Table Of Contents
TL;DR (Too Long; Didn’t Read)
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Having A Hot Water System Installed
Choosing the top hot water system for your needs is crucial because it contributes to around 25% of Australia's average household's energy expenditure. As far as hot water systems go, homeowners have several alternatives to choose from, including electric, solar, or gas hot water systems.
There are, however, a few things to consider before settling on the best option for your needs, especially the cost. This article dives into the cost of installing a hot water system on your property based on the type and the various factors that determine this cost. Read on to find out how much you can expect to cough up for your preferred hot water system to be installed in your house.
Total Cost Of Installing A Hot Water System
The cost to install a hot water system on your property varies and depends on various factors, with the overarching one being the type of system you opt for. This means that the cost increases when several other factors come into play, including whether new fittings are required or if the plumbing or an electrical system needs to be upgraded.
It might also vary significantly depending on how complicated the installation is. To comply with hot water system installation laws, a certified plumber must carry out all hot water system installations. It's essential to have a rough estimate of the expected installation cost to align your budget with your household's hot water needs.
The above stipulations also apply if all your doing is replacing your current hot water system with a more efficient one or a different type. Read on to get into the specifics of how much it will cost to install a new hot water system on your property in Australia or replace an existing unit.
Cost of installing an electric hot water system
The unit and labour costs are typically included in the installation cost of an electric hot water system, ranging from around $1,100 to $2,100. Tankless conversions might cost an additional $100 to $200 in pipework and fittings. The standard labour cost for installing an electric hot water system is between $250 and $700 for a replacement hot water heating system installed in the exact location.
For a straightforward replacement, the cost of installing a new electric water heater would be around $550 for labour and accessories. Compared to their immediate counterparts, natural gas hot water systems, which have an operating cost of approximately $410 to $475 per year, electric hot water heaters are the most expensive.
Cost of installing a gas hot water system
For a gas hot water system, the installation cost typically ranges from around $350 to about $800. If you shift from an electric to an LPG hot water system, installation costs usually fall between $1,200 and $3,000. You will also pay roughly $80 per hour in labour costs to have your gas water heater system installed.
Each type of gas hot water system has a different price, but in general, you may anticipate that a storage system would cost less up front than an immediate system. Depending on its size and the number of taps or devices it will need to service, an instantaneous gas water heater might cost anywhere between $600 and $1,900. On the other hand, a gas storage water heater system can cost between $900 and $1,800.
Installation fees for gas hot water systems are often in addition to the system buying price and vary depending on the task, i.e., is it a new hot water system installation or a replacement. Gas hot water units are often more economical to operate since gas is less expensive than electricity, allowing you to offset the installation cost over time. For instance, "off-peak" rates are not a concern, but your cylinders may run out if you are not hooked to the mains.
Cost of installing a solar hot water system
The national average cost of installing a solar hot water system falls between $3,000 and $10,000. On the cheap end of the scale, you may choose a smaller tank that costs approximately $4,000 to fully install and only contains 200 litres. On the upper end, a 50-litre tank with a twin heat exchanger and a collector is fully fitted for roughly $13,000.
However, the cost varies due to various factors, such as the type you opt for. Prices start at around $3,000 and often don't go higher than $4,500 for flat plate collectors. Evacuated tube collectors usually cost around $6,000, while heat pumps are reasonably priced, ranging in price from around $3,000 to $4,000.
The price difference between solar hot water systems with gas boosters and those with electric boosters can range from around $500 to $1,000. Furthermore, solar-powered split systems cost more than hot water storage tanks that are located on the roof.
Estimated Installation Costs For Varying Systems
Below is a summary of the approximate installation cost of the different types of hot water systems available in the market:
Electric hot water system (including a storage tank)
Average system cost
$525-$2,000
Average installation cost
$300-$750
Electric hot water system (continuous or instantaneous flow)
Average system cost
$750-$1,500
Average installation cost
$300-$1,550
Gas hot water system (including a storage tank)
Average system cost
$880-$1,525
Average installation cost
$350-$800
Gas hot water system (continuous or instantaneous flow)
Average system cost
$785-$1,625
Average installation cost
$350-$1,600
Solar hot water system (backed up by electric power)
Average system cost
$3,650-$5,050+
Average installation cost
$2,050-$3,550
Solar hot water system (backed up by gas)
Average system cost
$4,950-$6,550+
Average installation cost
$2,050-$3,800
Heat pump system
Average system cost
$3,350-$4,050
Average installation cost
$1,050-$2,550
Total Cost Of Replacing A Hot Water System
With a hot water system replacement price of as little as around $250, the expense of replacing an outdated hot water system with a similar model installed in the exact location is minimised. For instance, in a different area, the price to replace the gas hot water system would range from around $1,000 to $2,500.
Gas hot water replacement costs typically fall within the range of around $1,200 to $3,000 for hot water system replacement if moving from an electric to a gas hot water heater. This is dependent on the distance between the replacement hot water system and the current hot water installation, as well as the needed electrical work.
The price to replace a hot water system depends on how complicated the replacement is. Since replacing a hot water system is often simpler, replacing an existing installation will cost less money. However, there are other things to put into consideration.
If you are, for instance, shifting to a gas hot water system and your home doesn't already have a gas hook up, installation prices will increase to cater for the added expense. Therefore, you need to put all these factors into consideration. Researching each type beforehand will give you a rough idea of the expected installation cost, allowing you to plan your budget accordingly.
Cost Factors Of Hot Water System Installation
Electric, gas, or solar hot water system?
Gas (propane or natural gas) or electricity are some of the fuel sources for hot water systems. Compared to gas water heaters, comparable electric water heaters are around $100 to $200 less expensive to install. However, the running costs of gas water heaters are frequently less due to the higher cost of electricity and lower cost of natural gas and propane throughout the country.
Because they don't need venting, electric hot water systems are still a fantastic option for limited spaces. Solar hot water systems are costlier to buy than gas or electric storage hot water systems but far less costly to operate. Depending on your location, energy tariff, and climate, the exact cost of operating a hot water system varies greatly.
Do you want a tank or tankless system?
Tank-style hot water systems have been the industry norm for more than a century. The tank sizes range from around 25L to about 400L. It's important to understand that there are numerous options in between, and all you have to do is go for the size that meets your hot water needs.
There is always a chance of heat loss in these systems since they are not completely insulated, which may be quite costly in an electric system. Installation costs for tank-style hot water systems, including the new water heater, supplies, and labour, range between $650 and $2,100 on average. Systems with tanks have a lifespan of about 10 to 12 years and can be powered by electricity, gas, propane, or solar.
Tankless hot water systems have proven to be very effective over the last few decades. Instead of storing hot water and using energy to keep it warm, they deliver an endless supply of hot water on demand by heating it as it flows through the waterline. Installation costs for tankless hot water systems range from around $1,000 to $3,500. They generally have a lifespan of around 20 years and can be fuelled by electricity, gas, or solar.
Tank size or tankless system's water heating capacity
The size of the water heater also influences the installation cost. Tank-style hot water systems have storage capacities ranging from around 75L to more than 300L, with most homes using 150L to 200L systems. The flow rating of a tankless system is measured in units of 7 to 20 litres per minute (LPM). A greater flow rate of around 15 to 20 LPM is advised for most households. Make sure the selected system will provide adequate hot water for everyone in your house.
The average home in Australia uses around 40 to 50 litres of heated water per person daily. A too tiny system will cause someone to miss out on a hot shower or impede the flow. On the other hand, an overly extensive system will cost you money for resources you won't use. Therefore, if you intend to install a hot water system in your house, it is crucial to go through the following with your installer before deciding on the size:
- The number of members residing in your household.
- When do members of your household take their showers—In the morning? In the evening? Or is there no pattern?
- Does any member of your household enjoy taking long, hot baths?
- Do you wash your clothes in hot or cold water?
- Do you hand-wash the dishes, or do you use a dishwasher?
Direct vent or power vent hot water systems
Gas hot water systems emit exhaust, which must be expelled either by a power vent blower or directly overhead through a vent flue. You can expect to spend an additional $500 to $1,000 to install the vent pipe if you swap out an electric hot water system with a direct vent gas unit.
Power vent hot water systems employ a fan to push exhaust out through vent pipes. Instead of spending more money on the pricier metal flue pipe, they can discharge exhaust either vertically or horizontally. Compared to direct vent models, these systems are more energy-efficient and allow greater flexibility regarding installation locations.
In addition to the electrical work and wiring, adding an extra $300 to $500 to the installation cost, power venting systems cost around $300 to $600 more than their counterparts.
Labour costs for the installation
The labour fee makes up a sizable amount of the installation cost in addition to the unit's cost. The price of labour could range from around $150 to $1,000 or more. The prices differ depending on the hot water system's size, type, and installation location. This is in addition to the hourly fee of the installer.
A plumber could do most of the work required to install a gas or electric hot water system. Their average hourly rates range from around $7-$150. You will also need to employ an electrician for about $50 to $100 per hour if the project requires significant electrical work, such as establishing a new circuit or switching from gas to electricity.
Electric and gas tank-style hot water systems typically require around three hours to replace. In the same vein, a tankless hot water system installation takes about eight to ten hours. Moving the water heater to a different location within your house, switching from a gas to an electric system, or vice versa can considerably lengthen the project and potentially necessitate hiring additional workers like drywall installers or carpenters.
Are low-energy water heating systems available?
The government has not yet controlled the labelling of energy-star rating information on hot water systems in the same manner that it does for refrigerators and other appliances. Request information from the merchant or installer and conduct your study. It is prudent to go for a six or seven-star rating on energy efficiency. A higher grade often suggests reduced operating expenses. Reduced operating costs help in offsetting a high installation cost with time.
Is there any restriction to what you can install?
Depending on your structure and home, one type of hot water system may be preferable to another. Local water quality is important. Keeping water that is of low quality or "hard water" might cause tank corrosion in your storage tank and pipework (to name but a few of the issues it can cause). In this scenario, an instantaneous system may be preferable in which the water runs through and warms as it goes.
Tanks and also instantaneous systems for hot water are typically housed outside for ventilation purposes; however, they can be put within, if necessary, as long as they can be vented into the outside. Basically, if there are no restrictions, you can go for the system that fits your price range. Otherwise, you must go for the system that best beats the limitation, determining the installation cost.
Additional factors affecting installation cost
The cost of installing a hot water system could include additional expenses outside the cost of the appliance and the labour fees. Permit fees, the cost of installing an expansion tank, removing and disposing of the old water heater, putting in gas or water connections, doing carpentry or electrical work, and material costs are a few examples.
Need To Have A Hot Water Heater Installed?
If everything goes according to plan, installing a solar hot water system is a stress-free process that raises the level of life for every single member of your home. As you have seen in this post, the installation cost may vary depending on your water heater's capacity or the kind of system you need to be installed, among others.
If you need to install or replace the current hot water heater system in your house for a more efficient unit, be sure to get in touch with a reliable plumbing business in your locality. Moreover, if you are uncertain and want to make sure you are choosing the greatest hot water system for your budget, request a personalised quote from a reputable plumbing company and work with that.
Need an Experienced Plumber?
Tropical Coast Plumbing's team of experienced plumbers are here to offer you the best in residential and commercial plumbing solutions. Whether it be gas plumbing, emergency plumbing, blocked toilets, hot water installation or general plumbing, our plumbers know how to get the job done right.
