Heat pump vs gas hot water in Perth
Updated October 2026
A gas storage system is cheaper to buy, typically around $2,300 installed in Perth against around $4,400 for a heat pump before the STC discount. A heat pump is usually cheaper to run, especially with rooftop solar, and gets you off gas if hot water is your last gas appliance. The right pick depends on your household and your power setup.
Side by side
| Heat pump | Gas storage | |
|---|---|---|
| Typical Perth installed price | ~$4,400 (~$3,775 after STC discount) | ~$2,300 |
| Runs on | Electricity, ideally your own solar | Mains gas |
| Running costs | Low, uses a fraction of a standard electric unit's power | Depends on gas prices and the supply charge |
| Space | Needs room to breathe outside | Needs gas line and ventilation clearances |
| Noise | Low hum while running | Quiet |
| Federal STC discount | Yes, on eligible models | No |
Prices are Perth metro supply-and-install figures from independent price guides, checked October 2026. Your exact price depends on your home and the unit, and we confirm it in writing after a site visit.
When a heat pump makes more sense
- You've got rooftop solar and can run the heat pump through the middle of the day
- Hot water is your last gas appliance and you want to drop the gas supply charge
- You're replacing an old electric tank anyway
- You'd like to cut your running costs over the long run
When gas might still suit
- You're keeping a gas cooktop or heater, so the supply charge stays either way
- There's no good outdoor spot with enough airflow for a heat pump
- You need the lowest upfront price right now
What about continuous flow gas?
Continuous flow gas heats water as it passes through, so it never runs out, and it takes up less space than a tank. It has a flow rate limit rather than a volume limit, so it suits households with staggered use. Typical Perth installed prices sit around $2,300.
Our honest take
None of these is better across the board. We hold both a plumbing and a gas fitting licence, so we install all of them and don't have a horse in the race. We'll look at how your household uses hot water and what's already connected, then recommend what fits.
Questions
Is a heat pump cheaper to run than gas?
Usually, yes, especially with rooftop solar running it during the day. If you keep other gas appliances, the gas supply charge stays either way.
Can you convert my gas hot water to a heat pump?
Yes. Our licensed gas fitters cap the gas line and our plumbers install the heat pump in the same visit.
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