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There are three main factors that determine how much a new hot water system will cost to install:

  • Type of Hot Water System (eg. electric, gas, solar, or heat pump, storage or tankless)
  • Size of Hot Water System (typically based on number of bathrooms and household size)
  • Type of Installation (eg. like for like replacement, new install, or repositioning)

1) Type Of Hot Water System

There are many different types of hot water systems in terms of both energy type and system type. Hot water systems can be powered by gas, electricity, solar power, heat pump, or a combination of different energy types. There are also two different types of hot water systems: storage and tankless.

Note: The prices listed below represent the average system price only, and does not include installation costs and additional fees.

Electric Hot Water Systems
Electric hot water systems are available in both storage and tankless models. The average cost of an electric storage hot water system ranges from $500 to $2000 depending on size.

Electric tankless hot water systems are typically priced between $800 and $1800 depending on the number of water outlets serviced.

Gas Hot Water Systems
Gas hot water systems are also available in both storage and tankless units. With a starting price of around $850 for a smaller gas storage hot water system, larger systems can cost upwards of $1900.

Alternatively, tankless gas hot water system prices typically range from about $750 to $2000 depending on water usage requirements.

Solar Hot Water Systems
Solar hot water systems use energy harnessed from the sun to heat water. This means that most solar hot water systems require a supplementary system (usually gas or electric) to heat water on cold or overcast days.

Roof mounted solar hot water systems with an electric supplementary system start at about $3800 and can cost upwards of $5400. A roof mounted solar system with a gas supplementary system ranges from around 4900 to $6500+.

Note: Although the upfront cost of a solar hot water system is a lot higher than other system types, the running costs are much lower as the majority of the energy used to heat your water will be free energy from the sun.

Heat Pump Hot Water Systems
Heat pump hot water systems use the warmth in the ambient air to heat water. This means that heat pump systems are most effective in a warm climate and must be installed outdoors. The average cost of a heat pump hot water system ranges from $3800 to $4500+.

Note: Similar to solar hot water systems, heat pumps come with a higher price tag, however, running costs tend to be much lower than other hot water system types.

2) Size of Hot Water System

When it comes to storage hot water system, the cost of the system will increase with the size of the tank. For example, a 25L electric storage hot water system (avg. $500) will cost a lot less than a 400L storage hot water system (avg. $1900).

Although tankless hot water systems all have similarly sized units, as the system heats water on demand, more powerful units are required for houses with higher water usage. This means that the higher your household’s water usage is, the more powerful your tankless hot water system will need to be, and the higher the unit price will be.

For an in depth look at how to choose the right size hot water system for your needs click here.

3) Type of Installation

The other main factor to consider when calculating the cost of buying a new hot water heater is installation. The cost of installing a hot water system can vary greatly based on the type of unit as well as the type of installation.

Gas an electric hot water systems tend to be similarly priced for installations. However, solar hot water systems tend to have a higher installation cost as these systems are typically installed on the roof requiring additional access equipment.

Like For Like Replacement
If your new hot water system is replacing an old hot water system in the same location with the same energy type, installation costs will be much lower. This is because it is unlikely that any new plumbing or electrical work is required for the installation.

New Installations
If you are installing a hot water system where there has not previously been a hot water system (or where there has only been a hot water system of another energy type, eg. gas vs electric) installation costs may be higher. This is because there will likely be additional pipework and possibly new electrical work needed for the installation.

Additional Work Required
Some hot water system installations require additional work. This could be caused by a number of factors, for example, if the existing plumbing or electrical work is not up to standard it must be addressed during the installation.

Disposal of Old System
Some hot water companies will also charge an additional fee for the disposal of your old hot water system which could set you back another $75 to $100.

Honest Prices With No Hidden Costs!

Sun City Hot Water & Plumbing are your local hot water specialists. We pride ourselves on providing our customers with fair and honest prices. Our hot water installation prices are listed on the product pages of our website for everyone to see and include everything from disposal of your old unit to council fees and GST. We are also happy to provide personal quotes.

We offer quality hot water system installations, repairs, replacements, and servicing Sunshine Coast and Brisbane wide. Call us today on 1300 728 122 for all of your hot water needs.


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