Choosing a hot water system isn’t just about picking the cheapest option upfront — it’s about finding the right balance between cost-efficiency, water usage habits, available space, and energy source preferences.
Two of the most common types in Australian homes are continuous flow (also known as tankless) and storage hot water systems. Here’s how to work out which one is best for your home.
What’s the Difference?
Storage hot water systems heat and store water in a tank, ready for use. Once the tank empties, you’ll need to wait for it to refill and reheat.
Continuous flow systems heat water on demand as you need it, meaning there’s no storage tank and no running out of hot water — ever.
When Storage Hot Water Systems Make Sense
A storage system may suit your home if:
- You have multiple users needing hot water at once (e.g. two showers running).
- You’ve got room for a tank outside or inside.
- You’re on off-peak electricity tariffs, which can help reduce running costs.
- You want a lower installation cost upfront.
Storage systems can run on gas, electricity or solar and are ideal for larger households with predictable usage patterns.
Learn more about hot water system installation and how we can help with storage or continuous flow options.
When Continuous Flow Is the Better Option
A continuous flow system may be the right fit if:
- You want instant hot water anytime, without running out.
- You have limited space for a bulky water tank.
- You’re after energy efficiency — it only heats what you use.
- You want a compact, modern solution with fewer heat losses.
These units are wall-mounted, reliable, and ideal for homes with moderate but regular hot water needs.
Don’t Forget the Energy Source
Your decision might also depend on what’s available and most cost-effective:
- Electric storage is cheaper to install but more expensive to run.
- Gas continuous flow is efficient and popular in urban areas with natural gas supply.
- Solar hot water systems (usually storage-based) are eco-friendly and economical over time, though they do require a higher initial investment.
Wall-mounted, reliable, and ideal for homes with moderate but regular hot water needs.
Get Expert Advice from Hogan Hot Water & Air
Still not sure what’s best for your home? Our local team can inspect your current system, assess your household needs, and recommend the most suitable hot water solution — whether you prefer the reliability of storage or the efficiency of continuous flow.
We supply, install and service all major brands across Newcastle, the Central Coast and the Hunter region, and back our work with decades of experience.
Talk to our team today for personalised advice or request a free quote.