When considering upgrading or installing a new hot water system, cost is often one of the greatest factors for homeowners. Whether you are replacing an old hot water system or have never owned one before, knowing what will influence the total cost will help you determine the best system for your home and budget.
This guide will explain which factors influence the total cost of a hot water system in Australia, what the main types of hot water systems are, and some tips to save some dollars on your installation and ongoing hot water costs.
Factors that Impact Hot Water System Costs
Multiple key factors factor into the total hot water system prices of a new hot water system from the type of system you purchase and the complexity of the installation.
Type of Hot Water System
The type of system you are selecting will have the biggest impact on hot water system cost and efficiency.
Electric
Electric Hot Water Systems are the most affordable option in terms of purchasing and installation, which starts at roughly $800 and can go over $1,800. However, the ongoing electricity costs can be higher than other systems.
Gas
Gas Hot Water Systems generally cost between $1,000 and $2,500 to buy. Although the upfront cost is higher than the electric units, they are cheaper to operate over time, especially if your home has a gas connection already.
Solar
Solar Hot Water Systems will have the highest initial cost of anywhere from $3,000 to $7,000 to install, but can save you substantially on your energy costs. They may also qualify for government rebates or incentive programs.
Heat Pump
Heat Pump Water Heaters will range in costs from $2,000 to $4,000 and are the most energy-efficient of all the types of systems available. They use the heat from the surrounding air to warm your water, thereby decreasing the amount of energy used and the costs of your energy use.
Hot water system Installation Cost
The installation costs for your new hot water system can vary due to your home configurations, the system, and the type of system. On average, the installation can vary between $500 – $1,500.
If you are switching from one system type to another (i.e., electric to gas or solar) there may be additional costs incurred to run a gas line and/or installa roof panel for a solar hot water system. It is also important that you utilize a licensed plumber to perform the installation due to safety, warranty, and compliance with Australian standards.
Additional Features and Accessories
Some systems have smart features that include programmable timers, energy savings modes, or advanced safety valves. They can be an added initial cost, and could factor into better efficiencies and savings over the lifetime of a hot water system.
Choosing the Right Hot Water System
Consider Your Hot Water Needs
When thinking about a new hot water system, consider your hot water needs. For example, are you a family of four or more, or do you have an increased demand for hot water in your household? If you answer yes, you will want to consider either a bigger tank or a system with a faster recovery time.
Consider Energy Efficiency
When making your decision, consider the Energy Star-rated system with a higher efficiency. Even though units designed for energy efficiency typically come with a higher price tag upfront, you can save significantly in operational costs over time.
Think About Long-term Value
While solar & heat pump systems have a higher upfront purchase and installation cost when compared to their cheaper counterpart, they will save you many hundreds of dollars from your power bill and over a number of years, they usually pay for their higher purchase cost, The important things it is worth considering if you plan to be in your home for a number of years and that the short term cost disadvantage compared to cheaper system are actually a long term invest.
Environmental Considerations
Are you looking for a more sustainable option? Opt for a solar or heat-polymer system. Solar and heat pump systems take their energy input from renewable sources and can reduce your carbon footprint compared to a standard electric or gas system.
Considerations for Reducing the Cost of Your Hot Water System
Multiple Quotes: Always get several written quotes from licensed plumbers and suppliers. Some quotes may differ because they have either different warranties, different inclusions, or different.
Rebates: You may pay a little more for an energy-efficient system, but you might be able to offset some cost through our country’s rebates and incentives. If you are on the fence, it isn’t surprising that you may be moved to buy it if it costs more.
Regular Maintenance: A hot water system can go a long way in achieving a longer lifespan and will benefit the operational side by having it serviced every couple of years.
Financing: Sometimes, even if a better system costs a little bit more to purchase, it may pay back what little extra you put in upfron,t if you use financing to help. It is a little less financially challenging as well.
Replace Your Hot Water System with OA Plumbing
OA Plumbing specialises in the installation, replacement, and maintenance of hot water systems in homes all over South East Queensland. If it is an electric unit you need, or an energy-efficient heat pump system, or look at a more complete solar system. Our team will give you the best advice for your own situation at home and budget that meets your needs.
Our licensed plumbers will help, and our transparent pricing takes away uncertainty in your costs and work with serviced, with same day servicing available if that suits you, and we can guarantee you will have a legal, safe, high-functioning, and sustainable hot water service that suits your own needs/budget.
Contact OA Plumbing’s Friendly Team Today For A Quote
You can contact OA Plumbing to get a free quote on hot water services today and have very friendly, trusted professionals who work to make your experience as best it can be. With 30 years of experience in working on hot water servicing in Brisbane.
