Many Australian homes used gas for hot water and heating for decades. Gas was reliable and looked cheap on the bill. But things are changing.
Electricity prices have changed, new tech is cheaper, and people want to cut emissions. Heat pumps and solar plus batteries now give better long-term savings for many households.
They are cleaner and often cheaper over time. That is why lots of Australians are switching from gas to electric options.
In this blog, we will check how Gas vs Electric Heat Pump vs Solar + Battery: Which Saves You the Most?
In this blog post:
Gas, Electric Heat Pump & Solar + Battery: Overview
These systems differ in how they generate heat, their efficiency, upfront cost, and long-term running expenses. Understanding the basics helps when choosing the right setup for your home.
Gas Systems
Gas heaters and gas hot water use natural gas to heat water or air. They burn gas directly to make heat.
AdvantagesFast heating and simple tech. Many homes already have gas lines.
DownsidesGas prices can rise. Burning gas makes carbon emissions. Gas systems need regular checks and service.
Electric Heat Pumps
Heat pumps move heat from the air or ground into your home or water tank. They use electricity but are much more efficient than direct electric heating.
AdvantagesVery efficient, often 4 to 5 times more efficient than gas or electric resistance heaters. Lower running costs in many cases. Reduce carbon emissions when paired with clean electricity.
DownsidesHigher upfront cost than some gas systems. Performance can drop in very cold weather, though modern units are good even in cool climates.
Solar and Battery
Solar panels make electricity from the sun. A battery stores extra solar power for use at night or on cloudy days. You can run heating, appliances and hot water from solar energy.
AdvantagesCut your grid electricity use and save on bills. Batteries give backup power and more control over energy use. Great long-term savings as solar costs have fallen.
DownsidesHigher initial cost for panels and battery. Battery capacity limits how much you can store. Savings depend on how much sun you get and your household use.
Cost Comparison: Installation, Running Costs, Maintenance
Costs differ depending on the type of system, how much energy you use, and maintenance needs.
Installation Costs (Typical)
Gas: Usually moderate if you already have a gas connection. New gas lines or meters add cost.
Electric Heat Pump: Higher than a simple gas replacement. Heat pump hot water systems and heating units cost more to buy and install, but prices are falling.
Solar + Battery: Highest upfront cost for a full system with a battery. You can start with solar only and add a battery later to spread the cost.
Running Costs (What You Pay Monthly)
Gas: Costs depend on gas prices and how much you use. For hot water, some gas systems can be cheap if gas is low cost, but this can change.
Heat Pump: Uses electricity but is efficient. For hot water, heat pumps can cut energy use by up to 80% compared to electric resistance and often beat gas on cost per litre of hot water.
Solar + Battery: If your solar covers most of your daytime use, your bills drop a lot. Batteries help reduce grid use at night. With the right system and usage, you can lower or even near-zero your power bills.
Maintenance and Lifespan
Gas: Needs annual checks for safety and leaks. Gas hot water systems are not so common and not widely adopted. It is expensive and complex and need more maintenance.
Heat Pump: Less risk of leaks. Outdoor units may need cleaning and an occasional service. Lifespan is commonly 5–10 years, depending on use and model.
Solar + Battery: Solar panels need little maintenance. Inverters and batteries may need replacement after 6–9 years, depending on type and use.
Environmental Impact & Carbon Savings
If reducing your household carbon footprint matters, it helps to understand how gas, heat pumps, and solar systems compare.
GasBurning gas releases carbon dioxide and other pollutants. For households focused on reducing emissions, gas is not the best option. Switching to gas lowers your home’s carbon footprint.
Electric Heat PumpHeat pumps use less energy to produce the same heat. When the electricity comes from renewable sources, heat pumps have much lower emissions than gas.
Even on the standard grid, heat pumps usually emit less carbon dioxide per unit of heat than gas furnaces do, thanks to their high efficiency.
Solar + BatterySolar generation produces no emissions while operating. Batteries let you use more solar energy instead of buying grid power.
Combined, solar and battery systems can dramatically cut household emissions. If you use solar to power a heat pump, the result is a very low-emission heating solution.
Typical Household in Melbourne
Household Profile:
- Family of four in a three-bedroom house.
- Uses hot water, ducted heating in winter, and normal daytime appliances.
- Has a north-facing roof with good sun exposure.
Scenario 1: Gas Hot Water
Costs: Moderate installation if already plumbed for gas. Running costs depend on gas tariffs.
Carbon: Higher emissions due to burning gas.
Notes: Works well in the short term if gas tariffs are low, but bills and carbon are likely higher over time.
Scenario 2: Electric Heat Pump
Costs: Higher installation costs for a full heat pump system. Running costs are usually lower because heat pumps are efficient.
Carbon: Lower emissions, especially if the household uses green electricity or a low-emission grid.
Notes: Heat pump water heaters can cut hot water energy use by 80%. For heating, modern split systems or ducted heat pumps efficiently keep homes warm.
Scenario 3: Solar + Battery + Heat Pump Hot Water System
Costs: The highest upfront cost for installing panels and a battery, plus the heat pump. Many households add solar first and a battery later to spread costs.
Running costs: Much lower. Solar supplies daytime needs, battery supplies nighttime needs, and the grid use is minimal.
Carbon: Lowest emissions. This combo gives strong savings and resilience in blackouts.
Which Option Fits Your Home?
Ask these questions first:
✔ Do you have a gas connection now?
✔ How much space and sun do you have for solar panels?
✔ Is your home well insulated?
✔ What is your budget for upgrades?
✔ Do you want lower bills now or over the long term?
Quick Guide
- If you want a lower upfront cost and already have gas, keeping gas might be easiest now, but it may cost more later and add emissions.
- If you want lower running costs and lower emissions without solar, an electric heat pump is a strong choice for hot water and heating.
- If you can afford a higher upfront cost and want the biggest long-term savings and lowest emissions, choose solar panels plus a battery and run a heat pump from solar power.
Which Saves You the Most?
Short-term savings: If you already have gas, staying with it may cost less up front. But this may change with fuel prices.
Medium-term savings: Electric heat pumps often win on running costs and emissions for hot water and heating.
Long-term savings and lowest emissions: For most homes, solar panels plus a battery paired with an electric hot water heat pump provide the biggest savings and lowest carbon footprint. The effect is greatest in sun-rich parts of Australia.
Upgrade to Cleaner, Smarter Home Energy with SLA
Smart Lifestyle Australia has helpful smart energy solutions that suit these choices. Our product range includes heat pump hot water systems and a selection of solar and battery solutions.
Visit our SLA for options that match your home size and budget. Some offerings to look for are hot water heat pump units and battery packages. These can make the switch away from gas easier and more cost-effective.
