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Electric vs gas: what's best for your home?

The choices you make when building or renovating a home​ may affect both your lifestyle and your energy bills.​ Let’s look at the difference between gas and electric for hot water and cooking. ​

If you’re building a new home or getting stuck into some renovations, you have a lot of decisions ahead of you.

Classic colour schemes, family-proof flooring, budget breakdowns… and the right energy choices to meet your family’s needs. Your choices – including deciding between gas or electric for your hot water and cooking – will affect your energy bills, lifestyle, and the environment. So, we’ve broken down the pros and cons for you.

Don’t land yourself in hot water

When it comes to water heating, being cost-effective is key; hot water systems are the largest source of greenhouse gas emissions from the average Australian home, accounting for up to 25% of energy usage.

Before looking at your usage (the AGL app can help with this) and picking a suitable solution, there are a few factors to consider before making any changes.

Electric hot water systems

STandard electric hot water systems typically have a lower set-up cost and are more reliable in delivering hot water on demand. Heat pump hot water systems are highly energy efficient but can be a more significant investment, but you'll likely see savings in the long run.

The downsides:

  • conventional electric systems are generally the most expensive system types to run and produce more greenhouse gases than other systems
  • if the power goes off you may be without hot water, depending on whether you have a storage or instantaneous system.
  • heat pumps help you save on running costs, but the upfront cost is more. They also need more space to install

Solar hot water systems

Looking for a more environmentally friendly option? You might want to consider rooftop solar – the panels heat water using the power of the sun and keep it warm in an insulated storage tank for you to tap into as needed. Solar can help to reduce energy bills, typically providing up to 90% of your hot water needs.

The upfront costs associated with solar hot water systems are higher than other types, but you’re investing in better long-term cost efficiency. If you’re keen on solar (and depending on your climate), it’s a good idea to have a gas backup to ensure your water stays toasty on days when the sun isn’t shining.

Mother photographing playful father holding son in empty new house

What’s cooking?

Whether you’re a whiz in the kitchen or it’s always a chore, you want your appliances to be easy to use and energy efficient.

It’s a matter of opinion, but those who love to cook often prefer gas. You can change the temperature instantly with gas, while electric systems take a little longer to respond. 

Induction cooktops are gaining popularity for those who want to electrify their homes. They are faster to heat and up the three times more efficient than gas, transferring the heat directly to the pot rather than heating surrounding surfaces. 

When choosing between gas, electric and induction, it's important to weigh up investing now to save in the long run or opting for a cheaper setup with higher running costs over time.

View AGL energy plans.

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