Hot Water System Pricing: Australian Buyer’s Guide for Costs, Installation and Running Expenses

Nov 16, 2024

Hot water system pricing can vary widely depending on the system type, brand, size, energy source, installation location and whether you are buying supply-only or choosing a supplied-and-installed option where available.

The main hot water systems Australian homeowners compare are electric storage, gas hot water, instant gas hot water, heat pump hot water and solar hot water. Each option has different upfront costs, installation requirements, running costs and long-term value.

The cheapest product price is not always the cheapest overall replacement. A hot water system may also require valves, plumbing changes, electrical work, gas fitting, drainage, old unit removal, disposal, access work or compliance upgrades depending on the property.

Installed Today supplies a range of hot water systems, including electric hot water systems, instant gas hot water systems and heat pump hot water systems for customers comparing replacement options online.

Quick answer: what affects hot water system pricing?

Hot water system pricing depends on:

System type
Tank size or flow rate
Brand and model
Natural gas, LPG or electricity
Supply-only vs supplied-and-installed
Like-for-like replacement or system change
Indoor or outdoor location
Access to the system
Valve requirements
Pipework changes
Electrical work
Gas fitting
Drainage
Old unit removal and disposal
Current rebates or incentives
Local installer requirements

A simple like-for-like electric storage replacement is usually easier to price than changing from electric storage to gas, upgrading to heat pump, moving the system to a new location or replacing a complex solar hot water setup.

Hot water system price vs total replacement cost

When comparing hot water systems, separate the product price from the total replacement cost.

Product price

The product price is the cost of the hot water system itself. This is what supply-only customers compare when they already have their own licensed installer arranged.

Total replacement cost

The total replacement cost may include:

Product supply
Installation labour
Valves and fittings
Plumbing changes
Electrical work
Gas work
Drainage work
Base or stand requirements
Wall mounting
Old unit removal
Disposal
Compliance upgrades
Difficult access
Delivery limitations

This is why two homes can choose the same hot water system but have different total replacement costs.

Supply-only hot water system pricing

Supply-only means the product is supplied without installation included.

This can suit:

Customers who already have a licensed plumber arranged
Builders and renovators
Landlords working with a property manager
Customers outside supplied-and-installed service areas
Customers replacing like-for-like systems
Customers comparing products online before ordering

Supply-only product pricing generally does not include installation, valves, electrical work, gas work, pipework changes, drainage changes, old unit removal, disposal or compliance upgrades unless those items are clearly selected or shown.

Before ordering supply-only, confirm the selected system with your licensed installer.

Supplied-and-installed hot water pricing

Installed Today offers supplied-and-installed options on selected products in eligible Brisbane and Gold Coast service areas where shown.

A supplied-and-installed option may suit customers who want a more complete replacement pathway instead of ordering the product only.

Before ordering, check:

Whether installation is available for your address
What the listed installation includes
Whether valves are included or extra
Whether old unit removal is included or extra
Whether disposal is included or extra
Whether electrical work is included or extra
Whether gas work is included or extra
Whether pipework changes are included or extra
Whether the replacement is like-for-like
Whether access issues may add cost

Do not assume every possible site requirement is included. Product pages and selected add-ons should be checked carefully.

Electric hot water system pricing

Electric storage hot water systems are often one of the simplest replacement options where the home already has an electric hot water system.

Electric hot water systems are available in many sizes, including:

50L
80L
125L
160L
250L
315L
400L

Smaller systems usually cost less than larger tanks, but the right size depends on household demand. Choosing the smallest system may reduce upfront cost but can lead to running out of hot water.

You can compare current options in the electric hot water systems collection.

What affects electric hot water cost?

Electric hot water pricing can be affected by:

Tank size
Brand
Indoor or outdoor model
Mains pressure or low-pressure requirements
Existing electrical supply
Valve requirements
Access
Base or stand condition
Whether the old unit is the same size
Whether the system is being moved
Whether a timer or tariff setup applies
Old unit removal and disposal

Electric storage can be a practical replacement when the existing system worked well and the location is suitable.

Electric hot water running costs

Electric storage systems are simple and reliable, but running costs depend on electricity tariffs, tank size, household usage, timer setup and whether the home has rooftop solar.

Electric running costs may be higher if:

The system is oversized
The household uses a lot of hot water
The system heats at expensive tariff times
The tank is old or poorly insulated
The system is not connected to a suitable tariff
The household has no solar support

For homes with rooftop solar, a suitable electric or heat pump setup may allow more daytime energy use, depending on the electrical configuration.

Gas hot water system pricing

Gas hot water pricing depends on whether the system is gas storage or continuous flow gas.

The most common gas replacement category customers compare online is instant gas hot water systems, also called continuous flow gas hot water systems.

Common continuous flow sizes include:

16 L/min
20 L/min
26 L/min

A smaller 16 L/min unit may suit a one-bathroom home. A 26 L/min unit is commonly compared for family homes and two-bathroom properties.

What affects gas hot water cost?

Gas hot water pricing can be affected by:

Natural gas or LPG
Flow rate
Brand
Gas pipe sizing
Water pressure
Existing gas location
Outdoor clearances
Electrical connection
Controller requirements
Valve requirements
Pipework changes
Old system removal
Disposal
Compliance upgrades

Gas systems must be installed by a licensed gas fitter. Electrical work may also be required for continuous flow gas systems because many need power for ignition and controls.

Natural gas vs LPG pricing considerations

Gas systems must match the property’s fuel type.

Natural gas and LPG are not interchangeable. A natural gas model should not be ordered for an LPG property, and an LPG model should not be ordered for a natural gas property unless the manufacturer and licensed gas fitter confirm an approved conversion pathway.

Before ordering gas hot water, check:

Existing unit label
Natural gas meter
LPG bottle setup
Product model type
Installer confirmation
Gas pipe sizing
Location and clearances

Ordering the wrong gas type can delay installation and create extra cost.

Gas hot water running costs

Gas hot water running costs depend on:

Natural gas or LPG pricing
Household usage
Number of bathrooms
Shower habits
Flow rate
System efficiency
Gas pipe sizing
Water pressure
Maintenance
Whether multiple outlets run at once

Gas can be a strong option where the property already has a suitable gas supply. However, it should not be assumed to be cheaper for every home. Electricity tariffs, solar power, heat pump suitability and installation cost all affect the comparison.

Heat pump hot water system pricing

Heat pump hot water systems usually cost more upfront than standard electric storage systems, but they can offer lower running costs in suitable conditions.

A heat pump still stores hot water in a tank, but it uses heat from the surrounding air to help heat the water. This makes it a popular upgrade option for homes replacing older electric storage systems.

You can compare current models in the heat pump hot water systems collection.

What affects heat pump hot water cost?

Heat pump pricing can be affected by:

Tank size
Brand
One-piece or split-system design
Efficiency
Noise rating
Recovery rate
Warranty terms
Outdoor location
Airflow
Condensate drainage
Electrical requirements
Base or slab condition
Access for delivery
Old unit removal
Rebate eligibility
Installation complexity

A heat pump may be straightforward where replacing an outdoor electric storage unit in a suitable location. It may be more complex where the existing system is indoors, drainage is difficult, airflow is poor or electrical work is needed.

Heat pump running costs

Heat pump running costs can be lower than standard electric storage in suitable conditions, but actual results depend on:

Climate
Tank size
Household usage
Timer settings
Electricity tariff
Rooftop solar setup
Outdoor airflow
Maintenance
Recovery pattern
System quality

Heat pump hot water can be a strong long-term option, but it is not automatically the best choice for every home. The location must suit the unit.

Solar hot water system pricing

Solar hot water systems can have higher upfront costs because they may involve roof collectors, storage tanks, boosters, pipework and more complex installation requirements.

Solar hot water pricing can be affected by:

Roof access
Roof orientation
Shading
Collector type
Tank location
Booster type
Existing solar setup
Pipework
Valves
Removal of old roof components
Installer requirements
Rebate eligibility

Solar hot water can suit some homes, but replacing or upgrading solar systems is usually more site-specific than a standard electric, gas or heat pump replacement.

Solar hot water running costs

Solar hot water can reduce reliance on purchased energy when the site is suitable, but running costs still depend on:

Solar exposure
Roof orientation
Weather
Booster type
Household usage
System size
Maintenance
Existing energy tariffs
Backup heating requirements

If an old solar hot water system fails, it is worth comparing solar replacement against heat pump, electric storage or gas options rather than assuming another solar system is the only path.

Electric vs gas vs heat pump vs solar pricing

Here is a simple comparison:

System type	Upfront price tendency	Running cost tendency	Best suited to
Electric storage	Often lower upfront	Can be higher depending on tariff and usage	Simple like-for-like electric replacements
Instant gas	Moderate to higher depending on gas work	Depends on gas pricing and usage	Homes with natural gas or LPG
Heat pump	Higher upfront than standard electric	Often lower in suitable conditions	Efficiency-focused electric homes
Solar hot water	Often higher upfront	Can be low when site suits	Homes with suitable roof and solar exposure

The best-value system depends on the property, not just the product category.

Cheapest hot water system upfront

The cheapest upfront option is often a smaller electric storage system or a simple like-for-like replacement where the existing services already suit the new unit.

However, cheapest upfront does not always mean best value.

A low-cost system may be wrong if:

It is too small
It does not suit the household
It has higher running costs
It needs extra installation work
It does not match the gas type
It does not fit the existing space
It creates future hot water complaints

For many homes, the best choice is the lowest-complexity system that still meets household demand.

Lowest running cost hot water system

The lowest running cost system depends on the property.

Heat pump and solar hot water can be efficient options when the site suits. Gas continuous flow can also be practical where gas is available and demand matches the system. Electric storage may be cost-effective in some homes with solar support or suitable tariffs.

Running costs depend on:

Energy tariff
System efficiency
Usage habits
Household size
Climate
Solar power
Timer setup
Maintenance
System sizing
Location

Avoid choosing a system based only on a generic running cost claim. Compare it against your property and usage.

Best hot water system price for small homes

Small homes, units and granny flats often need less capacity than family homes.

Common options include:

80L electric storage for very low use
125L electric storage for 1–2 people
160L electric storage for more comfort
16 L/min instant gas where gas supply suits
Small heat pump only where outdoor space and demand suit

For small homes, avoid oversizing unless there is a clear reason. A larger system may cost more to buy and may not be needed.

Best hot water system price for family homes

Family homes usually need more capacity and stronger recovery.

Common options include:

250L electric storage for moderate family use
315L electric storage for larger families
400L electric storage for high-use homes
26 L/min instant gas where gas supply suits
Family-sized heat pump where outdoor space and electrical setup suit

For family homes, undersizing can create hot water complaints. The system should suit people, bathrooms, shower habits and simultaneous use.

Best hot water system price for rental properties

Rental properties should be sized for likely tenant demand, not just the current occupant.

A low-cost small system may not be ideal if the property is likely to be occupied by a family or multiple tenants later.

For rentals, compare:

Reliability
Correct sizing
Simple operation
Existing services
Replacement cost
Running cost
Access for future service
Tenant demand
Long-term value

A rental property hot water system should be practical and durable, not just cheap.

Best hot water system price for Airbnb and short-stay properties

Short-stay properties should be sized for maximum guest occupancy.

Guests may shower back-to-back, use multiple bathrooms, run laundry and expect strong hot water performance.

Common short-stay options include:

160L electric storage for compact stays
250L electric storage for family stays
315L or 400L electric storage for larger homes
20 L/min or 26 L/min instant gas where gas supply suits
Heat pump hot water where recovery and location suit

A system that is too small can lead to guest complaints, even if it technically works.

Installation cost factors by system type

Different system types bring different installation considerations.

Electric storage installation factors

Tank size
Indoor or outdoor location
Electrical circuit
Valves
Drainage
Base or tray
Access
Old unit removal

Gas hot water installation factors

Natural gas or LPG
Gas pipe sizing
Water pressure
Electrical connection
External clearances
Controller wiring
Valves
Gas compliance
Old unit removal

Heat pump installation factors

Outdoor airflow
Condensate drainage
Noise placement
Electrical setup
Base or slab
Access
Valves
Timer settings
Old unit removal

Solar hot water installation factors

Roof collectors
Roof access
Booster type
Tank location
Pipework
Valves
Shading
Existing system condition

Replacing like-for-like vs changing system type

Like-for-like replacement is usually the simplest option.

This may mean replacing:

Electric storage with electric storage
Gas storage with gas storage
Instant gas with instant gas
Natural gas with natural gas
LPG with LPG
Heat pump with heat pump
Similar size in the same location

Changing system type can be worthwhile, but it can add cost and complexity.

Examples include:

Electric storage to heat pump
Electric storage to instant gas
Gas storage to instant gas
Solar hot water to heat pump
Indoor electric storage to outdoor heat pump

Before changing system type, confirm installation requirements with a licensed professional.

Rebates and incentives

Rebates and incentives can affect hot water system pricing, especially for heat pump and solar options.

However, rebate rules can change by:

State
Product type
Installation date
Installer accreditation
Property eligibility
Energy scheme
Paperwork requirements

Before choosing a system based on a rebate, check:

Whether the product is eligible
Whether your property is eligible
Whether the installer must be accredited
Whether the rebate is applied upfront or claimed later
Whether the advertised price already includes the rebate
Whether the scheme is still available

Do not rely on old rebate information when ordering.

Maintenance and long-term value

Maintenance affects long-term cost.

Different systems may need different checks, such as:

Valve inspection
Anode replacement for some storage tanks
Relief valve checks
Filter cleaning
Gas servicing
Heat pump airflow checks
Condensate drainage checks
Solar collector checks
Leak inspections
General system condition checks

A cheaper product may cost more over time if it fails early, is difficult to service, or does not suit the property.

Brands and pricing

Hot water system prices also vary by brand.

Installed Today stocks selected hot water brands across different categories. Customers commonly compare brands such as:

Rheem
Rinnai
Dux
Vulcan
Thermann
Stiebel Eltron
iStore
Aquamax

You can compare brand ranges such as Rheem hot water systems, Rinnai hot water systems and Dux hot water systems.

The best brand depends on system type, household demand, warranty terms, availability and installation requirements.

What to check before comparing prices online

Before comparing hot water system prices, gather:

Current system type
Current brand and model
Tank size or L/min rating
Electric, gas, heat pump or solar
Natural gas or LPG if gas
Indoor or outdoor location
Number of people in the home
Number of bathrooms
Whether the old system ran out often
Available space
Access for delivery
Electrical requirements
Gas requirements
Drainage requirements
Old unit removal needs
Whether you need supply only or supplied-and-installed

This helps you compare products that actually suit your property.

Common mistake: comparing only the product price

Product price is only part of the total cost.

A cheap system may become expensive if it needs:

Extra valves
Electrical upgrades
Gas pipe changes
Drainage work
Difficult access labour
Old unit disposal
Compliance upgrades
A different installation location

Always compare the product and the installation pathway together.

Common mistake: choosing the same size without checking demand

If your old system regularly ran out of hot water, replacing it with the same size may repeat the problem.

Hot water demand can change when:

More people move in
Children become teenagers
A second bathroom is added
A granny flat is connected
The home becomes a rental
The property becomes an Airbnb
Shower habits change

Use replacement time to choose the right size.

Common mistake: choosing gas without confirming fuel type

Natural gas and LPG are different.

Before ordering gas hot water, confirm the correct gas type. Choosing the wrong model can delay installation and create extra cost.

Common mistake: choosing heat pump without checking the location

Heat pumps need outdoor space, airflow, drainage and acceptable noise placement.

Do not choose heat pump hot water based only on efficiency or rebate claims. Confirm the site suits the system.

Common mistake: assuming installation is included

Supply-only pricing generally means product supply only.

Installation, valves, plumbing, gas work, electrical work, drainage, old unit removal, disposal and compliance upgrades are separate unless clearly shown as included.

Final recommendation

Hot water system pricing depends on more than the unit. The best-value system is the one that suits your household size, bathrooms, energy source, installation location, running cost goals and replacement budget.

For simple electric replacements, compare electric hot water systems. For homes with natural gas or LPG, compare instant gas hot water systems. For efficiency-focused electric upgrades, compare heat pump hot water systems. To view all major options, browse the Installed Today hot water systems range.

Before ordering, confirm the size, system type, installation requirements and inclusions. The lowest product price is not always the lowest total cost, and the most expensive system is not always the best fit.

Long-tail FAQs

How much does a hot water system cost?

Hot water system cost depends on system type, brand, size, energy source, supply-only price, installation requirements, valves, old unit removal, access and any current rebates or incentives.

What is the cheapest hot water system to buy?

A smaller electric storage system is often one of the lowest upfront options, especially for simple like-for-like replacements. However, it may not be the cheapest long-term option if running costs are high or the system is undersized.

What hot water system is cheapest to run?

Heat pump and solar hot water can have lower running costs in suitable conditions, while gas may suit homes already connected to natural gas or LPG. The cheapest running option depends on tariffs, usage, solar power, climate and system sizing.

Is electric hot water cheaper than gas?

Electric hot water may be cheaper upfront in some replacements, while gas may have different running cost advantages depending on gas pricing, usage and existing services. The best option depends on the property.

Is heat pump hot water worth the higher price?

Heat pump hot water may be worth it for homes replacing old electric storage where there is suitable outdoor space, airflow, drainage and electrical setup. It may not suit homes needing the lowest upfront replacement cost.

Why does installation cost vary so much?

Installation cost varies because homes have different access, valves, pipework, gas supply, electrical requirements, drainage, old unit removal needs and compliance upgrades.

Does supply-only hot water pricing include installation?

No. Supply-only generally means the product is supplied only. Installation and site work are separate unless clearly shown as included.

Should I replace my hot water system with the same type?

Like-for-like replacement is often the simplest option if the existing system type and size worked well. If the old system ran out, leaked, or no longer suited the home, compare a different size or type.

Are hot water rebates available?

Rebates and incentives may be available for selected products in some areas, but rules change. Check current product, property and installer eligibility before relying on a rebate.

What should I check before ordering a hot water system?

Check your current system type, size, gas type if applicable, number of bathrooms, household size, location, dimensions, access, electrical requirements, gas requirements, drainage and whether installation is included.

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