Hot Water Storage Types: What to Know

The storage tank is the heart of the hot water system operation. Choosing the right hot water storage type can save money, improve comfort, and reduce headaches. At All Needs Plumbing, we’ve seen all sorts of setups and know what works best for homes and businesses across St. George, Inner West, and Sutherland Shire. Let me walk you through the main types of storage tanks used in hot water systems, so you can make an informed decision and avoid costly mistakes.

What Is a Storage Tank in a Hot Water System?

A storage tank is essentially an insulated cylinder that holds and heats water so it’s ready whenever you need it. Unlike instantaneous water heaters, which heat water on demand, storage tanks keep a reserve of hot water available, so you don’t have to wait when you turn on the tap. The tank works with a heating source—usually gas or electricity—to maintain the water at a set temperature. Some tanks also have intelligent controls that help you manage energy use more efficiently.

The size and type of storage tank you choose will affect the amount of hot water you have on hand, how quickly it heats up, and how much it costs to run. That’s why understanding your options is key.

Main Types of Storage Tanks Used in Hot Water Systems

Conventional Storage Tanks

These are the classic hot water cylinders found in most Australian homes. They store a fixed amount of hot water, typically between 20 and 80 gallons (or about 75 to 300 litres), ready for use whenever needed. The tank is insulated to keep the water hot, but heat loss still happens, especially if the insulation is old or damaged.

Conventional tanks are reliable and straightforward. They provide a steady supply of hot water, which is excellent if you have a large household or multiple bathrooms. However, because they keep water hot all day, they use energy continuously, which can add to your bills.

Gas Storage Tanks

Gas storage tanks heat water using a gas burner at the tank's base. The burner heats the water quickly and efficiently. One of the most significant advantages of gas tanks is that they usually cost less than electric tanks because natural gas prices tend to be lower than electricity prices.

Gas tanks also deliver hot water at mains pressure, so you can run multiple taps or showers simultaneously without losing pressure. That’s a big plus for busy households or commercial settings.

Conversely, gas tanks require proper ventilation to expel combustion gases safely. They also need regular safety inspections to ensure everything is working correctly. If you’re considering a gas storage tank, it's a good idea to have a licensed plumber handle installation and maintenance.

Electric Storage Tanks

Electric storage tanks use heating elements inside the tank to warm the water. They’re often easier and cheaper to install than gas tanks because they don’t need venting or gas connections, making them a popular choice for homes without access to natural gas.

However, electric tanks are more expensive to run than gas tanks because electricity costs more per unit of energy. They heat water a little slower, which means a longer wait for hot water if the tank runs out.

Still, electric tanks are reliable and can be a good fit for smaller households or places where gas isn’t available.

Solar Storage Tanks

Solar storage tanks work alongside solar panels to heat water using the sun’s energy. They are a great choice for saving money on energy costs and helping the environment. Solar tanks usually have a backup gas or electric heater for cloudy days or times of high demand.

Installing a solar hot water system is more difficult and costs more up front, but the savings in the long run and government rebates can make it worth it.

Modern and Smart Storage Tanks

Technology has significantly improved hot water storage tanks. Modern tanks feature better insulation materials that reduce heat loss, which means they use less energy to keep water hot. Some also come with smart thermostats and timers that let you schedule when the water heats up or adjust the temperature remotely from your phone.

These innovative features help you avoid heating water when you don’t need it, saving you money and reducing your carbon footprint. If you’re considering upgrading your system, a bright storage tank is worth considering.

Pro-Tip: Flush your storage tank annually to clear sediment buildup. Sediment can reduce your tank’s efficiency and cause damage over time. Flushing keeps your system running smoothly and extends its life.

What to Consider When Choosing a Storage Tank

Choosing the right storage tank depends on several factors. First, consider your household size and hot water needs. A larger family or a business with many staff will require a bigger tank or a system that heats water quickly.

Next, consider what fuel sources you have available. If you can access natural gas, a gas storage tank might be cheaper. If not, electric tanks or solar options could be better.

Space is another critical factor. Some tanks are bulky and need a dedicated spot, while others are more compact. Before making a decision, make sure you measure the space where the tank will go.

Energy star ratings can help you pick a model that will help you save money over time. Look for tanks with sound insulation and intelligent controls.

Finally, think about maintenance. Some tanks require regular flushing to remove sediment and anode rod replacements to prevent corrosion. Knowing what upkeep your tank needs will help you avoid unexpected repairs.

Pro-Tip: Set your thermostat to 60°C. Legionella and other germs can't live at this temperature, but it's not too hot for you to waste energy or get burned.

Maintenance Tips for Storage Tanks

Your hot water system will last longer if you take care of it regularly. Flushing your tank yearly removes sediment that can build up and cause blockages or reduce heating efficiency. Checking the anode rod every few years is also essential because it protects the tank from rusting from the inside out. Instead of replacing the whole tank, you should replace the worn-out rod.

Listen for leaks, rust spots, or strange sounds. If you notice any of these signs, it’s best to call a professional plumber immediately. At All Needs Plumbing, we have the experience to diagnose and fix problems quickly, preventing bigger issues.

FAQ About Hot Water Storage Types

What are the different types of hot water tanks?

There are several types, including conventional storage tanks, gas storage tanks, electric storage tanks, solar storage tanks, and modern bright tanks with advanced features.

Which is cheaper to run, a gas or an electric water heater?

Gas water heaters usually cost less to run because gas prices are generally lower than electricity. Gas heats water faster, which improves efficiency.

Is it cheaper to leave hot water on all the time?

No, turning your hot water system off is more cost-effective than lowering the temperature when you don’t need it. Keeping water hot all day wastes energy due to heat loss, even with insulation.

Are new hot water cylinders more efficient?

Modern cylinders come with better insulation and innovative controls that reduce heat loss and energy consumption, saving you money on your bills.

Is it better to turn the heat off or down at night?

Turning the heat down or off at night saves energy and cuts costs since you don’t need hot water while asleep. This easy thing you can do can change how much energy you use.

What if I want to know more about hot water storage types?

If you’re still unsure about which hot water storage type suits your home or business, we’re here to help. We know that hot water problems can't wait, so we don't charge a fee to come out and fix them at All Needs Plumbing. 

Also, seniors can save 15%, and brand-new hot water systems can be bought for $150 less. This will make it easier for you to upgrade. Whether you need advice, repairs, or a complete installation, call us and let’s get your hot water system running smoothly again.

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