How much does a hot water system cost?

A hot water system is the equipment that heats and stores water for your home's daily needs like showering, washing dishes, and cleaning. These systems come in several different types that work in various ways to provide hot water to Australian households.

‍

The main types of hot water systems available are electric systems that use electricity to heat water, gas systems that burn natural gas or LPG, solar systems that use energy from the sun, heat pump systems that extract warmth from the air, hybrid systems that combine two technologies, tankless systems that heat water on demand, and storage tank systems that keep heated water ready for use.

‍

Hot water system prices in Australia range from $800 to $8,000 for the initial system purchase. This wide price range exists because different system types use different technologies and materials that affect their manufacturing costs.

‍

Electric storage systems are typically the cheapest option, with prices starting from $800 for basic models. Solar hot water systems are usually the most expensive, with costs reaching up to $8,000 for premium installations that include high-quality collectors and storage tanks.

‍

The price changes significantly according to the type because each system uses different components and technologies. Electric systems have simple heating elements, while solar systems require specialised collectors, pumps, and controllers. Gas systems need specific burners and flue systems, and heat pumps use complex refrigeration technology.

‍

Several factors influence hot water system costs including the system capacity measured in litres, the brand reputation and quality, energy efficiency ratings, installation complexity, and additional features like smart controls or corrosion-resistant materials. The location of installation and local plumbing requirements also affect the total price.

‍

Contacting an expert is important for choosing the best type because professionals can assess your household's specific hot water usage patterns, evaluate your property's suitability for different systems, and calculate long-term running costs. Professional advice helps you save money by selecting the most efficient system for your needs and avoiding costly mistakes.

‍

Hot water system cost according to type

‍

Understanding the cost differences between hot water system types helps you make an informed decision for your home. Each system type has distinct price ranges based on their technology, components, and installation requirements. Here's a detailed breakdown of what you can expect to pay for each type of hot water system in Australia.

‍

• Electric Hot Water Systems: Electric hot water systems use electrical heating elements inside a storage tank to warm water. These systems are the most common choice for Australian homes because they work reliably and have lower upfront costs. Electric storage systems typically cost between $800 to $2,500 depending on tank size and brand quality.
• Gas Hot Water Systems: Gas hot water systems burn natural gas or LPG to heat water through a gas burner located underneath the storage tank. These systems heat water faster than electric models and often have lower running costs in areas with affordable gas prices. Gas hot water systems range from $1,200 to $3,500 for the unit and basic installation.
• Solar Hot Water Systems: Solar hot water systems use collectors on your roof to capture sun energy and transfer this heat to water in a storage tank. These systems are environmentally friendly and can significantly reduce electricity bills over time. Solar systems cost between $3,000 to $8,000 including collectors, tank, and installation components.
• Heat Pump Hot Water Systems: Heat pump hot water systems extract warmth from outside air and use this energy to heat water, similar to how a reverse-cycle air conditioner works. These systems are highly energy efficient and work well in Australia's climate conditions. Heat pump systems typically range from $2,500 to $5,000 for the complete unit.
• Hybrid Hot Water Systems: Hybrid hot water systems combine two different technologies, commonly heat pump technology with electric backup elements. These systems provide reliable hot water even when weather conditions are not ideal for the primary heating method. Hybrid systems cost between $3,500 to $6,000 depending on the technologies combined.
• Tankless Hot Water Systems: Tankless hot water systems heat water instantly as it flows through the unit, eliminating the need for a storage tank. These systems save space and provide unlimited hot water supply but require adequate gas supply or electrical capacity. Tankless systems range from $1,500 to $4,000 for residential applications.
• Storage Tank Hot Water Systems: Storage tank hot water systems keep heated water ready for use in an insulated tank that can hold between 25 to 400 litres. These systems are available in electric, gas, or solar configurations and suit most Australian households. Storage systems cost between $800 to $6,000 depending on capacity, fuel type, and features.

‍

How much does an electric water heater cost?

‍

Electric hot water systems cost between $800 to $2,500 on average for Australian households. This price range covers different tank sizes from small 25-litre units to large 400-litre systems that suit bigger families.

‍

The unit cost for electric hot water systems starts at $400 for basic 25-litre models and reaches $1,800 for premium 400-litre systems with advanced features. Standard installation costs range from $400 to $700, which includes connecting the electrical supply, plumbing connections, and removing your old system if needed.

‍

Electric hot water systems have typical operating costs of $600 to $1,200 per year depending on your household's hot water usage and local electricity rates. The long-term running costs over a 10-year period usually total $6,000 to $12,000, making them moderately expensive to operate compared to gas or solar alternatives.

‍

The cost advantages of electric systems include their low upfront purchase price, simple installation process that doesn't require gas connections, and widespread availability from most plumbing suppliers. Electric systems also have lower maintenance costs because they have fewer moving parts than heat pumps or solar systems.

‍

The cost disadvantages of electric systems include higher electricity bills compared to gas systems, slower heating recovery times that may require larger tanks, and increased running costs during peak electricity pricing periods. Electric systems also have shorter lifespans of 8-12 years compared to solar systems that can last 15-20 years.

‍

How much does a gas water heater cost?

‍

Gas hot water systems cost between $1,200 to $3,500 on average for Australian households. This price range includes both natural gas and LPG systems in various tank sizes from 90 litres to 400 litres depending on your family's hot water needs.

‍

The unit cost for gas hot water systems ranges from $800 for basic 90-litre models to $2,500 for large 400-litre systems with high-efficiency burners and premium features. Standard installation costs range from $400 to $1,000, which includes gas line connections, flue installation, plumbing work, and removal of your existing system.

‍

Gas hot water systems have typical operating costs of $300 to $600 per year, making them significantly cheaper to run than electric systems in most Australian locations. The long-term running costs over a 10-year period usually total $3,000 to $6,000, which represents substantial savings compared to electric alternatives.

‍

The cost advantages of gas systems include lower daily running costs due to cheaper gas prices, faster water heating that reduces energy waste, and excellent value for money over the system's lifespan. Gas systems also maintain consistent performance regardless of electricity price fluctuations and provide reliable hot water during power outages.

‍

The cost disadvantages of gas systems include higher upfront purchase prices compared to basic electric models, more expensive installation requirements if gas connections don't already exist, and potential gas line rental fees in some areas. Gas systems also require regular maintenance of burners and flues, which adds to long-term ownership costs.

‍

How much does a solar water heater cost?

‍

Solar hot water systems cost between $3,000 to $8,000 on average for Australian households. This price range covers different system configurations from basic flat plate collectors with small tanks to premium evacuated tube systems with large storage capacities that suit bigger families.

‍

The unit cost for solar hot water systems ranges from $2,000 for basic flat plate systems with 160-litre tanks to $6,000 for high-end evacuated tube systems with 400-litre tanks and advanced controllers. Standard installation costs range from $1,000 to $2,000, which includes roof mounting of collectors, plumbing connections, electrical work for pumps and controllers, and removal of your existing system.

‍

Solar hot water systems have typical operating costs of $100 to $300 per year, making them the cheapest systems to run once installed. The long-term running costs over a 20-year period usually total $2,000 to $6,000, which represents excellent value considering their extended lifespan compared to conventional systems.

‍

The cost advantages of solar systems include minimal running costs after installation, government rebates that can reduce purchase prices by $1,000 to $3,000, and exceptional long-term savings over 15-20 year lifespans. Solar systems also increase property values and provide protection against rising electricity and gas prices.

‍

The cost disadvantages of solar systems include high upfront investment costs that require several years to recover through savings, expensive repairs if collectors or controllers fail, and the need for electric or gas boosting on cloudy days which adds to running costs. Solar systems also require adequate north-facing roof space and may need structural reinforcement for heavier installations.

‍

How much does a heat pump water heater cost?

‍

Heat pump hot water systems cost between $2,500 to $5,000 on average for Australian households. This price range covers different capacities from compact 160-litre units suitable for small households to larger 315-litre systems that provide adequate hot water for bigger families.

‍

The unit cost for heat pump hot water systems ranges from $1,800 for basic 160-litre models to $4,000 for premium 315-litre systems with advanced controls and weather-resistant components. Standard installation costs range from $700 to $1,000, which includes electrical connections, plumbing work, positioning the unit with adequate air circulation space, and removal of your old system.

‍

Heat pump hot water systems have typical operating costs of $200 to $400 per year, making them significantly cheaper to run than electric systems while remaining competitive with gas alternatives. The long-term running costs over a 12-year period usually total $2,400 to $4,800, which provides excellent value for money through reduced electricity consumption.

‍

The cost advantages of heat pump systems include lower running costs than electric systems due to high energy efficiency, government rebates that can reduce purchase prices by up to $1,000, and consistent performance in Australia's moderate climate conditions. Heat pump systems also have reasonable installation costs and don't require roof modifications like solar systems.

‍

The cost disadvantages of heat pump systems include higher upfront costs compared to basic electric systems, potential noise from the compressor unit that may require careful positioning, and reduced efficiency in very cold weather that can increase running costs. Heat pump systems also have more complex components than electric systems, which can lead to higher repair costs if problems occur.

‍

How much does a tankless water heater cost?

‍

Tankless hot water systems cost between $1,500 to $4,000 on average for Australian households. This price range covers different flow rates from compact units that serve single bathrooms to high-capacity systems that provide hot water for multiple outlets simultaneously throughout larger homes.

‍

The unit cost for tankless hot water systems ranges from $1,000 for basic electric models with 12-litre per minute flow rates to $3,000 for premium gas-powered units with 32-litre per minute capacities and advanced temperature controls. Standard installation costs range from $500 to $1,000, which includes gas or electrical connections, water line modifications, venting requirements for gas units, and removal of your existing tank system.

‍

Tankless hot water systems have typical operating costs of $250 to $500 per year depending on whether you choose electric or gas models and your household's hot water usage patterns. The long-term running costs over a 15-year period usually total $3,750 to $7,500, which provides reasonable value considering their extended lifespan compared to storage tank systems.

‍

The cost advantages of tankless systems include lower running costs than electric storage systems, space savings that eliminate the need for large storage tanks, and longer lifespans of 15-20 years that reduce replacement frequency. Tankless systems also provide unlimited hot water supply and reduce standby energy losses that occur with storage tanks.

‍

The cost disadvantages of tankless systems include higher upfront purchase costs compared to basic storage systems, expensive installation requirements if significant plumbing or gas line modifications are needed, and potential flow rate limitations that may require multiple units for large households. Tankless systems also have more complex components that can result in higher repair costs and may struggle to supply multiple outlets simultaneously during peak demand periods.

‍

How much does a storage tank water heater cost?

‍

Storage tank hot water systems cost between $800 to $6,000 on average for Australian households. This wide price range covers different fuel types, tank sizes, and quality levels from basic electric models to premium solar systems with large storage capacities.

‍

The unit cost for storage tank hot water systems ranges from $400 for basic 25-litre electric models to $5,000 for large 400-litre solar systems with high-quality tanks and advanced features. Standard installation costs range from $400 to $1,500 depending on the system type, with electric installations being cheapest and solar installations requiring the most work for collectors and controllers.

‍

Storage tank hot water systems have typical operating costs of $200 to $1,200 per year depending on whether you choose electric, gas, or solar fuel types and your household's hot water consumption patterns. The long-term running costs over a 10-15 year period usually total $2,000 to $18,000, with solar systems having the lowest running costs and electric systems having the highest.

‍

The cost advantages of storage tank systems include lower upfront costs for electric models, wide availability from most suppliers, and simple installation processes that most plumbers can complete easily. Storage systems also provide reliable hot water storage and work well with different fuel types to match your home's existing utilities.

‍

The cost disadvantages of storage tank systems include higher running costs for electric models compared to gas alternatives, space requirements for tank installation, and standby heat losses that waste energy even when hot water isn't being used. Storage systems also have shorter lifespans than tankless alternatives and may require tank replacement due to corrosion or sediment buildup over time.

‍

How much does a hybrid water heater cost?

‍

Hybrid hot water systems cost between $3,500 to $6,000 on average for Australian households. This price range covers different configurations that typically combine heat pump technology with electric backup elements, providing reliable hot water through multiple heating methods in various tank sizes.

‍

The unit cost for hybrid hot water systems ranges from $2,500 for basic 160-litre models with simple controls to $5,000 for premium 315-litre systems with advanced smart controllers and weather-resistant components. Standard installation costs range from $1,000 to $1,500, which includes electrical connections for both heating systems, plumbing work, positioning requirements for heat pump components, and removal of your existing system.

‍

Hybrid hot water systems have typical operating costs of $150 to $350 per year, making them more economical to run than standard electric systems while providing better reliability than heat pump-only units. The long-term running costs over a 12-year period usually total $1,800 to $4,200, which represents good value through efficient operation and reduced maintenance requirements.

‍

The cost advantages of hybrid systems include lower running costs than electric systems due to heat pump efficiency, reliable backup heating that prevents costly service calls, and government rebates that can reduce purchase prices by up to $1,000. Hybrid systems also provide consistent hot water supply regardless of weather conditions and have reasonable maintenance costs due to their dual heating design.

‍

The cost disadvantages of hybrid systems include higher upfront purchase costs compared to single-technology systems, more complex installation requirements that increase labour costs, and potential noise from heat pump components that may require careful positioning. Hybrid systems also have more components than basic electric systems, which can lead to higher repair costs if either heating method requires maintenance or replacement.

‍

What is the most expensive hot water system type to install?

‍

Solar hot water systems are definitively the most expensive hot water system type to install in Australian homes. These systems consistently have the highest total installation costs across all available hot water heating technologies.

‍

Solar systems are the most expensive because they require multiple specialised components that other systems don't need. The installation process involves mounting heavy collectors on your roof, which often requires structural assessments and reinforcement work. Solar systems also need complex plumbing connections between roof-mounted collectors and ground-level storage tanks, plus electrical work for pumps, controllers, and sensors that monitor system performance.

‍

The installation complexity increases costs because solar systems require skilled technicians who understand both plumbing and electrical work, plus roofing expertise for safe collector mounting. Many installations also need building permits and council approvals, which add time and administrative costs to the project.

‍

The average total installed cost estimate for solar hot water systems ranges from $4,000 to $10,000 depending on system size and installation complexity. Basic flat plate systems with 160-litre tanks typically cost $4,000 to $6,000 installed, while premium evacuated tube systems with 400-litre tanks and complex installations can reach $8,000 to $10,000 for complete installation including all components and labour.

‍

What is the cheapest hot water system type to install?

‍

Electric storage hot water systems are definitively the cheapest hot water system type to install in Australian homes. These systems consistently have the lowest total installation costs compared to all other hot water heating technologies available.

‍

The typical cost range for electric storage systems is $1,200 to $3,200 total installed cost. This includes unit costs of $800 to $2,500 for the hot water system itself, plus installation costs of $400 to $700 for standard installations that don't require complex plumbing or electrical modifications.

‍

What are the factors affecting the cost of installing a hot water system?

‍

Several important factors influence the total cost of installing a hot water system in your home. Understanding these factors helps you budget accurately and make informed decisions about which system suits your circumstances and financial situation. Each factor can significantly impact both the upfront installation cost and long-term ownership expenses.

‍

• Heater Type: The heater type is the primary factor that determines installation costs because different technologies require different components and installation complexity. Electric systems are the cheapest to install due to simple electrical connections, while solar systems cost the most due to roof mounting, collectors, and complex plumbing. Gas systems fall in the middle price range but require gas line connections and flue installations. Heat pump and hybrid systems need adequate space and electrical work, while tankless systems may require significant plumbing modifications.
• Home Type (Apartment vs. House): Home type significantly affects installation costs because apartments typically have limited access, restricted installation spaces, and body corporate approval requirements that increase labour time and complexity. Houses generally have easier access for installers, more installation location options, and fewer approval requirements. Apartment installations often cost $200 to $500 more due to lift access fees, parking restrictions, and additional time needed to navigate building regulations.
• Location (Urban/Rural): Location impacts costs through travel time, parts availability, and local labour rates that vary between urban and rural areas. Urban installations typically have lower travel costs but higher labour rates, while rural installations may have significant travel charges but lower hourly rates. Rural areas may also have limited installer availability, which can increase costs due to reduced competition and longer waiting times for service.
• Installer Expertise Level: Installer expertise level affects costs because experienced licensed plumbers charge higher rates but complete work more efficiently and with fewer complications. Basic installations by general plumbers cost less initially but may result in problems that require expensive corrections later. Specialist hot water system installers charge premium rates but provide better warranties, faster installation times, and expert advice on system selection.
• Access to Rebates: Access to rebates significantly reduces your out-of-pocket installation costs through government incentives that can save $500 to $3,000 depending on the system type and your eligibility status. Solar and heat pump systems often qualify for substantial rebates that make them more affordable, while electric systems typically receive no rebate support. Rebate availability varies by state and changes over time, affecting the relative cost-effectiveness of different system types.
• Capacity of System: Capacity of system directly impacts costs because larger tanks and higher-capacity units cost more to purchase and install due to increased materials, heavier components, and more complex installation requirements. Small 25-litre systems may cost $800 total installed, while large 400-litre systems can cost $4,000 or more. The capacity you need depends on household size, hot water usage patterns, and peak demand requirements.
• Complexity of Plumbing or Electrical Changes: Complexity of plumbing or electrical changes can dramatically increase installation costs when existing infrastructure doesn't match new system requirements. Simple replacements with similar connections cost the base installation rate, while major changes like new gas lines, electrical upgrades, or relocated plumbing can add $500 to $2,000 to the total project cost. Older homes often require more extensive modifications than newer properties with modern plumbing and electrical systems.

‍

How does the size of hot water system affect the cost?

‍

The size of your hot water system significantly affects the cost because larger capacity systems require more materials, bigger tanks, and more complex installation work that increases both unit prices and labour costs. Hot water system sizing is based on household numbers, with different capacity recommendations depending on how many people live in your home and their hot water usage patterns.

‍

Larger capacity systems are more expensive because they use more steel for tank construction, require bigger heating elements or burners, and need stronger structural support during installation. The manufacturing costs increase proportionally with tank size, and installation becomes more complex due to heavier units that may require special equipment or additional workers to position safely.

‍

Household sizing typically follows these guidelines: 1-2 people need 125-160 litre systems, 3-4 people require 250-315 litre systems, and 5+ people need 400+ litre systems. However, your actual requirements may vary based on bathing habits, whether you have spa baths, and if multiple people shower at peak times.

‍

Here's the cost breakdown by capacity for electric storage systems:

‍

• 125-160 Litre Systems cost between $800 to $1,500 for the unit plus $400 to $600 for installation, making the total installed cost $1,200 to $2,100. These smaller systems suit apartments, units, or small households with modest hot water needs.
• 250 Litre Systems cost between $1,200 to $2,000 for the unit plus $500 to $700 for installation, bringing total installed costs to $1,700 to $2,700. These medium-sized systems work well for average Australian households with 3-4 occupants.
• 315 Litre Systems cost between $1,500 to $2,500 for the unit plus $600 to $800 for installation, resulting in total installed costs of $2,100 to $3,300. These larger systems suit bigger families or households with high hot water consumption.
• 400+ Litre Systems cost between $2,000 to $3,000 for the unit plus $700 to $1,000 for installation, creating total installed costs of $2,700 to $4,000. These large systems are designed for big families, homes with multiple bathrooms, or properties with spa baths and high-demand fixtures.

‍

Call us to choose the most cost-effective hot water system type to install

‍

Choosing the right hot water system installation requires careful consideration of your budget, household size, and energy efficiency priorities to ensure you get the best value for money over the system's lifetime.

‍

Start by assessing your budget for both upfront costs and ongoing running expenses, as the cheapest system to buy may not be the most economical to operate over 10-15 years. Consider your household size and hot water usage patterns to determine the right capacity, since undersized systems waste energy trying to keep up with demand while oversized systems waste money on unnecessary capacity.

‍

Energy efficiency ratings are important because more efficient systems cost more initially but save money through reduced electricity or gas bills over time. Compare the total cost of ownership including purchase price, installation, and estimated running costs rather than just looking at upfront expenses.

‍

If you have a tight budget, electric storage systems offer the lowest upfront costs but higher running expenses. For moderate budgets, gas systems provide excellent value through lower operating costs and reasonable purchase prices. With higher budgets, consider solar or heat pump systems that offer the best long-term savings despite higher initial investments.

‍

How much does hot water system replacement cost?

‍

Hot water system replacement costs between $1,200 to $10,000 total for Australian households, depending on the type of system you choose and the complexity of your installation requirements. This total cost includes removal of your existing system, purchase of the new unit, and all labour charges for complete installation.

‍

The replacement cost breakdown includes removal fees of $100 to $300 for disconnecting and disposing of your old hot water system safely, new unit costs ranging from $400 to $6,000 depending on system type and capacity, and labour charges of $400 to $2,000 for installation work that varies based on system complexity and any required modifications.

‍

Electric storage system replacements typically cost $1,200 to $3,200 total, which includes removing your old tank, supplying a new electric unit, and completing standard installation with existing electrical connections. Gas system replacements range from $1,600 to $4,500 total when gas lines already exist, covering removal, new gas unit, and installation with flue work.

‍

Solar system replacements cost $4,000 to $10,000 total due to collector removal and reinstallation, new system supply, and complex installation work involving roof mounting and plumbing modifications. Heat pump replacements typically range from $3,200 to $6,000 total, including old system removal, new heat pump unit, and installation with adequate ventilation space.

‍

How much does a hot water system repair cost?

‍

Hot water system repair costs range from $150 to $800 on average for most common problems that occur with Australian hot water systems. Simple repairs like replacing heating elements or thermostats typically cost $150 to $300, while more complex issues involving tanks, gas components, or control systems can cost $400 to $800.

‍

Basic electric system repairs such as faulty heating elements, broken thermostats, or electrical connection problems usually cost between $150 to $400 including parts and labour. Gas system repairs involving burner cleaning, thermocouple replacement, or gas valve issues typically range from $200 to $500 depending on the specific component that needs attention.

‍

Solar system repairs are often more expensive at $300 to $800 because they involve specialised components like collectors, pumps, controllers, or sensors that require expert knowledge and specific replacement parts. Heat pump repairs typically cost $250 to $600 due to refrigeration components, compressors, or electronic controls that need technical expertise.

‍

Tank replacement due to leaks or corrosion is usually not economical to repair, as the cost approaches new system prices and typically indicates the end of the unit's useful life. Minor plumbing repairs like valve replacements or pipe connections generally cost $100 to $250 and are often worthwhile compared to full system replacement.

‍

How much does hot water system maintenance cost?

‍

Hot water system maintenance costs between $120 to $300 per year on average for Australian households, depending on the system type and the level of service required to keep your unit operating efficiently and safely.

‍

Electric storage systems typically require annual maintenance costing $120 to $180, which includes checking heating elements, testing thermostats, inspecting electrical connections, and flushing sediment from the tank to prevent corrosion and maintain efficiency. This basic maintenance helps extend system life and prevents costly breakdowns.

‍

Gas system maintenance costs $150 to $250 annually because it involves more complex checks including burner cleaning, flue inspection, gas pressure testing, thermocouple checking, and safety valve operation. Gas systems require more frequent professional attention due to safety requirements and combustion components that need regular servicing.

‍

Solar system maintenance costs $200 to $300 per year as it includes collector cleaning, pump operation checks, controller testing, pipe insulation inspection, and fluid level monitoring. Solar systems have more components that require attention, including roof-mounted collectors that may need cleaning for optimal performance.

‍

Heat pump systems typically cost $180 to $250 annually for maintenance that covers refrigeration components, air filter cleaning, coil inspection, electrical connections, and performance testing. The complex technology requires specialised knowledge and regular attention to maintain efficiency and prevent expensive repairs.

‍

Regular maintenance prevents major breakdowns, extends system lifespan, maintains warranty coverage, and keeps your hot water system operating at peak efficiency to minimise running costs throughout its service life.

‍