Heat Pumps vs Storage Hot Water

What’s Best for Perth Homes?

If your storage hot water system is on its last legs, you’re probably hearing a lot about heat pump hot water as the “next step up”. But is it really worth the extra upfront cost, or should you stick with a standard storage tank?
Let’s break it down in simple terms, from a Perth homeowner’s point of view.
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What We’ll Cover in This Article

How Each Hot Water System Works

Quick, plain‑English breakdown of how heat pump, electric storage, and gas storage systems actually heat your water, so you know what you’re buying (without needing an engineering degree).

Costs, Efficiency & Practical Considerations

We’ll compare running costs in Perth, typical upfront costs, and how each option handles things like efficiency, climate, noise, space, and installation – including how they pair with solar and gas.

Which System Is Best for Your Home

Simple guidance on when to choose heat pump, electric storage, or gas storage based on your household size, energy setup (solar/gas), budget, and how long you’ll stay in the home – plus how Sarros can help you decide and install.

Heat Pump Hot Water Systems

How do heat pumps work?

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How Heat Pumps Work

A heat pump works like a reverse fridge – it pulls heat from the outside air and transfers it into the water using a refrigerant and compressor. Instead of creating heat from electricity, it moves existing heat, which is why it’s so efficient. They have a back up element that kick in if not enough heat can be generated by the outside air.
See Our Range Of Heat Pumps

Running costs & efficiency of Heat Pumps

Heat pumps can use 60–75% less electricity than a standard electric storage system. 
Heat pumps are a great option when gas is not available to the property.
In many Perth homes, they’re the cheapest system to run, especially for medium to large families or homes with solar PV.

When Heat Pumps are best suited?

Heat pumps are ideal for the following Perth Homes.
  • Properties where there is no gas available 
  • Homes with 3-6+ people.
  • Properties that have solar panels. 
  • Properties that would like to reduce carbon emissions and save on power bills

Things to keep in mind

Here are some factors to keep in mind before purchasing a Heat Pump.
  • They typically have a higher upfront cost than other storage systems. If you are planning on staying in the house, this is not a problem.
  • Most heat pumps require clearances so they will not be suitable for indoor use.

Electric Storage Hot Water Systems 

How do Electric Storage Units work?

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How Electric Storage Units Work

Electric storage systems are basically a big insulated electric kettle. A heating element inside the tank warms the water, and a thermostat turns the element on and off to keep the water at the set temperature.
They typically have 3.6kW (15A) element to heat the tank.
See Our Range Of Electric Storage Units

Running costs & efficiency of Electric Storage Units

Electric Storage Hot Water Systems are usually the most expensive option when it comes to operating costs.
The run costs will be cheaper if the tank heats up off-peak. However, Heat Pumps will still be more efficient.

When Electric Storage Units are best suited?

Electric Storage Units are ideal for the following Perth Homes.
  • Properties such as units, where the existing hot water system is inside
  • Smaller households which will not constantly be draining the tank
  • When upfront cost needs to be considered

Things to keep in mind

Here are some factors to keep in mind before purchasing a Electric Storage Hot Water System
  • Lowest upfront cost, very simple and reliable, and usually very quiet. But if you have a bigger family or high usage, the long‑term running costs can add up compared to a heat pump or efficient gas option.
  • Power supply - The 3.6kW element in the unit draws 15A. This will require a dedicated circuit

Gas Storage Hot Water Systems 

How do Gas Storage Units work?

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How Gas Storage Units Work

Gas storage systems use a gas burner under the tank to heat the water. A thermostat controls the burner, turning it on and off to keep the tank at temperature, ready for use.
See Our Range Of Gas Storage Units

Running costs & efficiency of Gas Storage Units

The run costs are usually cheaper than electric storage. They still have standby losses because they keep a tank of water hot 24/7, so they’re not as efficient as gas instantaneous  or heat pumps.


When Gas Storage Units are best suited?

Gas Storage Units are ideal for the following Perth Homes.
  • Properties that already have natural gas
  • Households that prefer gas but aren't ready to move to a  continuous flow or heat pump yet.
  • Properties that constantly have long periods without power. Unlike other units, gas storage units do not require power to operate.

Things to keep in mind

Here are some factors to keep in mind before purchasing a Gas Storage Hot Water System
  • Your Household will require natural gas or LPG bottles.
  • Clearances- Not suitable for indoor use
  • Solid middle‑ground option, but not the top performer for efficiency compared to heat pumps or modern gas continuous flow systems.

So… Which Hot Water System Is Best for Your Perth Home?

Overall Winner - Heat Pumps

Electric Storage

Gas Storage

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Heat Pump Hot Water Systems
Best Overall Choice for Most Perth Homes

If you’re thinking about bills, efficiency and the future, a heat pump is usually the smart, long‑term choice for Perth.
Shop Heat Pumps
Best for Tight Budgets and Quick Replacements

Electric storage is the budget‑friendly, no‑fuss option when you need something simple and affordable right now.
Best for Existing Gas Homes That Aren’t Ready for a Heat Pump


Gas storage is a solid middle‑ground for gas‑connected homes that want reasonable running costs but aren’t ready to move to heat pump or gas continuous flow.