. The best size depends on your household size, daily water use, and when you use the most hot water.
For example, the Rheem 491 Series offers a wide range of sizes, from 25L to 400L, so there’s an option for every home. If you’ve got a family of three to four, a medium-sized tank (around 300L) is usually a good fit. To be sure, check your peak hour demand—how much hot water your household uses in the busiest hour of the day.
If you’re looking at continuous flow systems, the size depends on flow rate and temperature rise rather than storage. If your home has low-flow taps and showerheads, you can get away with a smaller system, saving even more energy.
Picking the right size means you’ll always have enough hot water while keeping energy costs under control. Find out what size hot water system you need to ensure you make the right choice.
Evaluating Installation and Maintenance Costs
When buying an electric hot water system, don’t just think about the upfront cost—factor in installation and maintenance costs, too.
Prices for electric systems usually range from $500 to $1,200, with brands like Dux offering easy installation through major retailers. But that’s just the start—you’ll also need to consider running costs. Depending on your system, your annual energy bill could be anywhere from $700 to $925, though using off-peak electricity can help bring those costs down.
Maintenance matters too. Systems like Dux Proflo come with a 7-year warranty, but some users have reported issues once the warranty runs out. Keeping up with regular servicing helps your system last longer and stay efficient.
Looking at both short-term and long-term costs will help you pick a system that’s affordable now and cost-effective in the future. You can also see how much a hot water system costs to help you budget for your new system.
Maximising Rebates and Incentives
Did you know you might be able to get government incentives to help cover the cost of a new hot water system? These rebates can make energy-efficient systems much more affordable, and they’re worth checking out before you buy.
For example, in New South Wales, the Energy Savings Scheme offers incentives for upgrading to more efficient models. Other states have similar programs, with rebates designed to encourage environmentally friendly choices. The Sustainability Victoria website is a great place to start if you’re looking for state-specific incentives.
To get the most out of these programs, it’s a good idea to check if your chosen system meets the eligibility criteria. Some rebates apply only to certain models, so doing a little research can mean bigger savings.
By taking advantage of these offers, you’ll cut down your upfront costs and enjoy lower energy bills in the long run.
Summary
Picking the right electric hot water system isn’t just about choosing a well-known brand—it’s about finding one that suits your home, budget, and energy needs.
If you’re after top energy efficiency, the Reclaim Heat Pump Hot Water System is a great choice and can help you save money on power bills. Want something more eco-friendly? The Apricus Heat Pump Hot Water System is designed with sustainability in mind.
For those who want a system they can count on, the Rheem Electric Hot Water System is known for its reliability. And if you’re looking for an affordable yet solid option, the Dux Electric Hot Water System gives great value for money.
Some households prefer instantaneous systems like continuous flow hot water systems, which heat water only when needed, rather than storing it in a tank. These systems use a heat exchanger to warm the water quickly as it flows through, reducing energy waste.
By understanding energy efficiency ratings, choosing the right size, and factoring in installation and maintenance costs, you can make a smart choice. Don’t forget to check for government rebates and incentives, which can help lower your upfront costs. Take your time, choose wisely, and enjoy reliable hot water for years.
If you’re unsure which system is best for your home or need help with installation, a professional hot water plumber in Melbourne at MGR Plumbing can guide you through the process.
Frequently Asked Questions
What are the most important factors to consider when choosing an electric hot water system?
Think about how much hot water your household needs, how energy-efficient the system is, where it will be installed, and how much it will cost to run and maintain. These factors will help you pick the right system for your home. The following criteria will guide your decision: energy efficiency, capacity, and long-term costs.
How do energy efficiency ratings impact my choice of hot water system?
The higher the energy efficiency rating, the less electricity your system uses. This means lower power bills and a smaller impact on the environment—so it’s worth paying attention to!
How do I size my hot water system correctly?
Look at how much hot water your household uses during peak times. Count the number of taps, showers, and appliances using hot water at the same time. This will help you find the right-sized system so you never run out of hot water. If you need more details, check with your supplier for expert advice.
How much does it cost to install and maintain an electric hot water system?
Installation usually costs between $500 and $1,200, while running costs can range from $700 to $925 per year. Regular maintenance helps keep your system running smoothly and can prevent expensive repairs down the track.
How can I maximise rebates and incentives for my new hot water system?
Check out government rebates and energy-saving programs in your state. Many offer discounts or cashback when you switch to an energy-efficient hot water system. Approved suppliers can also help you find the best deals.
