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LPG vs Electric Hot Water: Which Is Better for Macedon Ranges Homes?

April 06, 2026

LPG vs Electric Hot Water in the Macedon Ranges

If you are building, renovating, or replacing your hot water system in the Macedon Ranges, you are probably weighing up LPG gas versus electric. With Victoria's ban on new mains gas connections, the choice for most new homes is between a 45kg LPG gas hot water system and an electric heat pump or element system.

LPG Instantaneous Hot Water

An LPG instantaneous (continuous flow) hot water system heats water on demand — no storage tank, no standby heat loss. Turn on the tap, the gas burner fires, and hot water flows until you turn it off.

Pros:

  • Unlimited hot water — it never runs out mid-shower.
  • Compact — no bulky tank on the wall or in the yard.
  • Fast — hot water in seconds, even on freezing Macedon Ranges mornings.
  • Works in all weather — unlike heat pumps, LPG performance does not drop in cold temperatures.

Cons:

Electric Heat Pump

A heat pump extracts heat from the air and uses it to warm water in a storage tank. It is essentially a reverse-cycle air conditioner for your hot water.

Pros:

  • Very efficient — uses less electricity than a standard electric element system.
  • No gas supply needed — runs on electricity only.
  • Government rebates may be available for installation.

Cons:

  • Performance drops in cold weather — and the Macedon Ranges gets very cold. At temperatures below 5 degrees (common from May to September in Woodend, Macedon, and Trentham), heat pump efficiency drops significantly. Some units have a backup electric element that kicks in, but this uses more power.
  • Can run out of hot water — the tank holds a fixed amount. A family of four taking back-to-back showers on a cold morning can drain it.
  • Noisy — heat pumps have a compressor that makes noise similar to an air conditioner.
  • Larger — requires space for the tank unit, usually outdoors.

Electric Element (Resistive)

A standard electric hot water system uses an element inside a tank to heat water — like a giant kettle. It is the simplest system but also the most expensive to run.

Pros: cheap to buy, simple to install, works in any temperature.

Cons: expensive to run, slow to recover, large tank needed.

Which Is Best for the Macedon Ranges?

The Macedon Ranges has a specific climate challenge: cold winters. Properties in Woodend, Macedon, Trentham, and the surrounding hills regularly see sub-zero temperatures. This is where LPG has a genuine advantage — gas hot water performance is unaffected by outside temperature. Your water heats just as fast at minus five as it does at twenty-five degrees.

Heat pumps work well in milder climates but can struggle in the colder parts of the Macedon Ranges. If your property is at higher elevation (Macedon, Trentham, upper Woodend), an LPG instantaneous system is generally the more reliable choice.

For lower-elevation areas like Gisborne, Romsey, or Sunbury, a heat pump can work well — but LPG remains a strong option, especially if you are already running gas for heating or cooking.

Getting Set Up with LPG Hot Water

If you choose LPG, you need a 45kg LPG gas bottle (or two with a changeover valve for uninterrupted supply) and a licensed gasfitter to install the hot water unit. Macedon Gas delivers to over 45 suburbs across the Macedon Ranges.

Read more: LPG for Hot Water, Heating and Cooking | How Long Does a 45kg Bottle Last?

Order your 45kg LPG delivery today.