We get asked all the time about hot water system installation costs, but the answer isn’t that straightforward. While average installation costs can be provided, there are many factors that come into play and each home has its own requirements.
Some of the things that can influence the hot water system installation cost are:
- whether you’re replacing, upgrading or repositioning,
- how complex the job is,
- tempering valves,
- delivery fees and disposal costs,
- government rebates, and
- the average installation costs.
We’ve taken the stress out of hot water system installation with this simple, comprehensive guide – just for you.
1. Are You Replacing Your Existing Hot Water System?
Replacing a hot water system with a brand new one that’s exactly the same, just newer, and situated in the same place, can drastically reduce costs. It doesn’t involve a high level of work for the plumbers, and the job is relatively quick and easy.
But, just because you’ve used the same hot water system since you moved into the house and it’s been “fine,” it doesn’t mean it’s necessarily the best system to suit your needs.
Although just replacing the same system with a new one is cost-effective, be sure to do your research first. You could find that you prefer the same hot water system but without the water tank, for example, so you don’t have to wait as long for your shower to get hot!
If you replace an existing electrical system with a gas hot water system, the price will be significantly more. This is because the gas hot water installation will require additional fittings and extra installation work. If you need more piping, that will also up the cost.
(See our blog that run’s through whether instantaneous gas hot water systems need electricity. or our blog that lets you know four things you should consider before a hot water system replacement)
2. Are You Upgrading Your Hot Water System?
If your existing hot water system is taking forever to heat up, or making very funny noises, it could be time for an upgrade. Most hot water systems have a lifespan of about 15 years.
Even if you’re sticking to the same type of hot water system, upgrading to a bigger unit can also require additional plumbing maintenance and electrical work.
Before you go for a bigger and better hot water system though, take note of your needs and whether it’s worth it. Getting a bigger hot water system will cost more to install, and the monthly running costs will be more. If your kids have moved out of the house, you can upgrade to a brand new unit – without having to go bigger at all.
3. Are You Repositioning Your New Hot Water System?
Hot water system regulations made by the Australian government instruct that a new hot water system should be repositioned outside. So, if your current system is in the laundry or garage, keep that in mind when it’s time to upgrade.
Installing a new hot water system somewhere different to the old one requires changing the water heater’s energy source, meaning increased electrical work and plumbing.
In the case that your plumbers charge per hour, you should consider that besides installing the plumbing to put the new one in the new location, they will take time to remove and patch up your old hot water system.
4. How Complex Is the Job?
The act of taking out one hot water system and putting in another isn’t the only complexity to consider.
If the site where your current and new hot water systems are located is difficult to reach, this could increase the job’s complexity.
Obstacles out of your control can require additional equipment, such as:
- high rooves,
- no lifts,
- steep stairs, and
- narrow stairwells.
These obstacles may mean your plumbers will need to call for backup, which in turn will mean higher labour costs. In some cases, a hot water system might even require a crane to move it into position.
5. Do You Know About Tempering Valves?
Every hot water system must be fitted with a tempering valve. This is an anti-scalding device that regulates temperature to 50 degrees.
If a tempering valve isn’t installed, the manufacturer warranty on the hot water system will be declared null and void.
Tempering valves can cost an additional amount of between $200 and $300.
6. Have You Considered Delivery Fees and Disposal Costs?
Some hot water systems only weigh around 15kgs. In that case, only one plumber is needed to carry it. Other systems can be ten times the weight and require experienced workers to maneuver them.
Some companies offer free delivery, and some charge depending on the size of the hot water system and the travel distance.
If you’d prefer an environmentally responsible disposal of your old hot water system, it can cost up to $100 for companies to do so.
7. How Much Can You Earn in Government Rebates From Solar Hot Water Systems?
If you’re getting rid of a gas hot water system or an electrical hot water system in favour of something more environmentally friendly, the government will reward you.
Although the hot water system installation cost of removing an old system and replacing it with a solar hot water system could be a large one-off cost, the government will reduce that amount by up to $1200.
Solar water heaters are indeed the most pricey to buy and install, but their operating costs in comparison to any other hot water system will always come out on top because they are more energy-efficient. So, the savings, in the long run, can outweigh the purchase price and installation cost.
8. What Are the Average Hot Water System Installation Costs?
If you’re looking for a ballpark figure just to give you an idea, we have estimated the average hot water system installation cost for your convenience.
- Between $300 and $1,000: electric hot water systems with a storage tank, and gas hot water systems with a storage tank.
- Between $300 and $2,000: instantaneous or continuous flow electric hot water systems, and instantaneous or continuous flow gas hot water systems.
- Between $1,000 and $3,000: heat pump systems.
- Between $2,000 and $4,000: solar hot water systems supported with electric power and solar hot water systems supported with gas.
How Can Bayside Plumbing Help?
At Bayside Plumbing, our team is fully licensed and insured, with over 40 years of experience under our belts.
We take pride in being highly professional, reliable, and friendly – while remaining focused on getting the job done to the best of our ability.
Australian owned and operated, we provide prompt plumbing services to our Sydney community.
When it comes to hot water system installations, the more complex the job, the more expensive the labour will be.
Replacing an old hot water system with a new hot water system that’s exactly the same is the most cost-effective option.
Upgrading to a bigger unit, changing from one type of system to another, and relocating can all increase the installation cost.
Gas and electric systems with tanks are cheaper to install than those without, and solar power hot water systems are the most expensive of all of them.
But, solar water heaters are much more environmentally friendly than traditional hot water installations. Therefore, the government will award you a rebate if you instal one.
If you want advice on the best hot water system to suit your installation budget, contact our expert team of gas plumbers & hot water plumbers today. Our team of expert 24-hour emergency plumbers can’t wait to help you solve your plumbing problems.
(For more hot water plumbing insights, see our dedicated plumbing blog! )
Please note that all information provided on this page is general in nature. We strive to provide accurate and reliable information at the time of publishing. However, this should not be interpreted as advice as it’s general in nature. You should seek a professional opinion to ensure that the information is suited to your situation.