If your hot water system no longer functions, you’re among many. Most homeowners only seek a new system when their existing system breaks down. Others also choose to replace their system or need a larger tank to serve increasing demands. Whatever the cause, purchasing a new hot water system can be expensive. But it’s also an investment worth making for your home.
Hot water systems are a must in every household, but replacing one is costly. The cost of a new hot water system can vary from $400 to more than $8,000, depending on the size, type, and installation. Most start searching for a new system only when the previous system fails them at the worst possible moment.
Whether your system has broken down, is installing for the first time, or you are preparing to upgrade, knowing the cost involved will enable you to make the best decision for your home. A new system can save energy, offer more dependable service, and lower your carbon footprint.
It can also assist with reducing future energy costs. In this guide, we will cover all you need to know about the price of hot water systems, including the cost of purchase, fitting, and operating. If you’re unsure about compliance or installation standards, it’s wise to consult a licensed plumber in Sydney who can guide you through system selection and safe installation.
Why Replacing a Hot Water System Is a Good Idea
Most hot water systems last between 10 to 15 years. Electric systems often last longer than gas systems. If your system is more than ten years old, it may be time to think about replacing it. Older systems tend to break down more often and are less energy efficient.
If you replace your system ahead of time when it hasn’t failed, you can shop around. You can select the correct model for your house and steer clear of replacement stress at the worst possible time. You can shop around to compare prices, read testimonials, and get the installation at a convenient time.
How Much Do Hot Water Systems Cost?
The price of a hot water system varies based on the type you select, tank size, and model. Some systems are more costly at purchase but will save you money in the long run over maintenance. Others are less costly to purchase but have a higher operating cost.
Electric water heating systems typically cost the least. An electric storage tank system will cost between $400 and $1,700, depending on how large a system you need. Instant electric models will cost between $660 and $1,800.
Gas water heating systems can be purchased between $900 and $1,800. Gas instant systems will be between $750 and $2,000.
Solar water heater systems are the most costly to purchase. Solar water systems with electric backup installed on the roof range from $4,000 to $5,400. An electric split system could range from $3,900 to $6,500. The price can rise to $8,000 if the split system has a gas backup.
Heat pump systems are also an energy-efficient option, priced between $2,500 and $6,800. They are more expensive than electric systems but pay for themselves by saving energy over time.
Installation Costs of Hot Water Systems
Purchase price is only one aspect of the total cost. Installation is another significant cost. A lot also goes into the installation pricing of hot water systems, depending on the system type and the degree of installation difficulty.
Installing simple electric or gas systems would cost approximately $500. But if the system is installed in a place that is difficult to reach or needs plumbing modifications, the price can soar. Tankless or solar system installations might be a whole different game, costing anywhere from $3000. In some cases, installation may be affected by burst pipe repair services for leaking or damaged pipes.
If it’s a whole new system, then you may have to put in new electrical work, piping, or support. These extra components or labour can add to the cost. However, replacing an existing system would almost always cost less.
Just for an example, installing an electric unit will take between $1,000 and $2,000. This covers the unit, materials, and labour. If you’re only replacing an old electric unit with a replacement one that’s similar, it can be as cheap as $300 to $700.
Gas systems are slightly pricier to install. Installation works out to between $1,500 and $3,000. If a gas connection is already available, its replacement can go as low as $500-$800.
Solar systems cost the most to install. Solar systems cost anywhere from $3,000 up to $7,000. Solar systems require additional components such as panels and backup heaters. The labour cost will also depend on how you plan your roof and what kind of collectors you install.
Running Costs of Hot Water Systems
The cost of running is also a significant consideration. Some are more expensive to purchase but will end up saving you money in the long run. Others are less expensive to install but are more costly to operate each month.
Warming water accounts for roughly 25% of a home’s energy consumption. With a big family, this figure can be even greater. Selecting a low-cost system will save you money in the long term.
Electric systems run at the most expensive cost. They average at $700 to $925 per year.
Gas systems are priced between $295 and $665 annually. They are less expensive than electric systems, particularly if you are connected to natural gas.
Solar systems are the most inexpensive to operate. They cost between $65 and $365 per year. These savings can allow you to recoup the high initial expense in a matter of years.
Heat pump systems are also inexpensive to operate. They cost from $160 to $385 annually. Although the systems are costly to purchase, the energy savings may be worth the investment.
Other Costs to Consider
You should also consider delivery and accessibility fees. Some providers already charge for delivery in their prices, but others will charge you separately. If you are in a difficult area or have stairs, the delivery fee will be more expensive. Similarly, for installation. If the plumber has to spend more time or equipment to access your system, the price increases. In such urgent scenarios, you might require a 24 hour emergency plumber in Sydney for hot water emergencies.
Plumbers and electricians typically charge $80-$120 for one hour of work, and labour prices may depend on how long the job takes.
Cost Summary Of Hot Water System And Installation
| System Type | System Cost | Installation Cost | Total Estimated Cost |
|---|---|---|---|
| Electric Storage | $600 – $1,500 | $300 – $700 | $900 – $2,200 |
| Gas Storage | $800 – $1,800 | $400 – $800 | $1,200 – $2,600 |
| Gas Continuous Flow | $900 – $2,000 | $500 – $900 | $1,400 – $2,900 |
| Solar (with booster) | $3,000 – $6,000 | $1,000 – $2,000 | $4,000 – $8,000 (before rebates) |
| Heat Pump | $2,500 – $4,000 | $600 – $1,000 | $3,100 – $5,000 (before rebates) |
Select the Appropriate Hot Water System Type
There are two primary types of hot water systems.
One is the storage tank system. That system heats a tank of water and holds it until you want to use it. It’s normal and provides instant hot water, but you can exhaust if you take more than the tank has. However, be aware that older systems are often associated with blocked drains in Sydney homes due to sediment buildup.
The second is the tankless or continuous type. It warms water as you consume it. There is no tank, so you never run out. These systems are more energy efficient but initially cost more. They also take slightly longer to generate hot water.
Both systems exist in four designs: electric, gas, solar, and heat pump.
Electric systems are inexpensive to purchase and simple to install. However, they are the most costly to operate. If you can acquire off-peak electricity prices, you will save some money, but you might have to have a larger tank to hold enough water.
Gas systems are an effective choice if your house is connected to a natural gas line. Gas is less expensive than electricity and is less expensive to utilise over a day. If you lack the presence of gas lines, you may use LPG bottles. However, LPG is more costly and less convenient since you have to replace the bottles.
Solar systems are wonderful for the environment and pay for themselves in the long run. They cost a lot of money to purchase and install, but your electricity bills will plummet. Solar systems prefer sunny locations with a great roof area.
Heat pump systems operate by utilising air to warm water. They are more efficient than electrical systems. They function effectively in most locations but are noisy. You will have to place them outdoors where there is ample air circulation. It is also advisable to position them away from neighbours if noise is not desirable.
How to Choose the Right Size System
The correct size is very critical. A system that is too small will deplete the hot water. A system too large will be a waste of energy.
As a rough thumb rule, each resident of the house uses about 50 litres of hot water per day. If your family is fond of long showers or uses hot water for laundry purposes, then you may require more.
For a four-person residence, you might need:
- An electric system with a 125–160 litre tank, continuous flow
- A 250–315 litre tank for off-peak
- A gas system with a 135–170 litre tank
- A heat pump system with a 270–315 litre tank
- A solar system with two panels and a 300–360 litre tank
Is a Hot Water System Worth the Investment?
Purchasing a hot water system is a considerable choice. It is expensive to buy, but it provides you with hot water every day. A new system will save you money, lower your energy consumption, and be kinder to the environment.
If your existing system is ageing, it makes sense to begin searching now. This allows you ample time to plan, compare models, and select a system that will suit your house. A breakdown means extra money could also go towards your emergency replacement, which might be a bit hasty.
Evaluate both capital and operating costs. Then contemplate how long you intend to remain in that home: if it were anything costly, like solar, it may not make sense for you if you think of moving out too soon.
Final Thoughts
Hot water systems are a must-have component of every household. They give comfort, convenience, and assistance in day-to-day living. Whatever the system—electrical, gas, solar, or heat pump—will save you dearly when correctly applied. A good hot water system will give you peace of mind, reduce your monthly bills, and keep your family running efficiently every single day of the year.
