The Four Types of Hot Water Systems
Electric storage: Heat water with an electric element and store it in an insulated tank. Most common and simplest to install. Most expensive to run on standard tariffs. Suitable for all locations.
Gas instantaneous: Heat water on demand. Efficient (no standby heat loss), unlimited supply. Requires a gas connection. Best option for most Parkes homes with town gas.
Solar hot water: Solar collectors on the roof heat water, with electric or gas booster. Lowest running cost. Highest upfront cost. Government rebates available. Requires suitable north-facing roof space.
Heat pump: Uses refrigerant technology (like a reverse-cycle air conditioner) to heat water very efficiently. 3–4× more efficient than electric storage. Government rebates available. Performs best in ambient temperatures above 5°C — Parkes's cold winters require consideration.