Price of Hot Water System: Purchase, Installation and Running Cost Guide

Oct 23, 2024

The price of a hot water system is not just the product price on the page. The true cost depends on the type of system, tank size, brand, energy source, installation requirements, running costs, rebates, maintenance and whether you are ordering supply only or choosing an eligible supplied-and-installed option.

Electric storage, gas storage, instant gas, instant electric, heat pump and solar hot water systems all have different upfront costs and long-term cost profiles. A cheaper system upfront may cost more over time if it is inefficient, undersized or unsuitable for the property. A more expensive system may be better value if it suits the home and reduces energy use.

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 Makes Up the Price of a Hot Water System?

The price of a hot water system usually includes three separate cost areas:

Purchase price, which is the cost of the product itself
Installation cost, which depends on labour, valves, electrical work, gas work, pipework, drainage, access and compliance requirements
Running cost, which depends on energy source, household usage, tariff, gas type, efficiency and system size

As a general guide:

Electric storage systems are often one of the lower upfront product-cost options
Gas systems can suit homes already using natural gas or LPG
Instant gas systems are usually priced by flow rate, brand and gas type
Heat pump systems usually cost more upfront than basic 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
Supply-only pricing usually covers the product only
Installed pricing is different from product-only pricing

Before ordering supply only, confirm the selected product, size, gas type, electrical requirements, water pressure, access, valves, drainage and installation suitability with your licensed installer.

Purchase Price vs Total Cost

When comparing hot water systems, it is important to separate product price from total cost.

Product Price

The product price usually refers to the hot water system itself.

It may include:

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

Total Cost

The total cost may also include:

Installation labour
Plumbing work
Gas fitting
Electrical work
New valves
Pipework changes
Drainage changes
Condensate drainage for heat pumps
Old unit removal
Disposal
Compliance upgrades
Slab or base work
Flue kits where required
Rebate or STC handling where applicable

A low product price does not always mean a low final cost. The installation conditions at the property can change the total 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 may suit:

Homes without natural gas or LPG
Existing electric hot water replacements
Rental properties
Simple like-for-like replacements
Small, medium and larger households
Homes already wired for electric storage hot water

Electric hot water pricing is affected by:

Tank size
Brand
Element size
Indoor or outdoor suitability
Product availability
Electrical requirements
Existing valve condition
Drainage and overflow requirements
Access for delivery and installation

Common electric storage categories include:

Popular electric storage options include:

Electric storage can be a practical option, but if the old system was running out of hot water, replacing it with the same size may repeat the problem.

Gas Hot Water System Prices

Gas hot water systems can suit homes already connected to natural gas or using LPG. Gas hot water systems usually fall into two main types:

Gas storage hot water
Instant gas hot water

Gas hot water pricing is affected by:

Natural gas vs LPG
Storage tank size
Instant gas flow rate
Brand
Efficiency rating
Outdoor or internal-flued suitability
Gas pipe sizing
Water pressure
Electrical connection for ignition or controls
Existing valves and pipework
Drainage and overflow requirements

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:

Existing gas storage replacements
Homes already using natural gas or LPG
Households wanting a tank-style system
Properties with suitable outdoor space
Homes where stored hot water suits the usage pattern

Common gas storage categories include:

Popular gas storage options include:

A gas storage replacement can be straightforward where the existing system worked well and the installation remains compliant, but extra costs can apply if valves, drainage, pipework or gas work need upgrading.

Instant Gas Hot Water Prices

Instant gas hot water systems, also called continuous flow gas hot water 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
Existing gas supply
Whether the old system was gas storage or instant gas

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

A 26L instant gas hot water system may suit some higher-demand households, but only where gas pipe sizing and water pressure support the selected 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:

Popular heat pump options include:

A heat pump can be a strong option in the right location, but it needs airflow, drainage, access, electrical suitability and sensible 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, heat pump hot water may be easier to compare because it does not need roof-mounted collectors.

Instant Electric Hot Water Prices

Instant electric hot water systems heat water on demand using electric heating elements. They are usually more relevant for smaller point-of-use applications than full whole-home shower demand.

Instant electric hot water may suit:

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

Instant electric pricing is affected by:

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

A licensed electrician or installer should confirm whether the property can support the selected unit before ordering.

Installation Costs That Can Change the Final 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.

What Is Not Included in Supply-Only Hot Water Pricing?

For supply-only products, the listed price generally covers the product only.

It does not usually include:

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

Always check the product page and confirm full site requirements with your licensed installer before ordering supply only.

Supply-Only vs Supplied-and-Installed

Installed Today offers supply-only ordering across major Australian metro areas. This can suit customers who already have a licensed installer organised and want to order the product 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

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 the product is eligible
Whether your address 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 product or every location has an installed option.

Running Costs and Long-Term Value

The price of a hot water system is not just the upfront cost. 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 lower upfront electric storage system may suit a simple replacement, but a heat pump may be worth comparing where electricity use matters and the home has suitable outdoor space.

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.

Reducing Hot Water Running Costs

Depending on the system and home, running costs may be reduced by:

Choosing the right system size
Avoiding unnecessary oversizing
Fixing leaking hot taps
Using efficient shower heads where suitable
Checking tariff options for electric storage
Timing heat pump operation around rooftop solar where practical
Keeping heat pump airflow clear
Maintaining valves and components
Following manufacturer servicing guidance
Reducing long pipe runs where possible during installation
Replacing an undersized or failing system before it creates ongoing problems

The best way to reduce cost is to choose a system that suits the household from the start.

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 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.

Energy Efficiency and Price

Energy-efficient systems can cost more upfront, but they may reduce running costs where the property and usage pattern suit the technology.

Examples include:

Heat pump hot water for suitable outdoor locations
Solar hot water where roof conditions are suitable
Instant gas where natural gas or LPG supply, gas pipe sizing and water pressure support the unit
Correctly sized electric storage on a suitable tariff where available

Energy efficiency should be compared with installation cost, maintenance, household demand and product suitability.

Household Size and Hot Water Price

Household size affects system size and cost.

Small Households

Small households may compare:

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

Medium Households

Medium households may compare:

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

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 best system is the one that matches the household and 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 hot water 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 any 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.

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, gas type, 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 price often depends on the existing unit, 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, avoid comparing 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
Condensate 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 Costs

Comparing Supply-Only and Installed Prices

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

Choosing the Cheapest System Only

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

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 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 product, location, supplier and installer pathway.

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 included in the price of a hot water system?

It depends on whether you are comparing product-only pricing or installed pricing. Supply-only pricing usually covers the product only, while installed pricing may include selected labour and parts depending on the product and installation pathway.

What affects the total cost of a hot water system?

The total cost can be affected by system type, tank size, brand, energy source, installation access, valves, electrical work, gas work, drainage, old unit removal, disposal and compliance upgrades.

Is electric hot water cheaper than gas hot water?

Electric storage is often one of the lower upfront product-cost options, but running costs depend on tariff, household usage and system size. Gas can suit homes already set up for natural gas or LPG.

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 where the home has suitable outdoor space, airflow, drainage and electrical setup.

Is solar hot water cheaper in the long run?

Solar hot water can reduce grid energy use where roof conditions suit, but upfront cost, booster setup, roof access, maintenance and installation complexity need to be considered.

Does supply-only pricing include installation?

No. Supply-only generally means 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 installation costs vary so much?

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 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.

What size hot water system do I need?

The right size depends on people in the home, bathrooms, shower habits, bath use, peak demand and whether the old system ran out. Common options include 250L, 315L and 400L electric storage, 200L–280L heat pumps and 16L to 26L instant gas systems.

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 includes more than the product itself. Purchase price, installation work, energy use, rebates, maintenance and long-term suitability all matter.

Electric storage can suit simple replacements. Gas hot water can suit homes already using natural gas or LPG. Instant gas can suit continuous flow demand where gas pipe sizing and water pressure support the unit. Heat pump hot water can suit energy-focused homes with suitable outdoor space. Solar hot water can suit homes with suitable roof conditions.

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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