Technician demonstrating how hot water systems work during installation

How Hot Water Systems Work (And How to Choose the Right One)

There’s nothing better than a warm shower, until the hot water runs out.

Whether your system is showing its age or you’re planning a new installation, understanding how hot water systems work can help you make confident, cost‑effective decisions for your home.

At Assure Fix Plumbing, we’ve spent over 30 years helping Brisbane and Ipswich locals find the right hot water solutions. 

Our local plumbing experts cover everything from hot water to drainage, giving you assurance from the start. 

This guide breaks down how these systems operate and walks you through choosing the right hot water system.

How Do Hot Water Systems Actually Work?

Hot water systems are designed to heat and deliver water for your everyday needs, showers, washing, dishes. 

Though different models use different methods, they all aim to deliver reliable hot water.

Here’s a simple breakdown:

  • Storage (tank) systems: water is heated and held in an insulated tank, ready for use. 
  • Continuous flow (instantaneous) systems: water is heated as it flows, with no stored tank and in theory unlimited hot supply. 
  • Energy sources include electricity, natural gas, solar heating, and heat pumps.


Each type has advantages depending on your home’s layout, fuel connections, and usage habits.

Which Type of Hot Water System Suits Your Home?

Below is a look at the common options and when they suitable:

1. Electric Hot Water Systems

Electric systems heat water inside a tank using a simple electric element. They’re cost-effective upfront and ideal for smaller households.

Advantage of using Electric Hot Water System:

  • Affordable installation
  • Easy to replace or upgrade
  • Great for homes without gas access

Best suited for homes on off-peak power plans to reduce running costs.

Assure Fix Plumbing can supply and install electric systems tailored to your household needs, ensuring fast setup and energy-efficient operation.

2. Gas Hot Water Systems

These systems use natural gas or LPG to heat water quickly and are ideal for homes with high water usage.

Advantage of using Gas Hot Water System:

  • Heats water fast
  • Works during power outages
  • Good for larger households with an existing gas supply

3. Solar Hot Water Systems

Using roof-mounted solar panels, these systems absorb energy from the sun to heat water, with an electric or gas booster for cloudy days.

Advantage of using Solar Hot Water System:

  • Very low running costs
  • Great for sunny areas like Ipswich
  • Environmentally friendly choice

Ideal for homeowners looking for long-term savings and sustainability.

At Assure Fix Plumbing, we can help you navigate rebates and install the right solar setup to maximise performance in Queensland’s climate.

4. Heat Pump Systems

Heat pumps extract heat from the air to warm water. They’re one of the most energy-efficient systems available today.

Advantage of using Heat Pump System:

  • Low running costs
  • Energy-smart solution
  • Works well in warm climates

Perfect for eco-conscious households with moderate water needs.

Our team will recommend and install a heat pump system that matches your energy goals and home layout.

Want to know how we can help with your hot water system? Learn more about our hot water repair and installation services.

How to Choose the Right Hot Water System for Your Home?

Choosing the right hot water system isn’t just about picking the most popular brand, it’s about finding the perfect fit for your home, lifestyle, and budget. 

Here’s what to consider when choosing a hot water system:

  • Household Size & Usage 
    • More people means more hot water demand. 
    • Large families may need storage or high-capacity systems. 

  1. Available Energy & Infrastructure 
    • Do you already have a gas line? 
    • Is your roof suitable for solar panels? 

  2. Budget vs Long-Term Savings 
    • Initial costs vs lifetime energy savings. 
    • Incentives may reduce upfront expense. 

  3. Type of Property 
    • Detached house, apartment, or rental property can limit options. 

  4. Space for Equipment 
    • Tanks, collectors, or heat pump units require physical room. 

  5. Upgrade vs Replacement 
    • Upgrading an existing system may be easier than switching fuel types. 

Want to Save on Energy Bills? Here’s How Your Choice Matters

The hot water accounts for about a quarter of household energy use in Australia. Because of this, choosing energy efficient hot water systems can make a real financial difference.

System TypeEnergy EfficiencyEstimated Running CostTypical Lifespan
Electric StorageLowHigh10–15 years
Gas StorageMediumMedium10–12 years
Gas Continuous (Instantaneous)Medium–HighMedium15+ years
Solar + BoosterHighLow15–20 years
Heat PumpVery HighVery Low10–15 years

Electric storage systems are required by regulation to meet minimum performance standards in Australia. Meanwhile, solar and heat pump systems are eligible under the Small-scale Renewable Energy Scheme (SRES).

If you are comparing replacement costs, check out our hot water system replacement services for typical solutions.

Why Locals Trust Assure Fix Plumbing for Hot Water Solutions

We understand that choosing the right hot water system can feel like a big decision. That’s where our team steps in.

With Assure Fix Plumbing you’ll get:

  • Clear, practical guidance to match your home’s needs 
  • Local experience, we understand Brisbane West, Ipswich, and Greater Springfield conditions 
  • Fully licensed and insured plumbers 
  • Transparent pricing so you know all costs up front 
  • Rapid same-day support and reliable aftercare 

We handle everything from installation, regular servicing, repairs, or to full replacements. For details on our ongoing support, see our hot water systems services.

Ready to Get the Right Hot Water System for Your Home?

Hot water should feel simple, warm, dependable, and efficient. Whether you’re replacing an old unit or installing a system from scratch, knowing how hot water systems work enables you to make informed choices.

If you’re ready to move forward but still unsure which system is right for you, reach out to our hot water experts. We’ll walk through your options, propose what fits best for your home, and take care of the rest.

Contact Assure Fix Plumbing today for reliable plumbing solutions.

FAQ: Hot Water Systems Explained

How does a continuous flow hot water system work?

It heats water instantly as it flows through the unit, there’s no storage tank. This means you won’t run out of hot water, and the system uses energy only when needed.

The right size depends on your household’s water usage, number of occupants, and daily routines. Choosing incorrectly can lead to running out of hot water or wasting energy. Our experienced team will assess your needs and recommend a system that fits your lifestyle and property perfectly.

Yes, especially in sunny areas like Ipswich. While they cost more upfront, solar systems can save you money on energy bills over time and are better for the environment. . At Assure Fix Plumbing, we’ll help you decide if solar is the right fit for your home and handle the installation with expert care.

  • Electric: lower upfront cost, but higher operational cost

  • Gas: quick heating, better for large households

  • Solar/heat pump: higher initial cost, very low running cost

Lifespan depends on the type of system, usage, and how well it’s maintained. Regular servicing can help prevent issues and keep your system running efficiently for longer. Our team can help you get the most out of your current system.

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