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Gas vs electric hot water in Adelaide: which makes sense in 2026?

The answer used to be obvious: gas. With heat pump efficiency and rooftop solar, it's not obvious anymore. Here's the 10-year run-cost comparison.

Published 8 Feb 2026Updated 8 May 20263 min readBy Founder

For Adelaide households in 2026, heat pump electric hot water paired with rooftop solar is now the lowest-running-cost option, typically 60-70% cheaper to run than gas storage when most heating happens during daytime solar hours. For households without solar, gas continuous-flow (instantaneous) remains competitive on running cost but loses on long-term capital — federal and state incentives heavily favour heat pump electric.

Running cost — 10 year window

For an average 2-3 person Adelaide household using ~150L hot water per day, the 10-year running cost ranking in 2026 is:

  1. 01Heat pump + solar: lowest running cost — most heating during daytime PV generation
  2. 02Heat pump grid-only: next — coefficient of performance (COP) of 3-4 means 3-4 units of heat per unit of electricity
  3. 03Gas continuous-flow: middle — efficient, predictable
  4. 04Gas storage: higher than continuous flow due to standing losses
  5. 05Electric storage off-peak: similar to gas storage in cost, simpler to install
  6. 06Electric storage continuous: highest — virtually never the right install in 2026

Capital cost

Heat pump electric units have higher upfront capital than gas storage but Australian and SA government rebates (Small-scale Technology Certificates and the SA Hot Water Rebate program where applicable) typically offset 30-50% of the unit cost. Net capital is comparable or favourable to gas continuous-flow installation for most households.

Practical considerations

  • Heat pump units need outdoor placement with airflow and condensate drainage — most Adelaide homes have suitable space
  • Heat pump units make a fan/compressor noise (typically 40-50 dB at 1m) — placement near bedroom windows is poor
  • Gas continuous-flow needs a connected gas line — switching from electric to gas adds significant capital cost
  • Switching from gas to heat pump is the most common upgrade path in Adelaide right now
  • Heat pump units have a larger physical footprint than equivalent-capacity gas storage

Which household profile fits which type?

Heat pump electric (with solar)

Best for: owner-occupied homes with rooftop solar, families of 2-5 people, suburbs with reliable grid connection, customers planning to stay 5+ years to capture the running cost payback.

Gas continuous-flow

Best for: homes already on natural gas, larger households (5+ people), heritage homes where outdoor heat pump placement is constrained, properties without solar where heat pump electric capital is harder to justify.

Gas storage

Best for: like-for-like replacement only when capital is constrained and the existing gas connection is in place. Increasingly rare new install in 2026 — continuous-flow has overtaken it on most metrics.

Frequently asked

Quick answers.

Heat pump installation cost includes the unit (typically $3,000-5,000), plumbing connection, electrical connection, condensate drainage, and Certificate of Compliance lodgement. Federal and state rebates often offset 30-50% of the unit cost. Briks quotes line-by-line including rebate paperwork.

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