How Much Does a Hot Water System Installation Cost?
Whether you’re preparing for a new home build, replacing an older faulty unit, or simply upgrading your home’s hot water system, a licensed electrician will be required to install and set up a new hot water system. So, how much will installation cost?
When shopping for a new hot water system, you’ll notice that some units are more expensive than others – retailers can also provide supply and installation of the unit. It is usually more cost-effective to purchase the unit and then have it installed by an electrician after it has been delivered.
To give you more of an insight into how much you can expect to pay for hot water installation, we’ve put together this guide.
Average Hot Water System Installation Costs
Installation costs for a hot water system in Australia can be anywhere between $300 to $2,000.
If it’s just a simple like-for-life replacement of an existing hot water system, installation is more straightforward – costs can be as low as $300 (excluding the purchase of the unit).
Switching to a different type of hot water system or installing a new hot water system can be more complicated. Depending on the labour and work required, installation fees can end up costing up to $2,000.
Installation Costs for Different Hot Water Systems
Hot water systems come in different types, sizes, and energy efficiency ratings — larger and more energy efficient systems tend to be more expensive to purchase and install.
Electric hot water system
Electric hot water systems are one of the most common types of hot water systems used in Australian homes. The cheapest system to purchase and install, an electric hot system will set you back between $800 – $1,800.
Electric hot water systems can also have the highest running costs – less energy efficient than other types, electric systems are at the mercy of rising energy costs. That being said, they are relatively easy to maintain and operate well year-round.
Gas hot water system
Gas hot water systems are fuelled by natural gas that is burned to heat water. The installation of a gas hot water system will generally cost between $1,500-$3,000, which includes the cost of the system.
Running costs for a gas hot water system are typically lower than an electric hot water system due to the lower cost of natural gas. They will, however, require more frequent maintenance and replacement. Homes without access to a gas supply line will not be able to install a gas hot water system without extensive and expensive work to have a gas supply line installed.
Heat pump system
Heat pump systems are more energy-efficient and more expensive – it can cost between $2,000 to $7,600 for both purchase and installation. Heat pump systems work best in warmer climates — the system uses external heat in the environment to heat up the water. Heat pumps have the lowest running costs at an average of $500 per year.
Solar hot water system
Solar water heaters are the most energy-efficient of all hot water systems but are the most expensive in terms of installation costs — it can cost between $3,000 to $7,000 to have a solar water heating system installed in a home. There’s also an added level of consideration for the placement and capacity of the solar system, making it a big investment for a home.
What Determines the Cost Of Hot Water Installation?
As mentioned, costs vary from system to size and the different considerations for each home. The cost of hot water installation will ultimately come down to what you decide in terms of the type of hot water system, the brand of the product, and the installation service.
Here are some other major considerations when installing a new hot water system:
Water Usage
In addition to the types of water heating systems, there are also two types of water heater systems: continuous flow, which heats up water as it passes through pipes, and storage tanks, which heats up a bulk of water in a tank. Naturally, tank-based systems offer hot water on-demand, while continuous flow is more energy-efficient — it will be up to you to decide which is better based on your household’s water usage rates and preferences.
Tank size/capacity
Larger systems will have higher upfront costs for installation. As a guide, a tank size between 125L and 300L will be sufficient for a small family of four. For continuous flow systems, units with faster heating and greater flow capacity will usually require more power and subsequently cost more.
Choice of installer
All hot water systems must be installed by a licensed electrician or plumber. Costs between installation services will vary based on location and the provider, but it’s important to keep in mind that a job well done is worth more than a cheap but shoddy installation.
As fully qualified and experienced electricians on Sydney’s North Shore, Radiance Electrical offers 100% satisfaction for hot water system installations.
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