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Do Storage Water Heaters Use More Electricity? Costs, Drawbacks & Smarter Alternatives

Do Storage Water Heaters Use More Electricity

Ever noticed your electricity bill climbing higher every month and wondered if your hot water system could be the reason? If you're still using a storage water heater, you’re not alone. Many Sydney homes rely on these traditional systems. But here’s the thing — they’re not exactly energy-efficient. So, do storage water heaters use more electricity? Spoiler alert: yes, and we’re about to show you why — and what smarter choices you’ve got. Let's break it all down with simple facts, helpful advice, and real solutions from Prima Plumbing, your trusted Sydney plumber.

If you’re looking for reliable storage water heater services in Sydney, Prima Plumbing offers professional installation, repairs, and replacements right here.

What Is a Storage Water Heater?

A storage water heater does exactly what the name suggests — it stores hot water in a tank, keeping it warm 24/7 until someone needs it. Inside the tank, either an electric or gas-powered element heats the water. The thermostat makes sure the water stays at a set temperature, usually between 60°C and 70°C.

Common Types of Storage Water Heaters

  1. Electric Storage Heaters: Powered solely by electricity and common in smaller households.
  2. Gas Storage Heaters: Use natural gas to heat water and are quicker than electric ones.
  3. Solar with Electric Boosters: Use solar energy with electric backup for cloudy days.

Do Storage Water Heaters Use More Electricity?

Standby Heat Loss Explained

Storage water heaters keep water hot all day and night, even when you’re not using it. This constant reheating is called standby heat loss. Think of it like a kettle that keeps reheating even if no one’s making tea — that energy gets wasted fast.

Energy Usage Compared to Instant Systems

Instant (continuous flow) systems only heat water when needed. No storing, no reheating — saving electricity and lowering costs.

Electric vs Gas Storage Heaters

Electric storage models typically use more electricity than gas models. Gas systems are a bit more efficient but still lose energy over time. Off-peak rates can help but don’t eliminate waste.

The Hidden Costs of Storage Water Heaters

Energy Bills Over Time

While the upfront cost may seem cheaper, storage heaters can cost hundreds more each year in power bills since they heat water continuously.

Maintenance and Repair Costs

Storage systems are prone to tank corrosion, thermostat issues, and element breakdowns. Over time, repairs add up.

Environmental Impact

Constant heating increases your carbon footprint, especially if powered by non-renewable electricity sources.

Drawbacks of Storage Water Heaters

Limited Hot Water Supply

Once the tank is empty, you must wait for it to refill and reheat — inconvenient for busy households.

Bulky Size and Space Usage

Storage units take up significant space, unlike compact continuous flow systems.

Longer Heat-Up Times

Running out of hot water means waiting 30 minutes to over an hour for reheating, depending on size and model.

Smarter Alternatives to Storage Water Heaters

Continuous Flow Hot Water Systems

These systems heat water only when needed, providing endless hot water while saving energy.

How They Save Electricity

No tank, no standby heating — reducing energy use by 20–40% compared to storage systems.

Why Sydney Homes Prefer These

Endless hot water, compact design, and lower running costs make them ideal for families and small businesses.

Explore our continuous flow hot water services at Prima Plumbing

Heat Pump Hot Water Systems

These use electricity differently — by extracting heat from the air — making them efficient even in cooler climates.

Solar Hot Water Heaters

Harnessing solar energy is a sustainable, cost-effective option with NSW rebates making it more affordable.

Cost Comparison: Storage vs Modern Systems

Installation Costs

Storage units cost less upfront, but modern systems may qualify for rebates or incentives.

Running Costs Per Year

  • Storage electric: $800–$1,200+
  • Continuous flow gas: $400–$700
  • Heat pump: $300–$600
  • Solar (with booster): $150–$400

Long-Term Savings

Switching can save $2,000–$4,000+ over 5–10 years in energy and maintenance costs.

Choosing the Right Water Heater for Your Home

Household Size and Water Use Habits

Bigger families need higher flow rates. Smaller households can choose compact systems — Prima Plumbing helps you assess the best fit.

Energy Efficiency Ratings

More stars mean lower bills. Modern heaters generally have better ratings.

Available Space and Budget

If space is tight, continuous flow is best. Solar and heat pumps are ideal for long-term savings if you’ve got room and budget.

Why Sydney Homeowners Are Making the Switch

Government Rebates and Incentives

NSW and federal rebates can cover up to 50% of costs for eligible efficient systems.

Eco-Conscious Living

More Sydney households are choosing to cut emissions and lower bills by upgrading their water heating systems.

Prima Plumbing’s Water Heater Services

Expert Advice on Choosing Systems

Need help choosing the right system? Prima Plumbing offers free consultations across Sydney.

Seamless Installation and Repairs

Our licensed plumbers install and repair all major brands — Rheem, Rinnai, Bosch, Dux and more.

Servicing All Sydney Suburbs

From Parramatta to Bondi, we deliver local expertise and reliable service.

Book your water heater service with Prima Plumbing today

Final Thoughts

Yes, storage water heaters use more electricity — the longer you rely on one, the more you’ll pay. The good news? You have options. From continuous flow to heat pumps and solar setups, there are smarter, cheaper, greener systems ready for your Sydney home. Reach out to Prima Plumbing and get your hot water sorted the right way.

Ready to cut down on electricity costs and get a more efficient system? Contact Prima Plumbing’s Storage Water Heater Sydney experts today and make the switch with confidence.

FAQ

What is the biggest disadvantage of using a storage water heater?

The biggest downside is energy loss from heat escaping the tank even when not in use. This standby heat loss means higher electricity bills.

Can switching to an instant water heater save electricity?

Yes. Instant or tankless heaters heat water only when needed, eliminating standby heating and saving on electricity costs.

How much electricity does a storage water heater actually use?

On average, an electric storage heater uses 3–5 kWh per day — adding up quickly in high-use homes.

Is it cheaper to leave a storage water heater on all the time?

No. Keeping it on continuously wastes energy. Using a timer or running it off-peak can help reduce unnecessary use.

Are there any energy-efficient storage water heater options?

Yes. Some models have better insulation and smart thermostats. Look for high energy-star ratings or solar-assisted systems for better efficiency.


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Victor Wong profile picture
Victor Wong
1 month ago
Prima were great, Dave and Liem were able to replace my hot water system in a timely manner.
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Liliane Badr
1 month ago
Amazing service and help! We had a problem with our water heater late at night and they helped us fix it over the phone and answered straight away!
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Danny Pavisic
1 month ago
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Jafar Yosufi
2 months ago
Loved the work
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Feyne Young
2 months ago
Absolutely amazing experience with these guys, quick work and fair price. Will definitely be coming back.
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Sue Rykers
2 months ago
Prima Plumbing was super quick to get back to me and organize the best time for me. Liam came and did an amazing job fixing my blocked sink. He was so cheerful and polite, and left my kitchen area so clean. I would definitely recommend these guys.
Claudia Pérez profile picture
Claudia Pérez
2 months ago
Liam attended the property promptly and professionally. Friendly service and accommodated my financial prom lema with a payment plan. Much appreciated.
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TN Nguyen
2 months ago
David from Prima Plumbing did an excellent job! He was professional, reliable, and went above and beyond to make sure everything was done properly. Even though it was already dark, he stayed and got the job done. David came back to check up and follow up afterwards to make sure everything was working well and that I was happy with the service. That level of care is hard to find. Highly recommend David and Prima Plumbing 👍
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Fadi Awkar
2 months ago
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Al Amin
2 months ago
Has done a prompt & good job & fix the issues.
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Nancy Sachdeva
2 months ago
I had an emergency plumbing issue when my shower drain became completely blocked and started overflowing. From the moment I called, the booking process was smooth, professional and incredibly helpful. David attended the property and was absolutely fantastic. I was quite stressed about the situation, but he was incredibly reassuring, took the time to explain everything clearly, and genuinely helped calm me down. He was understanding of my circumstances and worked with me to find a solution that was fair and affordable. I highly recommend David and the team. Outstanding customer service and excellent workmanship.
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Raj Rana
2 months ago
Excellent service! They responded quickly and cleared our blocked shower drain efficiently. Liam was professional, friendly, and explained everything clearly. The work was completed neatly, and the pricing was fair with no surprises. Our shower is now working perfectly. I highly recommend them for anyone needing fast and reliable plumbing services.
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james mallia
5 months ago
I was trying to unblock my drainpipes on a Sunday when David happened to drive past and turned back around to help me. It was incredibly kind and generous of him to stop and offer assistance on his day off. I would highly recommend this business, as I’m confident they genuinely care about their customers and won’t let you down.
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Marten Ataalla
5 months ago
David was fantastic to deal with from start to finish. He was polite, punctual, honest, and communicated clearly throughout the entire process. His workmanship was completed to a very high standard, and it was clear he takes pride in delivering quality results. We highly recommend David for anyone needing reliable plumbing services in Campbelltown. It’s refreshing to find someone so professional, trustworthy, and committed to doing the job properly.
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Fahim Hashem
6 months ago
Absolute professional – highly recommend David from Prima Plumbing I recently had David from Prima Plumbing out for a job, and I couldn’t be happier with the experience. From start to finish, his service was excellent. He was incredibly friendly and polite, making the whole process stress-free. Despite being so personable, he remained completely professional and clearly knows his trade inside out – a true expert. The work was done quickly without any shortcuts, and his communication was clear throughout, so I always knew what was happening and why. If you need a plumber who combines skill, speed, and great customer service, ask for David. 5 stars.
Alex S profile picture
Alex S
1 year ago
Highly recommend Prima Plumbing to everybody, Quick service, Quality work
Great service.
David is the best honest bloke..Did the job done in 5 five minutes. I RECOMMEND TO EVERYONE.
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Rose Ali
1 year ago
I recently had David come out to fix a hidden water leak, and I couldn’t be more impressed with his service. He was incredibly professional and polite, arrived right on time, and got the job done so quickly—which honestly made a huge difference to my stress levels! On top of that, he shared some really helpful tips and information to assist me with my Sydney Water bill. I’m so grateful for his expertise and kindness. Highly recommend!
Vivian Ko profile picture
Vivian Ko
1 year ago
David is excellent and professional in his plumbing work for my kitchen and bathroom. On time and reliable. Highly recommend.
Response from the owner
1 year ago
Thank you for your wonderful review, Vivian! We're thrilled to hear that David provided excellent and professional service in your kitchen and bathroom. Your recommendation means a lot to us, and we're glad you found him to be reliable and punctual. We appreciate your support and look forward to assisting you again in the future!
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Julie K
1 year ago
Really happy with David’s work ⭐⭐⭐⭐⭐ We’ll have him back soon for the other jobs in the laundry and backyard 👍
Response from the owner
1 year ago
Thank you for your kind words, Julie! We're thrilled to hear that you’re happy with David’s work. We look forward to assisting you with your laundry and backyard projects soon. Your support means a lot to us!
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Josh J
1 year ago
Had an emergency over the weekend with a burst hose underneath our bathroom tap. Water was gushing everywhere! Called David and he was able to attend as soon as possible. From the moment he arrived, David’s professionalism, reassurance and friendly approach not only made my family feel at ease, but also gave my mum real confidence and peace of mind in her own home. He quickly identified the problem, fixed it efficiently, and explained in simple terms what had happened and how to avoid it in the future. What stood out most was how thorough he was, checking everything carefully to make sure there were no other hidden issues. He treated our home with respect, left the space clean and tidy, and even followed up afterwards to ensure everything was still running smoothly. It’s rare to find a tradesperson who is this reliable, trustworthy and genuinely caring. I wouldn’t hesitate to recommend David to anyone looking for a skilled plumber who goes above and beyond.
Response from the owner
1 year ago
Thank you so much for your glowing review, Josh! We're thrilled to hear that David was able to assist you during such a stressful situation and that his professionalism and thoroughness left a positive impression on you and your family. We take pride in our team's dedication to providing exceptional service, and it's wonderful to know that you felt well taken care of. Your recommendation means a lot to us, and we're here to help anytime you need assistance in the future.
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rima alsamir
1 year ago
Had David come in to help me with some plumbing that I needed and he was amazing throughout the whole process. Extremely efficient and thorough with his work. Highly recommend him!
Response from the owner
1 year ago
Thank you so much for your wonderful review! We are thrilled to hear that David provided you with such excellent service. Your recommendation means a lot to us, and we appreciate your support. If you need any further assistance, please don't hesitate to reach out.
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muhammed salman
1 year ago
"I'm absolutely thrilled with the exceptional service provided by David from the initial call to the final fix, their professionalism, expertise, and courtesy shone through. David arrived promptly, diagnosed the issue quickly, and worked efficiently to resolve the problem. Their attention to detail and commitment to quality workmanship were impressive. The price was reasonable, and the work was guaranteed. I highly recommend David for any plumbing needs. Five stars isn't enough – I'd give them ten stars if I could! Thank you for outstanding service!"
Response from the owner
1 year ago
Thank you so much for your fantastic review! We’re thrilled to hear that David provided you with exceptional service and that you were impressed with his professionalism and attention to detail. Your recommendation means a lot to us, and we’re grateful for your kind words. We look forward to assisting you with any future plumbing needs. Thank you again for choosing us!
Steven Lee profile picture
Steven Lee
1 year ago
We booked David to look into our blocked pipe. Professional, knowledgeable, showed up on time and addressed all my concerns.
Response from the owner
1 year ago
Thank you for your fantastic feedback, Steven! We're thrilled to hear that David provided you with professional and knowledgeable service. Timeliness and addressing customer concerns are top priorities for us. We appreciate your support and look forward to assisting you again in the future!
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