Are Hot Water Storage Tank Systems still Worth It?

Storage hot water systems remain a reliable and practical option for many Wollongong homes, especially for larger households or properties with existing electric or gas infrastructure.
While newer technologies like heat pumps and continuous flow units offer higher efficiency, storage tanks still perform well when correctly sized, maintained, and used with off-peak electricity or natural gas. Choosing the right system depends on your energy setup, space, and daily water use.
The answer depends on your household, your water habits, and your energy setup.

What Is a Storage Tank Hot Water System?

A storage hot water system heats water inside a cylinder and stores it at a set temperature. When you turn on the tap, hot water flows straight from the tank. Once the water level drops, the tank refills and reheats.

Tanks come in a wide range of sizes from 50 litres for small units to 400 litres or more for large families or businesses.

Why Storage Tanks Still Make Sense

• They’re simple. No complicated sensors or electronics.
• They work reliably. Great if your home has consistent water demand.
• They can be installed almost anywhere. Indoors or outdoors, vertical or squat formats.
• They’re easy to maintain. Most parts are inexpensive and widely available.

In many Wollongong homes, especially those with older plumbing layouts or larger households, storage tanks still offer a dependable and cost-effective solution.

Gas vs Electric Storage Tanks: Which Is Better?

Electric Storage Systems
These are straightforward to install and suit homes with stable electricity supply. They’re often run on off-peak tariffs to save on power bills. Great for smaller households or properties without gas.

Gas Storage Systems
These reheat water faster and are more efficient in high-demand households. If your home already has natural gas, a gas tank can be a smart long-term solution.

Not sure which is right for you?
Our electric and gas hot water pages explain both options in more detail.

Common Problems With Older Storage Systems

• Running out of hot water before everyone has showered
• Higher power or gas bills due to poor insulation
• Leaks or rust around the base of the tank
• Slow recovery time between uses
• Odd sounds like popping or hissing during heating

If any of these sound familiar, it might be time for a replacement or at least a check-up.

Should You Replace or Switch to a New System?

If your current tank is:

• Over 10 years old
• Showing signs of wear or inefficiency
• Struggling to meet your household needs

Then yes it’s time to consider an upgrade.
That could mean a new storage tank with better insulation, or a shift to something like an instantaneous or heat pump system.

We’ll help you make the right call based on your home’s energy access, space, and water usage.

Final Thoughts

Storage tank systems still have a place, especially for larger homes or setups without the infrastructure for newer technologies. They’re simple, affordable, and effective when correctly sized and maintained.

But they’re not one-size-fits-all anymore. With more efficient and flexible options available, it’s worth talking to a licensed plumber who can assess your needs and recommend what will truly serve your household best.

Need help choosing or replacing your hot water system? Talk to our team today.

Frequently Asked Questions: Gas vs Electric Hot Water Systems

Which is cheaper to run, gas or electric hot water?

In most cases, gas hot water systems are cheaper to run, especially if your home is already connected to natural gas. However, electric systems on off-peak tariffs or paired with solar power can offer competitive running costs. The most cost-effective option depends on your usage patterns and energy rates.

Which heats water faster: gas or electric?

Gas systems generally heat water faster than electric. This makes them ideal for larger households or homes with high-demand appliances. Electric systems have slower recovery times, but modern units are improving in efficiency.

Is gas hot water better for large families?

Yes. Gas storage or instantaneous systems are better suited to large households where multiple people may need hot water at once. They reheat faster and can handle higher usage without running out as quickly.

Can I install a gas hot water system if I don’t have gas connected?

You can, but you’ll need to use LPG (bottled gas) instead of mains natural gas. This is common in rural or semi-urban parts of the Illawarra. Keep in mind, LPG costs can be higher and deliveries need to be managed.

Are electric hot water systems still a good option?

Absolutely. Electric systems are simple, affordable, and widely available. They’re ideal for smaller homes, apartments, or properties without gas. When used with solar PV or off-peak rates, they can be very efficient.

Do gas or electric systems last longer?

Both systems have similar life expectancies—typically 8 to 15 years, depending on brand, usage, and water quality. Regular maintenance is key. Anodes, valves, and thermostats should be checked every few years.

Which is better for the environment?

Electric systems paired with solar power or heat pumps have the lowest carbon footprint. Gas is cleaner than coal-generated electricity but still emits carbon. If sustainability is a priority, modern electric options or solar-assisted systems are recommended.

Hot Water Plumbers Wollongong