How Much Does a Solar Hot Water System Cost? | Complete Price Guide [2025]

How Much Does a Solar Hot Water System Cost?

Average Cost of Solar Hot Water System: $4,000 to $7,000

The average cost of a solar hot water system ranges from $4,000 to $7,000, including installation. Factors like system size, type, and installation complexity can influence the final price.

How Much Does a Solar Hot Water System Cost?
23 Sep, 2024 / Hot Water System Services / Written by ServiceTasker Team / 686 Views / Last Updated 19 Jun, 2025




Save Money and Energy: Find the True Cost of Solar Hot Water Systems


How Much Does a Solar Hot Water System Cost? Solar hot water systems have become a top choice for Australian households, driven by the rising demand for sustainable living and the desire to cut down on utility bills. With government incentives and rebates readily available, investing in this eco-friendly technology is now more accessible than ever.


Choosing a solar hot water system is a smart step towards energy independence and a greener lifestyle. This system not only reduces your carbon footprint but also offers significant long-term savings on electricity or gas expenses. The initial cost of installing a solar hot water system may vary, but the benefits it delivers make it a worthwhile investment.


Curious about the factors influencing the cost? From system size to installation complexity, understanding these aspects is key to making the right decision. Explore this guide to get a comprehensive overview of solar hot water system costs and learn how to maximize savings with this renewable energy solution.




Comparing Hot Water System Running Costs Based on Household Size


Here's a breakdown of hot water system costs based on the number of people in your household:


Hot Water System Running Costs For 1 Person:


Electric Systems: Approximately $525 per year


Electric-Boosted Solar Systems: About $125 per year


Hot Water System Running Costs For 2 People:


Electric Systems: Around $795 per year


Off-Peak Electric Systems: $595 per year


Electric-Boosted Solar Systems: Roughly $230 per year


Hot Water System Running Costs For 3 People:


Electric Systems: About $970 per year


LPG Gas Systems: Approximately $970 per year


Electric-Boosted Solar Systems: Approximately $230 per year


Hot Water System Running Costs For 4 People:


Electric Systems: $795 per year


Off-Peak Electric Systems: $595 per year


LPG Gas Systems: Approximately $970 per year


Heat Pump Systems: About $250 per year


Electric-Boosted Solar Systems: Around $345 per year




Solar Hot Water System Installation Cost in Australia


Depending on what type and size of system you select, the cost of a solar hot water system installation can vary in Australia. The majority of providers will provide quotes that already account for Small-scale Technology Certificate (STC) deductions, which are government-issued incentives designed to promote the use of renewable energy. The average solar hot water system installation cost ranges from $4000 to $7000 but the government incentives can reduce your total cost. 


After the STC value is deducted, the following are some ballpark costs for various solar hot water system types:


Cost For Rooftop Hot Water Systems


$2,350 for a 181-litre system


$2,800 for a frost-protected 181-litre system


$3,575 for a 300-litre system


Cost For Hot Water Split Systems


$2,625 for a 270-litre capacity system


$4,300 for a 410-litre capacity system


Gas-Boosted System (for cool climates): $5,125


Heat Pump Systems: Generally range from $3,000 to $4,000


While STC values can vary, on average, you can save anywhere from $500 for smaller systems to $1,000 for bigger systems. Most providers include these discounts in their quoted rates.




Types of Solar Hot Water System Available


Rooftop Systems: These systems, which range in capacity from 181 litres to 300 litres, are mounted on the roof. Some rooftop systems are perfect for colder areas since they are frost-protected by design.


Split Systems: There are split system components installed at the ground level as well as on the roof. They come in a range of capacities to meet varying hot water needs and household sizes.


Gas-Boosted System: With the help of a gas booster, this cooler-climate-adapted technology makes sure that hot water is always available.


Heat Pump Systems: Heat pump systems are efficient even in the winter when they extract solar heat from the air rather than from the sun. They utilize approximately 75% less energy than traditional electric water heaters by transferring this heat into your water through the use of electricity.




Factors Affecting Solar Hot Water System Cost


System Type and Size: The size (capacity) and type of solar hot water system (rooftop, split, or heat pump) that you select will have a significant impact on the final cost. More complicated designs or larger systems could have higher upfront costs.


Quality and Brand: Reputable brands' higher-quality systems may cost more upfront, but they may save you money in the long run because of their improved longevity, efficiency, and dependability.


Government Incentives and Rebates: The cost of installing a solar hot water system can be remarkably decreased when government incentives are available. Depending on the system type and region, these incentives fluctuate.


Installation Needs: Installation costs may fluctuate depending on the level of intricacy (such as roof type, accessibility, and plumbing requirements). More complex installations could require more labour and materials.


Location and Climate: Some system types may be more beneficial in those areas that have more sunlight than others, which might affect total cost and performance. The location and climate have a big impact on the solar hot water system.




Australian Government STCs for Renewable Energy Systems


The Australian government offered Small-scale Technology Certificates (STCs) to encourage the use of renewable energy sources and household sustainability.


Eligible Systems:



  • Solar voltaic panels (for electricity)



  • Wind turbines



  • Hydro systems



  • Solar water heaters



  • Heat pumps




STC Eligibility Criteria:



  • Register your system on the Solar Water Heater Register.



  • Make sure it adheres to New Zealand and Australian safety standards.



  • Use a certified installer from the Clean Energy Council.



  • Install within a year from the date of certificate creation.



  • STCs are intended for small-scale residential systems; larger-scale programs are offered for commercial installations and companies.






Conclusion


By understanding the cost of a solar hot water system, you can select the right type and size to suit your needs and budget. Hiring a Hot Water Professional Plumber ensures a hassle-free experience, as they are well-versed in every aspect of solar hot water systems. Investing in a solar hot water system for your Australian home is a smart choice that offers long-term savings, energy efficiency, and a step toward sustainable living.




Costs of various services and materials in this cost guide should be taken as estimates. These depend on location, preference and demands in the market.

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