Price of Hot Water System: What Affects the Cost Before You Buy

Oct 9, 2024

The price of a hot water system depends on more than the unit itself. Electric storage, gas storage, instant gas, instant electric, heat pump and solar hot water systems all have different product costs, installation requirements, running costs and long-term value.

A cheaper hot water system upfront may not be the cheapest option over time if it is too small, expensive to run, the wrong gas type, unsuitable for the property or missing installation requirements. A higher-priced system may be better value if it suits the household, reduces energy use and avoids avoidable upgrade costs later.

Installed Today makes it easy to compare and order hot water systems online, including electric hot water systems, gas hot water systems, instant gas hot water systems and heat pump hot water systems. Supply-only ordering is available across major Australian metro areas, with selected supplied-and-installed options available on eligible products in Brisbane and Gold Coast service areas.

Quick Answer: What Is the Price of a Hot Water System?

The price of a hot water system depends on the system type, brand, size, energy source and installation pathway.

As a general guide:

Electric storage hot water systems are often one of the lower upfront product-cost options
Gas storage hot water systems can suit homes already using natural gas or LPG
Instant gas hot water systems are usually priced by flow rate, gas type and brand
Heat pump hot water systems usually cost more upfront than standard electric storage but may reduce electricity use in suitable homes
Solar hot water systems can have higher upfront costs because of roof collectors, boosters and installation complexity
Instant electric hot water systems can suit small point-of-use applications but may have high electrical requirements
Supply-only pricing usually covers the product only
Supplied-and-installed options are only available on selected eligible products and locations
Installation, valves, electrical work, gas work, pipework, drainage, old unit removal, disposal and compliance upgrades may be extra unless clearly selected or shown

Before ordering supply only, confirm the correct model, size, gas type, electrical requirements, access, valves, drainage and installation suitability with your licensed installer.

What Affects the Price of a Hot Water System?

Hot water system pricing can change depending on the product and the property.

The main cost factors include:

System type
Brand
Tank size
Instant gas flow rate
Natural gas or LPG model
Electric element size
Heat pump capacity
Solar collector and booster setup
Product availability
Delivery location
Installation access
Existing system type
Existing valve condition
Electrical requirements
Gas pipe sizing
Water pressure
Drainage and overflow requirements
Old unit removal
Disposal
Compliance upgrades
Rebate or STC eligibility
Supply-only vs supplied-and-installed pathway

The product price on a page is only one part of the total cost. Installation requirements can change the final price significantly.

Electric Hot Water System Prices

Electric hot water systems are common in Australian homes and are often compared for simple replacements.

They use an electric element to heat water stored inside a tank. Electric storage can be a practical choice where the home does not have natural gas or LPG, or where the existing system is already electric.

Electric hot water pricing is affected by:

Tank size
Brand
Element size
Indoor or outdoor suitability
Product availability
Warranty details
Electrical supply
Access for delivery
Existing valves
Drainage and overflow requirements
Whether the system is supply only or installed

Common electric storage size categories include 250L electric hot water systems, 315L electric hot water systems and 400L electric hot water systems.

Popular electric storage options include:

Electric storage may be cheaper upfront than heat pump hot water, but running costs depend on household use, tariff, tank size and how well the system suits the home.

If your old electric system regularly ran out of hot water, do not automatically choose the same size again.

Gas Hot Water System Prices

Gas hot water systems can suit homes already connected to natural gas or using LPG.

Gas hot water pricing is affected by:

Gas storage vs instant gas
Natural gas vs LPG
Tank size or flow rate
Brand
Efficiency rating
Outdoor or internal-flued suitability
Gas pipe sizing
Water pressure
Electrical connection for ignition or controls
Access and clearances
Existing valve and drainage setup
Whether old unit removal is included

Gas work must be completed by a licensed gas fitter. Natural gas and LPG systems are not interchangeable, so the correct gas type must be selected before ordering.

Gas Storage Hot Water Prices

Gas storage systems heat and store water in a tank. They can suit homes already using gas that want stored hot water ready for daily use.

Gas storage may suit homes that:

Already have natural gas or LPG
Prefer a tank-style system
Are replacing an existing gas storage unit
Want stored hot water ready for use
Have suitable outdoor installation space
Have household demand that suits a gas storage tank

Common gas storage categories include:

Popular gas storage options include:

A gas storage unit may be a practical like-for-like replacement where the old system worked well and the gas setup still suits the home.

Instant Gas Hot Water Prices

Instant gas hot water systems, also called continuous flow systems, heat water as it flows through the unit. They do not store a full tank of hot water.

Instant gas pricing is usually affected by:

Flow rate
Brand
Natural gas or LPG model
Temperature controller options
Gas pipe sizing
Water pressure
Outdoor wall location
Required clearances
Whether the old system was storage or instant gas
Whether pipework changes are needed

Common instant gas sizes include 16L, 20L and 26L.

A 26L instant gas hot water system may suit some higher-demand households, but it is only suitable where gas pipe sizing and water pressure support the unit.

Popular instant gas options include:

External gas hot water units are designed for outdoor installation unless the specific manufacturer model is approved for internal flued installation.

Heat Pump Hot Water System Prices

A heat pump hot water system is an electric hot water system that uses heat from the surrounding air to help heat stored water.

Heat pumps usually cost more upfront than basic electric storage systems, but they may reduce electricity use where the home suits the technology.

Heat pump pricing is affected by:

Brand
Tank capacity
Recovery rate
Efficiency
Noise level
Smart controls or Wi-Fi features
Rebate or STC eligibility
Outdoor location
Airflow
Condensate drainage
Electrical requirements
Access and base condition
Old unit removal and disposal

Heat pump hot water may suit homes that:

Are replacing older electric storage systems
Want to reduce hot water electricity use
Have suitable outdoor space
Have clear airflow around the unit
Can manage condensate drainage
Have suitable electrical supply
Want to pair hot water operation with rooftop solar where timing suits

Many households compare medium heat pump hot water systems 200L–280L, while higher-demand homes may compare large heat pump hot water systems. Customers wanting more control may also compare Wi-Fi enabled heat pump hot water systems.

Popular heat pump options include:

A heat pump is not automatically the best option for every home. It needs the right outdoor location, airflow, drainage, access and noise placement.

Solar Hot Water System Prices

Solar hot water systems use roof-mounted collectors to capture heat from the sun and transfer it into stored water. Most systems include an electric or gas booster for cloudy weather or higher-demand periods.

Solar hot water pricing can be affected by:

Collector type
Tank size
Roof access
Roof orientation
Shading
Booster type
Pipework route
Existing system type
Old collector removal
Installation complexity
Rebate or incentive eligibility
Maintenance requirements

Solar hot water may suit homes with:

Suitable roof space
Good sun exposure
Minimal shading
Suitable roof orientation
A suitable booster setup
Long-term energy efficiency goals

Solar can reduce grid energy use where roof conditions suit, but it is not always the simplest replacement. For some homes, a heat pump may be easier to compare because it does not require roof-mounted collectors.

Instant Electric Hot Water Prices

Instant electric hot water systems heat water on demand using electric heating elements. They do not store hot water in a tank.

Instant electric systems may suit:

Small sinks
Offices
Kitchenettes
Granny flats
Low-demand fixtures
Point-of-use hot water
Space-limited applications

Instant electric pricing can be affected by:

Unit size
Flow rate
Electrical capacity
Circuit requirements
Switchboard suitability
Intended use
Plumbing location
Whether a dedicated circuit is required

Instant electric systems are not always suitable for whole-home shower demand because electrical requirements can be high. A licensed electrician or installer should confirm whether the property can support the selected unit before ordering.

Product Price vs Installed Price

When comparing the price of a hot water system, separate product price from installed price.

Product Price

The product price usually refers to the unit itself.

It may include:

The hot water system
Factory-supplied parts
Standard manufacturer packaging
Delivery where shown or included

Installed Price

An installed price may include some or all of the following, depending on the product and installation pathway:

Product
Labour
Plumbing work
Gas work
Electrical work
New valves
Pipework changes
Drainage
Condensate drainage for heat pumps
Old unit removal
Disposal
Compliance upgrades
Slab or base work
Rebate or STC processing where applicable

Do not compare a supply-only product price directly against a supplied-and-installed price. They are different purchase types.

Supply-Only Hot Water System Pricing

Supply-only pricing generally means the listed price covers the product only. This can suit customers who already have a licensed installer organised and want to order the system online.

Supply-only may suit you if:

Your installer has confirmed the correct product
The system size suits your household
The correct gas type has been selected where relevant
Electrical requirements have been checked
Water pressure has been reviewed
Access and drainage are suitable
You understand what is not included in the product price

Supply-only pricing usually does not include:

Installation labour
New valves
Electrical work
Gas work
Plumbing alterations
Pipework changes
Drainage changes
Tempering valve upgrades
Pressure limiting valve upgrades
Expansion control valves
Condensate drainage for heat pumps
Old unit removal
Disposal
Compliance upgrades
Concrete bases or slab work
Relocation of the system
Rebate administration
Site assessment

Always confirm full site requirements with your licensed installer before ordering supply only.

Supplied-and-Installed Hot Water System Pricing

Selected supplied-and-installed options are available on eligible products in Brisbane and Gold Coast service areas. Availability depends on the product, address and installation requirements.

Before choosing a supplied-and-installed option, check:

Whether your address is eligible
Whether the selected product is eligible
Whether the installation is like-for-like
What valves are included or extra
Whether electrical work is included or extra
Whether gas work is included or extra
Whether old unit removal is included
Whether disposal is included
Whether pipework changes are included
Whether drainage changes are included
Whether compliance upgrades may be extra
Whether rebates or STCs are included, excluded or handled separately

Do not assume every hot water system or every address has an installed option.

Installation Costs That Can Change the Price

Installation is one of the biggest reasons two homes can pay different total prices for similar hot water systems.

Installation cost can be affected by:

Like-for-like replacement vs system change
Existing system type
New system type
Indoor vs outdoor location
Tight access
Stairs or difficult delivery path
Old valve condition
Tempering valve requirements
Pressure limiting valve requirements
Expansion control valve requirements
Drainage and overflow points
Electrical supply
Gas pipe sizing
Water pressure
Pipework route
Condensate drainage for heat pumps
Old unit removal
Disposal
Non-compliant existing installation
Base or slab condition
Relocation of the system

This is why supply-only customers should speak with their licensed installer before ordering.

Running Costs and Long-Term Value

The price of a hot water system is not just the purchase price. Running cost can affect long-term value.

Running costs depend on:

Energy source
Household hot water use
Number of people in the home
Shower habits
System size
Tariff setup
Natural gas or LPG pricing
Heat pump location
Solar timing
Maintenance
Water temperature settings
Pipework distance
Installation quality

A cheaper electric storage unit may suit a simple replacement, but a heat pump may be worth comparing if electricity use matters and the home has a suitable outdoor location.

Gas may suit homes already set up for natural gas or LPG, while instant gas can suit continuous flow demand where pipe sizing and water pressure support the unit.

Electric vs Gas vs Heat Pump vs Solar Price Comparison

System Type	Upfront Product Cost	Running Cost Potential	Best Suited To	Key Checks
Electric storage	Often lower	Depends on tariff and usage	Simple replacements and homes without gas	Tank size, electrical supply, drainage
Gas storage	Moderate	Depends on gas type and usage	Homes with natural gas or LPG wanting stored hot water	Correct gas type, outdoor location
Instant gas	Moderate	Can suit homes with suitable gas supply	Continuous flow hot water	Gas pipe sizing, water pressure, gas type
Instant electric	Varies	Depends on usage and electrical setup	Small point-of-use applications	Electrical capacity, circuit requirements
Heat pump	Usually higher	Can reduce electricity use in suitable homes	Energy-focused homes with suitable outdoor space	Airflow, drainage, noise, electrical supply
Solar hot water	Often higher	Can reduce grid energy use where roof conditions suit	Homes with suitable roof space	Roof orientation, shading, booster setup

The best-value system is the one that suits the home, not just the lowest product price.

Household Size and Hot Water System Price

Household size affects the type and size of system needed.

Small Households

Small households may compare:

Smaller electric storage systems
16L instant gas systems where gas supply suits
Compact instant electric systems for point-of-use needs
Selected heat pumps if outdoor space and airflow suit

Avoid oversizing unless household demand is expected to increase.

Medium Households

Medium households may compare:

250L electric storage
315L electric storage
Medium heat pump systems
20L instant gas
26L instant gas where site supports it
Gas storage where natural gas or LPG is available

The right option depends on bathrooms, shower habits and peak demand.

Larger Households

Larger households may compare:

315L electric storage
400L electric storage
Larger heat pump systems
26L instant gas where gas pipe sizing and water pressure support it
Larger gas storage options

Do not choose the largest system automatically. The system must suit the household and the property.

Tank Size and Price

For storage systems, tank size is a major pricing factor. Larger tanks usually cost more than smaller tanks, but size should be based on demand.

When choosing tank size, consider:

Number of people in the home
Number of bathrooms
Shower length
Bath use
Laundry use
Kitchen use
Morning and evening peak demand
Whether multiple showers run at once
Existing system size
Whether the old system ran out of hot water
Recovery rate
Available installation space

For electric storage, common categories include 250L, 315L and 400L.

For heat pumps, common comparison ranges include 200L–280L and 280L-plus.

For gas storage, common categories include 130/135L and 160/170L.

Flow Rate and Instant Gas Price

For instant gas systems, pricing is often linked to flow rate. Common sizes include 16L, 20L and 26L.

A 16L system may suit lower-demand homes. A 20L system may suit moderate demand. A 26L system may suit some larger households, but only where gas pipe sizing and water pressure support the unit.

Before ordering instant gas, confirm:

Natural gas or LPG supply
Correct gas type
Required flow rate
Gas pipe sizing
Water pressure
Number of bathrooms
Peak shower demand
Outdoor wall location
Clearances around the unit
Electrical connection requirements where relevant

A larger flow rate can cost more and may create extra installation requirements.

Natural Gas vs LPG Price Considerations

Natural gas and LPG systems are different. They are not interchangeable.

Pricing can vary between natural gas and LPG models depending on brand, model and availability. Running costs can also differ depending on local gas pricing, bottle supply and household usage.

Before ordering a gas hot water system, confirm:

Whether the property uses natural gas or LPG
Correct model for the gas type
Whether any conversion is manufacturer-approved
Whether a licensed gas fitter is available
Gas pipe sizing
Water pressure
Outdoor location and clearances

Ordering the wrong gas type can make the unit unsuitable.

Rebates, STCs and Incentives

Some hot water systems, especially heat pumps and solar-style upgrades, may be eligible for rebates, STCs or other incentives depending on the product, location, supplier pathway and current program rules.

These incentives can change.

Before relying on a rebate or discount, confirm:

Whether the selected product qualifies
Whether your property qualifies
Whether the old system type matters
Whether your state or territory has a relevant program
Whether supply-only purchases are eligible
Whether an approved provider or installer is required
Whether pre-approval is needed
Whether the incentive is applied upfront or claimed later
Whether the rebate or STC value is already included in the price

A rebate can improve value, but it should not be the only reason you choose a system. The system still needs to suit the home.

Maintenance Costs and Long-Term Performance

Hot water systems need maintenance to perform safely and reliably. Maintenance requirements vary by system type, water quality, model and installation location.

General maintenance considerations include:

Checking for leaks
Watching for rust or corrosion
Keeping the area around the unit clear
Following manufacturer servicing guidance
Checking valves where required
Checking the anode where applicable
Keeping heat pump airflow clear
Checking condensate drainage for heat pumps
Using a licensed gas fitter for gas systems
Using a licensed electrician for electrical faults

Ignoring maintenance can affect performance, lifespan and long-term cost.

Brand Differences and Price

Brand can affect the price of a hot water system, but the right brand depends on the product type, household demand and installation conditions.

Installed Today stocks major hot water brands including:

Brand matters, but system type, size, energy source, water pressure, access and site suitability matter more than brand alone.

Brisbane and Gold Coast Price Considerations

For Brisbane and Gold Coast homes, hot water system pricing often depends on the existing system, access, drainage, energy source and installation pathway.

Common local considerations include:

Replacing older electric storage systems
Comparing electric storage with heat pump upgrades
Natural gas vs LPG availability
Outdoor wall space for instant gas
Gas pipe sizing for 26L systems
Heat pump airflow and noise placement
Condensate drainage
Tight side access
Existing valve condition
Old unit removal and disposal
Whether the selected product is eligible for supplied-and-installed options

Installed Today offers selected supplied-and-installed options on eligible products in Brisbane and Gold Coast service areas, with supply-only ordering available across major Australian metro areas.

How to Compare Hot Water System Prices Properly

When comparing hot water system prices, do not compare product-only pricing against installed pricing.

A proper comparison should include:

Product price
Delivery
Installation labour
Electrical work
Gas work
Plumbing alterations
New valves
Pipework changes
Drainage
Old unit removal
Disposal
Rebate or STC handling
Running cost potential
Warranty terms
Maintenance requirements
Suitability for your household

The lowest product price may not be the lowest total cost.

Common Mistakes When Comparing Hot Water System Prices

Comparing Supply-Only and Installed Prices

A supply-only product price is not the same as a complete installed price.

Choosing the Cheapest Unit Only

A cheaper system may cost more long term if it is undersized, inefficient or unsuitable.

Replacing the Same Size Without Checking Demand

If the old system ran out of hot water, the same size may not be enough.

Ignoring Gas Type

Natural gas and LPG systems are different. Always choose the correct gas model.

Choosing 26L Instant Gas Without Checking the Site

A 26L system needs suitable gas pipe sizing and water pressure.

Choosing Heat Pump Without Checking Location

Heat pumps need clear airflow, condensate drainage, access, electrical suitability and sensible noise placement.

Assuming Rebates Are Guaranteed

Rebates, STCs and incentives can change and may depend on supplier, installer, product and location.

Forgetting About Valves and Drainage

Valve upgrades, overflow points and drainage changes can affect the final cost.

Before Ordering Checklist

Before ordering a hot water system, confirm:

Current system type
Current system size
Whether the old system ran out of hot water
Number of people in the home
Number of bathrooms
Shower habits
Peak hot water demand
Electric, natural gas or LPG availability
Correct gas type where relevant
Electrical requirements
Gas pipe sizing for instant gas
Water pressure
Heat pump airflow and drainage
Outdoor or indoor suitability
Access for delivery and installation
Drainage and overflow requirements
Whether new valves may be needed
Whether old unit removal is included
Whether disposal is included
Whether rebates or STCs may apply
Whether supply-only affects rebate eligibility
Whether supply-only or supplied-and-installed is the right option
Installer confirmation before buying supply only

Frequently Asked Questions

What is the price of a hot water system?

The price of a hot water system depends on the system type, brand, size, energy source, installation requirements and whether you are ordering supply only or choosing an eligible supplied-and-installed option.

What is the cheapest hot water system upfront?

Electric storage is often one of the lower upfront product-cost options, but running costs depend on tariff, household usage and tank size.

Are heat pump hot water systems more expensive?

Heat pumps usually cost more upfront than basic electric storage systems, but they may reduce electricity use in suitable homes with good outdoor airflow, drainage and electrical setup.

Is gas hot water cheaper than electric?

It depends on natural gas or LPG pricing, household usage, system type and installation conditions. Gas can suit homes already set up for gas, while electric or heat pump systems may suit homes without gas.

Does supply-only pricing include installation?

No. Supply-only generally means the product only unless installation is selected or clearly shown. Installation, valves, electrical work, gas work, pipework, drainage, removal, disposal and compliance upgrades are usually separate.

Why do hot water installation costs vary?

Installation costs vary because each property is different. Access, existing valves, electrical supply, gas pipe sizing, drainage, system relocation, old unit removal and compliance upgrades can all affect cost.

Are hot water system rebates available?

Some heat pump and solar-style systems may be eligible for rebates, STCs or incentives depending on product, location and current program rules. Eligibility can change, so check before ordering.

Do supply-only systems qualify for rebates?

Not always. Some rebate pathways require approved suppliers or installers. Confirm eligibility before buying supply only if a rebate is important to your budget.

What size hot water system do I need?

The right size depends on the number of people in the home, bathrooms, shower habits, bath use, peak demand and whether the old system ran out of hot water.

Can I install a hot water system myself?

No. Hot water systems involve plumbing, gas, electrical work, water pressure, valves, drainage and compliance requirements. Use licensed trades where required.

Final Word

The price of a hot water system depends on the system type, size, brand, installation pathway and site requirements. Electric, gas, instant gas, heat pump, instant electric and solar systems all have different upfront costs, running costs and suitability factors.

The best-value system is not always the cheapest one. It is the one that suits your household demand, energy source, installation location and long-term goals. A low product price can become expensive if the system is the wrong size, wrong gas type or unsuitable for the property.

Before ordering supply only through Installed Today, confirm the selected system with your licensed installer. If choosing a supplied-and-installed option in an eligible Brisbane or Gold Coast service area, check exactly what is included before placing the order.

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