If you’ve been side-eyeing your energy bills lately, you’re not alone. With electricity prices rising (again) and gas prices showing no signs of slowing, plenty of Aussie households are starting to ask the big question:

Is Gas Still the Cheapest Way to Heat Water?

Spoiler: Not really.

In 2025, electric heat pump systems are rapidly becoming the smarter, more cost-effective, and more sustainable option — especially when paired with rooftop solar and a home battery.

Let’s break it down.

What’s the Difference Between a Heat Pump and a Gas System?

When it comes to hot water heat pumps vs gas systems — how do they actually work?

• Gas hot water systems burn natural gas to heat your water. They’re fast, familiar, and have been the go-to in Aussie homes for decades.
• Heat pump systems use electricity to extract heat from the air (kind of like a reverse fridge) and use that to warm your water. They’re incredibly energy-efficient — especially when powered by your solar system.

So both give you hot showers. However, one burns fossil fuel, while the other is designed to work with a renewable future.

 

Bottom line? Over time, heat pumps win. Even if you’re on the grid, they’re cheaper to run than gas. And if you’re on solar — they’re a no-brainer.

 

Let’s Talk Costs: What’s Cheaper to Run in 2025?

Here’s where things start to stack up:

Heat Pumps (powered by solar):

• Use far less electricity than traditional electric water heaters
• It can be free to run if powered by rooftop solar
• Eligible for rebates in many states
• Long-term energy savings (even more with a home battery)

Gas Hot Water:

• Priced based on gas rates (which are climbing)
• Lock you into gas bills, even if you go solar elsewhere
• It may be cheaper upfront — but more expensive in the long run
• Not eligible for as many electrification incentives

Bottom line? Over time, heat pumps win. Even if you’re on the grid, they’re cheaper to run than gas. And if you’re on solar — they’re a no-brainer.

 

 

Rebates Can Tip the Scales Even More

Depending on where you live, you might be eligible for state and federal rebates when you install a heat pump hot water system. Some programs even cover thousands of dollars, making the upgrade surprisingly affordable.

Here’s the best part — you don’t need to go searching through government websites to figure it out. The team at Solar Battery Group can help you determine exactly what’s available in your area and assist with the paperwork as well.

 

 

Future-Proofing Your Home (and Your Bills)

Gas might’ve made sense 10 or 15 years ago — but in 2025? The landscape’s changed.

Electrification is no longer just a buzzword. It’s a shift towards more control, lower bills, and cleaner living.

 

Switching to a hot water heat pump might be one of the easiest and most impactful steps you can take toward electrifying your home.

 

Heat pumps are part of that future. When powered by solar (and especially with a battery), they help you:

• Use more of your own energy
• Avoid peak-time costs
• Cut ties with rising gas prices
• Reduce your emissions without reducing comfort

And in the event of a blackout? Your battery keeps things running while your neighbours are boiling kettles on camp stoves.

 

 

Ready to Ditch the Gas Bill?

Switching to a hot water heat pump might be one of the easiest and most impactful steps you can take toward electrifying your home.

Whether you’re upgrading an old system or building from scratch, our team can walk you through everything — from product selection to installation to maximising your rebates.

Because a cheaper, cleaner future doesn’t need to be complicated.

Let’s make 2025 the year you stop heating water with gas.

Request a call-back from Solar Battery Group today and find out how much you could save.